Partnership to Explore New Funding Sources for Innovators
The European Social Innovation Research website features the LEDDA partnership this week.
This first-of-its-kind partnership is envisioned as a global, diverse set of academic, civil society, government, business, and philanthropy groups focused on ushering a new, parallel economic system through the development and pilot trial phases.
says Georg Mildenberger in his article.
“The economic system, called the Local Economic Direct Democracy Association (LEDDA) framework, or synonymously, LEDDA economic direct democracy, represents a rethinking of economic purpose and money. Among other things, it uses money as a democratic voting tool, and distributes voting power by increasing and equalizing incomes. This is a local economic system designed to complement and compete with existing systems within local (city or regional) economies.
A LEDDA itself is a membership-based, community benefit association open to residents, businesses, schools, nonprofits, local governments, public services, and others that choose to participate. Each LEDDA governs its own local framework through an online direct democracy process, and all LEDDAs are networked together within a global association.
The LEDDA framework is comprehensive, including as elements a novel local electronic currency, intellectual property pool, financial system, online direct democracy governance system, socially responsible business model, and buy local program. According to Boik, who outlines the framework in his 2014 book Economic Direct Democracy: A Framework to End Poverty and Maximize Well-Being, “the framework diversifies, strengthens, and infuses a local economy with democracy, and in so doing empowers residents to address local and global issues of interest.”
One key characteristic is that the LEDDA framework employs new motivations for economic decision-making. Rather than focusing attention on strict self-interest (by rewarding individuals who strive for higher corporate profits and investor returns), it focuses attention on cooperation, via a process of maximizing community well-being. A LEDDA assesses and forecasts social, economic, and environmental well-being using modern data collection and computer modeling tools. It uses the results to guide decision-making, especially in the LEDDA financial system, called the Crowd-Based Financial System (CBFS)”.