Creative Economy: A Feasible Development Option

Table 8.1AfricaAsiaIllustration of Local Exchange Trading Systems (LETS)In 2003 the Community Exchange System (CES) started operating an Internet-based LETS in Cape Town, South Africa. This has grown into aglobal network of over 180 local exchange systems in more than 20 countries (early 2010), among them New Zealand, Australia, Spain, theUnited States, the United Kingdom and Vanuatu. Many of these are former LETS groups but others are time banks and hybrids.In the Peanuts system in Chiba, near Tokyo, Japan, approximately 10 per cent of all payments made at local stores are in the community currency(2002). The LETS movement saw its peak around 2002-2003.South Korea has some active LETS too, such as Hanbat LETS in Daejeon and Gwacheon Pumasi in Gwacheon. The Fureai kippu system is widespreadin Japan.8Policy strategies for the creative industriesEuropeNorth AmericaIn the United Kingdom, an estimated 40,000 people are now trading in around 450 LETS networks in cities, towns and rural communities. LETScurrencies have their own local names, for example: Locks in Camden Town, London - Camden LETS Readies in Reading, Berkshire - ReadingLETS Scotia in Scotland - LETSlink Scotland Rheidol in Aberystwyth, Wales - CyFLe Aberystwyth LETS (group closed down in Aug 2009).In France, a consortium of social economy financial institutions including Crédit Coopératif and the Mutual MACIF and MAI have joined with theChèque Déjeuner cooperative to launch an alternative currency called the Sol, which will be held on a smart card. The Sol will be piloted in theIle de France, Brittany and Nord-Pas de Calais regions as part of an EQUAL development partnership in 2005-2006. (More information is availablefrom www.selidaire.org.)Germany established a number of local currency systems with different names such as “Talents” or “Batzen” using LETS principles. Germanyhosted an International Conference in Monetary Regionalisation in October 2006 to debate those issues.In Hungary the term used is “Community Service System” (KÖR). One group from the capital city is Talentum Kör (Gold Talent Group), a BritishCouncil-supported project.The Netherlands has spawned a number of innovative concepts based on the LETS formula, some of which try to lower participation barriers bycompletely moving their exchange platforms online, like NOPPES.In Switzerland, the WIR Bank operates a system close to a LETS.The original LETS, the Comox Valley LETSystem developed by Michael Linton in 1982, is now dormant, however; there are plans to revive it. Thesecond LETSystem in Canada was the Victoria LETS, established in 1983. LETS have been established in several Canadian cities, includingKitchener-Waterloo, Niagara, and Peterborough in Ontario, Halifax, Nova Scotia, and St. John’s Newfoundland. Although less common than localpaper currencies, several LETS have taken root in the United States. These systems include Asheville LETS in western North Carolina, the St.Louis Community Exchange in the Midwest and Fourth Corner Exchange in the Pacific Northwest.OceaniaThe Psychologist Jill Jordan started the first Australian LETSystem in the town of Maleny, Queensland in 1987, after visiting Michael Linton inCanada to observe the LETSystem functioning in Courtenay, British Columbia. He also pioneered the idea of naming local currencies after iconsof local importance: in Maleny their currency is the bunya, named after the local nut of the bunya pine. In 1989 the Western Australian governmenthad given $50,000 for the development of LETSystems, including the running of state conferences, the production of software, aLETSystems Training Pack, and assistance to Michael Linton to visit Western Australia. By 1995 there were 250 LETSystems in Australia, withWestern Australia having 43 separate systems serving a population of 2.3 million (although actual participation is by only a tiny fraction of thatpopulation) making it then the region with the highest LETS coverage in the world. South Australia also pioneered an “InterLETS” allowing membersof one system to trade with members of other systems. Data on more Australian sites can be found at www.lets.org.au.South AmericaAs of the mid 1990s there were approximately 70 “Green Dollar Systems” in New Zealand. A National Conference of Systems was a means ofsupporting new groups through the various developmental stages.Since 2000, there are now 140 Ecosimia-Groups in Ecuador.Source: UNCTAD adaptation based on wikepedia information about LETS systems in operation in various countries218 CREATIVE ECONOMY REPORT 2010