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Community and mutual ownership: What is its relevance for society today? Community and mutual ownership: Vibrant Voices Past Stephen Thake, JRF Programme Advisor Toronto G20 meeting • • • • • Breakdown of consensus European retrenchment Chinese obduracy Washington paralysis Double-dip recession Relevance to today • • • • • Crisis with a long lead time Communities take the strain Structural shifts in global economy Birth of a new community sector Community ownership of assets IoE History Project • • • • • • 2,000+ year history of appropriation Early History to 1050AD Feudal to 1450 Early Modern to 1750 Industrial Capital to 1945 Post WWII to 2010 Models and legacies • • • • • Common and customary Community Co-operative and mutual Charities Municipal and state Commons and customary • • • • • • Celtic culture Roman erosion Angles, Saxons and Normans 16th – 18th century enclosures Conflation of state and common good Living legacy Community • • • • • • Early origins Defended and promoted in Feudal times Ever present since Diggers and levelers 19th century model communities 20th and 21st century initiatives Co-operative and mutual • • • • • • • Alternative model of wealth creation Response to growth of industrial capital Penetrated every corner of society Capable of scalability Marginalised in 20th century Major legacy New shoots Charities • • • • • • Charity as an early Christian tradition Institutionalised under Elizabeth I 19th century expansion Marginalised in 20th century Professionalised over last 30 years Continues to as a powerful force State and municipal • • • • • • Dominant strand for organised labour Role of state post-WWII Struggled to relate to rapid change Poor managers of assets Rationalisation of public portfolios Call for community ownership Voices from history • • • • Continuing turmoil Scope for community and mutual action Systemic and continuous investment Template of purpose, values and ethos Big Agenda for Big Society • • • • • Part of our DNA Role of the community in times of stress Hidden histories of discrimination State has not promoted or protected Control of assets and access to resources • Bill of Rights built into legislation Community and mutual ownership: What is its relevance for society today? Community and Mutual Ownership ‘Social innovation in organisational forms’ Tom Shakespeare 8th July, 2010 Overview 1. The current and future challenges for the public sector 2. Current thinking on how to deliver better services at lower cost 3. The value of community and mutual ownership 4. Implications for governance and political arrangements 5. Social innovation, the state and the ‘Big Society’ 6. The challenges to overcome About Localis •Think tank for local government and localism •Facilitate a network of members including councils from all parties •Aim to stimulate and challenge the current orthodoxy of the governance of the UK •To argue for greater decentralisation of power from central to local government •Tom Shakespeare, Director of Policy and Research The challenge for the public sector over the next few years is enormous… • The need for public sector spending cuts • Low and falling levels of public sector productivity • Plateauing of public service performance • Low public perceptions of many political institutions • All of these make the need for reform a political reality • Collapse of trust in institutions generally • Inequality still high Therefore, somehow we need to deliver genuinely better services at much lower cost… But the current approach has had it’s day... • All of these make the need for reform a political reality • Measured improvements in local government at the same time as decreased satisfaction • Services are not designed around the needs of customers, residents or citizens There are a number of ways that local areas are thinking about better services at lower cost… • Total Capital • Joined Services • Strategic Commissioning • Personalisation • All of these make the need for reform a political reality • City Regions (and historic counties) • Financial innovation, charging, bonds etc • Early intervention • ‘Big Society’ But where does community ownership fit in? Community ownership solves a number of problems... • Customer satisfaction and trust – Direct ownership • Public sector productivity – ‘John Lewis Model’ • Performance Improvements – Driven by more demand led, customer driven services But what about other key areas? 1. 2. 3. 4. Public sector costs and efficiency Delivery at the right spatial scale Accountability Early intervention, innovation and tackling inequality Community Ownership and the State 1.Community ownership, public sector cost and efficiency •Privatisation vs public ownership - Outsourcing, in house, co-operatives – is this as relevant? •Economies of scale vs efficiency of localisation - Total Place, Gershon, personalisation –what is the right spatial scale for different services? •Targets vs general competence - CAA, targets, power of general competence, local oversight – where does accountability lie? These all pose questions about the role and structure of the state... Community Ownership and the State (cont.) 2.Community ownership and the right spatial scale •Local community vs council and private sector – ‘human services’, ‘non-human services’ – is everything right for community ownership? •Porous boundaries vs stricter boundaries – MAAs, sub regional working, etc – what encourages more collaboration at the right level? •Parish Councils