Project Proposal Introducing a circulating local medium of exchange to

build a vibrant, inclusive, and sustainable economy for Auroville and Its surrounding bioregion.

ACCESS Auroville’s Conscious Community Exchange System for

Sustainability

La Ferme 605101 Auroville

Email: access@auroville.org.in Phone: 9943388966

www.auroville.com/access

Project Team: Olivier Hetzel, Project Manager Thomas Greco, Project Consultant Stephen DeMeulenaere, Project Assistant Total Project duration: 4 years: June 2008 – June 2012 Total cost of the project: 200,000 € Funding amount requested: Time Period Covered by this amount:

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Background of the Project Through the research of the project manager with several other community members over the last decade it has become evident that Auroville and it’s bio-region is well situated to develop a Mutual Credit system which will foster the development of a complementary economy that can benefit both the community as well as the surrounding villages, not just economically but also can be an agent to bridge cultural and social gaps.

Auroville is a universal township in the making for a population of up to 50,000 people from all around the world. It is situated in South India near Pondicherry and was started on 28th February 1968 based on the philosophy of Sri Aurobindo. Today Auroville is recognized as the first and only internationally endorsed ongoing experiment in human unity and transformation of consciousness, also concerned with,and doing practical research into sustainable living and the future cultural, environmental, social and spiritual needs of mankind.

"Auroville aspires to be a universal town where men and women of all countries are able to live in peace and progressive harmony above all creeds, all politics and all nationalities. The purpose of Auroville is to reali ze human unity."

The elements and expected outcomes of this project.strongly support the aims and ideals of Auroville , especially that which was expressed by the Mother as “No money in Auroville.”

At dawn, Bonfire gathering at the amphitheatre in front of the Matrimandir for Auroville’s anniversary.

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Auroville’s visitor center

The Galaxy plan for Auroville

Experiences of Partnership and Networking

- In 1998 the existence of LETS systems started to be known in Auroville , and the work of Philippe Derruder a French alternative economist and its Ecosophia organization was shared among the Francophone segment of the Auroville community.

- In 1999, Olivier Hetzel and some friends presented a concept paper titled “Towards An Economy Without Money” to the Auroville Economy Group. This paper outlined the dysfunctions of the conventional economy and laid out the principles of complementary currency systems in a community like Auroville.

- In 2000 there transpired a year-long group discussion of alternative economics and preparations were made for a 3 day seminar on the Auroville economy.

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- In 2001 over 60 participants attend the seminar, and at the last session, 300+ community members supported the implementation of a 5 level economic system in Auroville.

- In 2001 a 2 day workshop in Auroville with alternative economist, Gilbert Thiaffey, complementary currency principles were introduced to about 20 Aurovilians.

- In 2001 and 2004 Margrit Kennedy gave presentations to about 100 Aurovilians and led animated group discussions about complementary currencies and the effects of compounded interest in economy.

- Further research discovers that the Auroville financial system’s virtual “Pour Tous” accounts are already a form of complementary currency, albeit not adequately designed to achieve all the benefits such a system could foster.

- In 2002 several copies on Bernard Lieteard’s book “The Future of Money” were purchased and circulated amongst a great number of Aurovilians.

- In 2003 an experimental accounting system known as the “Free Flow” model was proposed to the Fund and Assets Management Committee of Auroville and implemented to a few food processing units. This system keeps the records of goods and services provided to the community by these activities separate from the regular audited accounts, but entered as a budget received from the community setting the grounds for the establishment of a Complementary system of production and distribution.

- In 2004 a white paper on Auroville written by Mr. Henk Thomas and Mr. Manuel Tomas drew an extensive overview of Auroville’s economy based on a research of the Auroville foundation’s balance sheet. One of their conclusions was that Auroville’s range of commercial activities is not wide enough to successfully support the implementation of a complementary medium of exchange within the community; only inclusion of the bio-regional economic activity could achieve this aim successfully.

- In 2005 the Pour Tous Distribution Center – PTDC - was launched, allowing Aurovilians to give their work to the community and have their basic needs taken care off without the direct exchange of money by participating in the PTDC scheme.

- In 2006 the Knowledge Business and Consciousness seminar invited eminent figures from India and abroad to participate over 3 days in presentations and panel discussions which were attended by well over 150 Aurovilians. One of the presenters, Thomas Greco, laid out several alternative economic possibilities for Auroville, and Olivier spelled out in his presentation the technicalities of turning the Auroville Pour Tous system into a properly designed alternative system.

