Appropriate Economics Movimento Monetario Mosaico

South America

BRAZIL

In Brazil, Strohalm is directly represented by its local counterpart InStroDI, the Instituto Strohalm de Desenvolvimento Integral, or Strohalm Institute for Comprehensive Development.

This institution was founded in 2002 as a local non-profit organization. In 2004, Instrodi has been granted the status of OSCIP- Organisation of Civil Society of Public Interest.

The aim of InStroDI is to locally implement the various Monetary Methods that are developed by Strohalm, and to test and meliorate their functioning.

Instrodi's activities are currently concentrated in the southern state of Rio Grande do Sul, with three ongoing projects and several other active contacts and negotiations with potential partners in the region.

In addition, the scope of contacts and operation of Instrodi also includes the state of Ceará, in northeast Brazil, Paraná, Brasília and São Paulo.

Rio Grande do Sul

In the region of Sarandi, Rio Grande do Sul, Introdi is working together with small farmers' cooperatives and a local cooperative bank, CREHNOR, and have created a pilot project of the C3 methodology.

An internal currency has been created, the "Horizontes" and brought in circulation in the region. Cooperatives purchase the Horizontes against a deposit in national currency in the partner bank and makes use of the local currency to pay the local rural producers. Local shops also accept the local currency and so, farmers can use the Horizontes to perform their purchases. The network can also be expanded and more and more businesses, producers and consumers of the region will make use of the local currency in their daily transactions.

The Horizontes in circulation are backed by the money deposited in the partner bank, that ensures the complete administration of the system. Each holder of Horizontes is granted the right to convert his/ hers currency back into money through CREHNOR.

The principle behind the project is simple: it is possible to liberate a productive chain (and even a region) of its dependency on money to facilitate payments and transactions between neighbors. The longer the Horizontes circulate, the longer the money will stay in the account. This money will be used by Crehnor to emit low-cost credit to the local farmers.

Until this moment, 300.000 Horizontes have been printed, with a value of 300.000 Real (the Brazilian currency) which amounts to approximately 100.000 euros. These Horizontes will be brought gradually into circulation. Until May 2004, more than 12000 Horizontes had been issued and a great part remains still in circulation.

Another large-scale project is the CompRaS-association, wherein consumers, commerce and producers of Rio Grande do Sul will be able to trade in an internal currency that will be administered through the Internet.

The main goal is to establish the first C3 network, the C3 Brasil. Contacts are in course with several business networks and entrepreneurs associations of the region and of other states towards a partnership for the realisation of a potential nation-wide trade and investment network!

Strohalm also conducts a software development project to support the C3 networks and ensure the transparent and secure administration of all transactions. A team of Brazilian programmers has already achieved a preliminary version of the software, currently under testing (for a demo version of the C3 software, please consult http://cyclos.momomo.org/cyclos)

Thirdly, Instrodi is executing a project in the community of Rubem Berta, one of the peripheralypherical neighborhoods of Porto Alegre, in partnership with the local residents' association (AMORB) and commerce association (ASCORB).

The project, symbolically named "Mudar a Cara" (Changing the Face), aims to restore the self- esteem of the inhabitants of the neighborhood of Rubem Berta, as citizens and as economic agents and to strengthen the sense of community an solidarity of the neighborhood as a whole.

The first step of the project has been the mobilization of all households to contribute to a scheme of collective savings in order to paint the buildings they live in, in some cases, in the first time in almost twenty years.

A local market will be organised regularly in the community where neighbors can trade the goods and services they have produced and share with others the product of their talents and skills. A local currency will be introduced, with the technical guidance of Instrodi, to facilitate the transactions in this market and, on a second phase, to grant credit to small purchases and investments, as for example, the painting of the houses…

The main goal of the Rubem Berta project is to set in motion a virtuous circle of more local consumption, more local production, more local employment and income, which further stimulates local consumption. Also the sense of community in Rubem Berta is expected to become stronger.

Ceará

In the capital of Ceará, Fortaleza, InStroDI has successfully implemented the Bonus-methodology, where the money for the construction of a school was used as backing for a temporary local currency. 40.000 ‘Palmas’ circulated during three months in the Palmeira neighborhood.

The local micro-credit fund Banco Palmas, that administrated this project, is now interested in realizing a permanent local currency, which will be emitted as local credit.