Complementary Currency Lecture 10

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Complementary CurrencyLecture 10
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Risks with National Currencies

• National financial measures are often
  inappropriate for certain regions (money and
  credit supply, interest rates, subsidies)
• Large currencies support the needs of
  multinationals
• National brands siphon off money from local
  economy
• Small local business are disadvantaged and are
  likely to be swept away
• Undermine economic self-determination of
  communities and regions
• Makes local economies vulnerable to changes in
  the global economy

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Why do we need complementary currencies?

• Support economic developments of regions
• To strengthen local economies
• Create jobs
• To support specific purposes such as education

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Advantages of Complementary Currencies (CC)

•   support common welfare and identity
• are localy bound
• do not increase but decrease in value (no
  incentive to hoard money or seek interest. It
  encourages exchange of goods and services)
•   are managed in a transparent fashion
• decisions are made democratically
• support community, are cooperative and
  integrative    
• allow all participants to benefit

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Guiding Principles

• Common welfare und mutual appreciation
• Regional orientation
• Neutrality
• Independence
• Credibility, authenticity, trust and honesty
• 6. Professionality und transparent
• 7. Complementarity
• 8. Diversity

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Effects of CC

• Creates networks (economic, social)
• Strengthens regional economy and promotes local
  economy (money remains in the community)
• Strengthens feeling of home
• Reduces social anonymity
• Warms social relations
• Means for actively shaping our society. CC dont
  exist for the sake of accumulation.
• Create and maintain social capital
• Increases self-confidence, employability and
  skills of participants

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Stakeholder supported by CCs

• - SMEs
• - consumers
• - local associations
• - municipality
• - cultural organizations

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Different kinds of currency

• Regional Currency
• Sectoral Currency
• Local Exchange Trading Schemes (LETS)

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Regional Currency

• Printed money is used such as or zl to
  facilitate exchanges (goods and services)
  between local people and organizations.
• Taxes are currently still paid in national
  currency
• Examples
• - Ithaca hours (USA - 1991)
  www.ithacahours.com
• - Chiemgauer (D - 2002) www.chiemgauer.de
• - Sterntaler (D - 2003) www.sterntaler-regional.
  de
• - Waldviertler (A - 2005) www.waldviertler- regi
  onal.at

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The Deli Dollar
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Common features

• Yearly reduction by about 10 to prevent
  accumulation and encourage spending (except
  Ithaca Hours)
• Fee for exchanging CC to
• Emitting organizations are non-profit
  organizations or cooperatives

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Sectoral Currency

• To achieve a specific purpose
• Saber (Brasilien) for education
• Fureai-Kippu (Japan) for elderly care
• WIR (Schweiz) for interest free loans between SMEs

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LETs

• Difference to Regional Currencies
• LETS association keeps record of each
  transaction between the LETs members
• Similarities to Regional Currencies
• LETS uses own currency or time units as a means
  of exchange
• www.letslinkuk.org
• www.tauschkreis.net

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Further Resources

• New Economic Foundation
• www.neweconomic.org
• Background paperBeyond Yes and No, a
  multi-currency alternative to EMU
• Germanic network www.regionetzwerk.de
• www.tauschring-archive.de