permaculture

Workshop Module 13: Cooperatives and Enterprise Development 347

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Presentation : Local trading systems and currencies

Method : Facilitator presentation

Tools : Images, black/white board, markers

References : PC Book MOD 13 – Cooperatives and Enterprise Development

Objective : Participants learn about local currencies and trading systems

An very good way to strengthen a community and its economy is to start a
local trading group and/or a local currency.

A local trading group will encourage more trade within the community and reduce
the amount of resources that leave the community. This can dramatically strengthen the
community’s economy.

The Local Enterprise Trading System (LETS) is a trading system that is used in
many countries.

Members of the trading system use a credit and debit system where all transactions are
written in a book and no money changes hands.

LETS can also be combined with direct trade or part money, part trade.

• Direct trade – When one product or products are traded directly for other
  products.


• Part money, part trade – When a trading system combines part trade and
  part money transactions.

Members of a LETS systems can be:

• Individuals.


• Families.


• Groups.


• Businesses.

A local currency (type of money) is another way to strengthen local communities by
keeping money in the communities.

• The local currency is used to buy local products and food.


• Local currencies promote the purchase of local products and help to develop
  village economies.


• Local currencies have been successful in many communities in countries all over
  the world.


• Local currencies can be used together with trading systems and the national
  currency.

For more information and explanatory pictures see the “Local currencies, local goods, and
local trading systems” section of PC Book MOD 13 – Cooperatives and Enterprise
Development.