vs county/unitary – closer connection, rural/urban issues, responsiveness – what are the right democratic structures to represent the ‘community’? Accountability is a key consideration for models of community ownership... Community Ownership and the State (cont.) 3.Community ownership and accountability •Vertical accountability vs local autonomy – Confusion, duplication – How can we clearly delineate roles without creating confusion over responsibility and accountability? •Commissioning Council vs Council provider – Potential for more community ownership with commissioning? •Passing powers up vs passing powers down – France, Basque region, importance of finance – What is the right relationship between the central/local state? All of these structural questions are important because they allow the potential to do things radically differently... Community Ownership and the State (cont.) 4.Community ownership, early intervention, social innovation and tackling inequality The Challenge: •Need to move to a more preventative state •Challenge is that many people have multi-dimensional, complex needs – the state has no real response to this •The result is that inequality is not reduced and social problems are exacerbated •This requires truly joined up services to capture the benefits back into the public sector over time (structural importance), but it also requires funds that the state simply does not have... Community Ownership and the State (cont.) 4.Community ownership, early intervention, social innovation and tackling inequality The Solution?: 1. Pass ownership of costly assets to the community – who can run them more efficiently 2. Find financial products which can capture the benefits of early intervention and prevention 3. Provide an environment for community enterprises to grow and thrive – support, advice etc – then other services could potentially be outsourced or commissioned by government The ‘Big Society’ - A summary •We have a system which is too centralised and dominated by state and private monopolies •We need a more flexible, open and adaptable state that can allow popular capitalism and community ownership to thrive •Building a better system from the bottom-up will require the central state to relinquish power and for there to be sufficient capacity for new forms of community and local enterprises to take it’s place Despite positive steps, there are still a number of challenges going forward... The Challenge for the future •Creating the right environment for mutual and community ownership •A cultural shift towards demand-led services rather than meeting central targets •Moving towards porous boundaries between different parts of public service delivery locally •Capitalising on existing opportunities for reform •Pooled budgets require a different model for local government, which may face some resistance •Real local power requires autonomous control over finances Conclusion •There have been some positive noises from the government, and some steps in the right direction •But true social innovation will require a radical transformation in the way the state is structured •Community and mutual ownership offers solutions to at least some of the challenges we face •Local and central government must recognise the role of such organisations and create an environment for them to succeed Thank You For more information, please visit www.localis.org.uk Community and mutual ownership: What is its relevance for society today? Co-operative & mutual housing Meeting future housing needs JRF conference 8th July 2010 Bringing Democracy Home • CCMH set up in 2008 • independent body • evidence gathering – call for evidence, hearings, research • report launch Nov 2009 by then Housing Minister John Healey Bringing Democracy Home “The overwhelming weight of the evidence that has been presented to us has led us to the clear conclusion that the UK needs to bring co-operative and mutual housing options into our national housing policies” Key conclusions • co-operative and mutual housing has the potential to respond to the needs and aspirations of ordinary people in an uncertain housing environment Key conclusions • • • • above average levels of satisfaction as good as, if not better, performance wider individual & community benefits the benefits derive from community ownership/membership Key conclusions • it’s a tiny sector in the UK - 0.6% of UK housing supply • 18% in Sweden; 15% in Norway; 8% in Austria; 6% in Germany Key conclusions The coming together of: • sympathetic national & local Government • support frameworks • grass roots community development Co-operative & mutual housing • housing co-ops – small & community • tenant management – community control • community gateway – a model of best practice in large housing associations • community land trusts – rural housing • cohousing & mutual retirement housing • adapting to suit needs and circumstances Challenges • • • • historical perceptions governance & support frameworks Britain’s best kept secret making it happen Making it happen • • • • • volume development & multi-tenure CCMH finance group local authority pathfinders housing association partners developing grass roots community Making it happen “We call for an aim to be set that by 2030, each town, village and community should be able to offer co-operative and mutual housing options to potential residents” Co-operative & mutual housing Meeting future housing needs JRF conference 8th July 2010 Community and mutual ownership: What is its relevance for society today?