Social Trade Organisation (STRO)

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Export Revenues and their Impact on Local Economies One notable advantage of increased exports is the potential for raising the income of the population. Especially when invested in capital goods, it can boost development. However, the distribution of this income often presents a significant drawback. In many cases, export revenues primarily enrich foreign and local elites, who tend to spend their wealth on imported luxury goods. This consumption pattern can foster the perception that imported goods are preferable. These purchases made outside the local economy reduce the money available to facilitate local production for local consumption. Such circulation is crucial for nurturing healthy clusters of local enterprises. Moreover, exports can lead to increased exchange rates that undermine the competitiveness of local companies in both domestic and international markets, as higher exchange rates render local products prohibitively expensive. Another argument against unregulated exports is that they can exacerbate corruption. Centralized income generation often carries a higher risk of corruption compared to income earned by smaller, decentralized businesses. Additionally, while export activities may be profitable for individuals, the country frequently incurs costs to facilitate these activities or suffers from environmental degradation. To illustrate, let’s examine the export situation in Suriname. Initially, the export of wood and bauxite elevated the exchange rate to a level where local production, aside from food, struggled to remain competitive. This issue was further aggravated as migrants exchanged their euros for local currency. Recently, Suriname is on the verge of becoming a major oil exporter. Unless the government and central bank effectively address the challenges posed by the exchange rate, entrepreneurship may be stifled for years to come, as the rising exchange rate continues to negatively impact the competitiveness of local businesses in both local and international markets. These and other aspects of development and stagnation are explored in the book “Boosting Your Local Economy by Making Money Virtuous.” Based on such analyses, the book also investigates opportunities to leverage money as a tool for development. The book can be downloaded for free as e-pub or pdf from this link: https://lnkd.in/dNXCpAjM Asked for a comment on the book Bart Minten, Senior Research Fellow in the Development Strategies and Governance Unit of World Food Program, Myanmar says: "The book explores the pivotal role of money in local economic development. The authors skilfully blend theoretical insights with practical examples, emphasizing the untapped potential of this medium of exchange. A thought-provoking read, it is essential for those interested in economic development strategies."

How installments hinder local economic development If, in your economy, a considerable amount of next month’s income is destined to be paid for an imported product bought in installments, then that economy has a problem: less money is left to be earned by local producers and service providers. In our new book, “Boosting Your Local Economy by Making Money Virtuous,” we explain the importance of demand by local consumers for local businesses. The offer to buy imported goods at a later moment introduces a worrying trend that complicates efforts for impoverished regions to escape poverty. In many disadvantaged areas, this is exactly the situation, and a significant portion of future income is allocated to installment payments. The fact that so much money is used for imported goods is siphoned out of the local economy, even before it is earned, has devastating consequences for the local economy. The result is that the demand for local products diminishes, stifling the growth of local production chains. We were disheartened to discover little urgency to research this phenomenon, along with very few examples of policies aimed at protecting the local circulation of incomes earned from such rapid leakage. Based on these and other findings FINtech was developed to enable the increase of the local multiplier: the Social Trade Booster. This innovative approach aims to enhance demand for local products in struggling economies. We detail this alternative strategy for fostering independent local development in “Boosting Your Local Economy by Making Money Virtuous” which you can download at no cost at https://lnkd.in/dNXCpAjM Ruerd Ruben (Emeritus) Professor Impact Analysis of Food Systems Wageningen University & Research endorsed the book with the following quote: This book offers a wonderful overview of the drivers and practical possibilities of strengthening inter-company, citizen, and government economic relationships by using payments through local accounts. Based on experiences in Europe and Latin America, it explains how a network of short and local chains within a circular economy can contribute to strengthening sustainability, fairer distribution of wealth, and greater resilience. As a (development) economist, it particularly appeals to me that this analysis invokes basic economic principles such as the connections between sectors (''linkages'') and the acceleration of transited processes (''multipliers'').

Wil je met circulair geld je energierekening betalen? Laat het weten & doe mee met https://lnkd.in/eXdBYwku

We explored the insights of a leading Chinese economist regarding our new book “Boosting Your Economy by Making Money Virtuous.” Are the proposed solutions to reduce poverty and to create a more sustainable world applicable in today’s China? The surprising answer reveals a growing movement within China where local communities are experimenting with innovative approaches to liberate farmers from the impact of the dominant money. Years ago, we met Professor Wen Tiejun at the World Social Forum in Porto Alegre. At that time, he was part of a think tank comprised of China's top economists. Throughout his career, Wen has consistently highlighted crucial  issues such as sustainability and advocated for the preservation of small-scale farming. His recommendation: “The root of the current global crisis is the financial excesses created by the indiscriminate issuance of hard currency in the United States and the West. Still, money is a scarce factor among most disadvantaged groups. The authors present various experiences of intensifying the use of money among disadvantaged groups as an effective practice to address this contradiction. From the Chinese perspective, this is very interesting, especially since in rural China grassroots developed many financial innovations. I hope this book will be conducive to increased exchange. “   Get your free copy here: https://lnkd.in/dNXCpAjM

Lluis you are quite right to inform people that they should not miss the opportunity to read this book. We are very happy that people can get informed about your work in Santa Colama

