Complementary Currency
Helps Local Communities
Over the past 10 years,
more than 5,300 Chicago school children from impoverished
neighborhoods have tutored their peers and earned free
computers for their homes. Five parks in Calgary, Canada,
have become pesticide free, and a formerly homeless
70-year-old woman in Madison, Wisconsin, received free
crochet lessons in exchange for cooking and cleaning for
neighbors. All three of these community success stories can
be attributed to a single trend: �complementary currency�
programs.
Complementary currency,
a form of exchange that aims to �complement� standard
monetary currencies, comes in many forms. So-called local
currency systems, like the one that contributed to the
pesticide ban in Calgary�s park, rely on a homegrown form of
paper money that is accepted only in a small geographical
area and is not backed by the national government .
The intention of local
currency, explains Gerald Wheatley, a founder of the
Calgary Dollars project, is to promote a sense of
community and to stimulate the local economy by ensuring
that cash stays in the region . One of the greatest benefits
of the program, he says, is that it provides �one more
resource, one more social networking support for progressive
projects .�
Time-based currency, in
contrast, is designed to strengthen communities by valuing
�the universal characteristics of human beings,� based on
the understanding that every individual has something to
offer, according to Edgar Cahn, founder and CEO of
Timebanks USA. Under this system, every member�s time
is valued equally, allowing for what is effectively a more
structured form of barter. When a person performs an hour of
service for a neighbor, he or she earns an hour of service
from anyone else in the system.
In this way, the elderly
Madison woman was able to spend an hour cooking for one
member of the local time bank and was repaid with an
hour-long crochet lesson from a local 15-year-old boy.
Alternatively, the Chicago school children were required to
give 100 hours each of tutoring services to earn a
refurbished computer. These types of programs convert
community members who are conventionally recipients of
support into active participants in tackling local problems.
Both types of systems
have their advantages. Steve Burke, p resident of the board
of directors of the local currency initiative
Ithaca Hours in New York state, says such systems are
easy to operate because people already understand money and
its uses. Small local businesses can also gain a competitive
advantage over other retailers, since most large chain
stores won�t accept local currency. Ithaca �hours� (dollars)
have been in use for 15 years, and with about 1,000
residents circulating them, the system continues to grow.
Mr. Wheatley of Calgary
Dollars notes that the physical presence of local paper
money in people�s wallets reminds them to �think locally.�
By providing grants and interest-free loans, his program has
been able to promote campaigns such as the one to eliminate
pesticide use in parks, bringing more than just economic
benefits to the community. Both men attest to the sense of
community people feel when exchanging the currency with
other members.
Time banks are perhaps
even better at incorporating people into local social
networks� especially community members who may otherwise be
excluded, such as low- income households, retired people,
and the disabled, according to a
report from the UK-based New Economics Foundation. The
systems have seen success in as many as 24 countries, in
communities ranging from hospitals and schools to elderly
housing facilities.
In Washington, D.C., a
youth court based on the time- banking system, which uses
tactics like placing previous offenders on jury duty,
reduced recidivism by 50 percent, notes Timebanks USA�s
Cahn. �We think that most efforts to address social problems
fail because they equate the person with the problem and
they don�t enlist the capacity of every human being to help
somebody else,� he says.
WorldChanging Team |
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