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| coec:commons_economy [2025/12/04 15:19] – dave | coec:commons_economy [2025/12/17 04:30] (current) – external edit 127.0.0.1 |
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| <caption> | <caption> |
| _Elinor Ostrom, whose work made it clear that commoning is not about a ‘free-for-all’, but responsible governance of resources. Image: [Holger Motzkau](https://commons.wikimedia.org/wiki/User:Prolineserver), [CC-by-SA-3.0](https://creativecommons.org/licenses/by-sa/3.0/)._ | _Elinor Ostrom, whose work made it clear that commoning is not about a ‘free-for-all’, but responsible governance of resources. Image: [Holger Motzkau](https://commons.wikimedia.org/wiki/User:Prolineserver), [CC-by-SA-3.0](https://creativecommons.org/licenses/by-sa/3.0/)._ |
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| </caption> | </caption> |
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| There are new tools and ideas that allow us to: | There are new tools and ideas that allow us to: |
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| 1. **bring assets into the commons without debt:** by issuing [vouchers](http://lowimpactorg.onyx-sites.io/categories/use-credit-obligations) sold at a discount. Imagine an energy group wanting to put up a wind turbine. At the moment, they’d need to go into debt or give away equity, which means the infrastructure will be in the hands of capitalists before long (like many co-ops and building societies). Instead, they issue energy vouchers, denominated in kWh, not £ (which makes them inflation-proof). People will want them because they’re sold at a discount, and they provide a store of value – interest-free security for old age or sickness. This basic idea can work in every sector of the economy, and vouchers could form the basis of a pension, based in communities and separate from the finance system. | 1. **bring assets into the commons without debt:** by issuing [vouchers](/ucos/Use-credit_obligations) sold at a discount. Imagine an energy group wanting to put up a wind turbine. At the moment, they’d need to go into debt or give away equity, which means the infrastructure will be in the hands of capitalists before long (like many co-ops and building societies). Instead, they issue energy vouchers, denominated in kWh, not £ (which makes them inflation-proof). People will want them because they’re sold at a discount, and they provide a store of value – interest-free security for old age or sickness. This basic idea can work in every sector of the economy, and vouchers could form the basis of a pension, based in communities and separate from the finance system. |
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| 3. **provide strong asset locks:** to prevent appropriation of commons assets. Commons groups have different member types: users / customers, investors, stewards (employees), but also a ‘custodian’ member class (a bit like trusted 'village elders'), who have a veto vote to make sure that commons principles are not violated. | 3. **provide strong asset locks:** to prevent appropriation of commons assets. Commons groups have different member types: users / customers, investors, stewards (employees), but also a ‘custodian’ member class (a bit like trusted 'village elders'), who have a veto vote to make sure that commons principles are not violated. |
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| 5. **reduce the need for money, banks and interest:** by ‘[credit clearing](http://lowimpactorg.onyx-sites.io/categories/credit-clearing)’. It’s something the banks do, to reduce the need for cash to pay debts. But we can do it too. Imagine A owes B £10; B owes C £10; C owes A £10. If everyone has all the information, it can just clear, without needing money to pay debts. For networks of trading small businesses, this can be done with algorithms, covering large areas. | 5. **reduce the need for money, banks and interest:** by ‘[credit clearing](/crcl/credit_clearing)’. It’s something the banks do, to reduce the need for cash to pay debts. But we can do it too. Imagine A owes B £10; B owes C £10; C owes A £10. If everyone has all the information, it can just clear, without needing money to pay debts. For networks of trading small businesses, this can be done with algorithms, covering large areas. |
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| 7. **remove the need for money entirely within trading networks:** within those large areas, smaller clusters of businesses will trade with each other regularly. They can share a ‘[mutual credit](http://lowimpactorg.onyx-sites.io/categories/mutual-credit)’ ledger in which members get an account (with numbers, but not money), set at zero. When they sell, their numbers go up. When they buy, they go down. There are limits to how far anyone can go into credit or debit. It’s just an accounting system, for who’s done what for whom – no money required, so nothing to extract from communities. | 7. **remove the need for money entirely within trading networks:** within those large areas, smaller clusters of businesses will trade with each other regularly. They can share a ‘[mutual credit](/mucr/mutual_credit)’ ledger in which members get an account (with numbers, but not money), set at zero. When they sell, their numbers go up. When they buy, they go down. There are limits to how far anyone can go into credit or debit. It’s just an accounting system, for who’s done what for whom – no money required, so nothing to extract from communities. |
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| 9. **federate to form the basis of a new, commons economy:** all commons projects can be connected together via the ‘[Credit Commons Protocol](http://lowimpactorg.onyx-sites.io/categories/economy/credit-commons/)’ – a ‘language’ that they can all speak that allows them to trade between each other – but in a federation, with no centre. Each local group retains full autonomy. Everything is interoperable – so people could eventually pay for their housing, energy, care, shopping, and receive wages etc. in mutual credit. | 9. **federate to form the basis of a new, commons economy:** all commons projects can be connected together via the ‘[Credit Commons Protocol](/crco/credit_commons)’ – a ‘language’ that they can all speak that allows them to trade between each other – but in a federation, with no centre. Each local group retains full autonomy. Everything is interoperable – so people could eventually pay for their housing, energy, care, shopping, and receive wages etc. in mutual credit. |
