Social Trade Organisation:
presentation Forum Alternative, Transeurope Festival, Prague

• High (youth)unemployment
• Unequal distribution of welfare
• Unstable and unsustainable
• Environmental problems

The Social Trade Organization was founded in 1970 based in Utrecht, The Netherlands
Mission:
“to research, experiment and implement innovative sustainable economic structures made to suit local economies.”

Local circulation in poor areas: problem
Money flows towards richer areas without supporting the local economy

Local circulation in poor areas: solution = own currency
> own currency forces local purchasing power to circulate longer within the region > afterwards can be exchanged for trade outside the region

• Thousands projects worldwide using an own, local currency
• Can only be used within certain area: neighbourhood, city, region
• No replacement of national currency, but complementary
• Some local currencies: no exchange for national currency
• Other local currencies: exchange for national currency or goods

Local Money: paper money or …..

Local Money: digital > Cyclos software
• STRO's open source software for the administration and operation of Transaction Networks
• For the users it functions like online banking software, allowing transfers between accounts through Web, cards and SMS
• Introduces innovative algorithms that help to keep purchasing power circulating longer, faster and more times in the local market
• Offers functions of social networks and online market place

supermarket restaurant
LM
LM consumers computer
-shop
$
LM + bonus butcher loan
LM administration

supermarket accountant
LM computer
-shop
LM garage marketing companies restaurant
LM transport
LM distribution
LM
LM butcher stock-farmer
LM
LM consumers
$ - fee
LM
$
LM administration

Local Money: advantages
• Local purchasing power circulates longer within the region: more local economic activity and more jobs
• Cheaper loans to companies that participate in the network
• Use of Cyclos means introduction of modern payment system

Local Money in practice: Puntotransacciones
• El Salvador: 500 companies and consumers
• Turnover 2011: 1.3 million dollar, doubling each year

Local Money in practice: Brixton Pound

Results
• We have proven that privately emitted means of payment are technically viable, legally sound and commercially accepted
• Our methods for emitting, backing and administrating different forms of means of payment are operational in hundreds of local networks
• Our software for online transactions is being used in more than a hundred trade-networks (that we know of...)

• Most European countries in economic crisis
• High unemployment, e.g. youth unemployment is 50% in Spain
• Conventional solution: budget cuts by governments

Campaign: Spend Local for More Jobs worldwide

Maybe also in Czech Republic: nakupuj lokálně?

More info on STRO
• STRO:
• Cyclos:
• Facebook:
• Twitter:
• Spend Local:
• email: www.socialtrade.org
www.cyclos.org
www.facebook.com/socialtrade
SocialTradeOrg www.spendlocal.org
jaap.vink@socialtrade.org