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
- 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.
- 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.
- 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.