- In 2007, Olivier wrote a concept paper called “The Future of the Economy” which identifyies 7 different principles of economy in Auroville that complement and support one another in achieving an integral and holistic approach to the many needs of an evolved humanity.

- On April 20 of the same year the Auroville Conscious Community Exchange System for Sustainability – ACCESS - was launched as a research prototype for the Auroville bio-regional Mutual Credit Clearing system.

- During the summer of 2007, Olivier and Thomas Greco outlined the stages of a bioregional economic development plan, designed the parameters of an enhanced mutual credit system for the

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ACCESS project, and together with Stephen DeMeulenaere, wrote proposals for funding the initial stages.

Introduction of the Project

Producers and companies in developing countries experience a structural difficulty to attract purchasing power or access credit. And if they do, interest rates are generally very high. High financial costs affect the competitiveness of local businesses. In addition, at the level of the local community, consumers and entrepreneurs encounter a serious lack of purchasing power available to perform transactions or to make investments. Local and regional economic structures are also related to (and dependent on) the formal market and the national currency. Every time a product that is produced outside the area is purchased, there is an outflow of purchasing power towards the external market. Because of the sparse quantities of local purchasing power, local companies decide to produce goods for export or to sell in the large cities. As a consequence, capital and investment cease to benefit the local community, worsening its economic situation. The “connection” to the world market and the formal monetary system also causes some segments of the population to remain excluded. This way, some products/services and economic activities, even though of great social and cultural importance for the local community, are not supported (or even carried out) because they do not meet the competitive requirements of the formal market. Because of that, these activities are not able to find sources of financing and support. It seems difficult to develop communities by focusing local capacities on local demand. Evidence shows that economic interaction in many underdeveloped local communities is low and socio economic dynamics remain weak. Why does this occur? Because of the prevailing link to the formal market, people still find the spending possibilities in the world market more attractive. This has serious consequences because local specialization cannot be achieved and the locally produced goods and services are not supported. We can identify here two vicious circles: an economic one and another of a more social nature that hamper the local socio -economic development. The economic vicious cycle is that because there is an insufficient supply of money at the local level, the risks to investors and lenders are high and they are reluctant to invest or lend. With so little money in circulation to facilitate exchange and without access to credit people cannot work and communities cannot develop. The local money supply remains insufficient and people can’t afford to buy what they need. The social vicious cycle is a spin-off of the economic one: since economic interaction is low, socio-economic dynamics are weak, making it harder for the community to cooperate on local development projects. For example, you can build a school but you can’t buy books, build a clinic but can’t pay for a nurse or medicine. Many local buildings remain idle once they have been constructed and the funds spent on construction have drained out of the community. In Auroville we have been working to overcome these problems by developing and managing our own services and community activities. But now we feel that it is necessary to implement a locally circulating medium of exchange, the Auro, to develop the economic interaction between the Auroville community and the surrounding village activities including the nearby town of Pondicherry. This would not only have economic benefits in the form of education, health services, free lance

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Difficulty to access credit to fill in the

needed means of

Insufficient inflow of external

Low Investment

Little local demand for

local products

Low competitiveness Low salaries

No development of local economic activities

Attraction of the formal, external market

No local specialization

Weak socio-economic dynamics

tutoring, consultancy or training, provided to villagers by the numerous visitors, voluntaries and Aurovilians flooding the Auroville community and who are generally eager to help, or to have on the other hand local craftsman, construction workers, drivers, local producers and manufacturing industries providing their goods and services directly to Auroville and its residents. But local medium of exchange would also have tremendous social advantages where the ever widening cultural gaps where the western vs. Indian mindset can slowly be bridged through those exchanges happening on an equal economic footing. The creation of an internal, autonomous and sustainable dynamic within the local economic structure is necessary. The introduction of a local currency will strengthen the interaction. In order to receive the local currency (to repay the loans or to simply obtain currency for local purchases), people will have to turn themselves to the local economy, local activities and their neighbors. Experiences with local currencies (Argentina 1995-2003, Germany 1919-1922, 1934, Europe and North America 1932-35, 1984-2008) prove that indeed they are able to revitalize communities. They also show that the introduction and management of a local currency is less easy then often thought and the risk of breakdown after initial successes is real. A local medium of exchange is necessary to create more stable and during local development environment. This medium of exchange offers a far more stable tool to increase the local circulation of money and local economic activity in the community than “traditional” local money schemes, and contributes to the creation of a local network that can be used to increase the range of socio-economic benefits of solidarity, supports local investment leading to local specialization, and generates local production opportunities and it facilitates community cooperation to achieve local development goals. Diagram 1: Vicious cycles that hamper local development

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Aims and Objectives

The project will provide the economy of the Auroville bioregion with the strength and vitality that is necessary to attain a greater measure of self-reliance and enhance the quality of life for both Aurovilians and the local population.

