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Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota
 

Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota

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Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota

Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota

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    Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota Complementary Currencies for Sustainable Development (Japan) - Theories and Practices - Miguel Yasuyuki Hirota Presentation Transcript

    • Complementary currencies for sustainable development - theories and practices – “Miguel” Yasuyuki Hirota mig@olccjp.net http://mig76en.wordpress.com/ http://www.olccjp.net/ June 2008
    • Today’s topicWhy is today’s socioeconomic systemunsustainable and unfair?Required features for our monetarysystem to promote the sustainable andfair developmentExperiences in the worldConclusion / Questions
    • Today’s topicWhy is today’s socioeconomic systemunsustainable and unfair?Required features for our monetarysystem to promote the sustainable andfair developmentExperiences in the worldConclusion / Questions
    • Why is today’s socioeconomicsystem unsustainable and unfair?Issued only by the central bank when asked by commercial banks: nocommunity, region or even country can self-regulate their means ofexchange > Mexico (1994) Asia (1997) Russia (1998) Argentina(2001)…Ex: The Bank of Japan, free from any political intervention, canimplement whatever policy they like without being questioned (R.Werner, “The Princes of Yen”, 2003)Enriches only the rich at the cost of the poor: unfair redistribution ofwealth for most of the population by way of interest / impoverishmentof the middle-class once the national economy stops growingDifficulty for long-term sustainable projects (such as environment,education) to be invested: only short-term businesses prosper at thecost of human resources and our ecosystem (natural and socialcapital, so to say)US$ backed by oil as standard: favourable for US, economic collapsewhen the oil runs out
    • Even George Soros admits“International trade and global financialmarkets are very good at generatingwealth, but they cannot take care of othersocial needs, such as the preservation ofpeace, alleviation of poverty, protection ofthe environment, labor conditions, orhuman rights – what are generally called‘public goods’” (George Soros, “OnGlobalization”, 2003)
    • Should national economies grow forever? A: growth of all natural beings C: growth of cancer and what the current monetary system demands Our current economic system is destined to eat up all the natural resources of this precious planet Source: Kennedy (cf. next slide)
    • Redistribution of wealth in favour of the rich Most people’s income shrinks in today’s monetary system while a small number of rich gets even wealthier Source: “Inflation and interest-free money” (Margrit Kennedy, http://userpage.fu- berlin.de/~roehrigw/kenn edy/english/ )
    • Today’s financial system infavour of short-time investmentsSource: http://www.stefan-brunnhuber.de/
    • Today’s topicWhy is today’s socioeconomic systemunsustainable and unfair?Required features for our monetarysystem to promote the sustainable andfair developmentExperiences in the worldConclusion / Questions
    • What is money?Everybody know what we can with money, butnobody knows what money is.”The agreement within a community to usesomething as a means of exchange” (BernardLietaer, “The Future of Money”)Agreement = RuleSo we can change our money system and/orhave parallel systems if we aren’t happy withthe conventional one
    • Required features for sustainable and fair Yin currencies Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (Brundlandt Report, UN, 1986) Promotion of natural energy (solar, windmills, geothermal, biomass…) and other eco-friendly and/or social projects (reforestation, irrigation, education, healthcare…) Democratically-managed by its users to prevent financial meltdown by outer agents and to promote the fair distribution of wealth Stimulate the growth of “third sector” (social economy), balancing Yin and Yang in our society
    • Yin and Yang coherences Conv. Money CCSs Competition Cooperation Having, Doing Being Peak Experience Endurance-sustainability Logic, Linear Paradoxical, Non-linear Technology dominates Interpersonal Skills Dominate Bigger is better, Expansion Small is Beautiful Hierarchy works best Egalitarian Works Best Central Authority Mutual Trust Transcendent God Immanent Divinity Male principles Female principles Yang coherence Yin coherenceSource: “The Future of Money”(Bernard Lietaer,Century,2001)
    • Today’s topicWhy is today’s socioeconomic systemunsustainable and unfair?Required features for our monetarysystem to promote the sustainable andfair developmentExperiences in the worldConclusion / Questions
    • Traditional experiences in the world (– cir. 1995)LETS (Canada, Europe, NZ etc.): members trade intheir own point system based on mutual trustTime Dollar / Time Bank (US, UK etc.): members helpeach other by providing daily servicesFureai Kippu (Japan): a group of grass-root initiativesto deposit hours of voluntary services to be withdrawnwhen neededWIR Bank (Switzerland): founded in 1934 to boostsmall corporations, realising more than 1 billion SwissFrancs of trades per annum
    • LETS (different countries)Started in 1982 by Michael Linton at Commox Valley,British Columbia, Canada, then spread into othercountries (UK, Australia, NZ, contiental Europe etc)Called “SEL” (Systèmes d’échanges locaux) in Franceand “Tauschringe” in GermanyMembers exchange goods and/or services and pay inLETS points (see next slides)The total sum of all accounts is always zeroAppropriate for transactions between individuals atsmall communities (a few hundreds of people) ordistricts in urban areashttp://www.gmlets.u-net.com/design/home.htmlhttp://www.lets-linkup.com/ etc.
    • LETS (different countries) Name Previous Change Current amount amount Andy 0 +10 +10 Betty 0 -10 -10 Charly 0 0 0 Total 0 0 0On 08 January Andy gives Betty 5 kilos ofpotatoes and receives 10 points
    • LETS (different countries) Name Previous Change Current amount amount Andy 0 +10 +10 Betty 0 -10 -10 Charly 0 0 0 Total 0 0 0Attention: the total sum of all accounts isalways zero
    • LETS (different countries) Name Previous Change Current amount amount Andy +10 0 +10 Betty -10 +15 +5 Charly 0 -15 -15 Total 0 0 0On 13 January Betty gives Charly her cakesand receives 15 points
    • LETS (different countries) Name Previous Change Current amount amount Andy +10 -25 -15 Betty +5 0 +5 Charly -15 +25 +10 Total 0 0 0On 17 January Charly sells Andy his books andreceives 25 points
    • Examples of LETSHanbat LETS (Daejeon, South Korea): founded in 2000with more than 4,000 trades (more than US$100,000)annually.http://www.tjlets.or.kr/CES (Cape Town, South Africa etc.): an online clearingsystem of LETS, operational in 10 countries.http://www.ces.org.za/
    • Time Dollar & Timebank (US, UK etc.)Started in Washington D.C., US by a lawyer EdgarCahn as a means to promote social justiceMembers help each other and those who help othersreceive hours to be spent when they want some helpfrom others – Improvement of quality of life for a widerange of peopleCooperation with other businesses has enabled thissystem to achieve different goalsUnited States: http://www.timebanks.org/United Kingdom: http://www.timebank.org.uk/Spain: http://www.red-bdt.org/Chile: http://bancodeltiempo.blogspot.com/
    • Fureai Kippu (Japan)Started in 1970s by housewives as a local network ofmutual helpThose who ask for help buy tickets (about US$6 perhour) and volunteers stock these hours and spendthem when they need help (cooking, driving serviceetc.)Tickets are redeemable in yen, although usually belowthe minimum wage: help is more worthy than money forvolunteersQuite active until 2000 when the Public Care Systemfor the Elderly was introducedhttp://www.sawayakazaidan.or.jp/
    • WIRBank, SwitzerlandA B2B CC system since 1934 in theSwitzerlandSMEs make a loan in WIR instead of CHF,since the interest rate for loans in WIR is lowerthan those in CHFWIR is only accepted by Swiss SMEs /retaining the purchasing power within their ownbusiness circle (not out into multinationals orinto neighbouring countries)WIRBank as a cooperative: membercompanies can control WIRBankhttp://www.wir.ch/
    • Recent initiatives (since 1995-)Barter Clubs (Argentina): once the biggest CCmovement in the worldBanco Palmas (Brazil): a community bank which givesmicrocredits in their own complementary currencyREGIO (Germany): some 30 initiatives in practice,dealing with a region (some counties, for instance) andstimulating the regional economySOL Project (France): to promote the social economyBanca Etica(Italy): a bank which gives loans exclusivelyto social and eco-friendly projectsStrohalm: a Dutch NGO which has been implementingdifferent initiatives especially in Europe and LatinAmerica. http://www.strohalm.org/Only a tip of the iceberg: more interesting initiatives canbe found all over the world
    • Barter Clubs, ArgentinaThe biggest complementary currency system ever hadin the worldA barter club in the suburb of Buenos Aires in May1995 with 23 members grew into a huge nationalnetwork of thousands of clubs with 6 million people (1out of 6 Argentineans at that period) made ends meetduring the national crisis in 2001-2002The mismanagement of the credit (their complementarycurrency), however, led to a severe inflation and mostpeople left it, although some 40,000 to 50,000 still goon exchangingSome initiatives to revive this movement
    • Banco Palmas, BrazilA community bank in Fortaleza, Ceará, Brazil since1998 which gives microcredits in its complementarycurrencyInterest rates on microcredits are much lower than theone in real (Brazil’s currency), enabling people withlimited income to start up their own business1200 jobs have been created thanks to this systemhttp://www.bancopalmas.org.br/
    • Chiemgauer, GermanyOne of some 30 REGIO (regional currencies) projectsthroughout Germany/Austria€-backed vouchers that circulate within the region tostimulate small businesses and the regional economyStarted by female high-school students with theirprofessor in Jan 2003, with now 1300 individual and600 business membersMore than C210,000 (=€210,000) in circulation,increasing local businesses’ turnoverRedeemable in euro but with 5% commission: 2% forthe administrative cost and 3% for non-profitsATM service is available toohttp://www.chiemgauer.info/
    • Chiemgauer, Germany2 Chiemgauer bill, with 2% of demurrage each3 months (to be referred to later)
    • Chiemgauer, GermanyChiemgauer Cash Card
    • Chiemgauer, GermanyChiemgauer’s circulation (further on next slide)
    • Chiemgauer, GermanyHow will it circulate?1: Chiemgauer office sells C100 at 97 euro toother non-profits2: Local non-profits sell C100 at 100 euro totheir members, earning 3 euro to be spent fortheir own activities3: Consumers spend C100 instead of 100 euroat local businesses, donating indirectly 3 euroto the non-profit they support4: Local businesses spend C100 to other localbusinesses or redeem 95 euro, and thedifference of 2 euro will be spent to cover theadministrative cost of Chiemgauer office
    • DemurrageSuggested by Silvio Gesell(1862-1930), a Germanentrepreneur and economist whofound out the unfairness of thecurrent monetary systemUS$100 note is much morepreferred to equivalent apples asmoney is free from degradationSo abolish the privilege of moneyby making it gradually perishable> demurrageMasterpiece: “The NaturalEconomic Order” (1916), with thewhole text available online at:http://www.systemfehler.de/en/neo/index.htm
    • Wörgl, AustriaLocal currency (LC) issued by the mayorMichael Unterguggenberger in July 1932:during the Great DepressionHolders of LC charged of “demurrage fee”LC’s quick circulation reactivated local tradesand people even tried to pay their tax inadvanceSo successful economically, though, that theAustrian Central Bank, fearing to lose its gripover its national currency, stopped it in Sep1933Similar cases occurred in the past (up to1950s) in Germany and France, being finishedby force by the central governments
    • Wörgl, AustriaMichael Unterguggenberger’s Monument nextto the City Hall
    • Wörgl, AustriaMs. Veronika Spielbichler (UnterguggenbergerInstitute, Wörgl) with a copy of the LC
    • SOL project (France)SOL Coopération, SOL engagement and SOL affecté:to promote the social economySOL Coopération: similar to the loyalty programme butwith the aim to promote social or eco-friendlyenterprises (B2C an B2B)SOL Engagement: promotes voluntary activities bygiving them some SOL pointsSOL points suffer from the “demurrage”, encouragingusers to spend them instead of savinghttp://www.sol-reseau.org/
    • Banca Etica, ItalyFounded in 1999 in Padua to finance non-profits and cooperatives which otherwisewouldn’t get loansSavers choose one of four domains for theirmoney to be invested: 1. social co-operation, 2.eco-friendly projects, 3. developing countries, 4.cultural eventsSavers can also lower their interest rateFinances some € 375 million to 2571 entitiesIn close relationship with INAISE, FEBEA,SEFEA and other entitieshttp://www.bancaetica.com/
    • Banca Etica, ItalyProjects which have so far got BE’s loanFair trade for a Honduran coffee cooperativeReconstruction of a historic district in Riace,Southern ItalyOrganic farm by a Benedictine monasteryOrganic farming to lessen people’sdependency on the underground economySupport for drug-addictedHealth-care support system for prostitutesEconomic aid to Albania
    • Today’s topicWhy is today’s socioeconomic systemunsustainable and unfair?Required features for our monetarysystem to promote the sustainable andfair developmentExperiences in the worldConclusion / Questions
    • ConclusionOur very monetary system has severalstructural defaults and is unsustainableIt is Yang-orientedComplementary currencies: tool to promote Yinprinciples to balance our societyDifferent systems all over the world, each onein accordance with the community’s needs
    • Questions 1/41. What is/are your complementary currency’s goal(s) ?2. What sorts of demands remain unsatisfied in yourcommunity / region / country?3. What unused resources are available?4. What kind of improvements can be expected byusing complementary currencies?5. Who will be the most interested in complementarycurrencies?More info: http://www.global-community.org/cgi/gc/scan/fi=news_stories/st=db/sf=code/se=25/sp=stories.html
    • Questions 2/4Who will be the members of the start-up projectteam ?
    • Questions 3/41. What means will you use? commodities / bills, coins / cheques /electronic currency / some of them2. What is the unit of your currency? legal tender / time / other goods3.
    • Questions 4/4Draw a chart like this
    • Further reading“The Future of Money” (Bernard Lietaer, Century, 2000)“Interest and Inflation-free Money” (Margrit Kennedy)available at: http://www.margritkennedy.de/“Money: Understanding and Creating Alternatives toLegal Tender” (Thomas Greco, Chelsea GreenPublishing Company, 2001)“The Ecology of Money” (Richard Douthwaite, GreenBooks, 2000)“No More Throw-Away People: The Co-ProductionImperative” (Edgar Cahn)”Healthy Money, Healthy Planet” (Deirdre Kent, CraigPotton, NZ, 2006)“The Princes of Yen”(Richard Werner, M.E. Sharpe,2003)
    • Related websiteshttp://www.margritkennedy.org/http://www.accessfoundation.org/http://www.reinventingmoney.com/ (Prof. Thomas Greco’s officialwebsite)http://www.complementarycurrency.org/ (more info about initiativesall over the world)http://www.le.org.nz/ (a NZ trust)http://www.monetary-regionalisation.com/ (a website for theconference which took place in Weimar, Germany in Sep 2006)http://www.global-community.org/ (where the Community CurrencyGuide is available for free)http://www.regiogeld.de/ (a national association of Regio initiativesin Germany)http://www.strohalm.org/ (a Dutch non-profit which works for theimplementation of complementary currencies)
    • Thank you very much for your attention. My e-mail: mig@olccjp.net My skype account: migjp2003 Website: http://www.olccjp.net