Some good challenges from the guru of LETS and alternative currencies, Michael Linton, specifically about my slightly loose opinions on the social economics underpinning the Brixton pound and similar schemes in other parts of the UK.
His final (and very useful) comments seemed to agree with my underlying premise, however, which is that focusing the ‘usage’ of such currencies on consumption as the major economic activity of communities rather than production is perhaps creating contradictions with these alternative capitalist models, just as our dominant neo-liberal model of wealth creation has experienced (if for different reasons). It is these contradictions which have arguably reduced the ‘green’ movement to being a political force rather than a more active economic force for change in our society.
Tackling the problem of communities becoming more ‘self sufficient’ and autonomous (and therefore less dependent on the more unsustainable practices of the global economy) requires recognition that money can produce new relationships and exchanges not just affirm or protect existing hierarchies. I was arguing that money can be a force for creating positive effects of ‘creative destruction’ within a community through which the community itself, through the actions of individuals within the community, can adapt and develop new forms of wealth creation without recourse to the traditional supplies of such ‘risk’ capital which bring their own rules, impacts and unsustainable practices into play.
Michael rightly raises the point that the creation of local currencies enables the creation and accounting of social and cultural capital in the form of exchanges of services, favours and obligations and makes the flow of those favours more liquid and liberated than merely relying on informal accounts of friendship, kinship and altruistic public service. I merely want to add to this earned money with the creation of money through new forms of credit relations which are also created and managed within the community thereby breaking down the conventional consumer/producer model of value exchange and encouraging a new more collaborative and equal endeavor which over time provides the community with more sustainable sources of growth as well as circulation of goods and services.
I am hoping to put together a series of posts over the next week, which will become a paper on how the creation of such currency mechanisms could ‘lighten the gloom’ currently our political master’s view of steepness of the climb towards economic recovery.
Any and all comments will be welcomed and stolen with pride!