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| <WRAP center centeralign> | <WRAP center centeralign> |
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| <caption> | <caption> |
| In a commons economy, mutual credit is a tool for accounting for exchange, but it doesn’t provide a store of value. Future-use vouchers (a.k.a. ‘use-credit obligations’) can be used to save / store value / provide non-monetary pensions. | _In a commons economy, mutual credit is a tool for accounting for exchange, but it doesn’t provide a store of value. Future-use vouchers (a.k.a. ‘use-credit obligations’) can be used to save / store value / provide non-monetary pensions._ |
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| </caption> | </caption> |
| [Local Loop Merseyside](https://localloop-merseyside.co.uk/) - building a city-wide credit clearing network in Liverpool that can be replicated in other cities. | [Local Loop Merseyside](https://localloop-merseyside.co.uk/) - building a city-wide credit clearing network in Liverpool that can be replicated in other cities. |
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| [Island Power](https://www.island-power.net/) are using the voucher concept to build renewable energy infrastructure for Pacific islands – but it’s also the basic idea behind air miles and [community-supported agriculture](http://lowimpactorg.onyx-sites.io/categories/food/community-supported-agriculture/). | [Island Power](https://www.island-power.net/) are using the voucher concept to build renewable energy infrastructure for Pacific islands – but it’s also the basic idea behind air miles and [community-supported agriculture](/comy/community). |
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| [Mutual Credit Services](https://www.mutualcredit.services/) are designing and building commons models for all sectors of the economy. | [Mutual Credit Services](https://www.mutualcredit.services/) are designing and building commons models for all sectors of the economy. |
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| <caption> | <caption> |
| Stroud Commons: inaugural event. | _Stroud Commons: inaugural event._ |
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| </caption> | </caption> |
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| <caption> | <caption> |
| An economy based on credit clearing, mutual credit and commons ownership would insulate local economies from wider financial downturns. | _An economy based on credit clearing, mutual credit and commons ownership would insulate local economies from wider financial downturns._ |
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| </caption> | </caption> |
| People in communities (e.g. in Switzerland, Japan, Spain and the Philippines) where there are commons for irrigation, pasture, woodlands etc. have for centuries organised themselves to set and monitor rules, and sanction those breaking them. This has developed excellent organisational skills for community cohesion in times of shortage or hardship. | People in communities (e.g. in Switzerland, Japan, Spain and the Philippines) where there are commons for irrigation, pasture, woodlands etc. have for centuries organised themselves to set and monitor rules, and sanction those breaking them. This has developed excellent organisational skills for community cohesion in times of shortage or hardship. |
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| An economy based on credit clearing, mutual credit and commons ownership would insulate local economies from wider financial downturns. | _An economy based on credit clearing, mutual credit and commons ownership would insulate local economies from wider financial downturns._ |
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| Communities are strengthened and become safer, friendlier and more fun, and towns retain their character and uniqueness. | Communities are strengthened and become safer, friendlier and more fun, and towns retain their character and uniqueness. |
| ### Environment | ### Environment |
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| Unlike capitalism, a commons economy has short supply chains and no '[growth imperative](http://lowimpactorg.onyx-sites.io/categories/economy/steady-state-economics/)' and therefore might just be able to provide the things we need without completely destroying the biosphere (again, unlike capitalism). Decisions can be made to protect nature, that the profit motive overrules in corporations. | Unlike capitalism, a commons economy has short supply chains and no '[growth imperative](/stea/steady-state_economics)' and therefore might just be able to provide the things we need without completely destroying the biosphere (again, unlike capitalism). Decisions can be made to protect nature, that the profit motive overrules in corporations. |
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| <WRAP center centeralign> | <WRAP center centeralign> |
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| <caption> | <caption> |
| The commons economy generates more (and more meaningful) jobs, managing schemes and maintaining properties / infrastructure. | _The commons economy generates more (and more meaningful) jobs, managing schemes and maintaining properties / infrastructure._ |
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| </caption> | </caption> |
| </figure> | </figure> |
| </WRAP> | </WRAP> |
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| ## What can I do? | ## What can I do? |
| Help the commons by not giving your money to corporations where possible - by self-provisioning ([see our range of topics](http://lowimpactorg.onyx-sites.io/categories/)), and using non-corporate tools and institutions for the things you need, such as: | Help the commons by not giving your money to corporations where possible - by self-provisioning ([see our range of topics](http://lowimpactorg.onyx-sites.io/categories/)), and using non-corporate tools and institutions for the things you need, such as: |
