Transcript Slide 1

Alternative Economic Solutions
”Think Global – Spend Local”
Produced by: Philip Wayer – ISSS® 17th November 2012
Copyright ©ISSS 2012
What is the ISSS?
Institute of Swedish Safety & Security
•A Non Profit Organisation
•Registered in Sweden – based in Stockholm
•Not externally funded
•Diverse background of board members
•Common goal – the safety, security and well-being
of people
•Global view – Local perspective
Projects - 2012
•’ELCOM’ – Local authorities ability to maintain
service delivery during a crisis or major incident
•Safety & security of people within the community
•’GENESIS’ – Local Community Support Team
•-Alternative Community Currency in Upplandsbygd
region – Feasibility Study
Our Mission
”Mitigate risks at the lowest local level
through awareness and preparedness”
A Different Mind-Set
Understanding the Problem
A Global System - Fragile & Fractured
Global Economic Downturn?
Peak Oil?
FEMA Camps?
FED Dollar Dump?
Martial Law?
”THE RIPPLE EFFECT”
Climate Change?
GMO?
Middle East Crisis?
Mind Set
R
A
I
D
Take a Journey!
Meet Derek
Decide which vehicle will
take you on your journey.
Tell Derek what you want.
Derek can build any type
of vehicle
He’s very clever!
Your Destination
What did we understand about our
journey?
Risks
Assumptions
Issues
Dependencies
Creating a Solution
Unless we understand where we are going, the
climate, terrain, environment and duration
- creating a robust solution that provides resillience,
and will sustain living in extra ordinary times, will
only increase the challenge at best ... and fail to
meet it’s objective at worst.
+ Correct Vehicle = Robust Solution
Alternative Economic Solutions
Local Production & Services Meeting Local Needs
Bartering System
Traditional bartering systems have found their way back in to the
mainstream to meet basic needs of survival .
Votol, in Greece, has a successful and thriving system called ’TEM’
As the national economy hits new lows and the many people
struggle to find employment, the local population have found TEM to
be a lifeline.
TEM recognises both time
and products. It is managed
through a central database
where user accounts can be
credited or debited
accordingly.
Growth through recession
Effective simplicity
Local Exchange & Trading System
LETS
What can LETS Purchase?
ACCOMMODATION - ANIMALS & PETS - ARTS & CRAFTS BUILDING & D.I.Y. - BUSINESS - CHILDREN
CLOTHING - FANCY DRESS HIRE - FOOD - GARDENING HEALTH & PERSONAL
HOME & DOMESTIC - INTERIOR DESIGN - SPORT & LEISURE TRANSPORT - TUITION / EDUCATION
Local Exchange & Trading System
LETS
Introduced in the 1990’s
LETS transactions are negotiated between supplier and user for an agreed
price in LETS credits, the transaction being entered on a database and
member accounts adjusted accordingly.
Blue Mountains LETS near Sydney, Australia, was the largest such system
in the world. Blue Mountains LETS negotiated with the Department to
Social Security to clear up ambiguities around beneficiaries receiving
payment in LETS for trading in the community. According to Blue
Mountains LETS, trading made it possible for unemployed people to
maintain their work-life skills and was, therefore, a socially beneficially
justification.
Blue Mountain approached the tax office and proposed tax payments in
LETS. The tax office refused.
LETS
Benefits and Limitations
The `local exchange trading scheme’ (LETS), contribute to sustainable
local development (SLD). Two distinct and contrasting models for
sustainable development are described: a mainstream approach, focused
on local regeneration [termed here the `local economic development'
(LED) approach]; and a radical `green’ or `new economics’ strategy
(referred to as `sustainable local development’ or SLD).
Findings from a case- study LETS indicate that this community currency is
successful in allowing participants to make small changes in their lifestyles,
consumption, and employment patterns towards SLD, but there are
limitations of size, scope, funding and management to be overcome before
this could be achieved more effectively with LETS.
