Complementary Currencies and Sustainable Development

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Complementary Currencies and Sustainable
Development
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• At least 10 of world trade, and probably more,
  now uses barter currencies in one form or
  another, and there are at least 7000 local
  currencies circulating around the world

SOURCE David Boyle, The Money Changers
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Definitions

• Sustainable Development
• Development which enables the present generation
  to meet its needs without compromising the
  ability of future generations to meet their
  needs.
• Complementary Currency
• Any agreed means for recording information about
  exchanges of goods and services and resulting
  obligations between consenting participants in a
  locality, region or sector, which runs in
  parallel to other currencies.

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Why apply CCs to the problems of Sustainable
Development?

• Globalisation / Localisation
• Agenda 21
• Economics Rules of the Household - there is
  more than one Economy
• Money must be redeemed

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CASINO ECONOMY SPECULATION CURRENCY TRADING
MARKET ECONOMY EXCHANGES OF GOODS AND SERVICES
CARING ECONOMY GROWING HUMAN FAMILIES
COMMUNITIES
NATURAL ECONOMY EARTH ECOSYTEMS
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Problems caused by present system of money
creation

• Highly unstable economic climate
• Requires continual economic growth so
  incompatible with sustainability
• Pre-disposed to competition rather than
  co-operation
• Money created outside communities
• Money not created by users
• Bank created money does not represent anything
  real

SOURCE Richard Douthwaite, The Ecology of Money
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Money flow is like a leaky bucket!
SOURCE New Economics Foundation, Plugging the
Leaks
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Human Economics

• Humankind seeks to achieve its economic ENDS,
• using an economic system as its MEANS,
• while recognising ecological limits as CONSTRAINTS

SOURCEFrank Rotering, An Economics for
Humanity http//www.feasta.org/documents/papers/ r
oteringintro.htm
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Turning the Dismal Science into a Lively Art !
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NATURAL ECONOMY EARTH ECOSYTEMS
CARING ECONOMY GROWING HUMAN
FAMILIES COMMUNITIES
MARKET ECONOMY EXCHANGE OF GOODS AND
SERVICES
CASINO ECONOMY SPECULATION CURRENCY TRADING
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What would currencies look like that expressed
this new relationship?
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• In hundreds of communitiespeople are creating
  their own community currencies - known variously
  as LETS, green, or time dollars - to free
  themselves from colonisation by the global
  financial system, revitalise their communities
  and build economic self-reliance.

SOURCE David C. Korten, When Corporations Ruled
the World
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• A multi-currency world is difficult to envisage,
  even though the first signs of it are appearing
  already It could usher in a period of monetary
  experimentation that might create a more
  sustainable economy - one that conserves natural
  resources and uses its waste as assets.

SOURCE David Boyle, The Money Changers
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Time Line of local money

• Local barter
• Rich as Croesus - Greek city state
• Kings, Emperors - adulterated coinage
• Middle Ages - cathedrals, demurrage
• Industrial Revolution - truck shops
• Labour Hours Robert Owen
• Guernsey experiment - marketplace
• 19th century - centralised money supply
• 1930s - local government and businesses
• The correct application of stamp scrip would
  solve the Depression crisis in the US in three
  weeks! Irving Fisher, Harvard economist

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Local Money Globally

• Argentina barter markets
• Brazil - Curitiba recycling credits
• Japan - love points
• Holland Nu Card for sustainable shopping and
  recycling

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Modern Systems

• Local Exchange Trading Systems (LETS)
• Organised by volunteers
• Differential pricing
• Local currency name
• Time Dollars / Time Banks
• Paid organiser/time broker
• One hour of service one hour of service

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Definition

• Complementary Currency
• Any agreed means for recording information about
  exchanges of goods and services and resulting
  obligations between consenting participants in a
  locality, region or sector, which runs in
  parallel to other currencies.

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Plugging the leaks keeping it local
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Reflecting on LETS

• A few people give a lot of service and a earn a
  lot of credits
• A few people receive a lot of service and owe a
  lot of credits
• The core functions depend on volunteers
• People sit and wait for the phone to ring
• Tensions between friendliness and efficiency
• The IDEA of LETS inspires many seeking
  alternative lifestyles
• The PRACTICE of LETS may disappoint
• Small is beautiful

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• As they are set up at present, LETS operate as
  near-perfect mechanisms for eliminating their
  most active and valuable members
• Where LETS fail then is in being too lax. If
  they abandoned the idea that members should
  decide how much debt to take on and for how long
  and adopted elements of the credit union approach
  instead there is no reason why they should not
  work well.

SOURCERichard Douthwaite, Whats wrong with LETS
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Other Community Currency Models Time Dollars /
Time Banks

• Time Dollars and LETS are both local currencies.
  Both eliminate interest. Both endeavour to
  strengthen community, to tap local capacity, and
  to offset or remedy some of the more toxic
  ramifications of the global economy. Edga
  r Cahn, Inventor of Time Dollars

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• Communities are full of underused skills,
  talents, ideas and energy - how can we make sure
  that these are brought out?

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Time Bankshave values built into the design

• Each person has value
• people are assets not problems

• Helping each other, give and take
  reciprocity

• Anyone taking part
• inclusion, participation and equality

• Still here tomorrow sustainability

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From Time Dollars to Community Time Banks

• Time Dollars, Edgar Cahn - 1980 -
  Elderplan - Peer-to-peer tutoring -
  Youth courts
• Fair Shares, Gloucestershire - 1998 - paid Time
  Broker - participant interviews -
  participant references - participant police
  checks
• Time Banks UK 1999
• 135 Time Banks in development - 2004

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Future trends in Community Currencies

• Members only or open access?
• Backed currencies
• Smarter technology
• New currency designs for
• Community Time Centres
• Learning Time Credits
• Healthy Living Credits
• Time for the Environment

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Resources

• BOOKS
• The Future of Money - Bernard Lietaer
• Money - Thomas H. Greco
• The Ecology of Money Richard Douthwaite
• The Money Changers (anthology) David Boyle
• WEB
• Value for People www.valueforpeople.co.uk
• Foundation for the Economics of
  Sustainability www.feasta.org
• History of Money www.ex.ac.uk/RDavies/arian/llyfr
  .html
• LETSLink UK www.letslinkuk.org
• Time Banks UK www.timebanks.co.uk
• Time Dollar Institute www.timedollar.org

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How will you apply this knowledge in your own
life and work?
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• Value for People
• www.valueforpeople.co.uk
• John.rogers_at_valueforpeople.co.uk
• 49 6667 918769