Alternatives to the global financial sector: local complementary currencies, LETS and Time backed currencies

This chapter explores complementary currencies and exchange systems and how they can provide some stability and competition to the vulnerability of the financial markets. The social economy, or 3rd sector, already plays a significant part in many societies. This is becoming more so as many governments and nations are facing decades of debt inevitably resulting in cut backs in key social and health services. In addition, the existing formal economic activity does not capture, value or support the full range of social and economic interaction within a nation. The chapter examines timebank systems, a particular type of complementary currencies and exchange system, and provides guidance on issues to consider in develop them. One of the finding from the evaluation is that as the number of people in the timebank system increases then more formality is needed to moderate the system and reduce potential for misuse.