Tauschkreis Vorarlberg

Best Practice

Topics

• Governance capacity
• Regional value added, Policies and instruments

Short description

Regional ecological economy, promotion and support for the local availability of products and services, promotion of the skills of the individual, involvement of people who are not in conventional gainful employment (jobless, senior citizens, etc.), organised neighbourhood help, support for the older generation, improved quality of life in the region, support for “unprofitable” ideas with the help of a local complementary currency (as also found in commercial applications, e.g. bonus miles).

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Project executive

Talente-Tauschkreis Vorarlberg (TTKV). The Talent Barter Circle, with its current total of 7 regional groups, is registered in Austria as an association for the promotion of fair exchange and ecological economy. It publishes a monthly members’ magazine and has created an Internet platform for regional use and supra-regional networking. Its activities also include talks, publications, events, discussions, media work and meetings. Responsible Person: Jochum-Müller Gernot Tauschkreis Vorarlberg Weidenweg 2, 6850, Dornbirn, Österreich g.jochum-mueller@tauschkreis.net 0043/5572/22787

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Participants

Registered association with the following structure (name, address, office, function): Gernot Jochum-Müller, Weidenweg 2, 6850 Dornbirn, Chairman, project manager; Gertraud Gächter, Fischerweg 1, 6845 Hohenems, Deputy Chairwoman, regional contact; Erika Schmidt, Sebastianweg 10b, 6800 Feldkirch, Treasurer, regional contact; Monika Dintner, Steinbruchweg 10, 6900 Bregenz, Secretary, reservation centre; also: Leiblachtal social care unit.

Objectives

TTKV operates the biggest regional complementary economic system in Austria. It is considered a model project in Europe and is described as such in the current English and German literature. The organisation receives numerous requests for speakers at conferences and talks. The basic objectives as defined in the statutes: (1) organisation of a central barter facility in the context of neighbourhood help to promote the quality of life; (2) self-help for people who are offered few opportunities in our economic system to activate unused potential that cannot be exploited at the level of the market economy; (3) utilisation of local products and services so as to reduce transportation distances; (4) awareness- and knowledge-building in the field of business finance; (5) promotion of contacts between private individuals, associations, companies, federations and institutions with an interest in eco- and human-friendly economy.

Activities

The association operates as a platform for various projects in the field of regional economy. In addition to its communications work, it provides members with a non-cash, interest-free system of payment (talents). In the case of a single mother, say, wishing to use the system to finance furniture for her child’s room, the talent cycle might look like this: The mother joins the Barter Circle, does a lot of shopping there and saves her talents. With the talents she has collected – and she can overspend her talent account on application – she finances solid wood furniture from a regional joiner. The joiner handles one or two orders on a talent basis per year. At the regional education and training centre, seminars can be paid for in talents. The centre in turn uses regional produce from farmers who are also members of the Barter Circle. In 2006 the aim is to persuade local authorities, companies and organisations to put some of their business relations on a barter footing and to create new trends.

Process

no specific methods were used

Results

To date over 11 million talents or 110,000 hours have been swapped among the membership, included 2 million talents last year alone. Region-wide the system now comprises over 560 accounts (families, companies, groups, individuals), which are used by some 1400 people. 12% of members’ accounts are held by companies and institutions. Some families generate over 10% of household income with the talents. Following the first successful projects involving local authorities and welfare institutions, e.g. Leiblachtal social care unit, Bildungshaus Arbogast (education), Katholisches Bildungswerk (education), SOS Children’s Villages Vorarlberg, the objective for 2006 is to have the talents become a second currency in Vorarlberg, and negotiations have already begun with the Leiblachtal regional authority and a Vorarlberg municipal authority. The Barter Circle currently has enquiries about its activities and the opportunities the platform offers from 18 local authorities or their welfare institutions.