We cannot expect that the Trump government will solve urgent societal problems such as poverty and climate change. Therefore, it is vital that bottom-up movements from local communities take action themselves. NOW! And that is exactly what the book "Boosting Your Economy by: MAKING MONEY VIRTUOUS" is about. Local communities need not be dominated by the global market, but instead they can improve their lot with bottom-up approaches and introduce circular money. Douglas Rushkoff, author of 20 books and a noted documentary filmmaker, is one of the world's most influential modern thinkers. With his impressive background in the use of digital technology and interest in alternative currencies, it made sense to ask him to provide a commentary on the book: "Making Money Virtuous is an important guide to the history, present, and - most importantly - future of local exchange. As global monetary systems are rendered increasingly brittle by the unsustainable goals of financialization, these tested approaches to bottom-up value exchange will become increasingly necessary. At last, the best knowledge and best practices have been collected in one place, and in an actionable way. " Get your free copy here: https://lnkd.in/dNXCpAjM

The current monetary system causes poverty and environmental stress. This book offers insights and solutions. Get your free copy here: https://lnkd.in/dNXCpAjM We think you will appreciate “Making Money Virtuous.” Please comment on this post and tag people in your network who might be interested. Don't forget to like and repost it. Recommended by leading economists and development experts: Douglas Rushkoff, Garry Jacobs, Richard Heinberg, Eduardo Diniz, Mercy Wanjiku Kamau, Deborah S. Rogers, Catharina Any Sulistyowati, Gwendolyn Hallsmith, Bart Minten, Mercè Roca Puigvert, August Corrons, Rosa Garcia-Hernández, Juan del Río, Derk Loorbach, Herman Wijffels, Wim Boonstra, Rens Van Tilburg, and Ruerd Ruben.    Summary  If an insufficient amount of money circulates within a community, entrepreneurs have very little chance to set up production capacity for the local market, so it is hard for them to make a living. The book explains:  - That money exits most communities rapidly, due to a prisoner's dilemma that favours imports over local production and to installment payments that persuade people to buy imported goods.  - That the exchange rate of a national currency is often too high for local businesses to compete, because that rate is driven by a wealthier region or by commodity exports.  - How income from exports can foster corruption and is typically spent on imported products.  - How a lack of money results in a persistent economic depression, forcing people to migrate. Money flows towards the very rich who either reinvest it - further strengthening the flow - or use it for speculation at the expense of those with less wealth.    What can be done?  Communities must become more self-reliant and provide local people with more opportunities to develop their skills by buying locally and reprogramming money.  Step 1: Buy local  The book shares the story of Preston (UK), where local government and institutions prioritized local purchasing, sparking an incredible economic revival. Step 2: Increase the impact of buying locally and of remittances  The book cites examples from Austria, Spain, and Brazil that illustrate how the “Social Trade Booster,” supported by our Cyclos fintech software, can program money to serve the community better. Technology can ensure that money circulates for a minimum period within a community, as well as encourage people to spend it quicker during that period. This results in more earnings for local companies, more jobs and less poverty. Worldwide remittances are expected to reach 1 trillion USD by 2030. Imagine the impact for the poorest in the world if just 1% of that money (10 billion USD) was spent one or two times extra in local economies Structural change is more necessary than ever. The Booster is ready for global implementation. Spread the knowledge and share this book with as many people as possible!

Waarom zijn sommige landen rijk en andere arm?  De rol die verschillen in macht en geldschepping daarin spelen, verdient meer aandacht De Nobelprijswinnaars Economie leggen de nadruk op hoe de maatschappelijke instituties uitwerken op economische ontwikkeling. Ik hoop dat daardoor niet de aandacht afgeleid wordt van de structuren die armoede veroorzaken, zoals het financiële systeem dat werkt ten gunste de rijken. Want de geldstroom naar de rijken en de fondsen is killing voor de kansen om aan armoede te ontsnappen. Waarmee ik niet wil zeggen dat opkomen voor democratie en de kritiek op het koloniale verleden een slechte zaak is. Maar die kritiek mag geen rookscherm worden, waardoor we minder kijken naar de op macht gebaseerde structuren die nu armoede veroorzaken en in stand houden.   In ons nieuwste boek Boosting your local economy by Making Money Virtuous (publicatie over 2 weken) laten we zien hoe de geldstroom van arm naar rijk, vanwege rente en importen fnuikend is voor ontwikkeling. We bespreken daar ook andere aspecten waar arme gebieden onder leiden zoals dat ze in de greep zijn gekomen van het kopen op afbetaling, waardoor de weinige koopkracht die aanwezig is wordt weggezogen voor de import van elektronische consumptiegoederen. Dat geeft lokale ondernemers het nakijken.  Een andere oorzaak die in het boek aan de orde komt, is dat het geldsysteem dienstbaar is aan de VS en aan andere machtige landen. Die kunnen middels geldschepping een economische crisis bestrijden, terwijl in arme landen extra geld creëren de crisis alleen maar zou verdiepen.  Zo ontstaat een zwak maatschappelijk middenveld, weinig kleine bedrijven en een kleine lagere middenklasse. Dat biedt kansen aan potentaten om macht naar zich toe te trekken. Maar misschien wel de grootste motor achter corruptie en nepotisme is de grondstoffenuitvoer. Daarmee worden de harde valuta verdiend waar een klein aantal mensen zeggenschap over hebben in een mix van politiek en private bedrijven. In bijna elk land leidt dat tot corruptie.  

Werkzaam in de financiële wereld? Beoordeel je financieringsaanvragen of ken je collega's die dat doen? Help dan Martijn Janssen met zijn afstudeeronderzoek door een korte online enquête in te vullen. Martijn heeft tijdens zijn studie bij ons gewerkt. Als zijn onderzoek net zo goed is als zijn werk bij ons, dan zal dit onderzoek zeer interessante resultaten opleveren. Invullen dus die enquête!