Case Study 1 – The Lewes Pound
Areas of impact: Finance, Economics
Social enterprise location: Lewes, East Sussex, UK
Short description of activities:
The Lewes Pound is a complementary currency, redeemable for goods or services with local traders in the town of Lewes. It is not intended to replace sterling but, by using it, the Lewes Pound helps support local producers and traders and raises awareness of the importance of shopping locally. Lewes Pounds can be bought or redeemed for sterling at any of the issuing points throughout the town – including local banks!
Why it's a social innovation:
This social innovation uses the notion of currency creatively to encourage local trade and support the local community. Traders and suppliers have truly embraced the Lewes Pound and are using it to good effect. For example, by paying their own suppliers in Lewes Pounds, the suppliers in turn spend their income with other Lewes businesses, so creating a virtuous circle that benefits the town. Some local traders offer discounts and deals for payment of goods in Lewes Pounds.
What is its design aspect?
The Lewes Pound delivers social innovation through the design of a financial service. It is a simple system and an effective one.
- Lewes Pounds are bought with sterling at issuing points
- Lewes Pounds are spent with participating traders
- Monies are kept in circulation within the town by users asking for Lewes Pounds in their change and accepting Lewes Pounds for gifts, goods and services
- The Lewes Pounds can be exchanged back to sterling at issuing points at any time
Main actors and interactions (including stakeholders, networks, services and revenue streams):
- The main supporters are the local businesses in Lewes, these include the businesses that also function as issuing points for the currency
- The shoppers, people of Lewes and other customers from further afield that support the scheme and shop locally
Other groups delivering similar work:
- The Dancing Rabbit eco-village issues ‘Greens’ from its Lettuce Patch Bank. This community of about 40 people set amid the hills and prairies of rural north eastern Missouri, USA has aimed to reduce their dependency on money by bartering with their time instead
- The Ithaca “Hour” is a local currency used in Ithaca, New York, is the oldest and largest local currency system in the United States that is still operating
- ‘BerkShares’ are a local currency for the Berkshire region in Western Massachusetts, USA
- The Community Exchange System is being implemented as part of an ambitious plan to make Khayelitsha (a township near Cape Town in South Africa) a self-sustaining community
Social Impact:
- The Lewes Pound offers a way for people to share and redeem the value they have in their community as well as building community spirit
- It is used as a tool to help reconnect and rebuild the vibrant web of local businesses and traders in the community, by bringing people together
Economic Impact:
- It keeps the wealth inside the communities, enabling the local businesses and economy to grow
- It is a means of empowerment for those languishing on the margins of fiscal life, granting economic agency to people like the elderly, disabled or under-employed who have little opportunity to earn money
Environmental Impact:
- It enables the community to more fully utilise its existing productive resources
- It encourages the purchase of locally-produced and locally-available goods and services
Links:
www.thelewespound.org