Newsletter:20070407/Ecovillage economics

From EcoReality

Ecovillage Economics

by James Cowan, Program Steward

Advisory Council member Elizabeth Buchanan demonstrates one way to bring income into an ecovillage.
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Advisory Council member Elizabeth Buchanan demonstrates one way to bring income into an ecovillage.
This past month, EcoReality has been exploring some options as it seeks to create
  1. guidelines for labour worked on the farm by members and
  2. how to fairly assess members to cover a potential financial shortfall for operational expenses.

Other questions arose when we were looking at a proposal in which hours worked by a member affect how much that member would pay if there was an operational shortfall. Is it wise to create a plan that covers both topics at once? Or are they separate issues that would best be dealt with independently? We're not sure yet.

What we do know is that having a farm and having a co-op takes a lot of time and energy. We are seeking a way that the energy and time that is put in to the co-op is acknowledged and that the member receives some sort of compensation or acknowledgment of having worked required (or more than required) hours. Perhaps compensation can be credited in the form of money, banked labour credit, nominal stipend, etc.

The other issue around operational expenses is equally complex. The co-op will require additional funds in order to pay property taxes in July. Where should the co-op get the money? The only answer we've come up with is from the members. Do all the members contribute equally? One of the co-op's values is to be free from outside debt, yet one or more members loaning the co-op money for operational expenses is an option. [And what about "loaning" the co-op labour? --Editor]

We've learned that these are common topics for ecovillages to work out. Being raised in a society where personal finances and property ownership are a very highly prioritized, self oriented way of life makes it tough to switch gears and think of the community and others in this regard. There is a delicate balance of making choices that are best for the community, are fair for everyone else and work with one's personal situation. It's a good lesson in compassion, understanding, listening and strategizing.

We have asked our Advisory Council for advice, and have looked at what other communities do in these situations - we know that the information gleaned will help us along our way. Yet, the two areas of economic focus in this article are on the rise: labour worked by members on co-op business (but not acknolwedged/compensated) and operational expenses at EcoReality. Finding the best fit for these issues is critical, and from what we've seen in other communities, there is no "one-size-fits-all" solution. We invite your suggestions and experiences to help us in these matters!

--James

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