Sunday Times Think Tank

Sunday Times Sunday Think Tank Column 29th April 2012

Necessity is the mother of invention, as the old saying goes. Let’s face it, times are increasingly difficult for most people. But we’re not as dependent or helpless in the face of economic hardship as it might seem. Local Exchange and Trading Schemes, or LETS as they are known, are not new. LETS are moneyless exchange systems of goods and services that have been around for about 30 years, based on the ancient system of barter – a commodities exchange system that does not involve money.

 In recent times, schemes known as Time Banks have evolved - more popular in the US and the UK than elsewhere. These are exchange schemes into which people contribute labour and skill to their community and bank the time given as an insurance policy for old age, for instance. A comparable scheme is ‘Freeeconomy’ founded by ‘The Moneyless Man’ author, Mark Boyle - members contribute without any expectation of exchange. The giving and receiving is expected to balance out over time.

In Clonakilty we’ve come up with a slightly new and more immediate twist on Time Banks and LETS schemes: the Favour Exchange. Since it started just under two months ago The Clonakilty Favour Exchange has attracted much interest locally and nationally. Administered centrally via its website, CFE now has approaching 60 members actively engaged in exchanging skills and labour on a goodwill basis. The scheme has its own currency known as The Favour - the equivalent of 15minutes of time. Direct exchanging is not necessary – once you are a registered member any favours you give can be redeemed from any other member for any skill that is on offer.

The exact balance of your account is unimportant. Members start out with a credit limit of 100 favours – or 25 hours – and are encouraged to go into ‘debt’ immediately – asking for favours is the engine of the scheme because it is the best way of getting things going for everyone. CFE now has approximately 170 different skills on offer to its members – from help with pets, music lessons, gardening, energy efficiency, tax advice, a variety of therapies, and marketing – to transport, plumbing and careers guidance.

Following an interview on RTE Radio 1’s John Murray Show, enquiries arrived at CFE from all over the country and there is now also a Killarney Favour Exchange with other schemes planned for Limerick and Stillorgan. The theme which CFE has adopted to help promote itself is the ‘alternative economics of goodwill’. In response to the interest shown, CFE are holding a national workshop at the internationally renowned Kilkenomics economics festival in Kilkenny in November – organised and hosted by David McWilliams and others.

On Friday May 4th, the Clonakilty Favour Exchange will be launched formally in Clonakilty. The economist Constantin Gurdgiev will join CFE members on the day at their stall at the local farmers’ market to help spread the word - and also at a briefing for the press during the afternoon – and for tapas at Richy’s Bistro in the early evening! We are also delighted to have on board the internet entrepreneur Bill Liao who has joined the scheme as its Giving Officer. The founding principles of the scheme are that it should be an open and transparent network of goodwill, committed to community building and giving. Bill Liao will coordinate the membership’s ‘Help Squads’ to provide support for community projects – tidying and planting a common area perhaps, helping decorate a community centre – anything that the membership can offer voluntary support for. At heart, the Clonakilty Favour Exchange is about altruism – the real glue that binds healthy communities and societies. It’s also about sustainability and sound community economics albeit in a personal and informal way. It has been rewarding to be part of this scheme – socially, personally and practically – there’s a great buzz about it and an uplifting sense that many more things are possible than we’d become used to thinking. If our experience is anything to go by, we believe the country would benefit very significantly if there was such a scheme in every town.

Miriam Cotton is a founder member of the Clonakilty Favour Exchange.