2 - Situation in Manchester

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I spent the academic year 1993-1994 in Manchester and conducted the first part of my research there in 1994. This was a particularly interesting time because the town had been chosen for a major project in LETS development which was operating alongside the local system. The first part will be dedicated to Manchester LETS, the conventional network, and the second to the innovative LETSgo Manchester.

2.1 Manchester LETS

Manchester LETS is one particular example of a network which is a pioneer in taking the specific needs of businesses into account. After a short presentation of the scheme, I will introduce the small business network.

2.1.1 Presentation

Creation and growth
Manchester LETS was initiated by Andy Rickford and his wife, who heard about LETS during a conference on abundance in Scotland where the Australian LETS promoter Jill Jordan presented the concept. They soon talked to friends and acquaintances and linked up with others who knew about LETS through books, articles and newsletters, etc. They formed a core group of 8 people during the summer 1992 and started looking for interested people. A pilot scheme was opened in November with fifty members and attracted many people. Manchester LETS was launched on 24 April 1993 with a currency called the bobbin. There has been a steady increase in the number of members, reaching 359 in November 1994 (26).

Promotion
Manchester is mainly promoted by word of mouth and through bimonthly LETS trading fairs (27) where members trade in an easy way and new members can join. A media officer is in charge of contacts with journalists in order to answer enquiries. Articles were published in both local and national newspapers (28) . In March 1994 John Vidal wrote an article in The Guardian on LETS with a large sized photograph which started with the story of Siobhan Harpur, the spokesperson for the scheme, and various examples of members involved. Another article by Rachel Sylvester published in The Sunday Telegraph in May began in the same way and included two colour photographs A crew of Channel 4 came to Manchester to report on LETS in The Money Programme. This increased awareness of the scheme and attracted new members, including businesses.

Organisation
Manchester LETS office is homed by Lyn Woolry, a member of the core group who acts as the contact address. She sends information material to the people interested in joining the scheme (29), records new membership and sends LETS -cheque books- (30) . The core group is in charge of developing and operating the system; each of its members donates six hours work for every two-month period. They are then paid six bobbins an hour. Members are welcomed at core group meetings. Local neighbourhood contacts act as a visible sign of LETS in their area, inform people envisaging joining and support new members if they have questions or face problems. Members receive an account statement and updated directory every two months and the Manchester LETS Newsletter called Loose Threads every month (31) . LETS does not rely on voluntary work from its members. The directory and the newsletter regularly propose work to be performed for the scheme at the rate of six bobbins an hour (organisation of the trading fairs, printing of the directory, etc.).

2.1.2 The small business network

LETS are designed for all the economic actors in the community but it proves difficult to attract businesses. Press articles always present professional members but such -pioneers- represent a tiny minority, usually with a strong social or environmental ethos. LETS still have an alternative image and reluctance is high. Manchester LETS decided to start a small business network (SBN) to try and address this problem.

Originality
The SBN belongs to Manchester LETS yet has a separate image. Steven Knight launched it on 25 March 1994 and took a professional approach in order to convince professionals. An information sheet was circulated where the advantages of being a member were put forward (32) . The prospect of legally increasing profit, easing cash flow and developing business without cash enticed professionals to enquire on the SBN. A special conference and exhibition was also organised on 19 July 1994 (33). This enabled LETS to raise interest in the system and to circulate focused information. It was an occasion to meet members and ask them questions directly.

Advantages
There are many advantages in developing such a focused network. First, businesses do not feel -left out- in a foreign system. They can rely on the SBN for specific information on marketing and legal issues, e.g. accounting and development strategy, all topics alien to private members. Then, businesses can contact each other easily thanks to the SBN list and save travel time by trading locally.

Results
The conference attracted about 40 people and raised awareness on the relevance for businesses of joining LETS. Steven Knight explains: -The major impact was to make ourselves aware of the incredible potential and reposition LETS as a "serious" proposition for small businesses- (34). Today approximately 85 small businesses are members and the SBN plans to offer regular sessions for businesses on all aspects of LETS trading benefits. Promotion is done by word-of-mouth, leaflets and entries in the directory.

2.2 LETSgo Manchester

LETSgo Manchester has been designed as a major event in LETS development (35). It is a large scale project expected to give impetus to the spreading of the systems throughout the world. Landsman have worked many years on it and designed it for a large city. After a presentation of the concept, I will concentrate on its implementation and the problems it faced as well as actions taken to address them.

2.2.1 Aims

LETSgo Manchester has been thought of as a fast track project aimed at boosting the growth of LETS.

Demonstration of the viability of LETS
LETS have mainly flourished in small rural areas where a community spirit is said to be intense and Landsman wish to demonstrate that - minimal resources, if ethically and effectively applied, are sufficient to ensure persistent development of LETSystems in any region- (36) i.e. that the concept can work on a large scale in any location, including urban centres. LETSgo is also intended to provide clear evidence that LETS are viable, self-supporting and efficient.

Accelerated growth in the number of LETS
LETSgo Manchester has been devised to speed up the multiplication of LETS in three ways. First of all through people actively recruiting new business members within MultiLETS, then by training people from different places to set up and operate MultiLETS and finally by attracting public attention with a large scale project.

Test of a new concept
LETSgo Manchester is a new concept of short but intensive training and development work in a large city. While regional development groups depend on a few people over a long time, LETSgo does the contrary but both use LETShare agreements. The large number of participants ensures quick results; the limited period is essential as participants are not paid before full completion.

