Conclusion

Contents page - next

Before starting the actual conclusion, I will summarise my analyse of LETS and expose the problems faced by LETSgo Manchester and the actions taken to address them.

LETS' strenghts and weaknesses

Local Exchange Trading Systems rest on an original combination of ethical concerns, new ideas and practical considerations which has the major advantage of increasing economic activity in a sustainable way. The basic principle of complementing money within communities is simple and perfectly adequate to local needs, thus giving way to a lot of trading that would not occur in a conventional economy.

Everyone ends up benefiting from LETS. Individuals can engage in economic activities and training even when they lack money. Moreover, the stress put on a community spirit hinders anonymity. These two aspects have tremendous effects on both psychological and material well-being. On their side, businesses can instantly ease their cash flow by going into commitment. They also benefit from a positive image and build up a special relationship with other members of the scheme, both customers and suppliers. LETS eases the setting up of new businesses and can help those facing closure.

Local governments can not engage in LETS trading, yet they also benefit from the emergence of sustainable economic activities with positive side-effect on social and environmental problems. Commercial trade within LETS is tax liable, thus helping further the entire local community. Even the people who are not members benefit from an increased community spirit and a better local economic situation. However, LETS are still a marginal phenomenon and the concept may be at risk because of low awareness and little preparation against abuses or take-over.

Problems identified by LETSgo Manchester

Problem emerged in various fields, both internal and external to the programme. Within LETSgo, the main project team lacked cohesion, the basic philosophy of LETS was not understood by all participants and the objectives not always shared. Some key people were not prepared to spend time informing themselves about the project and aligning objectives. Working in a non-hierarchical environment also proved difficult for some people who behaved in a selfish way without caring for the others or communicating. Many people also failed to take responsibilities. Moreover, LETSgo attracted many people that Angus Soutar describes as -rebels and revolutionaries whose attitudes make it difficult for them to work with others-.

External problems also arose in the form of the setting up of a short-lived rival organisation by -dissidents- from LETSgo, which proved very distractive and confusing. Manchester LETS had been asked to become the core system of the projects' multiLETS but its core group was not able to meet a decision, which delayed the decision to establish gmLETS for this purpose. Angus Soutar also announces -a campaign of sustained misinformation by Letslink UK, the LETS information agency, cutting [them] off from a previously supportive network-. Moreover, Manchester City Council eventually showed total dis-interest towards the project. The Global Forum was cut back and did not live up to the organisers' expectations, which meant fewer opportunities to promote LETS. As a result of these problems, there has been insufficient attention to work, the first training has been poorly organised and delivered and the strategy that was valid for a short period proved unsatisfactory for the longer project which emerged.

Actions

All the actions taken are aimed at improving dramatically the design and the running of LETS and LETSgo. There is now a strong focus towards communication and information material. Internally, LETSgo has improved selection and training and got rid of troublemakers. The team has engaged in redefining the concept. They now emphasise the aims and the culture of the system, demand alignment from the participants, promote the idea of service to other members (called internal customers) and encourages accountability, responsibility, leadership and personal empowerment, which implies more communication amoung the participants. Today this has been achieved but the group has become small.

LETSgo has established gmLETS as a MultiLETS regional system which is now operating with 150 accounts, including 20 business accounts, but its turnover is still small (between sterling 1,000 and 2,000 a month). A pilot Registry called gmLETSystems Registry has also been created with software. Besides supporting gmLETS and Manchester Women LETS, another MultiLETS, it also deals with the LETShare accounting. The entry of neighbourhood LETS into the MultiLETS framework is imminent and LETShare is still being developed.

Externally, LETSgo chose not to engage in a -battle- with rival organisations and this enabled a slow revival of networking. LETSgo now receives professional advice on agreements, contract law and legal structure from a major law firm from London. Apparently, LETS use similar arrangements to those used by financial houses when trading with Eurobond networks. Taxation issues have been further clarified with the Inland Revenue. This and the experience gained with operating the pilot scheme enabled to re-design documentation according to users' feedback. A pilot sales campaign for business has been completed and will lead to improved materials, a revised approach and suitable finance.

Results and future projects

LETS designers have learnt from last year's failed experience. They are now working at establishing a clear picture of what they are trying to do and getting the basic message through. Three businesses have been set up by previous participants in the project and receive support. LETSgo Manchester supports the starting up of LETSgo schemes in London and Liverpool and Michael Linton is preparing to set up similar networks in Western Canada. Angus Soutar informed me in his fax from 24 September 1995 that it was intended to re-launched a full-scale LETSgo in Manchester when:

Conclusion

It seems that LETS designers have become more -sensible-: they have identified many problems and have been trying to address them. Despite limited needs, they take a professional approach in improving the systems' design according to legal advice and experience. The focus is now on research and development, which implies increased costs in the short run but saves time and problems later on. Re-vamped information material will also prove useful when it comes to promoting LETS. I personally think that they are invaluable opportunities for LETS to spread but much still has to be done. There is undoubtedly a lot of interest in the systems from individuals and journalists alike and a clear and simple message is essential.

Afterword

Even though I did not become a member of a scheme, I learned a lot from LETS. Conventional money is such a major feature of our economic organisation that I had never thought to question its pre-eminence before. I was very surprised indeed to read in the LETS Info Pack (58) that even Paul Volker, former chair of the US Federal Reserve declared: It is now easier to make money with paper chasing paper, than investing in real goods and services. (59).

This is a major drawback of our economy. When even a former manager of the IMF, Johannes Witteveen admits that no-one understands the global monetary system the future might be bright for LETS. It looks improbable today, but I hope it will and I wish good luck to the system developers.

Contents page - next


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