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| - [co-ops](http://lowimpactorg.onyx-sites.io/categories/economy/co-operatives/) (including [housing](http://lowimpactorg.onyx-sites.io/categories/economy/housing-co-operatives/) and [platform co-ops](http://lowimpactorg.onyx-sites.io/categories/economy/platform-co-ops/)) | - [co-ops](/coop/co-operatives) (including [housing](/coop/co-operatives) and [platform co-ops](/pltc/platform_co-ops)) |
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| - [free/open source software](http://lowimpactorg.onyx-sites.io/categories/economy/free-open-source/) | - [free/open source software](/foss/open_source) |
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| - [building societies](http://lowimpactorg.onyx-sites.io/categories/economy/building-societies/) or [credit unions](http://lowimpactorg.onyx-sites.io/categories/economy/credit-unions/) | - [building societies](/bsoc/building_societies) or [credit unions](/crun/credit_unions) |
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| - [community energy](http://lowimpactorg.onyx-sites.io/categories/economy/community-energy/) | - [community energy](/comy/community) |
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| - [community-supported agriculture](http://lowimpactorg.onyx-sites.io/categories/economy/community-supported-agriculture/) | - [community-supported agriculture](/comy/community) |
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| - [community land trusts](http://lowimpactorg.onyx-sites.io/categories/economy/community-land-trusts/) or [cohousing](http://lowimpactorg.onyx-sites.io/categories/economy/cohousing/) | - [community land trusts](/comy/community) or [cohousing](/coho/cohousing) |
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| - [independent media](http://lowimpactorg.onyx-sites.io/categories/economy/independent-media/) | - [independent media](/indy/independent_media) |
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| - [local shops](http://lowimpactorg.onyx-sites.io/categories/economy/low-impact-shopping/), [farmers' markets](http://lowimpactorg.onyx-sites.io/categories/food/farmers-markets/) and [veg box schemes](http://lowimpactorg.onyx-sites.io/categories/economy/veg-box-schemes/) | - [local shops](/lish/shopping), [farmers' markets](/farm/farmers_markets) and [veg box schemes](/vegb/veg_box_schemes) |
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| Subscribe to our newsletter for commons news; comment on the blog, or [send us an article](http://lowimpactorg.onyx-sites.io/blog-article-social-media-policy/); and of course, please share this page with anyone you think might be interested. We’d like to invite everyone to be a commoner! | Subscribe to our newsletter for commons news; comment on the blog, or [send us an article](http://lowimpactorg.onyx-sites.io/blog-article-social-media-policy/); and of course, please share this page with anyone you think might be interested. We’d like to invite everyone to be a commoner! |
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| ## Further resources | ## Further resources |
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| - Elinor Ostrom's [_Governing the Commons_](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf) (pdf) | - Elinor Ostrom's _[Governing the Commons](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf)_ (pdf) |
| | - Here’s more about [‘commoning’](/comg/commoning), [housing commons](/hoco/Housing_commons), [energy commons](http://lowimpactorg.onyx-sites.io/posts/how-to-build-an-energy-commons), [climbing commons](http://climbingcommons.org/), [friendly societies](http://lowimpactorg.onyx-sites.io/posts/bear-ye-one-anothers-burdens-friendly-societies-for-social-welfare) (social care commons) and [here’s a longer article](http://lowimpactorg.onyx-sites.io/posts/replacing-capitalism-the-why-what-how-and-who-of-growing-the-commons-economy) about the why, what, how and who of the commons economy. |
| - Here’s more about [‘commoning’](http://lowimpactorg.onyx-sites.io/categories/commoning), [housing commons](http://lowimpactorg.onyx-sites.io/categories/housing-commons), [energy commons](http://lowimpactorg.onyx-sites.io/posts/how-to-build-an-energy-commons), [climbing commons](http://climbingcommons.org/), [friendly societies](http://lowimpactorg.onyx-sites.io/posts/bear-ye-one-anothers-burdens-friendly-societies-for-social-welfare) (social care commons) and [here’s a longer article](http://lowimpactorg.onyx-sites.io/posts/replacing-capitalism-the-why-what-how-and-who-of-growing-the-commons-economy) about the why, what, how and who of the commons economy. | - [Credit commons](/crco/credit_commons): the 'money system' for the commons economy |
| | - [Island Power](https://www.island-power.net/) - smart accelerator for energy commons |
| - [Credit commons](http://lowimpactorg.onyx-sites.io/categories/economy/credit-commons/): the 'money system' for the commons economy | - [Mutual Credit Services](https://www.mutualcredit.services/home) - building commons models for different economic sectors |
| | - [https://stroudcommons.org/](https://stroudcommons.org/) - implementing commons models in Stroud |
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| ## Specialist(s) | |
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| Dil Green was an architect and builder for 30 years, working on projects from an extension to London’s Science Museum to an award-wining eco-surgery. He now works away at systemic leverage points around [Governance](https://docs.google.com/document/d/1Rn54TgAXbOa0aaijb7knQCfQiQxA12LfoEhNOlalW4A/edit?usp=sharing), Wisdom: [Pattern Language](http://PatternLanguage.Institute), and Economy: [](https://opencredit.network/)[Mutual Credit Services](https://mutualcredit.services/). He lives in Brixton, and blogs at [digital-anthropology](https://digital-anthropology.me/). | |
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| | ## Specialist curators of this topic |
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