Socialism 2012: ISO Annual Conference

SOCIALISM 2012
Educate. Agitate. Occupy
June 28-July 1 | Chicago
http://www.socialismconference.org/

“A global rebellion of the oppressed against the oppressor, the exploited against the exploiter.” That’s how the African American revolutionary Malcolm X characterized the international scene in 1965. But the description seems even more apt today.

After years of devastation in the clutches of the Great Recession, masses of people are discovering their own power to change the world. The Arab Spring has given birth to a global movement of Occupiers that has revived the politics of class struggle and revolution for the 21st century. Instead of the cutbacks, unemployment and repression that our rulers offer us, solidarity in struggle shows that “another world is possible.”

Each year, the Socialism conference brings together more than 1,500 scholars and activists from around the country to learn our history of class struggle and debate strategies for building a better world. Don’t miss this chance to meet hundreds of others like you: committed fighters against a system of greed, racism, war and oppression.

Join us for more than 100 presentations: Where Is the Egyptian Revolution Going? | The Future of the Occupy Movement | Marxism and Imperialism | The Overpopulation Myth | The Communist Manifesto | The New War On Women | What is the Real Marxist Tradition? | The struggle against austerity in Europe | and many more

Featured speakers include: Ali Abunimah, Justin Akers Chacón, Ian Angus, Anthony Arnove, Abbie Bakan, Tithi Battacharya, Megan Behrent, Martha Biondi, Alex Callinicos, Rachel Cohen, Dana Cloud, Nicole Colson, Kevin Coval, Paul D’Amato, Neil Davidson, Antonis Davanellos, Sam Farber, Anand Gopal, Dan Georgakas, Glenn Greenwald, Arun Gupta, Ragina Johnson, Sam Jordan, Bill Keach, Sarah Knopp, Deepa Kumar, Alan Maass, Marlene Martin, Scott Mclemee, David McNally, China Miéville, Leia Petty, Khury Peterson-Smith, Charlie Post, Michael Ratner, John Riddell, Boots Riley, Jen Roesch, Eric Ruder, Elizabeth Schulte, Michael Schwartz, Liliana Segura, Lance Selfa, Ahmed Shawki, Wally Shawn,Gregg Shotwell, Beryl Satter, Sharon Smith, Marvin Surkin, Lee Sustar, Keeanga-Yamahtta Taylor, Elizabeth Terzakis, Hadas Thier, Lee Wengraf, Sherry Wolf, Richard Wolff, Leela Yelletsey, Annie Zirin, Dave Zirin…and many more

Download a flyer for Socialism 2012
http://www.socialismconference.org/sites/default/files/Socialism2012_flyer.pdf

Follow us on Facebook
http://www.facebook.com/socialismconf

Register today
http://www.socialismconference.org/register

Socialism 2012 sponsored by: Center for Economic Research and Social Change (publisher of International Socialist Review and Haymarket Books). Cosponsored by: The International Socialist Organization (publisher ofSocialist Worker and Obrero Socialista).

Posted in Politics, Politics | Comments Off

Honorary Catherine Hogue Way

On May 8, 2012, a section of East Park Street, between Second Street and Third Street, in Champaign was dedicated to Catherine Hogue, black woman activist and long time County Board member. A sign now stands at the intersection in front of the Boys and Girls Club that reads, “Honorary Catherine Hogue Way.”

Posted in Politics | Comments Off

A Bad Idea: The County Board’s Proposal to Spend $20 Million on Jail Construction

Over the last few months a classic political power struggle has been taking place at Champaign County Board meetings.  At the center of it has been a Board proposal to spend $20 million on jail construction. People from Champaign-Urbana Citizens for Peace and Justice (CUCPJ) and other groups have been vocal in opposing this plan.  The logic of those driving this $20 million project, an all-white team led by Board member Tom Betz, State’s Attorney Julia Rietz, and Sheriff Dan Walsh, echoes the rationalizations used across the country by those responsible for the prison-building binge in the U.S. in the last three decades.

