Resilience requires more than redundancy, it also needs dynamic flows of goods, services, and energy in the local economy. However, globalization and modern financing works against this. Globalization emphasizes a winner take all approach to economic and social life. It concentrates all of the production of goods and services and energy with the "winners" of global competition. The result is that many communities have increasingly become economic black holes -- pure consumption and little else. Worse, the global economy can denude an area of even this consumption potential in months if it deems it a "loser." One way to turn this around is through the use of local scrip (aka currency). Community Loyalty Programs:
"Ithaca HOURS is backed by our relationships" Rebecca Nellenback, HOURS board member.To counter this, a growing number of communities now use local scrip (aka currency) as a loyalty program to help keep business local. Examples range from the Ithaca HOURS, Berkshares, to the Totnes Pound. For example: there are over 900 local businesses in Ithaca that take HOURS in exchange for goods and services, a small percentage of employees even get paid a portion of their wages in HOURS, and businesses can get interest free loans of HOURS. Unfortunately, in almost all cases, these efforts have fared about as well as many "green" initiatives:
- participation is relatively low relegated to a lifestyle choice) and
- coverage is spotty (national chains don't accept them).
- as the local economy contracts, participation falls off due to a scramble for a dwindling amount of global currency (dollars, etc.).