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 ’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 Peak Oil?Global Economic Downturn? FED Dollar Dump?Martial Law? Climate Change? Middle East Crisis? FEMA Camps? ”THE RIPPLE EFFECT” GMO?

Mind Set RAIDRAID

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 sustainable- development 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 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 ,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.

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