Complementary Currencies and Sustainable Development

1. Complementary Currencies and Sustainable Development I speak as a practitioner, who coordinated the South Powys Local Exchange Trading System for 10 years from 1993 until this year. My purpose is to paint you a rich picture, mosaic or map of the CC landscape rather than attempt any kind of conclusive theoretical statement about community currencies, which I think you will find is nigh impossible anyway. Feel free to ask for clarity or definitions as I speak.I speak as a practitioner, who coordinated the South Powys Local Exchange Trading System for 10 years from 1993 until this year. My purpose is to paint you a rich picture, mosaic or map of the CC landscape rather than attempt any kind of conclusive theoretical statement about community currencies, which I think you will find is nigh impossible anyway. Feel free to ask for clarity or definitions as I speak.

2. 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 CCs are clearly a phenomenon to be investigatedCCs are clearly a phenomenon to be investigated

3. 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.�

4. 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 Emphasis on currency as carrier of information rather than a commodity in itself. Emphasis on defined area or group. Within this definition various design features may or may not be present.Emphasis on currency as carrier of information rather than a commodity in itself. Emphasis on defined area or group. Within this definition various design features may or may not be present.

5. Need to reclaim economic language. Not just one economy.Need to reclaim economic language. Not just one economy.

6. 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

7. Money flow is like a leaky bucket!

8. Human Economics Humankind seeks to achieve its economic ENDS, using an economic system as its MEANS, while recognising ecological limits as CONSTRAINTS

9. Turning the Dismal Science into a Lively Art !

10. The question is whether single national currencies are capable of reversing the pyramid or whether they are designed to favour the two top tiers, which is where CCs come in.The question is whether single national currencies are capable of reversing the pyramid or whether they are designed to favour the two top tiers, which is where CCs come in.

11. What would currencies look like that expressed this new relationship?

12. �In hundreds of communities�people 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.� CCs are clearly a phenomenon to be investigated People are going back to the roots of value in communities and the environment, which in turn revitalises the marketplace. CCs are clearly a phenomenon to be investigated People are going back to the roots of value in communities and the environment, which in turn revitalises the marketplace.

13. 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.

14. 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

15. Local Money Globally Argentina barter markets Brazil - Curitiba recycling credits Japan - �love points� Holland � �Nu Card� for sustainable shopping and recycling

16. 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

17. 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.� Emphasis on currency as carrier of information rather than a commodity in itself. Emphasis on defined area or group. Within this definition various design features may or may not be present. CC is a �brand� which acts as a complementary counterweight to the forces of globalisation.Emphasis on currency as carrier of information rather than a commodity in itself. Emphasis on defined area or group. Within this definition various design features may or may not be present. CC is a �brand� which acts as a complementary counterweight to the forces of globalisation.

18. Plugging the leaks � keeping it local So how does it work in practice?So how does it work in practice?

19. 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

20. �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.� How can we learn and apply these lessons so that LETS can make a greater contribution to sustainable local development? Learn from other models.How can we learn and apply these lessons so that LETS can make a greater contribution to sustainable local development? Learn from other models.

21. 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.� Edgar Cahn, Inventor of Time Dollars

22. Communities are full of underused skills, talents, ideas and energy - how can we make sure that these are brought out? Tell Edgar�s story. Tell Edgar�s story.

23. Time Bankshave values built into the design Each person has value � people are assets not problems

24. 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

25. 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

26. 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

27. How will you apply this knowledge in your own life and work?

28. Value for People www.valueforpeople.co.uk John.rogers@valueforpeople.co.uk +49 6667 918769