Procurement Can Be a Powerful Tool for Local Economies, but Takes More Than a Policy Change to Work

Originally Posted at the Institute of Local Self-Reliance

At least 45 states, plus the District of Columbia, have procurement policies designed to give a preference to businesses that meet certain characteristics, such as those that are owned by veterans, pay certain wages, use environmentally sustainable practices, or manufacture within the state. Of these, about half have adopted an explicit preference for businesses that are small and/or local. These policies vary considerably. Some apply only in narrow circumstances; others are broader. In addition, more than thirty states have policies aimed at steering purchasing to minority- and women-owned businesses. Looking beyond state governments, large numbers of counties, cities, and towns have procurement policies of their own.

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Procurement Can Be a Powerful Tool for Local Economies, but Takes More Than a Policy Change to Work

Climate Appropriate Economy Policies

The Keene Cities for Climate Protection Committee is focusing on identifying policies that will increase the vitality and competitiveness of local business and support environmentally sustainable businesses and our economy (part of Keene’s Climate Adaptation Plan).

The information below is simply a gathering of information.  The committee is not recommending the adoption of any specific policies right now — we are still in the research phase of this effort.

We categorized potential policies under the following goals:

Read more about the policies specific to each goal by clicking the respective links above.  Please let us know if we’re missing any goals and/or policies.

Broadband Policy: Supporting Access to the Information Economy

The policies below were gathered from the Institute for Local Self-Reliance (ILSR):

GOAL: Support Access to the Information Economy

  • Fiber Optic Line Extension policy
  • Public owned fiber network
  • City wide network
  • Fiber Optic Network ordinance
  • Cooperatively owned network

More information and examples:

Energy Policy: Democratizing Energy Systems

The policies below were gathered from the Institute for Local Self-Reliance (ILSR):

GOAL:  Democratize Energy Systems

  • CLEAN Programs (Feed-In Tarriffs)
  • Community Choice Aggregation (Community Purchasing Pools)
  • Plan for distributed energy generation (Energy Overlay Zones)
  • Support ethanol and biodiesel production on a local scale
  • Community based energy development

More information:

Examples:

 

Climate Adaptation Policy: Increasing Community Resiliency

The policies below were gathered from the Institute for Local Self-Reliance (ILSR):

GOAL: Increase Community Resiliency

  • Mission-based procurement policy
  • Compost procurement policy
  • Technical assistance and business development for key sectors

More information and examples:

Climate Change Policy: Reducing Greenhouse Gas Emissions

The policies below were gathered from the Institute for Local Self-Reliance (ILSR):

GOAL: Reduce Greenhouse Gas Emissions 

  • Mayor’s Climate Protection Agreement
  • Carbon taxes and caps with universal dividends
  • Solar initiative program

More information and examples:

Banking Policy: Reconnecting Capital with Community

The policies below were gathered from the Institute for Local Self-Reliance (ILSR):

GOAL: Reconnect Capital with Community

  • Increase access to capital for local businesses
  • Move public funds into local banks
  • Ban ATM surcharges

More information:

Examples:

Why Policy Work?

From BALLE:

Sometimes it isn’t enough to change the way you play. Sometimes you have to change the game itself, and the Localist movement is re-writing the rules that govern economic systems from the grassroots up.

By drafting, advocating for and implementing policy, a broad cross-section of entrepreneurs, policymakers, economic development professionals and community members are transforming the legal structures that undergird the economy. New rules are needed to put an end to corporate subsidies and instead reward benefit corporations, mission-based procurement, investment in health, minimum wages, rights of nature, smart land-use planning and better public transportation.