Not necessarily egalitarian; one share one vote, voting power is defined by the groups Not looking to grow beyond it’ s13 members
Local Economy Action Plan 2008
An Action Plan for Building a Living Economy in Syracuse
To build and maintain a sustainable, just, and efficient
economy for the mutual benefit of our neighbors.
A healthy local living economy of the people, for the
people and by the people.
Open Source, Group Collaboration, SystemsThinking,
Financial Engineering andWhole Systems Design
Creating wealth in our community by:
• Aligning incentives
• Promoting local ownership
• Building relationships
• Increasing the flow of information
Community Ownership/Cooperative businesses
LandTrusts & Real Estate Cooperatives
Circles/Neighborhood Stock Corporations/Exchanges
Bring it AllTogether
Jargon, Lingo, Mumbo Jumbo and Other Important Concepts
1. This is OUR vision, notTHE vision.
2. If you hear a term you don’t understand – ask now.
3. If you hear an idea you don’t agree with – listen with open ears.
4. If part of what you hear is compelling – hold on to it.
5. If part of what you hear is in conflict with your principals – adapt
the idea to your principals.
One that exercises supreme, permanent authority, especially in a nation or other
governmental unit, as:
1. A king, queen, or other noble person who serves as chief of state; a ruler or monarch.
2. A national governing council or committee.
“A currency is only as strong as the confidence that people have in one another
to produce something of value.”
Robert Swann and Susan Witt, February 1995 Local Currencies: Catalysts for Sustainable Regional Economies. E.F. Schumacher website:
Retrieved Dec 17, 2008
Does not violate autonomy
Does not risk proprietary/personal information
Exclusively by and for LOCAL businesses
Small (neighborhood) scale builds trust and relationships
• Economies of Scale
• Purchasing Power
• Manage Redundancy
• Supply Chain Integration
• Performance Feedback
• Customer Loyalty
• Improved Profitability
• Competitive Pricing
• Join Marketing/Branding
• Build Social/FinancialCapital
• Easily Identify Local Firms
• Improved Pricing
• Relevant Goods & Services
• Better Jobs
• Higher Incomes
• Reputation Networking
• Enhanced Real EstateValues
“An opportunity for producers and consumers to sit down at the table and figure out how they can help one another.”
Local Business Directory & Maps
Coupons, GiftCertificates, Currency
Redeemable at Participating Firms
Joint Ad Campaigns
Business Alliance for Local Living Economies (BALLE)
American Independent Business Alliance (AIBA)
Greater Syracuse: Chamber of Commerce
Collingswood, NJ: Chamber of Commerce
–noun, plural -cies.
1. something that is used as a medium of exchange; money.
2. general acceptance; prevalence; vogue.
3. a time or period during which something is widely accepted and
4. the fact or quality of being widely accepted and circulated from person
5. circulation, as of coin.
currency. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved December 18, 2008, from
Dictionary.com website: http://dictionary.reference.com/browse/currency
Represent a relationship between two people, a storing of value, or a
medium of exchange
Currency has an inherent advantage over goods in that it isn’t
perishable; this affects the distribution of wealth (R. Steiner)
Can be backed by hours, dollars, precious metals, goods, promises – or
anything people will put faith in
Various currencies have been developed to address economic issues
specific to an area and/or community
Types of TargetedCurrencies
Community –…supporting trade within a group of like-minded people…
Local – …support a small town or a neighborhood within a large city. ..punctuated by the strength of physical
interaction and the chance … [to] cement communal bonds...these currencies can support ‘buy local’ programs
that provide leverage against … big-box retailers.
Incentive / Loyalty – …often used by businesses to support return business and are issued based on buying
Reputation – …non-tradeable currencies reflect a person’s standing within a particular community...popular in
large online communities like eBay, where there is a combination of interactions with near-strangers and some
type of risk...These currencies incent good behavior and reduce the free-rider problem,…your actions (positive
and negative) will be recorded.
Social Justice – used to right a particular social wrong. In the case of food stamps, they allow less fortunate
people to afford food.Time-Dollars release latent skills in a community and incent members to exchange those
skills, providing self-sufficiency in communities ...
Economic Development –These currencies are built to improve the flow of national currencies, often within a
geographic region defined by a city, county, multi-county region or other large trading area.They are often (but
not always) built in partnership with municipal or state governments, or multi-regions jurisdictions and councils
With Edits -Targeted currencies network, 2005. Retrieved from http://targetedcurrencies.net/moreabouttargetedcurrencies
on Dec 17, 2008
Asset-backed/Hard Currency Fiat/Soft Currency
Backed by a tangible
tradable item for which the
currency can be exchanged
Issuance is constrained by
Reflects past productivity
Value is inherent
Is backed by a promise or
Issuance is potentially
Reflect future productivity
Value is tenuous, especially
over long time periods
Backed by the federal dollars
Who really benefits?
“The campaign is designed to boost
sales in the Borough and to
increase support of local businesses
while offering shoppers a big
discount on everything in
town…Several phase one
customers mentioned they will buy
holiday gifts, get orthodontics,
remodel, dine out and buy more in
Collingswood because they will be
receiving such a discount.”
Forest Row (Berkshires) LandTrust
Indian Line Farm (Berkshires) (1st CSA in USA)
Champlain HousingTrust (BurlingtonVT)
Must show community benefit if tax exempt
Housing: obtaining mortgages
Do you know 12 people you trust with your life?
Westcott Series 1 Circle 1
Can we buy stock in a local organic farm?
Can we make money on it?
Rising Out of Poverty
Improving the flow of local goods, services, and information.
Overlaying a new social order on existing laws and customs
UsingWall Streets tools for communities
The Solari Stock Corporation
The A/B Share Model
Permanent local control
Creating local investment opportunities
Establishing the needed flow of information
Total Economic Return (TER)
Presents a Business
Heals the Earth
Has no waste
Turns waste to energy
% Market Share
Total Market $
Net Profit Margin
Raises Local Multiplier
Offsets Govt Spending
Economies of Scale
Popsicle Index Factor