On the surface, supporters of prison and jail construction typically cast their plans as much needed improvements over an unworkable status quo. In this vein, Betz and co. depict their proposal as a response to the county’s odd situation of having two jails―one in downtown built in 1980  that holds 131 inmates, and a “satellite” in East Urbana built in 1996  that accommodates 182 inmates. According to the team, the downtown jail, which is typically no more than 40% full, is dilapidated and needs to be closed. They cite, among other things, problems of leaking roofs and rodent infestation. They also contend that consolidation would make for a more efficient operation, since the Sheriff’s deputies spend a lot of time running back and forth from one jail to the other.

This argument has not convinced local activists and community members. In a string of inputs at Board meetings, members of the public have presented a host of reasons why this particular jail is a bad idea. To begin with, building a new facility lets the County Board off the hook for not maintaining the downtown jail. How has the Board let a 32-year-old jail get into such woeful shape? This smells of willful neglect―a hidden agenda of making a new jail inevitable. Homeowners don’t tear down their houses because of roof leaks and roaches, why should the County Board be able to behave like this with taxpayers’ money?

Building the jail is also a bad idea because it ignores the recent history of this county. Statistics show that the average daily population in the jail and the crime rates in Champaign County have been steadily declining for the last five years. This doesn’t warrant building a new jail but mandates finding out what we can do to continue to decrease our need for jail space.

Now we come to the bigger reasons why this is a bad idea. Consider, for example, the glaring racial imbalance in our jail population. Consistently, more than half of those in the jail are African-American in a county that is 12% Black. Results like this are evidence of institutionalized racism that needs investigation. Figures collected annually by the Illinois Department of Transportation show there is heavy racial profiling of African-Americans during traffic stops in both Champaign and Urbana. Using some of that $20 million to examine racial discrepancies at other stages in the criminal justice system―charging, setting of bail, plea bargaining and sentencing―could yield important policy changes to reduce the disproportionate incarceration of African-Americans. With an average daily jail population of about 230 people, if we trimmed the Black population through more equitable justice practices we wouldn’t need two jails or any new jail cells.

But it doesn’t end there. Building the jail is a bad idea because there are better alternatives to solving problems than incarceration. We now find cases of people in our county who are choosing to be arrested to gain access to health care and shelter. This situation came about largely because our social service programs currently suffer from huge budget cuts. The choice to spend $20 million on a county jail is a lost opportunity to allocate money to support programs which  keep people out of jail. Surely, if the best minds of the community, the social service providers, the Board, and  law enforcement came together they could come up with a way to spend that $20 million to decrease incarceration rates, reduce crime and improve the lives of vulnerable populations, particularly African American youth.

Then we come to the tax issue―the  fifth reason why  building the jail is a bad idea.  Betz and his team plan to finance the building of this jail with revenue from the public safety sales tax. At present the tax brings in over $4 million a year. This quarter cent levy was passed by a voter referendum in 1998. Income from the tax was supposed to be dedicated to specific projects: courthouse renovations, building the juvenile detention center, paying off the bond on the satellite jail. Just 5% was set aside for youth education. However, the ordinance attached to the referendum stated that once these projects were paid off (estimated to be 2014) the safety tax could not be continued without another referendum by voters. However, in 2003 the Board overturned that ordinance, taking out the guarantee of a voter referendum and making the safety tax virtually permanent, as long as it was spent on construction for “law enforcement.” Hence, building the jail with the public safety sales tax money violates a promise made to the voters―that they would have a voice in how the Board spent their money.

Which brings me to the last reason why building the jail is a bad idea: it has nothing to do with public safety. For a few people (the 1%ers and the law and order freaks), public safety equates with tough on crime regimes―more and stricter policing and more lockup facilities. But for vast sectors of the community, safety comes from having a safety net in place―access to health care, substance abuse programs, mental health support systems, job training, affordable housing, and food provision. $20 million would go a long way toward re-building that safety net.