Its two complementary approaches are to (1) facilitate “local import substitution” and (2) provide a local means of payment using the credit of local producers.

The first will be achieved by organizing a Mutual Support Network that will link existing businesses and encourage the creation of new enterprises to fill local economic niches. This will provide a variety of goods and services from within the network and the local community instead of being sourced from outside the region.

The second will be achieved by organizing an alternative means of payment known as Mutual Credit Clearing. A Mutual Credit Clearing system is an economic network that provides interest-free credit for the making of payments between members of the network.

The following is a diagramatic representation of this mutual credit clearing system:

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Diagram 4: Main features of the Auro Mutual Credit Clearing System

Geographical area: Auroville and Bioregion Backing/Valuation: Contract Agreement to receive Auros and to

make up any negative balance in Auros or Rupees within limited time frame.

Convertibility to national currency:

No

Methods of controlling inflation:

Issuance of credits by local manufacturer – Limited credit lines

Cost-Recovery Mechanisms

1% to 3% Levy on transactions

Project Overview

The ACCESS project is working from the idea of economic development pursued by a process of a broad range of local specialization based on production in first instance for the local market.

The project starts with the premise that a basic level of local specialization which focuses on local needs and production to satisfy local needs is more beneficial for local communities and their growth towards a higher level of economic output. A diversified local economy integrated in a healthy and stable social structure, in which abilities and knowledge are shared and transferred, is the ultimate goal of the ACCESS project.

Money systems should nurture and protect this process instead of obstructing or destroying it. Money should not be a vehicle to transfer power from one area to another and must not lead to a concentration of powers that destroys the possibility to maintain healthy local structures elsewhere.

The benefits will be both economic and social, as such systems have been shown to foster greater social interactions and cohesion among participants. It can therefore be a potent tool to help bridge the cultural and class distance between the community of Auroville and the local population.

Preparatory Assessment

What assumptions do we make for assuming the project will succeed? What studies have we read or conducted in order to come to the conclusion that this system is a necessary step in advancing the Auroville economy?

Local Economic Research will assess in detail the viability of the project, although the initial assumption is that the project will achieve the goals of:

• Strengthening value-added production • Reduce capital flight • Increase economic activity for network participants and local economy • Provide low-interest/interest-free loans to producers • Reduce prices for consumers • Introduce new local economic infrastructure • Create a network for facilitating local sustainable economic development

Project Beneficiaries

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The direct beneficiaries of the project are Individuals and Enterprises who participate in the Auroville Exchange Network. In general, residents and guests of the community of Auroville (2 - 4,000 people).

In terms of individuals, participants who are “Prosumers”, that is to say persons who are at the same time producer and consumer of local products. The increased availability of means of exchange will stimulate the demand for their products and, as a consequence, increase their purchasing power. These two effects lead to a self-enhancing growth cycle.

Local Value-Adding Enterprises will also benefit from the exchange network by mobilizing local sustainable resources in producing high-quality goods and services for the local and eventually export markets, and diversifying the productive base of the community.

The indirect beneficiaries are the community members in general who will benefit from the higher economic activity in the area which will result in more employment (or income opportunities) and higher incomes.

Program Implementation

This project will be carried out in three phases. Previously an experimental prototype web-based clearing house, called ACCESS (www.auroville.com/access) was established in Auroville on the 20th April, 2007. The prototype has enabled the initial project team to gain further experience and insight into how to build a more comprehensive system for the bioregion.

Phase I: Research, Education and Outreach (six months)

The goal will be to conduct the necessary research and to convey the benefits of a mutual support network to as many local businesses and individuals as possible. The Noticeboard of Offers and Requests will assist the community in finding local sources for the things they need and local customers for the things they provide.

