local currencies

In the second story about truly local solutions to global problems and as a fan of local action I bring you this article celebrating the growth and development of local currencies. The movement has now gathered enough momentum that it is considerably more credible than of yore. It has much to offer smaller towns and their hinterlands keen to maintain their independent character. I was in Amble in Northumberland earlier this week and walking up and down the High Street and looking at the local fish landed there my creative currency juices were running high. There are many places like this which are ripe for such developments.

Community currencies are a window into a possible future. The model is practical, not theoretical. It has shown its usefulness in many places. And it has now reached a point where it deserves to be much more widely known.

Community currencies have been with us for decades, even centuries. They are reminders that there is no God-given law stating that only governments or central banks can create monies (even though they do reserve themselves unique powers over what counts as a money). Throughout history different kinds of money have been created, sometimes by communities, sometimes by companies and sometimes by local governments. Their aim has been to connect different kinds of supply – of time, work or things – to otherwise unmet demands or needs.

There are now thousands of examples globally. Many have thrived when the mainstream economy contracted, as happened in Argentina in the early 2000s or Greece in this decade. Others have appeared in the UK, like the Brixton and Bristol pounds. But there are also many examples in countries such as Germany where they have become an expression of community spirit.

Some of these currencies are explicitly about time. They allow us to exchange hours of our time with others. At their best they work by formally valuing things that the mainstream economy finds hard to understand. That might be the time and skill to care for someone; to cook; or to fix things.

The biggest community currency in the UK is Spice Time Credits. The scheme swaps one hour’s volunteering in the community for a time credit for each hour given. The credits can be spent on a range of community, cultural and leisure activities locally. They can also be spent across the national network of organisations that are currently participating in the programme.

This model has already reached tens of thousands of people with well over 1,000 organisations as partners, as shown in their new report, Positive Change in Challenging Times. From quiet beginnings in the Welsh valleys Spice has also shown that it can be effective in addressing many different types of need, from eldercare and schools to drugs and alcohol misuse.