However, just because something is a bad idea, doesn’t mean it won’t happen. We have lived through many bad ideas: the war in Iraq, tax cuts for the rich, privately run health care. Social justice activists will need to find a way to mobilize the community to stop this particular bad idea. Plans to build jails in other cities like Bloomington IN, Baltimore MD, and New Orleans, LA have been successfully thwarted by grassroots campaigns. Just recently, residents of Illinois halted the attempt to build an immigration detention center in Crete, IL by marching and protesting and pressuring legislators to vote it down. If they can do it in all those places, we can do it right here in Champaign-Urbana.

By Frank Little

Posted in Policing, Politics, Prisoners | Comments Off

NATO & G8 Imperialism

NATO (or the North Atlantic Treaty Organization) is, according to its website, a political and military alliance founded in 1949 to protect its member states from attacks by non-member states.  It “promotes democratic values and encourages consultation and cooperation on defense and security issues to build trust and, in the long run, prevent conflict.”  As the birds on the site twitter, one might conclude that NATO is, in fact, committed to the peaceful resolution of disputes.  Indeed, when NATO is in the news, it is invariably invoked as engaging in a “peace-keeping mission.”  However, lest a visitor to the interactive web page or a renegade nation think that NATO is only interested in diplomacy, we further read that NATO has sufficient military capacity to undertake crisis management operations.

That is putting it mildly. In order “to be sure that we can walk around freely in a safe and secure environment,” the countries that comprise NATO spend billions and billions.  The combined military spending of the 28 countries that make up NATO equals 70% of the world’s defense spending.  The United States alone spends 43% of the world total.

During the cold war, NATO maintained secret paramilitary armies throughout Europe, code-named Operation Gladio. Intended to be activated in event of a Russian invasion, some cells engaged in terrorist attacks against leftists, staged military coups, and plotted political assassinations under the direction of NATO members’ intelligence agencies such as the CIA. The collapse of the Soviet Union left NATO without a purpose, but it lingered on, absorbing former Warsaw Pact countries to use as a buffer zone between Western European countries and Russia.

NATO has lately become more active in advancing the military and economic interests of its member states around the world. Following the American invasion of Afghanistan, NATO eventually took over the role of occupying the entire country. Since 2009, NATO has occupied the sea lanes near the Horn of Africa to protect its merchants and fishing vessels in Somali waters. During the 2011 Libyan civil war, NATO intervened in behalf of the rebels by  establishing a naval blockade and a no-fly zone, then conducting a bombing campaign that frequently failed to distinguish between civilian and military targets. None of these campaigns were intended to safeguard NATO countries from military threats, but were instead motivated by politics and business.

The G8 and NATO can be seen as related organizations.  Indeed, many view NATO as the military arm of the Western countries of the G8, a forum of eight of the world’s largest economies.  Founded in 1975 with 6 member states (France, Germany, Italy, Japan, UK, US), the group expanded the following year by inviting Canada and again in 1997 with the inclusion of Russia.  The term G8 can refer to both the member states, as well as the annual summit meeting of the G8 heads.

The president of the G8 (which rotates among the member states) hosts the meeting and sets the agenda.  When the G8 meets at its annual summit, the members may discuss issues of mutual or global concern, such as health, labor, economic and social development, energy, the environment, trade, terrorism, etc.  There are also discussions of how the G8 might use its military or financial arms: most G8 countries are a part of NATO, and G8 countries dominate the International Monetary Fund, World Bank, and the World Trade Organization.  However, the decisions that are made by the G8 do not only affect the member states, the G8 affects the non-member states as well, the other 49/50ths of the globe.

Unlike NATO, the G8 does little to further the imperialist aims of its member states by itself, but helps countries coordinate imperialist economic policies.. The World Bank and IMF ostensibly work to reduce poverty through development aid to poor nations; however, they do not provide grants, but rather loans that collect interest. Nations that receive development loans are often forced to institute austerity, slashing social services to ensure that they can afford to repay these loans.  These policies have the effect of immiserating the masses while enriching comprador elites as national industries are privatized.

Eight countries may not seem that intimidating.  After all, 8 would be approximately 1/50th of the total number of nation states on the globe.  However, these 8 states, while representing only 14% of the world’s population, produce 60% of the gross world product, 53% of the global nominal GDP, and 42.5% of the global GDP.  The nations of the G8 rank in the top 13 export nations and most are among the top 10 countries possessing the greatest gold reserves.

