Social Trade Organisation:

New Moneypresentation Forum Alternative, Transeurope Festival, Prague

Financial system is a failure

• High (youth)unemployment

• Unequal distribution of welfare

• Unstable and unsustainable

• Environmental problems

Social Trade Organisation (STRO)

The Social Trade Organization was founded in 1970based in Utrecht, The Netherlands

Mission:“to research, experiment and implement innovativesustainable economic structures made to suit localeconomies.”

STRO’s presence in the world

Local circulation in poor areas:problem

Money flows towards richer areas without supporting the local economy

> own currency forces local purchasing power to circulate longer within the region > afterwards can be exchanged for trade outside the region

Local circulation in poor areas:solution = own currency

Local Money: how does it work?

• 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

restaurant

$

loan

computer-shop

consumers

LM

LM

LM

supermarket

LM + bonus

administration

Local Money: an example

butcher

restaurant

transport

distribution

butcher

stock-farmer

$

LM

LM

LM

LM

accountant

computer-shop

marketing companies

garage

consumers

LM

LM

LM

LM

LM

supermarket

LM

administration

Local Money: an example

$ - fee

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...)

Local Money in Europe

• 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?

www.nakupujlokálně.cz ?

More info on STRO

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