Why local economy is important?

“Without prosperous local economies, the people have no power and the land has no voice.“

— Wendell Berry

The praxis of this economic model impacts the environment and societies at multiple levels. In this article, we aim to discuss some of them.

The Environmental Aspect

Large enterprises benefit from fast and cheap production to offer low pricing (normally at the costs of quality) to the public. This mass production has negative implications for the environment. Aside from air pollution derived from factories, and uncontrolled exploitation of natural resources, these big corporations are responsible for the emission of large amounts of greenhouse gases into the atmosphere.

On the other hand, locally sourced products are often grown in more natural and sustainable environments, with smaller ecological footprints, and with ethical and animal welfare practices. By buying local, consumers can also be sure of the quality of the product, as these may be fresher and better regulated than imported foods. These foods are also often safer, with less risk of contamination from pesticides, growth hormones, and other chemical products.

The current global economy model is based on economic long-distance transportation of goods to ensure the minimum costs along the supply chain, to the highest sale point. Take as an example Italian almonds. These are produced in several regions of the country. However, the average almonds consumed at the supermarket are not locally produced, but exported from Middle East countries while the Italian almonds are exported to other markets where they are sold at higher prices. Just transportation results in a considerable usage of energy, and greenhouse gases emissions.

The Socioeconomic Aspect

As big corporations chase more and more efficient production chains, employees are constantly replaced with cheaper workers or machines. In some cases, workers do not only sacrifice decent wages but their own health. One example is byssinosis, the lung disease developed by textile workers in manufacturing cotton factories.

An important point to highlight is the benefit of local business in employment. These companies tend to hire local talent, which reduces unemployment and boosts the regional economy. When workers are hired and kept within the geographical area, local governments and financial systems profit, since employees pay taxes and invest their money within the region.

Buying locally also reinforces the local identity of a community, by preserving traditional practices and contributing to the preservation of native cultures and environments. Local markets, for instance, often serve as social hubs for neighbourhoods, as well as offering a space for education and exchange of ideas and opinions. In conclusion, with more people realising the importance of buying local products, it can be expected that local economies will benefit from increased spending and employment opportunities.

Local businesses are better able to adapt to changes in the market, and are more likely to be responsive to their customers’ needs. One way to support local businesses and, in turn, the local community, is to prioritise the purchase of locally produced goods and services, as this has far-reaching impacts on the community and its people.

Conclusion

For some years now, the population has started to put into practice the concept of local economy, mostly for food products. However, in CLOSET we believe there is enormous potential for local brands in the fashion sector that are yet to be discovered. By giving visibility to these businesses and ensuring a reliable and transparent trading channel, CLOSET aims to provide a platform where consumers and local stores can get in contact in a safe way.

References

• Berry, W. (2001). The Idea of a Local Economy. Orion, 20(1), 28-37. Highly recommended reading!
• Einiö, E., & Overman, H. G. (2020). The effects of supporting local business: Evidence from the UK. Regional Science and Urban Economics, 83, 103500. https://doi.org/10.1016/j.regsciurbeco.2019.103500
• Lai, P. S., & Christiani, D. C. (2013). Long-term respiratory health effects in textile workers. Current Opinion in Pulmonary Medicine, 19(2), 152–157. https://doi.org/10.1097/mcp.0b013e32835cee9a
• Panagiotopoulou, V.C., Stavropoulos, P. & Chryssolouris, G. A critical review on the environmental impact of manufacturing: a holistic perspective. Int J Adv Manuf Technol, 118, 603–625 (2022). https://doi.org/10.1007/s00170-021-07980-w