More chilling, perhaps, than the G8’s collective wealth is the fact that a large portion of their treasuries is funneled into war machines.  Indeed, the G8 has some of the largest, most technologically advanced militaries, accounting for 70% of the world’s military spending.  Four of the 8 nations have nuclear weapons, 3 others have the capability to produce nuclear weapons, and some have nuclear-weapon sharing programs.  Four of the 8 (UK, US, France, and Russia) account for 96 to 99% of the world’s nuclear weapons.

At yearly summits such as the upcoming NATO meeting in Chicago this May, member nations introduce new policy and initiatives (such as launching an international database on terrorism) and/or invite members into the alliance. For activists who stand up against institutions that perpetuate war and poverty, these summits are a prime opportunity to showcase NATO and G8 crimes and to decry our politicians who plan and sanction them.

 

NATO & G8 Imperialism

 

NATO (or the North Atlantic Treaty Organization) is, according to its website, a political and military alliance founded in 1949 to protect its member states from attacks by non-member states.  It “promotes democratic values and encourages consultation and cooperation on defense and security issues to build trust and, in the long run, prevent conflict.”  As the birds on the site twitter, one might conclude that NATO is, in fact, committed to the peaceful resolution of disputes.  Indeed, when NATO is in the news, it is invariably invoked as engaging in a “peace-keeping mission.”  However, lest a visitor to the interactive web page or a renegade nation think that NATO is only interested in diplomacy, we further read that NATO has sufficient military capacity to undertake crisis management operations.

 

That is putting it mildly. In order “to be sure that we can walk around freely in a safe and secure environment,” the countries that comprise NATO spend billions and billions.  The combined military spending of the 28 countries that make up NATO equals 70% of the world’s defense spending.  The United States alone spends 43% of the world total.

 

During the cold war, NATO maintained secret paramilitary armies throughout Europe, code-named Operation Gladio. Intended to be activated in event of a Russian invasion, some cells engaged in terrorist attacks against leftists, staged military coups, and plotted political assassinations under the direction of NATO members’ intelligence agencies such as the CIA. The collapse of the Soviet Union left NATO without a purpose, but it lingered on, absorbing former Warsaw Pact countries to use as a buffer zone between Western European countries and Russia.

 

NATO has lately become more active in advancing the military and economic interests of its member states around the world. Following the American invasion of Afghanistan, NATO eventually took over the role of occupying the entire country. Since 2009, NATO has occupied the sea lanes near the Horn of Africa to protect its merchants and fishing vessels in Somali waters. During the 2011 Libyan civil war, NATO intervened in behalf of the rebels by  establishing a naval blockade and a no-fly zone, then conducting a bombing campaign that frequently failed to distinguish between civilian and military targets. None of these campaigns were intended to safeguard NATO countries from military threats, but were instead motivated by politics and business.

 

The G8 and NATO can be seen as related organizations.  Indeed, many view NATO as the military arm of the Western countries of the G8, a forum of eight of the world’s largest economies.  Founded in 1975 with 6 member states (France, Germany, Italy, Japan, UK, US), the group expanded the following year by inviting Canada and again in 1997 with the inclusion of Russia.  The term G8 can refer to both the member states, as well as the annual summit meeting of the G8 heads. 

 

The president of the G8 (which rotates among the member states) hosts the meeting and sets the agenda.  When the G8 meets at its annual summit, the members may discuss issues of mutual or global concern, such as health, labor, economic and social development, energy, the environment, trade, terrorism, etc.  There are also discussions of how the G8 might use its military or financial arms: most G8 countries are a part of NATO, and G8 countries dominate the International Monetary Fund, World Bank, and the World Trade Organization.  However, the decisions that are made by the G8 do not only affect the member states, the G8 affects the non-member states as well, the other 49/50ths of the globe.

