A few weeks ago, I was sent a copy of the book, Ripples from the Zambezi, by its author Ernesto Sirolli. It is, I assume, essentially a review copy, perhaps triggered by an earlier reference to his work on this blog. Reading the book now, it reinforces my core belief in the power of individual choice and action.
I accept that there are circumstances where individual actions need to be circumscribed - “No one has the right to shout FIRE in a crowded theatre”. Too often however the possibility of those actions are not just restricted, but removed by political or bureaucratic fiat. The most extreme case I have come across recently was the father, willing and able to contribute toward the upbringing of his child, but unable to do so except via the Child Support Agency – with predictable consequences.
This isn’t the focus of Sirolli’s concerns of course, but it is equally easy to find examples of such giantism in the economic sector – DeLorean for example. I don’t claim that small is of itself always right either– I’ve seen too many examples in my life as a planner of petty and small minded behaviour by parish councillors and small businesses alike to have any illusions left on that score. It is good therefore that Sirolli does not derive his message purely on a contrast of scale – it is much simpler and more effective than that – it just works!
“Enterprise facilitation works because it encourages more people to seriously think about entering the business arena."
We know that in a year, in a community of 10,000 people, between 150 and 200 clients will see the local facilitator. Out of these, between 25 and 35 will open a new business or expand an existing one. Between 25 and 60 new jobs will be created with a combined annual turnover of between $5 and $10 million.”
Think of these figures replicated in Market Towns and neighbourhoods across the UK – the phenomenal growth they would represent would far outshine any centralised big government/big business/big bang project. Taking the median figure for jobs and turnover that would mean around 80 new jobs and around £10m in turnover every year for my town of about 20,000 people. This isn’t pie in the sky – many localities have done just this - see my post here. Sirolli recognises the political significance of this. He cites Walt Anderson:
“To talk of political
revolution as we have known it becomes irrelevant to our times. Nobody will
have to overthrow the state; we will simply outgrow our need for many of its
functions”
Historically economic development practice in the UK has focussed on trying to pick winners and on a centralised big bang philosophy. It hasn’t worked. It hasn’t worked in economic terms and it hasn’t worked in welfare terms. The richest areas in the UK in the 1950s are still the richest now, and the poorest areas continue to fall behind.
By contrast, in Esperance Western Australia, (a town of 14,000 people) one man has over a period of 11 years assisted in the creation of 410 new businesses. In the region of Emilia-Romagna in Italy, with a population of around four million people, there is one business for every 11 people – and 90% of these employ less than 99 workers. The town of Carpi, with a population of 60,000, has 2,500 companies (with an average workforce of 5) generating $2 billion per year.
The most important aspect of all this is simple - it has happened without bloody revolution, without any so-called dictatorship of the proletariat. It has happened without anyone witing around for some millenarian conversion to the minimal state. They have just got on with it – a lesson that needs to be learnt by politicians of every ilk - by those of a ‘vulgar libertarian’ bent every bit as much as by the statists in the the Labour and Tory parties.
