Battered by Economic Crisis, Greeks Turn to Barter Networks
October 3rd, 2011 | Currency, D.I.Y., Open Source, alternative, community, economy, exchange, greece, Local Alternative Unit, market, money, open-money
This is a very exciting movement, people coming together in Greece creating ways to network, exchange goods and services and support each other. The movement for alternative currencies is growing in North America and other western countries as well. There is a group here in Vancouver BC called Vancouver Open Money which is creating a new exchange system and doing some very exciting things. I have just pulled out some pieces from this article by Rachel Donadio about what is going on in Greece to help inspire us all: Battered by Economic Crisis, Greeks Turn to Barter Networks
VOLOS, Greece — The first time he bought eggs, milk and jam at an outdoor market using not euros but an informal barter currency, Theodoros Mavridis, an unemployed electrician, was thrilled.
The barter network in Volos has grown to 400 members.
“I felt liberated, I felt free for the first time,” Mr. Mavridis said in a recent interview at a cafe in this port city in central Greece. “I instinctively reached into my pocket, but there was no need to.”
Mr. Mavridis is a co-founder of a growing network here in Volos that uses a so-called Local Alternative Unit, or TEM in Greek, to exchange goods and services — language classes, baby-sitting, computer support, home-cooked meals — and to receive discounts at some local businesses.
Part alternative currency, part barter system, part open-air market, the Volos network has grown exponentially in the past year, from 50 to 400 members. It is one of several such groups cropping up around the country, as Greeks squeezed by large wage cuts, tax increases and growing fears about whether they will continue to use the euro have looked for creative ways to cope with a radically changing economic landscape.
Even the government is taking notice. Last week, Parliament passed a law sponsored by the Labor Ministry to encourage the creation of “alternative forms of entrepreneurship and local development,” including networks based on an exchange of goods and services. The law for the first time fills in a regulatory gray area, giving such groups nonprofit status.
Here in Volos, the group’s founders are adamant that they work in parallel to the regular economy, inspired more by a need for solidarity in rough times than a political push for Greece to leave the euro zone and return to the drachma.
“We’re not revolutionaries or tax evaders,” said Maria Houpis, a retired teacher at a technical high school and one of the group’s six co-founders. “We accept things as they are.”
The group’s concept is simple. People sign up online and get access to a database that is kind of like a members-only Craigslist. One unit of TEM is equal in value to one euro, and it can be used to exchange good and services. Members start their accounts with zero, and they accrue credit by offering goods and services. They can borrow up to 300 TEMs, but they are expected to repay the loan within a fixed period of time.
Members also receive books of vouchers of the alternative currency itself, which look like gift certificates and are printed with a special seal that makes it difficult to counterfeit. Those vouchers can be used like checks. Several businesspeople in Volos, including a veterinarian, an optician and a seamstress, accept the alternative currency in exchange for a discount on the price in euros.
(The network uses open-source software and is hosted on a Dutch server, cyclos.org, which offers low hosting fees.)
The group also holds a monthly open-air market that is like a cross between a garage sale and a farmers’ market, where Mr. Mavridis used his TEM credit to buy the milk, eggs and jam. Those goods came from local farmers who are also involved in the project.
For Ms. Houpis, the network has a psychological dimension. “The most exciting thing you feel when you start is this sense of contribution,” she said. “You have much more than your bank account says. You have your mind and your hands.” Read full article here