 

Unlike NATO, the G8 does little to further the imperialist aims of its member states by itself, but helps countries coordinate imperialist economic policies.. The World Bank and IMF ostensibly work to reduce poverty through development aid to poor nations; however, they do not provide grants, but rather loans that collect interest. Nations that receive development loans are often forced to institute austerity, slashing social services to ensure that they can afford to repay these loans.  These policies have the effect of immiserating the masses while enriching comprador elites as national industries are privatized.

 

Eight countries may not seem that intimidating.  After all, 8 would be approximately 1/50th of the total number of nation states on the globe.  However, these 8 states, while representing only 14% of the world’s population, produce 60% of the gross world product, 53% of the global nominal GDP, and 42.5% of the global GDP.  The nations of the G8 rank in the top 13 export nations and most are among the top 10 countries possessing the greatest gold reserves.

 

More chilling, perhaps, than the G8’s collective wealth is the fact that a large portion of their treasuries is funneled into war machines.  Indeed, the G8 has some of the largest, most technologically advanced militaries, accounting for 70% of the world’s military spending.  Four of the 8 nations have nuclear weapons, 3 others have the capability to produce nuclear weapons, and some have nuclear-weapon sharing programs.  Four of the 8 (UK, US, France, and Russia) account for 96 to 99% of the world’s nuclear weapons.

 

At yearly summits such as the upcoming NATO meeting in Chicago this May, member nations introduce new policy and initiatives (such as launching an international database on terrorism) and/or invite members into the alliance. For activists who stand up against institutions that perpetuate war and poverty, these summits are a prime opportunity to showcase NATO and G8 crimes and to decry our politicians who plan and sanction them.

 

Posted in International, military, Politics | Comments Off

Shahid Khan Blurb

While it appears that Shahid Khan has a battle on his hands with workers alleging Occupational Health and Safety violations at their Flex N Gate work facilities, he is also facing some problems as the owner of the Jacksonville Jaguars.

Soon after buying the team, Khan was asked to define a fan. Khan said, “For me, a fan is somebody who is a season ticket holder for the Jaguars. So, that is a key definition we need to get out.”

This comes after Jacksonville taxpayers paid for the majority of the hundreds of millions spent on refurbishing the stadium, the city chose not to enforce its getting of 25% of the money guaranteed for the naming rights of the stadium, fans were expected to pay an increasing average ticket price of $92.74 (per game) in 2011-2012 and also expected to pay for parking and overpriced food/merchandise. Simply put, many fans have been priced out of the stadium that their tax money helped build.

After the public rightfully attacked these ridiculous comments, he later walked the statement back and noted, “All it takes to be a Jaguars fan is to love the Jaguars.”

For a team that had a 5-11 record and has been the recipient of so much corporate welfare from Florida taxpayers, Shahid Khan would be best served to work for the interests of regular working people – be they Flex N Gate employees or Jaguars fans.

Posted in Uncategorized | Comments Off

BOT Speech

First of all, I would like to thank the Board for granting me the opportunity to address them.

I am here to discuss an issue at the local Flex-N-Gate auto-parts plant that is actively harming our entire community and threatening an already tarnished University reputation.

The owner of Flex-N-Gate, Shahid Khan, is a distinguished alum of the University and a well-respected resident of the community. At the age of 16, Mr. Khan emigrated from Pakistan to the United States and earned an industrial engineering degree from this University. After graduation, Mr. Khan purchased the Flex-N-Gate Corporation and has managed it to its current state of financial prosperity. With estimated annual revenue of nearly $3 billion, Flex-N-Gate is a true success story and Mr. Khan is emblematic of an individual who achieved the American Dream.

I recognize that Mr. Khan’s astonishing personal narrative is worthy of admiration. And although Mr. Khan’s exemplary success story is rare, it echoes the narrative of many immigrants, including my own ancestry. Many immigrants have the same aspirations as Mr. Khan and his story is a testament to the plausibility of the American Dream. But unfortunately, Mr. Khan, now subjects his employees to the very same injustices that led him to flee his native land. As a child of fellow south Asian immigrants, it deeply saddens me to learn his largely immigrant workforce is not being provided the opportunities to improve their socioeconomic status, but are being exploited and subjected to a life-threatening work environment.

