Lack of circulating money and the inequality in its distribution within local economies is one of the most important reasons for many of the world’s economic and social problems, such as poverty, unemployment, migration, insecurity and violence. In response to this, the Fundación Pachamama “Complementary Currencies Program”, initiated in 2008, aims to foster dynamic local economy initiatives by using a local medium of exchange to complement the scarce circulation of national currency and strengthen the commercial, financial and social relations between community members.
The project is currently in the process of developing a solid platform by liaising and working closely with the credit cooperative members of Renafipse (National Network Financial Local Structures) in order to launch, in 2010, 2-3 of the most viable Complementary Currencies projects promoting an alternative economic model based on well being. To initiate this, and after several months of on the ground investigation, Fundación Pachamama and its Dutch technical counterpart, STRO, recently selected three of the most promising complementary currency initiatives in Ecuador. At present the program is providing training and development support to these cooperatives in order to determine the feasibility of establishing full-scale complementary currency projects with these communities. This selection process has been exhaustive and very thorough, with visits to the selected cooperatives to gather information about cooperative history, their financial and non-financial services, administrative aspects, financial condition and institutional relations, amongst others. A detailed training program to the managers and staff from the cooperatives on Complementary Currencies methodologies and benefits has already begun, with promising initial results and enthusiastic participation.
Within each cooperative a working group that will coordinate the planning and operational aspects of the project has been selected and begun work. The members of these working groups are mainly local general managers, accountants, portfolio representatives or members from the administration council.
Where to go from here? Over the next few months the feasibility studies will be completed, revised by STRO and then sent back to Renafipse and each cooperative that participated for their valuable feedback. After, the design and details of the projects are approved by all the participants, intensive socialization campaigns will be launched in every community accompanied by workshops to ensure complete understanding and democratic support of the approved Complementary Currency projects. After community approval, and aside from certain technicalities, these communities will be ready to launch their own alternative currencies. This will be an important step forward in developing alternatives in Ecuador to the national currency, and contributing to a more equitable distribution of wealth and community self-determination. Pachamama will continue to closely monitor these projects with the long-term goal of contributing to the promotion of alternative currencies at the national level as an alternative and innovative development model.
