Challenge phases Main content User comments Inspiration's statistics and author info Related themes, inspirations and concepts Share inspiration Challenge activity feed Footer links
Login

The Challenge

1373 followers

How might we restore vibrancy in cities and regions facing economic decline? Read the challenge brief

Inspiration

Mission #5 Surprise Us Find out more...

Local Currency: circumventing the faltering global economy

The Brixton Pound and BerkShare are examples of two successful currencies that support diverse, independent, and local business.
Local currencies like the Brixton Pound provide a fascinating, legal, and feasible model to support local communities by encouraging money and value to circulate at the local level. This prevents money from leaking out of communities at large chain stores (only accept standard currencies, ie Pounds Sterling, USD, Euro, etc) that only circulate about 10% (according to the video above) of the money spent. Local currencies circulate money by limiting them to use in a geographic area, encouraging local business and independent business. This makes sure that a livelihood circulates in a locality, instead of relying on a global currency for consumption. 

http://www.berkshares.org/
http://brixtonpound.org/what/
Mission #5 Surprise Us Find out more...

Comments

Join the conversation and post a comment.

November 13, 2011, 07:24PM
Very interesting concept. On the other hand, sometimes investment from companies that take part of their money out of the region could also be good. But I definitely think this is a great inspiration.
Gabrielle Davelaar's reply to Joaquin Samper's comment
November 15, 2011, 08:23AM
We have in the Netherlands in the bigger cities some sort of project which is alike and we call it Transition town. The idea behind it is that everyone has a skill that someone doesn't have e.g. hairdressing which you can trade. What happens is that you will get points (e.g. 12 points for hairdressing someones hair) when you provide your service to someone. These points can be used for another service such as lending someones car for an hour (e.g. 15 points) or a painter (e.g. 10 points). This allows everyone especially in economic crisis to still go to the hairdresser or getting a babysitter for one hour in the week without worrying about the money. Another thing we have in this community are 'tradeshops'. You bring stuff such as books, clothes, furniture to a shop and you will get points for this which you can again spend on things in the shop. It is currently so popular in Amsterdam that we have trade evenings for clothes only in which women come together and 'shop' total new outfits together. It is also nice to see someone being happy with the one dress that didn't look that nice on you and looks absolutely great on this other person.
Bharath Ganesh's reply to Joaquin Samper's comment
November 16, 2011, 12:58PM
Gabrielle--that's an amazing concept that I think is highly empowering for those that lack disposable income. Having a way to share skills and gain other services/commodities at the local level is what a local currency is all about. Of course, you don't need a paper currency, may a point system that's used in NL is more effective? It would be interesting to see how we might compare.
November 13, 2011, 07:27PM
Oh, by the way, if you update your concept, you can use the buttons on top of the description field to make the urls into links. Would be helpful for readers.
Meena Kadri's reply to Joaquin Samper's comment
November 14, 2011, 02:56AM
Here's further tips on this: to activate links in your post, hit the Update Entry button up there on the right, then follow the instructions here: http://bit.ly/oi_link
November 14, 2011, 01:20AM
Noted--the post is updated.

On a substantive note, perhaps it is the character of investment that is of interest. A supermarket chain sells globally produced goods and reinvests value globally. A local currency displaces the global reinvestment and forces reinvestment to happen at the local level. If someone makes a fantastic product that sells well on a local currency, they are more likely to circulate that money around the locality. If they do decide to exchange that local currency back to a standard one, and invest elsewhere, it is a good thing for the individual, but not necessarily for the locality. I suppose when we want to think about when taking money "out" of a region as "good," we run into a problem of who is benefitting. Major corporations have been exploiting cities by extracting money from their economies for a long time, so we need to find a way to talk about what kind of outside investment is "good" and good for whom.
close

Login

Forgot my password?

New user? Sign up!