The conditions of work at the Urbana factory of Flex-N-Gate are horrendous. Workers have identified more than 30 violations of OSHA standards. A majority of these violations regard exposure to the carcinogenic chemical agent hexavalent chromium. Workplace exposure to hexavalent chromium is proven to cause lung cancer and irritation or damage to the nose, throat, eyes, and skin.

The adverse health effects of this carcinogen can be mitigated, only if provided with adequate safety equipment. But according to the workers, management at Flex-N-Gate has not provided employees the basic equipment to do so. To reduce overhead, OSHA mandated safety equipment has been replaced with inexpensive, ineffective substitutes. For instance, workers allege that they receive paper dust masks to protect them from the fumes rather than respirators. In addition, while OSHA requires that employees who come in contact with the hexavlaent chromium be provided with proper cleaning facilities to rid their bodies and clothes of the chemical, management at Flex-N-Gate has failed to deliver this – in effect, exposing not only the employee’s families to the carcinogen, but also the entire Urbana-Champaign community.

The gravity of the situation does not end with the working conditions. In order to demand their rights as workers and human beings, the employees have made numerous attempts at unionizing with the assistance of the UAW. But their efforts have been largely thwarted through management’s invidious tactics. To foster resentment, management has intentionally divided jobs within the plant to favor employees of certain ethnicities. The workforce is comprised of ⅓ Congolese, ⅓ Latino, and ⅓ native residents of the United States. According to the UAW, the Congolese workers are assigned the most heinous and dangerous tasks. It comes as no surprise then that the Congolese are the ethnic group most in favor of the union, followed by the Latinos and the US natives. Draconian retaliation has been management’s response to the audacious whistle blowers and union advocates. According to these workers, they were denied overtime, protective equipment, and contract guaranteed medical care for vocalizing their desire to unionize.

 

Mr. Khan’s affiliation with the University is no secret. He is among the most distinguished alum and generous donors. But the unfortunate irony is that Mr. Khan has donated $10 million dollars for the new Health Sciences addition to Huff Hall, while failing to provide the bare necessities for the health of his workers. But I am not here to denigrate the moral character or Mr. Khan. What I am here to do is to request an action from the Board. The board must issue a public statement vehemently urging Mr. Khan to ensure safe working conditions and to respect the rights of his self-determined workers. If he doesn’t do so, the University should refuse to accept his donations, deny him any awards, and remove his name from the facilities which he has already donated.

The University of Illinois’ mission is to “transform lives and serve society by educating, creating knowledge and putting knowledge to work on a large scale and with excellence”. But the acceptance of Mr. Khan’s donations directly contradicts what the Universities espouses — we cannot accept the hypocrisy of housing the Masters in Public Health program in a building built on the backs of workers poisoned in our own community.

If the University is to uphold its ethical standard, the decision to act and act immediately should require no contemplation.

 

 

Posted in Human Rights, Immigration, Labor/Economics | Comments Off

CUCPJ Public Forum on New Jail Proposal

Champaign Urbana Citizens for Peace and Justice Present

A Public Forum on:

The County Board’s Proposal to Spend $20 Million on a New Jail

Speakers:

  • Carol Ammons, County Board member who opposes the jail proposal
  • Members of Decarcerate Monroe County, a group that stopped a similar proposal in Bloomington, Indiana
  • Community members

The Champaign County Board proposes to spend $20 million on new jail cells.  If you think there are better ways to use taxpayers’ money, come and make your voice be heard.

Where: Urbana City Council Chambers, 400 S. Vine St.

When: Friday, May 11, 2012

Time: 6 p.m.

Posted in African Americans, Community Forum, Policing, Politics, Prisoners, Voices of Color | Comments Off

The International Year of Cooperatives: The Change We Have Been Waiting For

It would seem that when a systemic crisis arises, the problem is identified as either the market (the Banks!) or the state (entitlement programs!). Yet, in a perversely twisted line of logic, the corrective solution for such crises is either market or state-oriented. The reality is that the market is broken, and the state doesn’t represent us.

So what are we to do?

