paikallistalous

Paikallistalous, or the local economy, refers to the set of economic activities that occur within a defined local area—such as a municipality, town, or region—and the flow of money, goods, and services among local actors. The concept emphasizes retaining wealth within the community, strengthening local production, and reducing leakage from the local economy through imports and out-of-area corporate profits. Local economic activity is shaped by households, small and medium-sized enterprises, large employers that maintain regional operations, and public sector procurement.

Key elements include locally owned businesses, local supply chains, public procurement that prioritizes local suppliers, and the social economy (cooperatives, non-profits, and community enterprises). Tools to encourage circulation of money locally may include local currencies or time-based exchanges, though their use varies by country.

Goals often include higher local employment, stronger regional tax bases, greater economic resilience, and reduced environmental footprints through shorter supply chains and improved transport efficiency. Indicators include the share of local expenditure captured by locally produced goods and services, the degree of local supplier spend, and measures of leakage to other regions.

Policy approaches focus on supporting SMEs, improving access to finance, facilitating clusters and networks, and promoting placemaking and sustainable procurement. Critics warn that overemphasis on locality can raise costs, limit choice, or create efficiency losses if not balanced with broader market access and trade.

Paikallistalous remains a framework for analyzing how communities organize production, exchange, and wealth generation, with practical implications for regional development, municipal policy, and sustainable growth.