Growth through recession
Effective simplicity
Following the LED-relevant prescriptions for up-scaling and
mainstreaming would undermine the qualities which align LETS with SLD
perspective, and this highlights the importance of choosing appropriate
evaluative frameworks, particularly when appraising sustainabledevelopment initiatives
Seyfang, G. (2001) ‘Community Currencies: Small Change for a Green Economy’
Local Currency
Paper Complimentary Currency
The TOTNES Pound
United Kingdom
The TOTNES Pound
TIMELINE OF THE TOTNES POUND
Phase 1
May 2007
300 Totnes Pounds given into circulation at a "Transition and Economics"
event in the town1
8 shops accepted it
The TOTNES Pound
TIMELINE OF THE TOTNES POUND
Phase 2
August 2007
6,000 Pounds sold into circulation (T£10 for £9.50)
50 shops/businesses accepted it
The TOTNES Pound
TIMELINE OF THE TOTNES POUND
Phase 3
January 2008
Phase 2 pounds nominally expired (these were honoured for at least 18
months after this)
replaced by new design of t£1 note
6,500 in circulation (T£10 for £10)
75 shops/businesses accept it
The TOTNES Pound
Achievements
•number of households in Totnes = 3000
•average household income = £20k
•Totnes economy = £60,000,000
•approximate number of Totnes pounds in
circulation = 6000
•therefore the proportion of Totnes economy
that is represented by Totnes pounds = 0.1%
The TOTNES Pound
The Future
The Totnes Pound, as a physical currency, is just the
first small step into figuring out what kind of
economic mechanisms are needed to support a
robust local economy. There are lots of other
developments being discussed:
•Electronic currency using the internet and mobile
phones
•Working with local credit unions
•new t£5, t£10 and t£20 notes using a local
designer
The Bristol Pound
Recently launched in the autumn of 2012 the Bristol
Pound has incorporated many of the future thoughts of
the TOTNES Pound at the time of implementation.
Significantly:
Credit Union Backing
High level of scurity integrated in the paer note design
Internet based accounts and payment methods
Virtual online banking
SMS payment system
Discounted purchases of paper notes
Local Currency Challenges
There are ,amy considerations, in addition to the ultimate
objective and goals, when implementing a local community
currency, including:
Number of current businesses in the area
Number of residents in the community
Type of current products and services available
However, the two most prominent considerations are:
•Cultural
•Political
Local Currency Challenges
Residents
•should have an existing desire to see growth in the community
•should be adaptable to change
•should understand the benefits
•should support local initiative through a proactive approach
Business
Should be adaptable to change
Embrace local initiatives and work closely with the ’movement’
Encourage growth through lotalty systems and offers
Adopt a new mind-set for the future
Local Authroities
Should support the initiative though dialogue, integration and funding
Local Currency Solutions
The next evolution
We believe that local community currencies have a valid place in
communities and have succeded in many of their objectives.
To ensure the growth , through adoption and acceptance, it is important
that the community feels comfortable and familiar in the way that they
make purchases.
The ISSS are exploring the potential for a bespoke payment card
system that meets the ’comfort’ needs of Swedish society, as a 95%
cash-less society. The adoption of a mechanical (old school) card
embossing system, we mitigate the risks presented by peak oil, power
outages and glonal economic downturn in the future.
Local Currency Solutions
The next evolution
Should a local currency be anchored to a national
currency?
Discussions ended without conclussion in the United
Kingdown, when the Brixton Pound organisation met
with energy corporates to explore avenues to link their
local currency to energy.
The risk of anchoring to the national currency could be
devastating in the event of a global economib
depression or collapse?
Local Currency Solutions
The next evolution
Could a local currency be anchored to a locally
produced commodity such as bio-diesel?
Local Currency Solutions
The next evolution
Phase 1
Feasibility Study – exisiting UK models. Successes, failures and
challenges. Identify local area in Upplandsbygd region for research.
Phase 2
Develop a robust model that meets all defined and key objectives
Phase 3
Partner with an organisation or investor that will support the
payment platform integration
Identify key stakeholders
Phase 4
Pre launch marketing initiative to bring awareness throughout the
community
Summary
In the eveny of a global economic crisis, we need to ensure
resillience through innovative methods of Local Economic
Development and Sustainable Local Development supported by a
complimentary payment system. The system success will be reliant
on early implementation to encourage and ensure community
adoption.
Any form of local currency system can benefit a community to
some degree and there are many success stories worldwide.
Ultimately the mitigation of risk and reduction in our
dependencies is essential , and a critical enabler, for local
communities to become more self-reliant in a move towards
resillience in extra ordinary times.
Thank You for Listening!
ISSS®
Institute of Swedish Safety & Security
Stureplan 4C, 4th Floor
113 45 Stockholm
Sweden
www.isss.se
[email protected]
Direct: [email protected]