Skip to content

From the region for the region – the importance of local value creation

In a globalized world where goods and services often travel thousands of kilometers before reaching end consumers, the importance of local value creation is often overlooked. Value creation in the sense that it not only strengthens the economy, but also strengthens the social fabric of communities and contributes to sustainable development.

Local value creation means that products and services are produced and consumed within a region or community. This creates jobs, supports local businesses and promotes the sustainable use of resources. But the benefits go far beyond the economic aspects. When we consume and produce locally, we strengthen our communities, reduce our environmental impact and create a more resilient and cohesive society.

Social aspects

Regional production can create identity and shape the character of a region. A mundane example: What would Champagne be without champagne, or what would champagne be without Champagne? Well, simply sparkling wine.
Culturally, local value creation enriches the community by promoting traditional crafts and cultural practices that might otherwise be lost. This strengthens and preserves the cultural identity of the region. In addition, a strong local economy leads to a higher quality of life for residents, who benefit from better infrastructure, higher quality services and a generally higher level of prosperity. In addition, the money stays in the region and creates an economic multiplier effect that increases overall income and economic activity. This is because local value creation creates and maintains jobs, reducing the unemployment rate and providing better employment opportunities for local people.

A customer chats with the sales clerk in a local food store

As European countries have strict laws and production standards, promoting local production can help to prevent child labor, exploitation, modern slavery and inhumane working conditions.

Economic aspects

Especially in times of climate change, concerns about global nutrition are becoming ever louder. Promoting regional food production can strengthen a country’s food sovereignty and, in addition to self-sufficiency, also promotes the relationship between consumption and production. This strengthens local markets and can have a positive impact on regional development and rural development in general. In addition, local products and regional specialties are often part of the promotion of the region itself – just think of Styrian pumpkin seed oil. Finally, local value creation promotes the independence and autonomy of the community. Regions that can produce their own goods and services are less dependent on external markets and political decisions, which strengthens their self-determination.

A man who molds cheese

Environmental aspects

By adapting to regional conditions, local value creation supports biodiversity and the preservation of the diversity of crop varieties, livestock breeds, landscapes, nutritional styles and local production structures. These structures are often characterized by small-scale processes and local raw materials. As a result, transportation routes are short and means of transport are (reasonably) sustainable (trucks instead of ships and planes) and therefore emit fewer CO2 emissions and pollutants. Short transportation routes also mean less packaging waste and refrigeration costs.
Pesticides and herbicides may not be used due to adaptation of plants to local conditions.

To summarize

Strengthening local value creation is a decisive step towards a more sustainable and resilient economy. Promoting regional production and value chains not only creates and secures local jobs, but also strengthens the regional economy as a whole. Local value creation helps to reduce transportation routes and thus lower CO2 emissions, which makes a positive contribution to climate protection.
It also promotes the innovative strength and adaptability of small and medium-sized enterprises, which form the backbone of many regional economies. The close networking of producers, service providers and consumers at regional level creates trust and transparency, which in turn strengthens the regional community.
Ultimately, supporting local value creation is a win-win situation for everyone involved: the economy becomes more resilient and sustainable, the environment benefits from lower emissions and the regional community grows closer together. We at pro local are committed to actively promote and support this positive development.

Teile den Artikel mit Freund:innen und Kolleg:innen: