What is the potential of complementary currencies to transition to sustainable and local food systems?

1. Complementary currencies
« To say that a state cannot pursue its aims,
because there is no money, is like saying that
an engineer cannot build roads because
there are no kilometers. »
Ezra Pound, American poet and economic historian.

2. Some economic constraints to the further development of
sustainable and local food systems
PART 1

3. 1. Lack of investment
Bank
Loans
From 2009, banks
have been cutting
back on loans to the
agricultural sector in
Denmark. As a result,
farmers are suffering
from a lack of
investment and
missing liquid assets.
Money is scarce
Farmer

4. Agro-industry
Low prices + standardized
quality
Agro-industries produce
products of
standardized quality
and sell them at a low
price. As a result,
smallholder farmers
have difficulties in
competing with
multinational agro-
industries.
2. Difficulties to compete with agro-industries
Smallholder farmer
MARKET
DIFFICULTIES TO BE
COMPETITIVE IN THE
MARKET

5. 3. Environmental services are not rewarded
Same price between
the carrots even if
they have been
produced in a
different way
Farmers can provide
many environmental
services, such as
biodiversity
preservation, carbon
sequestration, water
quality, etc. However,
they are not rewarded
for providing these
services.
Environmental
services
Farmer 1
Farmer 2
Environmental services
are not rewarded

6. What is the potential of Complementary Currencies (CC)
in this context?
PART 2

7. National
Currency
CC
CC ‘s Association
Farmers can receive
loans at low interest
rates from the CC
network. The loans can
be in CC or in a
national currency
1. Low rate interest loans
and/ or
0% or low
interest loans
Local/ Ethical
bank (s)
Local public
authority
Businesses/
professionals
Consumers
Employees of
the
association
Farmer
Member of the CC
network

8. 2. CC fill the hole during currency scarcity
If any player within the
food system does not
have national currency,
the exchanges stop,
causing a « traffic jam »
in the local economy
« Traffic jam » in the local economy

9. 2. CC fill the hole during currency scarcity
Any business in the
community that is co-
guaranteed by other
business in the network
can receive a credit line
of CC at no interest
from the network.
CC’s Association
CC

10. 3. CC’s create more local wealth
CC’s have an average of
2 to 3 times higher
turnover, creating more
wealth in the local
economy. This means
increased liquidity for
local businesses.
International
markets International
markets
National
money
Local economy
Complementary
currency
Higher incomes

11. 3. Environmental services can be rewarded in CC
Environmental services
can be rewarded in CC.
Environmental
services
CC’s Association
CC

12. How does a complementary currency work?
PART 3

13. Local/ Ethical
bank (s)
Local public
authority
Businesses/
profesionnals
Consumers
Employees of
the
association
The different stakeholders of the CC association draft a charter in democratically. The charter contains the aims and
the principles of the CC.
Participatory and
democratic decisions
Charter of the CC
A MONEY
WITH
VALUES
Social and Solidarity
Economy (SSE)
Fosters solidarity between organizations and
communities for mutual economic and social aims
Sustainable
development
Fosters sustainable development by promoting
short circuits and organics production
Local
economy
Supports local economy by helping the locally-
owned groceries/businesses to better compete
against the multinational chains.
CC’s association
1. A CC is money with values

14. 2. How can a farmer obtain units of CC?
By selling products By providing
environmental services
By receiving a credit
line at no interest
1 2 3

15. 3. How can a farmer use her units of CC?
Buy inputs in the CC
network
Pay back loans Pay local taxes
1 2 3

16. What are the main conditions to implementing a CC?
PART 4

17. To imlement a CC, we need :
1 A community with a network of businesses, shared values and objectives
2 Favourable monetary legislation
3 Populist education about complementary currencies