Local Exchange Trading Systems
From Free net encyclopedia
Local Exchange Trading Systems (LETS) and Schemes are local, non-profit exchange networks in which all kinds of goods and services can be traded without the need for money. A LETS network uses an interest-free local credit or currency so direct swaps do not need to be made. A LETS member may earn local credit by doing childcare or computer work for one person, and spend it later on food, hiring equipment, plumbing, or carpentry with another person on the same network. A LETS is sometimes also referred to as a mutual credit system.
LETS can help a wide cross-section of the community -- individuals, small businesses, local services and voluntary groups -- to save money and resources and extend their purchasing power. Other benefits include social contact, health care, tuition and training, support for local enterprise and new businesses, and a revitalised community.
One goal of this approach is to stimulate the economies of economically depressed towns that have goods and services, but little official currency: the LETS scheme does not require outside sources of income as stimulus.
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The basics of LETS
- Local people set up a club to trade between themselves, keeping their own record of accounts.
- A directory of members' offers and requests--goods, services or items for hire, priced in local LETS units--is compiled and circulated.
- Members use the directory to contact one another whenever they wish. They pay for any service or goods by writing a LETS cheque or credit note for an agreed amount of LETS units, or by exchanging printed LETS notes.
- If applicable, the credit note is sent to the LETS book-keeper who adjusts both members' accounts accordingly.
Unlike direct barter, with LETS members can earn credits from any member and spend them with anyone else on the scheme.
LETS in the world
France: A consortium of social economy financial institutions including Crédit Coopératif and the mutuals MACIF and MAI have joined with the Chèque Déjeuner co-operative to launch an alternative currency called the Sol, which will be held on a smart card. The Sol will be piloted in the Ile de France, Britanny and Nord-Pas de Calais regions as part of an EQUAL development partnership in 2005-2006.
Japan: The Peanuts system in Chiba City. Approximately ten percent of all payments made at local stores are in the community currency (2002).
Hungary: The used term there is Community Service System (KÖR). One group from the capital city is Talentum Kör (Gold Talent Group), a British Council-supported project.
United Kingdom: An estimated 20,000 people are now trading in over 400 LETS networks in cities, towns, and rural communities across the UK. LETS currencies have their own names, and often reflect local distinctiveness: Readies in Reading, Locks in Camden Town, Groats in Stirling, New Berries in Newbury, Berkshire, Piers in Southend-on-Sea, Hearts in Birmingham.
The Ripple monetary system has been proposed to connect the diverse LETS systems.
See also
External links
- LETS FAQs
- LETSlink UK website
- Money creation in LETS
- Cyclos. Software for community currency systems and barter systems. It is sort of a combination between ebay and an online bank,
- XO Limited Free Barter Software for LETS exchanges
- Cclite Software for LETS and multiple Community Currencies written in Perl/MySql
- Permaculture wiki article about LETSde:Tauschkreis