The current mode of thinking projects markets as the modern and superior form of exchange and currency as the best mediator for it. It makes transactions simple and complete. Once a good or service is paid for, there are no obligations between the parties concerned. But, the disadvantages of money are the corollaries of its advantages: introducing it in a social sphere or community can undo the ties maintained till then through a complex fabric of shared obligations. Once broken, it is difficult to re-establish these ties. Monetarisation often leads to concentration of revenues and capital and disappearance of social and ecological obligations. As a result, social ties are broken and damages are caused to the environment. Producers and consumers rarely realise these problems.

In the past few decades, new forms of exchange appeared in societies in the North and the South. They linked the various spheres of social life which were separated by the modern world. These include economy, social ties and ethics. The Alliance’s workshop on Socio-Economy of Solidarity (see article) attempts to present an analysis of these practices.

Local Exchange Systems

Finally, the most modern societies succeed in recreating social ties and non-commercial exchanges in all those places where the market was dominant. For example, Local Exchange and Trade Schemes (LETS)¹ have multiplied in the past ten years in the rich countries of the North where the growing strength of the market destroyed the local life. Some countries in the South, like India, Nepal and Mexico, already have these local schemes. It is said that there are more than a thousand of them across the world.

LETS make it possible for people of a locality, city or town to meet each other and exchange goods and services without any recourse to an official money. A catalogue (or bulletin) of goods and services with their supply and demand is determined and a multilateral procedure of indebtedness is constituted. The LETS spirit highlights the conviviality and discovery of the other, his talents, his capabilities and his social well-being, independent of his commercial value. As a participant remarked, "adopting LETS "is choosing to make a relationship more important than a good; it is the frontier which turns a commercial exchange into a gift". LETS also helps in checking the depletion of local resources, inflation, payment of interests and concentration of wealth. Rich countries find in the LETS system those ingredients which led to the success of decentralised finance systems in traditional countries, whether they are spontaneous or well thought-out as per local realities (Grameen Bank in Bangladesh). The system of LETS proves that the tensions seen in the contemporary world are not different in the North and the South.

Networks for Mutual Exchange of Know-how

These networks operate on a similar logic but in a specific field, that is know-how. They are founded on the simple idea that "Everyone knows something and many would like to learn something; so they can pass on their knowledge". They are also based on several basic principles like parity and reciprocity in sharing knowledge, and respect of plurality of knowledge and learning methods. They encourage mutual transfer of know-how and cooperation while discouraging elitism and retention of technologies which are characteristic of our societies as also they type of education that is prevalent. In France, a federation of 80 networks was created within the Movement of Networks for Mutual Exchange of Know-how². In all the places that they exist, these networks help in reviving social ties. In Brazil, a few years ago, this idea took shape as a Mutual University started by active citizens. Several new possibilities for mutual exchange of know-how are coming up. They include educating poor people and, through this education, train them to be good citizens and create awareness on political practices.

Fair Trade

Since the 80s, the Fair Trade system has been trying to set right unequal exchange between small producers of raw materials, like coffee, cocoa and banana, in the South and the big consumers in the North who buy these products. Respecting certain principles (mainly minimum price and advance on harvest) enables the buyer to be included in a international register and gives him the right to use a fair trade label which can be recognised by the consumer. Fair Trade thus transforms a simple act of buying into an ethical act, thereby making the buyer responsible. Since its introduction, the fair trade system spread to new products. Though it represents a minute part of the sale of these products, it has the merit of bringing about certain improvements in the terms of exchange of the products concerned.

Economy of solidarity

Economy of solidarity refers to a series of practices and institutions of a new type which link habitual functions of the economy like savings, investment, credit, etc. with solidarity. These two spheres are usually separated. Economy of solidarity includes social banks like the Triodos Bank in Europe which funds just "those projects and enterprises which present a clear added value for man, his culture and environment". Economy of solidarity also refers to more local initiatives like developing services in the neighbourhood and setting up social credit systems.

P.J.

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