We must break this narrow dichotomy, that public policy is relegated only to the state or the market; society is so much more. It’s also civil society, where we live the vast majority of our day-to-day lives. However, our civil society’s institutions are broken. Well-meaning social movements have put all of their energies into the broken state-political process. When civil society becomes too dependent upon for-profit enterprise or self-serving politicians, we reap what we sow, namely a system of chronic patronage politics, employment dependency and self-serving agendas. We need an alternative.

Luckily, we have a remarkable corrective just under our noses: the cooperative model.

Now more than ever, we need to look toward cooperatives as a viable model of institutionalized social change. Cooperatives exemplify the best in self-help community development, as well as the building of solidarity across diverse communities. The cooperative principles, as outlined by the International Cooperative Alliance, promote autonomy, networked solidarity, and a complete system comprised of cooperative firms.

Across the United States, the potential for true empowerment is immense.

Credit unions in North Carolina joined together to ban payday lending, forging an empowering solution. In 2001, the North Carolina State Employees’ Credit Union offered members monthly $500 loans at a modest 12 percent interest rate. Additionally, the credit union deducts 5 percent of the loan toward a “rainy day fund” for the borrower.

A system of perpetual debt was turned into a system of wealth creation through mutual aid and non-corporate solutions.

Nationally, electric cooperatives power the rural countryside. Investor-owned utilities refused to develop rural America due to low profit margins, so rural residents, farmers and laborers bootstrapped what are now 900+ electric co-ops, owning 40% of the electric grid. These groups have turned to growing telecom as well as agricultural co-ops to enhance the material needs of folks in forgotten areas.

But we also see examples of this locally in Urbana-Champaign. Instead of accepting the mainstream notion that small, art house movie theatres are destined to be eaten up by corporate conglomerates, local community leaders have banded together to convert the Art Theater in downtown Champaign into a cooperative owned by those who use it. Such initiatives are critical to guarantee that diverse artists and their mediums have accessible outlets.

Common Ground Food Cooperative (of which I serve proudly as a board member) has experienced rapid growth, jump-starting the local food movement. The almost 40% per-year growth has necessitated a member-funded expansion through owner-loans that could not have happened if left to the banksters.

Know that with cooperatives, you govern it. If you have a problem with how your cooperative operates, or want to be a part of making your co-op think bigger, it’s your right! Ask the general manager, your board member, anyone. Encourage them to grow more cooperatives, to teach the next generation.

I believe we need to divorce ourselves from the notion that well-connected politicians or Ivy League-educated “job-creators” have power over us. Let’s show them that we don’t need them. We have us. Go co-op for lasting social change.

Posted in Food, Labor/Economics | Comments Off

Growing Community Through Local Capital

Jacqueline Hannah

Jacqueline Hannah is a 15 year resident of C-U and the general manager of Common Ground Food Co-op in Urbana. She’s passionate about growing the cooperative movement and being a part of the health and vitality of her community through encouraging democracy, empowerment, and shared responsibility. 

Talk to almost anyone these days and they’ll have heard of the power of supporting local business to improve our communities.

According to the Small Business Association (SBA), these local, small businesses create 75% of new jobs in our country, and reinvest in our communities at 60% higher rate than chains or on-line retailers. And the benefits are not just economic, as Michael Schulman, author of The Small-Mart Revolution says, “. . . studies suggest that local businesses are also critical for tourism, walkable communities, entrepreneurship, social equality, civil society, charitable giving, revitalized downtowns, and even political participation.” Shopping local creates more jobs and strengthens our community, but what about the capital needs of our local small businesses and the future local businesses we’d like to see develop?

Since 2008 capital has become harder than ever to get a hold of for small businesses, and at the same time people are looking for opportunities to invest their funds in businesses that grow things they believe in. Many want to put their money into businesses that meet their ethics and will enrich their own communities and are willing to seek out these opportunities and take on more risk to do it.  I’ve seen this first hand in my role as General Manager at Common Ground Food Co-op.

