Local Economy
History of Our Local Economy Initiative:
In November, 2004, SLS brought
Helena Norberg-Hodge to Western Montana to speak in three locales, including
Hamilton, at the Exchange. She spoke eloquently on the negative
effects of globalization on communities. As a follow-up, we
organized Conversation Cafe' meetings for gathering citizens in the valley to
talk about our theme: What is needed to build a local and
sustainable economy in the valley? These meetings were held monthly
over 11 months,
on the first Thursday of each month at the Corvallis High School Library.
(See our Conversation Cafe
page)
Two main issues
arose at the
Conversation Cafe' meetings: we want a healthy lifestyle with our water,
air and food free of pesticides and GMO's; and we are concerned with all this
development in the valley that we are loosing our sense of community, of
knowing, sharing, helping one another, our sense of place.
Searching for
solutions, we
supported the idea of building a strong local food system, which SLS is working
on by publishing a producers directory, starting a co-op, building a seed bank
with a seed growers network; and we wanted to learn more about schemes for
building a local economy, including what a local currency might entail.
So, we invited the director of the
Schumacher Society, Susan Witt to
come and talk to us. Susan came from Massachusetts and brought Chris
Lindstrom as well. We had a public presentation at the
Corvallis Grange on May 12, 2005 and a working session at the Corvallis Methodist
Church on May 13. At the public presentation Susan and Chris told
about models that are working in other communities to build a local economy...
Local Currencies, a banking and loan scheme called SHARE, and a Community Land
Trust scheme to help people get onto land for homes and for farming. See
their website for more information on these schemes.
Below are the Notes from the working
session on Local Currencies..
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NOTES
- Local Currency meeting #1 May 13, 2005 Corvallis Methodist
Church
with Susan Witt and Chris Lindstrom from the Schumacher Society
19 people present (6 of them do not have email, so did not get this notice.)
After a round of introductions, Chris spoke about some
basic steps for building a sustainable local economy, i.e. make inventory of the
resources now available; determine what resources are needed that you don't
have; be able to demonstrate economic advantage of having a local economy;
general discussion ensued, mention of Al & Mary's project
-Opportunity to Farm - and discussion of benefits of the Community Land Trust (CLT)
scheme that also gets people working on the land.
call made for something immediate, a barter system, that
doesn't get taxed.
Time Dollars: Started by Edgar Cahn. Susan and Chris described the "Time
Dollars" system which is a barter system that doesn't get taxed because it is
limited to 'good deed' services, like health care helps. It is computer based
with someone keeping a record of donated time which is emailed or called in to
the coordinator. It is limited to services, not goods, and also should be
limited to services that are not in the economy, like that of a plumber, for
instance. One hour = one hour....no difference what the task. All are
considered 'good deeds'. These systems have been administered by Social
Service Organizations. It gives an incentive and acknowledges the gift of
services. Many people end up donating credits to someone in need.
Ithaca Hours: Started by Paul Glover. no central coordinator, but there
needs to be a directory of good and services gathered, compiled, and
distributed, with clear instructions, and a currency printed and issued.
Organizers should form a simple state chartered non-profit corporation (not
necessarily to obtain IRS tax-free determination). This includes a board of
directors, by-laws, articles of incorporation, which can all be found on the
Schumacher Society web page (www.smallisbeautiful.org).
When people sign up, they get 4 "hours" and a directory of where they can
spend their hours certificates. Can hold monthly potluck dinners at which you
have a little barter fair, and also give 1 hour to everyone at the potluck.
Susan passed around example of the currencies. Ithaca hours had at the top:
"In Ithaca We Trust". Need to monitor system to see where hours are getting
piled up and not circulating...like possibly restaurants. Then create a list
of services that are still needed to keep the currency moving. A needed skill
may get a bonus of hours. Should do a monthly newsletter, can run ads to help
cover cost. Can do an annual barter fair also. Must be open membership, and
democratic board structure. Should include a redemption date so can close
down the system if the need arises. (??)
Berkshare Model: Started by Eric Booth. (same as Salt Spring model)
year 1 - people buy currency at bank w/ federal dollars
at 90% exchange rate (pay $9, get $10 Berkshares), a fund is established in the
bank to use for interest free loans for new sustainable businesses. Can fund
the SHARE program. Takes time to get the main street businesses to trust the
new currency.
year 2 - local government accepts partial payment of
local taxes in local currency
year 3 - untie from federal dollar backing
May need to do fundraising for paid staff to do the promotion.
LETS Model: Started by Michael Linton. is a mutual credit and debit system,
with computer recording, people trade credit units - gets taxed, the coordinator
of the barter network is obligated to report transactions to the IRS.
We will go for it!- - The gist of the group was to
work on starting both a Time Dollars and Ithaca Hours model. Our directory
should color code the Time Dollars (TD's) to distinguish from the B'root
Bucks. We should buy the Ithaca Hours guide from their website ($25). Some
foundations are getting interested, ie Rockefeller Family Foundation.
Schumacher's conference brochure should be read by all on the committee..
Websites: ithacahours.org timedollar.org timebanksusa.org
localcurrency.org
Promotion ideas: articles in newspapers, send newsletter, go door to door, call
it the "B'root Enrichment Program".
