Author: Mariona Luis Tomás

In an increasingly globalized world, I feel more and more clearly that strengthening the local economy is essential to ensure the well-being of communities and promote sustainable development. Buying local products, supporting small businesses or promoting local production models are strategies that generate employment among those who are nearby, reduce the carbon footprint and create more resilient communities.

For me, interest in local products comes from the vision that people have a limited attention span, and there is nothing like improving our square meter to live a simpler, healthier and happier life.

Why support the local economy?

Because promoting local consumption reduces dependence on long-distance transport and, with it, CO₂ emissions.

Because buying from small businesses or producers in the area helps keep local identity alive and fosters social cohesion.

Because a diversified and local economy is less vulnerable to external shocks, such as financial crises or interruptions in the supply chain.

Because small local businesses usually reinvest their profits in the community itself, generating a positive multiplier effect.

However, the local economy is not exempt from challenges, such as competition with large international chains, competition in salaries, the need for digitalisation or the lack of financial support.

Three examples of innovation in the local economy

1. The Peseta de Gramenet (Santa Coloma de Gramenet, Barcelona)

Local currencies are an innovative strategy to encourage money to stay within the territory and benefit small businesses. A prominent example in Spain is the Peseta de Gramenet, in Santa Coloma de Gramenet, a municipality of Barcelona.

This complementary currency seeks to encourage local commerce through a digital system, allowing citizens to pay in shops and businesses affiliated through mobile applications. In this way, the link between neighbours and local businesses is strengthened, creating an economic circle that benefits the entire community. In addition, the Peseta de Gramenet encourages sustainable initiatives, as purchases in businesses that work under environmental sustainability criteria are rewarded.

2. La Colmena Que Dice Sí (national network)

La Colmena Que Dice Sí (or La Ruche Qui Dit Oui in its French origin) is a local product distribution model that has gained traction in several regions of Spain. This initiative connects small agricultural producers with consumers through digital platforms and local collection points.

The system is simple: farmers publish their fresh products on the online platform, consumers place their orders and then collect them at the nearest local point, known as a “hive”. This model eliminates intermediaries, guarantees fair prices for producers and ensures that consumers have access to fresh, quality products. Today, this network has dozens of hives in cities and towns throughout Spain, promoting local and sustainable consumption.

3. Mondragon Corporation (Basque Country)

The Mondragon Group, based in the Basque Country, is an internationally recognised example of how cooperative models can be drivers of local development. Founded in 1956, Mondragon has evolved to become the largest cooperative business group in Spain, with more than 80,000 employees.

The key to its success lies in its structure based on cooperation and the participation of workers in the management of the company. The group’s cooperatives not only generate local employment, but also promote technological and social innovation. In addition, thanks to its collaborative model, Mondragon has developed mutual support networks that allow the sharing of resources, knowledge and benefits. This philosophy has been decisive for its resilience and growth, even during economic crises.

We can observe some key factors for innovation

Integration of technology and proximity: Digital platforms can be great allies to facilitate local consumption and connect producers with consumers.

Public-private collaboration: Successful local projects usually have the support of public institutions that offer financial and logistical support.

Adaptation to the environment: Each initiative is designed taking into account the particularities of the local context, which allows for its success and sustainability over time.

Innovating locally for global development

Strengthening the local economy does not mean closing ourselves off from the world, but rather finding ways to take advantage of local resources in a sustainable way and adapted to the needs of each territory. Through innovation, we can achieve a balance between the global and the local, generating lasting economic and social benefits.

The Social Economy encompasses a set of economic and business activities based on principles of solidarity, inclusion, and sustainability. For me, the economy of the future must be social, and although I participate in various associations and benefit from the cooperative movement of companies like the Mondragon group or the Som Energia cooperative, I must admit that I find it challenging to observe long-term commitment from people who earn more by working in the private sector. I’m not sure what it is, but much more than idealism is needed to build a world based on the social economy; I find it hard to see the way forward.

The social economy model includes entities such as cooperatives, mutual societies, foundations, and associations that aim to generate social value beyond economic profit. Its primary objective is to meet collective needs, improve the quality of life of communities, and foster democratic participation in resource management. Instead of competing to maximize profits, these organizations promote collaboration and social justice, adapting to the challenges of a changing environment.

The Role of Innovation in the Social Economy

Innovation is a fundamental pillar for Social Economy entities to fulfill their purpose and generate sustained positive impact. From the incorporation of digital technologies to the implementation of new business models, innovation enables these organizations to:

• Improve efficiency in resource management: Use digital tools to optimize administrative and logistical processes.
• Promote participation among their key stakeholders: Create platforms that facilitate collective decision-making, such as mobile apps for voting in cooperatives.
• Develop sustainable products and services: Innovate in ecological products or services that promote community well-being, such as renewable energy or inclusive education programs.
• Strengthen collaboration between entities: Build networks and alliances that multiply social impact through the transfer of knowledge and resources.