Co-ops have a unique way they can raise capital, they can accept loans from the owners of their co-op. There are careful rules that must be followed by co-ops to do this – they can only accept loans from active co-op owners that are legal residents of the state that the co-op is located in; the loans may offer interest but that interest must not be too high (often the line is drawn at it being lower than the interest being offered by a bank or fund would offer the co-op); the co-op must be very clear with owners that the loans are unsecured and therefore high-risk according to traditional investing standards; and the co-op may not actively advertise the loan opportunity to individuals who are not owners of the store.

In 2008, Common Ground raised $270,000 in owner loans to more than double in size and move to our current store-front location in Lincoln Square Mall in Urbana. At the time, many people thought it couldn’t be done but over 120 owners of Common Ground came forward to make loans to Common Ground’s relocation; some people even came in to become owners of the co-op for the first time because they wanted to put their money into growing the local food economy in our Champaign-Urbana community. We raised all the loans needed in two months and opened in Urbana in August in 2008. The co-op’s success since then has created 35 new jobs in the community, doubled the amount of purchases it makes from local farms and producers, and made Common Ground one of the three fastest growing food co-ops in our nation in just three years. Without those loans from over 100 of Common Ground’s owners, it could never have happened.

The 2008 Common Ground owner loan campaign showed the potential of local capital, and re-set the parameters of what we believed could be accomplished when we work together to meet the capital needs of local businesses. Common Ground’s 2011/2012 owner loan campaign took the bar to a whole new level. With Common Ground’s runaway success since 2008, we are quickly running out of space to meet the needs of our customers and owners. In 2010 we added 400 sq ft more of back stock space and squeezed a third register onto our sales floor, but it was clear this wouldn’t address the customers needs for long and we began planning for another expansion, this time right at our current location.  We could continue to grow within our current space, getting more and more cramped and not offering many items our customers were clamoring for us to offer, but the board and I believed growth was necessary and wanted by Common Ground’s owners. Our belief was put to the test by the 2011/2012 owner loan campaign – would our owners make the loans needed to make the expansion happen?

 

We launched our owner loan campaign over the summer of 2011 and raised over $650,000 in owner loans in less than three months. The response was phenomenal. With that money in hand, Common Ground was then able to go to primary lenders to find the rest of the funding for the expansion needed, showing a robust investment from the owners of the co-op.  After quickly attracting a primary lender to Common Ground’s project in the fall of 2011, we went out to get hard bids for our equipment and construction costs. While our equipment projections were accurate, we’d underestimated the cost of remodeling a space in a building over 60 years old that has had a varied history and is in use above and below us. We went back to the drawing board and cut some costs, but ultimately decided it was fiscally sound to increase the cost of the project if Common Ground’s owners were willing to help us get there. Between February 15th and March 15th of 2012, Common Ground’s owners told us they agreed by raising their owner loan investment to just over $1 million total.

Because of the loans of Common Ground’s owners, currently under construction is a space that will more than double the size of our store. The new store will have a full service deli with espresso bar and an all local/organic salad bar; a local/regional/organic beer and wine section; a self-service case full of fresh local and organic meat; twice as much local and organic produce; indoor seating; and a classroom that can seat two dozen with a built-in certified teaching kitchen where we will hold cooking classes. Construction is scheduled to be complete this fall. In the first year of the expended store Common Ground expects to create 20 new jobs, double the amount of local food that passes through its doors, and offer twice as many educational opportunities to the community.

Since our co-op owners raised over $1 million dollars in owner loans we’ve done a little research and found no food co-op our size has ever before raised so much in owner loans. I chalk that up, partially, to the amazing energy of our community; but in part I believe we’re the first to have done it because we’re the first to have asked. People want to put their money into growing their communities. The loans made by Common Ground’s owners will not only make our larger store possible, it will keep that interest money the co-op pays here in C-U instead of sending it off to a mega-bank. What else could we accomplish through making loans or investing our money other ways into our community? Let’s not be afraid to ask, let’s find out.

 

 

 

 

 

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Urbana-Champaign Mini Maker Faire

Saturday, April 14
10 a.m. to 4 p.m.
IMC, 202 S. Broadway, in downtown Urbana
Free to the public!
Make something!
This event is sponsored by the Urbana Public Arts Commission
Posted in UC-IMC | Comments Off