3c hapter - Index of

What would the world be like if we invested 50 percent of our assets
within 50 miles of where we live?
That we may never know. But a shift of 10 percent or 5 percent
or even 1 percent is within reach, and would have a signifi -
cant and visible impact. As new models for local investing take
shape and the infrastructure and ecosystem to support them
evolves, exciting new possibilities are opening up for investors,
entrepreneurs, and entire communities.
These developments are critical to our future competitiveness,
and represent the kinds of fi nancial innovations we should
be encouraging—funding solutions, rather than more exotic ways
to place bets. We have witnessed the failings of the unfettered free
market system, tallied in lost jobs, rising inequality, and a creeping
monoculture. Economic power and advantage increasingly
accrues to a coterie of global corporations and fi nancial institutions
and the wealthy people who control them. Meanwhile, our
government policies and fi nancial markets are failing the most
dynamic sector of the economy, small business, which is responsible
for virtually all net job creation. It’s not a winning formula.
Globalization is here to stay. But it’s time for a backup plan.
It’s time to hedge our bets by investing in the kinds of enterprises
that enrich us economically and socially, and help build healthy,
productive local economies. Let’s get back to investing in the
native genius of America.
Local Funds
Conclusion
There are still many issues to be worked out. A fundamental challenge
to all locavesting models is the economics associated with
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