LEDDA Framework: Difference between revisions

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=Description=
=Description=


John Boik:
John Boik and Lorenzo Fioramonti:


'A LEDDA is a membership-based, community benefit association open to residents, businesses, schools, nonprofits, local governments, public services, and others that choose to participate. The LEDDA framework is the local economic system - comprised of software, policies, standards, and procedures - that a new LEDDA implements. Once live, the membership can alter the local framework as desired.
'A LEDDA is a membership-based, community benefit association open to residents, businesses, schools, nonprofits, local governments, public services, and others that choose to participate. The LEDDA framework is the local economic system - comprised of software, policies, standards, and procedures - that a new LEDDA implements. Once live, the membership can alter the local framework as desired.

Latest revision as of 03:59, 21 October 2014


Description

John Boik and Lorenzo Fioramonti:

'A LEDDA is a membership-based, community benefit association open to residents, businesses, schools, nonprofits, local governments, public services, and others that choose to participate. The LEDDA framework is the local economic system - comprised of software, policies, standards, and procedures - that a new LEDDA implements. Once live, the membership can alter the local framework as desired.

In effect, the framework offers a secondary level of organization on top of an existing local economy. A complete description is given in the book Economic Direct Democracy: A Framework to End Poverty and Maximize Well-Being, available for free in PDF format.

Each LEDDA governs its own local framework through an online process of direct democracy, and all LEDDAs are networked together within a global association, which is also governed through online direct democracy. Thus the focus is both local and global.

The LEDDA framework integrates and builds on numerous initiatives already existing in cities and regions around the world, including buy local, local currency, open source, crowdfunding, socially responsible business, open data, smart cities, and participatory democracy. It contains its own monetary system, which issues a local electronic currency, called the token. And it has its own financial system, called the Crowd-Based Financial System (CBFS), which resembles crowdfunding and participatory budgeting. The framework is sophisticated, and there are many more elements.

The LEDDA framework is synonymous with LEDDA economic direct democracy, an economic system that offers all participants roughly equal and direct opportunity to influence their local economy. The framework infuses a local economy with democracy, in part by using money as a voting tool and by increasing and equalizing family incomes.

A computer simulation model has been published that illustrates the process. Inflation-adjusted mean family income more than doubles during the twenty-eight-year simulation period. As incomes rise, they become more equal. By the end of the simulation, every member family receives a pre-tax, take-home income equivalent to about $107,000, just above the 90th percentile of baseline income. Even very wealthy families would see a small direct gain.

By the end of the simulation, the LEDDA, located in an averaged-size US county, channels the equivalent of more than $2 billion dollars annually toward local businesses, schools, public services, and nonprofit organizations. Tax revenues for the county markedly rise. With such abundant resources, and democratic control over funding decisions, a community could remake its economy into one that best suits its needs." (http://www.truth-out.org/speakout/item/26942-competing-with-capitalism-to-maximize-well-being)