Examples of Innovation in the Social Economy

• Digital cooperatives: Organizations like CoopCycle have developed technological platforms that enable bicycle delivery cooperatives to compete with large companies, promoting fair working conditions.
• Time banks: These initiatives foster the exchange of services between people through systems based on hours, creating more resilient and supportive local economies.
• Community energy projects: Energy cooperatives like Som Energia have democratized access to renewable energy, allowing communities to manage their own energy resources.

Challenges and Opportunities

While the Social Economy presents great potential, it also faces significant challenges. These include a lack of funding, the need for professionalization in business management, and the difficult transition to digitalization. However, these difficulties also open doors to innovation:

• Inclusive digitalization: Design accessible tools for entities with limited resources.
• Hybrid models: Combine elements of the Social Economy with private sector practices to enhance impact.
• Alternative financing: Explore new ways to raise resources, such as crowdfunding or social impact bonds.

Innovation in the Social Economy is not only possible but essential to address current challenges and make the most of opportunities. The key lies in collaboration, continuous learning, and adapting to a constantly evolving world. My contribution involves envisioning every business model from a cooperative perspective and making decisions based on this vision. It’s not much for now, but hopefully, it will help.

Last week, five proposals were presented to promote innovation in public administration. Below, five additional proposals are outlined in the same direction:

Transparency and accountability: Proactively publishing information about public management and establishing clear accountability mechanisms increases citizens’ trust in institutions. Managing data robustly is fundamental, and the key to achieving this is digital transformation, even in the simplest processes.

Evaluation and continuous improvement: Implementing periodic evaluation systems for policies and programs allows the identification of areas for improvement and the adjustment of strategies to achieve proposed objectives. In the administrations I’m familiar with, this is often neglected, yet it is fundamental for identifying opportunities and improvement areas in the policies undertaken, as well as directly holding public managers accountable.

Efficient resource management: Optimizing the use of financial, human, and material resources ensures the sustainability of initiatives and maximizes the impact of public actions. Efficient management includes actions taken by anyone in the administration; it is not solely the responsibility of leaders. Acting with awareness of working for the public good is a cornerstone of public management.

Promotion of an innovation culture: Fostering a work environment that encourages creativity and the proposal of new ideas among public employees contributes to the generation of innovative solutions. In this post, we’ve discussed the culture of innovation, and there are many initiatives that can promote it.

Adaptation to climate change and sustainability: Integrating sustainability criteria and resilience to climate change into public policies ensures balanced and environmentally responsible development. Keeping this perspective in mind when defining public management can contribute to more innovative policies and greater future opportunities.

Transforming organizations in the public sector is not easy without feeling frustrated by the slow pace of change. However, I often share that the first time I invited companies from the public sector to discuss innovation, only five attended. Fifteen years later, the same forum was fully booked with over 120 companies. The only constant is change.

Innovation in public administration is essential to improve efficiency, transparency, and the quality of services offered to citizens. This article aims to share key elements for fostering innovation in the public sector. Below are five essential proposals to drive this transformation:

1. Simplification of administrative procedures: Reducing bureaucracy and eliminating unnecessary processes make it easier for citizens and businesses to interact with the administration, streamlining processes and improving efficiency. This requires designers of processes to ask what the minimum information needed to manage them is and how citizens can clearly identify and understand what is being requested of them.
2. Comprehensive digitalization of services: Implementing digital platforms that allow users to access public services online promotes transparency and reduces waiting times. More and more people are learning to interact digitally, and within two generations, progress in this area will be significant. The digitalization of public services can contribute to this evolution with all the implications it entails.
3. Continuous training of personnel: Training public employees in new technologies and work methodologies ensures constant adaptation to change and improves the quality of services. Additionally, it fosters a readiness for change among public employees, which can drive transformation in public administration.
4. Encouraging citizen participation: Establishing effective channels for citizens to participate in decision-making and service evaluation strengthens democracy and shared responsibility. Over the last century, too much individual responsibility has been delegated to public administration. It’s time to reclaim this duty and the right that comes with it.
5. Public-private collaboration: Promoting strategic partnerships with the private sector to leverage resources and expertise generates innovative solutions to public problems. One way to expand public capacity is by creating solutions from the private sector.

The implementation of these proposals requires a determined commitment from authorities and active citizen participation, aiming to build a more modern, efficient, and citizen-centered public administration.