Primary Objective: Establish the knowledge foundation for the program and baseline indicators for assessing the future success of the program. Specific Objective and Activities: 1. Survey Research

1.1 Rapid assessment of Auroville economy 1.2 Survey of key local enterprises in the Auroville economy 1.3 Meeting and interviews with key local entrepreneurs, enterprise owners, Auroville

commercial and service units. 1.4 Meeting and interviews with local government bodies, non-profit sector, etc.

2. Conduct inventory of local economic activity

2.1 Local outputs directly destined for local consumption (ie. Agriculture) 2.2 Local production activities for local consumption (ie. Small industry) 2.3 Local “eternal cycles”: repetitive patterns of income and consumption that are interlinked 2.4 Research and mapping of the kinds and amounts of goods and services provided and

needed within the region from the specific businesses that provide and need them. This research will identify opportunities for replacing imports with locally -sourced materials and goods.

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3. Conduct Presentations and Workshops via Focus Groups

3.1 Preparation of educational materials, information packets and presentations. 3.2 Provide general information to Auroville community via web and printed material. 3.3 Hold general public information sessions on the proposed project. 3.4 Conduct Role-Play and Participatory Economic Mapping workshops to small Focus

Groups.

4. Central Exchange Point for Offers and Requests 4.1 Establish Offer and Request Notice board on the internet as a real-time database to

showcase local products and services and provide an online marketplace that will eventually include a cashless payment option in future phases of the project.

4.2 Establishing a physical kiosk for this purpose in a public location. 4.3 Conduct socialization workshops to build this Mutual Support Network.

5. Preparation of a Business Plan for the Exchange Network 5.1 Build a database of all the goods and services available in the bio-region and correlate

the information.

To implement the above steps, the following is required:

• Expansion of the project team to include all the necessary skills for research, organization, administration and promotion of the project. This will include:

1. Hiring a Project Administrator 2. Hiring a field researcher to work in collaboration with the Village Action Group and

Tsunami offices to collect and map data from local businesses and trade associations.

3. Hiring a web designer and data entry people to implement an online warehouse and shopping mall for the bioregion.

• Creation of easily understandable informational and educational presentations to demonstrate the value and proper use of the system. The presentations will vary in length from two-hour presentations to two-day workshops and could include any or all of the following: lectures, discussions, interactive activities, simulation games, power-point presentations, movies, animations and Q & A sessions.

• Translation and adaptation of these educational presentations to be accessible to the village culture of the bio-region.

• Organization and facilitation of the educational training programs for the businesses, trade associations, women’s and men’s associations, youth clubs, schools, etc. within Auroville, the villages and towns of the bio-region.

• Establishment of an office with computers, phones and internet connection.

Logical Framework Analysis

Phase One

Narrative Summary

Objectively Verifiable Indicators

Means of Verification

Important Assumptions

Goal/Objective Implement a Mutual Support

Participants are utilizing the network to

Number of website visits, number of

Participants must have access to

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Network access goods and services

notices posted.

information

Project Purpose Link producers and consumers, identify local assets

Participants attend presentations, workshops, meetings, etc.

Number of participants attending meetings.

Participants must have access to the meetings.

Outputs/Results Online and Physical Noticeboard of Offers and Requests

People start increasing production to meet local demand (requests)

Increase in number of offers, vs. requests, over time.

People must have an incentive to produce for local consumption.

Activities/Input Creation of web database, construction of Kiosk

Local spending starts shifting to local products.

Focus group research, compared to baseline research

People must have an incentive to purchase local products.

Phase II: Implementation of an Auroville Exchange Network (1 year)

Gaining from the knowledge of the past 30 years of Local Exchange Systems (LETS) and other Community Exchange Systems (CES) in existence, we are designing and implementing a highly functional platform of bio-regional exchanges. We are fortunate to have the guidance of Thomas Greco who has studied these systems and written several books on complementary economy and has committed to extend his services as a consultant for this project, and Stephen DeMeulenaere who has over 16 years’ experience in the field, ten of these years in Asia where he has worked to implement and strengthen similar systems in Japan, Thailand, Indonesia, East Timor and Papua New Guinea. With this support, Phase Two will involve the implementation of a Mutual Credit Clearing Network.

The research and input collected from Phase One of the project will give us the information needed to expand the operation in a dynamic and intelligent way.

Several related projects will be worked upon to achieve the best possible economic result in a short time. These include the development of a market place and an online store where goods and services available locally can be displayed and sold, as well as an effective launching program to get the maximum number of well informed, active members participating.

