‘The global economy could face a 50% loss in GDP between 2070 and 2090 unless immediate policy action on risks posed by the climate crisis is taken’, warns a recent report by the Institute and Faculty of Actuaries (IFoA).
UK local government finances are in such a mess that 50% of all UK councils would have had to declare bankruptcy this year, had the government allowed them to hide overspends off balance sheet – i.e. cooking the books.
Climate and local government finances are just two in a polycrisis of social, environmental and economic issues. On the other hand, we know we need joined-up solutions which promote resilience which I define as building the health of people, communities, local economy and planet. This involves investing in education for health, local organic food production, building soils, community groups, and nature-based solutions to flood and drought resilience. We know this will save tens of £billions to the economy – from savings in NHS spending (e.g. see this blog), to long term disability and insurance premiums
Yet investment is difficult for a couple of reasons. First, government budgets are stretched to, or beyond, breaking point. Second, savings do not accrue to the department which makes the investment: investment by local government in community groups improves mental health and the savings come to the NHS.
How about creating and launching place-based ‘Local Resilience Bonds’ to tackle our crisis, modelled on the ‘War Bonds’ which were used very successful to raise money when the country needed to fight WW2?
Such Local Resilience Bonds would enable money to be raised from the markets to invest, with a low interest if backed by government, for community-led local development boards to invest in community-led nature-based resilience, kick-starting regenerative economies. Over the next few months, our team at OnePlanet, will explore how our systems-mapping collaboration platform can be used to create and implement such bonds.
Watch this space and don’t hesitate to contact us if you want to explore opportunities with us.