Evaluation

Besides the promotion and support of regional economy and environment, the availability of products and services on local level the project targets at the improvement of the skills of the individuals, the integration of people who are disposed to be put at the social margin like jobless, handicapped and senior citizens by the implementation of organised neighbourhood and relief services. The creation of a local complementary currency as an non-commercial exchange means can be regarded as an innovative attempt to realize this objective. This project encompasses various recommendations form QT2 particularly those aiming at social inclusion, common identity and local economy.

Difficulties

Persons from so-called marginalized groups are only partly accepted by the community. Working together with such persons is difficult (particularly with those unable to handle money), anyhow every experience is strengthening the network on the whole. Until now there was never a need to address the court of arbitration which has been installed by the association in order to avoid conflicts which is a good proof for strong inner cohesion and conflict ability. Constructive dialogs have been sufficient so far.

Budget

32000 per year (Euro)

Financial backer

Self-financing project through membership fees (plus sponsoring) (20 Euro + 350 talents/year per account); As regards the budget: Euro + Talents (Tt) together account to about 32000 Euro in 2005

Source of information

Competition

Participant at the 2005 Future in the Alps competition

Homepage

http://www.tauschkreis.net

Comments

Impact on nature and environment

The main objective is to foster a social and environmentally sound economy and way of living. ‘Interest free money’ is not subject to the permanent economic growing pressure which is a main reason for environmental damage. As long as profit is guaranteed the environmental compliances are maintained. But things are becoming different under growing economic pressure. This projects connects numerous organic farmers with local consumers and retailers.

Economic value added

TTKV has become a real economic alternative for some family farms during the last few years. They are gaining a considerable share of their total household income through talents. This is proclaimed as a ‘real progress’ by one of the TTKV families which had been close to poverty for a long time. While the fiscal value added can be calculated in talents or Euro this is quite difficult for the whole economic value added.

Socio-cultural value added

This scheme of a second currency can be regarded as a positive contribution to a new social model. This appears to be extraordinarily important when considering demographic changes and the increasing demand of care. TTKV could probably also mitigate the pressure of competition e.g. in the field of care systems for seniors. Now we are about to adjust our concept in order to enable a long-term accumulation of talents for providing home-based care schemes according to the Japanese Fureja Kippu system.

Innovative content

The innovation reveals is a completely different approach towards economy combining following two aspects: development of an individual’s personality without economisation in a traditional sense. People are recovering and making use of their own capability. The implementation of regional decentralised and demand orientated currency system without economic growing pressure supports bottom-up democracy. Those professional organisational structures have been called "non-limited companies" by Peter Koenig, money researcher from Zurich.

Good governance

All decisions are made in the committees of the annual assembly and the monthly service team meetings. The regional representatives pass the decisions to the common members. Common members are also entitled to take the floor directly at the annual assembly. This lean and transparent decision making structure takes into account the principles of subsidiary.

PR impact

• DVD produced together with ORF (Austrian Broadcasting Corporation) at the ‘days of utopia 2005’, radio programme, numerous articles, homepage, information material • Impact: * establishment of a second or shadow market * connecting people that did not meet before * new products and services * creation of a regional, social and environmentally sound value added, in 2004 the equivalent would comprise that of a company with about 15 employees * Meanwhile many municipalities are interested in this project

Multiplier effect / networking

Experiences have been exchanged with other barter circles and region-money initiatives through presentations and seminars on national and international level. Moreover, there is a close cooperation with other barter circles in Austria, the Lake Constance Region and the Allgäu. Joint activities support the exchange of information and experience. A book shall be published at the 10th anniversary of TTKV. A joint Internet website of all Austrian barter circles will promote this idea worldwide.

Transferability

Barter Circle Vorarlberg (TTKV) provides a platform for many different people. In future more people should be addressed for exchanging their individual talents in order to establish a more human society and an economy serving the people. Barter Circle Vorarlberg (TTKV) can thus promote the implementation of new social, environmentally sound regional development schemes worldwide. The introduction of a second currency is profitable.

Further information