Organizing a Mutual Credit Clearing Network

The second phase will provide the participants of the project the possibility of an alternative means of payment. This payment alternative is known as direct credit clearing. It involves a process in which a business's accounts payable are offset by its accounts receivable, and would be organized under a mutual credit clearing union. Direct credit clearing is a process very much like the one used by banks to clear checks drawn upon one another. A mutual credit clearing union is analogous to a bank clearing house, but it provides for the direct offset of members' purchases against their sales amongst one another without the use of money.

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Working capital in the form of conventional money is often scarce and expensive for most businesses. Mutual credit clearing is an extension of the common business practice of selling on "open account," but it is done on a more organized multi-lateral basis which has the benefit of sharing the risks and enabling a participant's sales to pay for his/her purchases without the use of any third-party credit instrument such as conventional money.

As a member of a mutual credit clearing exchange, a business can have an interest-free line of credit based on its average turnover of goods or services it already provides in the region, it will be able to acquire the things it needs without the use of cash, and because it accepts payment in the form of exchange credit, will be a preferred source of supply for others who are members of the exchange. In the credit clearing process, a member's sales pay directly for its purchases.

In allocating lines of credit, it is important, especially in the beginning, to allocate the greatest share to "trusted issuers," i.e., those that have the largest sales volume and whose products and services are in greatest demand within the local region. This is the key to maintaining a rapid circulation of credit through the system and avoiding defaults. The value and usefulness of the system credits must be demonstrated beyond doubt.

Like any network, this clearing system will become more valuable and useful as it continues to expand and a greater variety of goods and services become available within the network. By way of example, one may note that the first fax machine was very expensive but useless. As more fax machines were deployed and connected in an expanding network, the fax became more valuable to ALL users, even as prices plummeted and quality improved. The same will happen with clearing networks, but it is essential that a network be properly designed and operated from the very start.

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This phase seeks to optimize the structures and processes that have been developed over the past three decades within both the commercial “barter” industry and the grassroots, non-profit sector. It will build upon the experience of successful prototypes like the Swiss WIR Bank and some of the major commercial business-to-business exchanges that are in operation around the world.

Primary Objective: Organize and Implement a Mutual Credit Clearing Association Specific Objective and Activities:

6. Selection and implemention of an online software platform that can provide the needed functions. 6.1 Define the guidelines of participation and categories of users for the Auroville Bio-region. 6.2 Migrate the database of the existing experimental prototype ACCESS platform to the new

site. 6.3 Implement further software design required by our particular situation (SMS transactions,

automated information requests over the phone, etc…) 6.4 Create an online store to highlight the bioregional, local, village, and Auroville goods and

services available for Auros.

7. Prepare Policy Manual for the Auroville Exchange System 7.1 Governance 7.2 Membership 7.3 Fees 7.4 Dispute Resolution

8. Identify First Group of Trusted Issuers

8.1 Build group economic relations using the Auro. 8.2 Determination of credit limits to be applied to each account. 8.3 Commencement of payment using the credit clearing process.

9. Identify Second Group of Trusted Issuers

9.1 Recruitment of additional participants and extension of the “overdraft privilege” to more users as their sales grow and their creditworthiness is demonstrated.

10. Official Launch of the System

10.1 Organize an ACCESS Launching Event (publication/brochure, community event/dinner/music evening with a presentation and registration support).

11. Promotion of the System

11.1 Continue the education campaign, organizing and facilitating workshops and educational presentations to businesses, trade associations, village youth clubs, women’s/men’s groups etc.

To implement the above steps, the following is required:

• Purchase of software and renting of a site for hosting the platform in a secure, competent and reliable manner.

• Hire a software designer to develop and upgrade the basic software platform to suit our specific needs.

• Hire 3 brokers to link needs with resources (as determined by the research from Phase I).

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• Maintain the current staff for the administration and implementation of the different tasks and jobs.

Phase Two

Narrative Summary

Objectively Verifiable Indicators

Means of Verification

Important Assumptions

Goal/Objective Implement a Mutual Credit Clearing Network

Core issuers and general participants register to participate

Number of registrations on the website.

People must have access to the internet or mobile devices, etc.

Project Purpose Improve local liquidity to support local import substitution and production activities

Core issuers begin to issue Auros.

Amount of Auro issued begins to rise.

People must be willing to issue and circulate Auros.

Outputs/Results Implementation of ACCESS exchange software system

Participants begin to circulate the currency.

Research into circulation of the Auros.

People must have an incentive to circulate Auros.