Confirmation of the leading role of Landsman
A successful implementation of LETSgo Manchester would effectively demonstrate the leading role of Landsman Community Services and preempt commercial or adverse take-over from people with less ethical principles. It would also set the contribution to community as a rule, thus entering an effective community support cycle.

2.2.2 Principles

LETSgo is a particular design of LETS which rests on three principles: a large scale, a community support cycle and a LETShare agreement.

Large scale
The programme has been designed to happen on a large scale for both strategic and practical reasons. If Landsman are to convince anybody that LETS are not bound to remain only a marginal phenomenon, they require a large size so as to demonstrate the relevance of the concept to mainstream trading. A large scale is also needed in order to attract attention and thus have a significant impact. Finally, it is essential to ensure the recovery of high development costs.

Community Support Cycle
LETSgo is intended to introduce a sustainable community support cycle which benefits businesses, people and the third sector (charities, community projects, etc.) alike. Businesses wishing to join will have to make a contribution to the community with the confidence that what they donate will remain within the system and thus eventually come back to them. A small percentage of the donation will be sufficient to recover development costs according to the cost of service principle.

LETShare
LETSgo is a major project in LETS development, entailing high costs. Fortunately, the time and energy contributed by participants will will represent ninety per cent of the total budget and can be accounted for within a LETShare agreement and paid for with later revenues.

Choice of Manchester
Manchester has been chosen to host LETSgo for several reasons. First of all, the city is large enough to support the financing of the project, yet it still has a clear city centre and identity. Local interest in LETS is high, no impediment is apparent and there are many specific opportunities. Manchester local government is a pioneer in exploring sustainable development through economic, social and environmental issues. The Manchester Host, a part of the Telematics initiatives, has showed interest in including LETS in their development strategy of community computer resources. The European Union is funding initiatives concerning sustainable community economic development, including computer issues related to this. Lastly, Manchester will host the second Global Forum (37) on cities and sustainable development and associated events like the International Peace Festival (38) which will attract people from all over the world as well as high media coverage.

2.2.3 Design Programme budget

The population of Greater Manchester is estimated at 4 million and the number of businesses at 200,000. Projections for the long term are that every business will join and have an average of 10 accounts (with each time a donation of sterling 50 and 50 local currency units), which will represent sterling 200 million for charities and local projects and sterling 20 million for LETS development. Landsman will reserve ninety per cent of this budget for the slower regional development strategy generally recommended and take sterling 2 million in consideration. As LETS development expenditure since 1984 have amounted to an estimated sterling 0.5 million, LETSgo Manchester will have a budget of sterling 1.5 million.

Financing
The programme will be mainly financed through -sweat equity- within a LETShare agreement. Cash requirements are estimated to represent only ten per cent of the budget and will be borrowed or contributed against shares in the programme. The opening of 20,000 business accounts will be sufficient to pay off loans and investments at the beginning and wages to participants later on. This is expected to be achieved by the end of 1994.

Trainees
Businesses will be recruited by participants called trainees who can reasonably be expected to register two businesses a day. Trainees will also receive practical and theoretical training in LETS setting up and operation from a staff of roughly 50 to 60 people. They will have to arrange for their own living expenditure during the programme, which means that LETSgo must take place over a short period of time. The organisers chose to implement the programme with 200 participants over 50 days during July and August 1994.

Further Revenue
After LETSgo, systems are expected to keep on growing and revenue from the next 20,000 business accounts will be donated to charities and community projects in Greater Manchester. Until December 31st, 1999 all further revenue will go to a trust fund owned by all the risk taking participants (including investors) according to their share within the LETShare agreement. This fund is expected to ease the beginning of community banking and the progressive setting up of small community trust funds. The initial trust fund is expected to reach sterling 20 million by the end of 1999 when it will be liquidated and the proceeds shared among the owners.

2.2.4 Implementation

Introduction across greater Manchester
LETSgo Manchester started in April 1994. The recruiting of people with various skills began in early May and offices were set up and equipped. The priorities were to contact other organisations and to promote the programme in order to attract trainees. There have been advertisements (39) including one on Granada, the local network of ITN television and meetings with the Manchester City Council Economic Initiatives Department and the Resource Procurement Department as well as with resident groups and Hulme Regeneration Ltd (40) . Sustainability and employment issues have been discussed with the North West Focus, the Centre for Employment Research and Manchester Metropolitan University. LETSgo team reached 21 full and part time workers by the beginning of June 1994.

Practical course
I must say at this stage that when I left Manchester, this part of the project was still in the future and that the very implementation was due to finish at the end of August. I wrote to Michael Linton several months ago to keep informed but this proved unsuccessful despite a second letter and a message on his answering machine. I also wrote to Angus Soutar (41) with the same result and eventually phoned him. This was only a few days before submitting this report. I was informed that LETSgo Manchester trained only 50 people instead of the 200 they were awaiting and faced many problems, which lead them in August 1994 to postpone the -fast track-, i.e. the 200 trainees training. This allowed the organisers to drop the average monthly expenditure from sterling 5.000 to sterling 500. LETSgo still continues work on materials, development, the registry, gmLETS (Greater Manchester LETS) and training on a smaller scale. I had not enough time to take this information in account in my analyse and have therefore chosen to include the problems faced, the way they are being addressed and my opinion in the conclusion.

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Copyright Sidonie Seron 1995.
Permission to copy this document is granted on the following conditions:
Last Revised 21 March 1996 by Nigel Stewartof XTML