Complementary Currencies: An Analysis of the Creation Process Based on Sustainable Local Development Principles

Abstract

Complementary currencies are a reality and are being applied both globally and locally. The aim of this article is to explain the viability of this type of currency and its application in local development, in this case, in a rural mountain municipality in the province of Almería (Spain) called Almócita. The Plus, Minus, Interesting (PMI); “Flying Balloon”; and Strength, Weakness, Opportunity (SWOT) analysis methodologies will be used to carry out the study. Finally, a ranking of success factors will be carried out with a brainstorming exercise. As to the results, there are, a priori, more advantages than disadvantages of implementing these currencies, but the local population has clarified that their main concern is depopulation along with a lack of varied work. As a counterpart to this and strengths or advantages, almost all the participants mention the support from the Almócita city council and the initiatives that are constantly being promoted.

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

“…The former implies a logic of subsidiarity to encourage a bottom-up process of new initiatives aligned with objectives of general interest, providing a framework of economic empowerment and citizenship participation so that socio-economic actors can organise and propose an endogenous response that better meets social needs. With regard to this, the results obtained by García-Corral et al [76] in their research indicate that institutional support for a CSMS has a positive impact on the level of acceptance of the local population.…”

“…A CSMS, as highlighted in various investigations, seeks to set up a new social and economic infrastructure based on different values from conventional provisioning systems [74]. Complementary monetary systems have been identified, among others, as instruments that can enable multiple objectives to be achieved [35], such as defining sustainable development projects in one territory [26,51,75,76], fostering the social and solidarity economy [49], local resilience [18,43,46], social inclusion [77] and economic development [39,67].…”

“…As a result of this monetary movement, a territorial economic dynamic is generated which may lead to: new economic incentives, increased domestic demand, new business ideas, new jobs or the possibility of valuing and rewarding unpaid social reproduction work; structures and institutions are also established within which society is engaged in economic transactions. A territorial economic dynamic is created which is ultimately capable of increasing endogenous development and territorial self-reliance by providing new opportunities for the economic and social activity of that territory [27,39,[76][77][78][79].…”

“…Most CMSs were born as a result of a civil initiative associated with social movements. These initiatives have had, or may have, greater or lesser involvement by local, supra-municipal and/or provincial public administrations, with better or worse results [28,76,86,87].…”

“…Finally, studies such as those by Lee [103], Iosifidis et al [104] and Gómez-Álvarez Díaz and Rodríguez Morilla [36] show the importance of direct social relations in the territory and trust, both interpersonal and towards the complementary monetary system itself, as more of the main strengths that guarantee the success of a complementary monetary system. In this regard, the fact that a CSMS receives institutional support, as well as the degree of knowledge that the population may have of this mechanism, positively affects the possibility of implementing a CSMS in a territory [76].…”