Activities/Input Installation of software system.

Economic activity begins to increase.

Focus Group Research to compare increase vs. baseline data.

People are seeing a material and social benefit from using the system.

Phase III: Issuance of a Regional Currency (1 year)

The third phase of the program is the joint issuance of credits into the general community by the members of the clearing association. This is done by the association members buying goods and services from non-members using some form of uniform credit instrument, which all association members are obligated to redeem, not for cash, but for the goods and services that are their normal stock in trade. Now, that provides a sound regional currency based on the productive capacity of the region's leading enterprises, a currency that can circulate among any and all. The availability of such currency to supplement the flow of official money insulates but does not isolate the local economy. Just as a sea wall protects a small boat harbor from the turbulence of the open sea, a sound regional currency provides a measure of protection from the turbulence of the global economy and centralized finance.

This externalization of credits from the clearing association into the general community could be achieved in a variety of ways, including their representation as paper vouchers or certificates, or more likely, as balances on stored value cards, or in accounts that reside on a web based tracking and accounting software accessible by computer and cell phone.

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As the effectiveness of this general approach becomes manifest, additional refinements and adjuncts will suggest themselves and be added in later phases. One particularly useful refinement, as local clearing networks become interlinked across national boundaries, will be the definition and use of an independent, non-political unit of account based on a concrete standard of value. Exchange credit units originally defined as being equivalent to the dominant political currency the Rupee, will shift over to a value unit that is objectively defined in terms of valuable commonly traded commodities. Such a unit will facilitate exchanges across national borders by obviating the need for foreign exchange, eliminating the exchange rate risk, and will be immune to the inflationary and deflationary effects that beset national currencies.

The remaining design details and implementation strategies need not be described here. Suffice it to say that all of the necessary science is well established and all of the major system components are readily available. With a modest amount of funding, such a system could be quickly launched and has the potential to reach critical mass within a short period of time. Each such initiative requires adequate start-up funding and local champions who are passionate about the project and willing to dedicate themselves to its implementation and success.

Primary Objective: Expand the Issuance of the Auro to the general community. Specific Objective and Activities: 12. Give issuance rights to the second group of trusted issuers.

Core Personnel

Olivier Hetzel: Aurovilian, business manager, and social entrepreneur, has been involved for several years in alternative economic approaches and is now forming a team of enthusiastic people to carry out this project as part of the Socio-Economic team of the newly formed “L’Avenir d’Auroville” – The Planning and Development Research Organization of Auroville.

Thomas H. Greco, Jr: A community and monetary economist, educator, writer, consultant, and former tenured college faculty member who, for more than 30 years, has been working at the leading edge of transformational restructuring. His special interest is monetary and financial innovation. Among other books and articles, he is the author of “Money: Understanding and Creating Alternatives to Legal Tender” (Chelsea Green Publishing Company, 2001). His website is www.reinventingmoney.com

Stephen DeMeulenaere: A Rural Finance and Cooperative Specialist with 10 years experience in Asia, primarily in SE Asia (Thailand, Indonesia, East Timor, Papua New Guinea) with rural finance, credit unions and complementary means-of-payment systems for local and regional development. International speaker on Social and Solidarity Economy issues and author of articles and contributions to books on the subject. He has maintained a website on the emergence of complementary means of payment in Less Developed Countries at http://www.appropriate-economics.org for the past 12 years, and maintains the Complementary Currency Resource Center at http://www.complementarycurrency.org.

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Core Personnel Task Outlines

Position Name Duties Project Manager

Olivier Hetzel • Responsible for the program. • Co-facilitate socialization and trainings. • Assist with project design.

Project Consultant

Thomas Greco • Overall Project Design. • Ongoing design assistance as the project proceeds.

Project Assistant

Stephen DeMeulenaere

• Give technical assistance to the project. • Assist with facilitation of simulation, training and

socialization activities. • Ensure the schedule is being followed as planned.

Current and Future Funding

Seed funding of 1.000 euros has already been received in 2003 from Margrit Kennedy – writer and activist of the complementary economy movement and author of Interest and Inflation Free Money. Of this, Rs. 50.000 remains available.

It is anticipated that the Exchange System can be self-supporting within two years. This will be confirmed during Phase One of the project when a business plan will be prepared. Revenues sufficient to cover administration and maintenance of the system will be generated through fees for services provided. These may include small fees levied on each transaction, annual membership fees, brokerage fees, and advertising fees.

Budget