Subjects
Argentina's Parallel Currency:
The Economy of the Poor
Georgina M Gómez
Financial History
978 1 85196 618 9: 234x156mm: £60.00/$99.00
978 1 85196 693 6
The story of the Red de Trueque (RT) in Argentina exposes the problems of creating a grassroots market system parallel and complementary to the official economy. The RT was launched in 1995 by a group of environmentalists who exchanged goods and services at their own ‘market’ using a system of mutual credit. The group grew and they printed fiat money to facilitate exchange. The scheme was rapidly replicated across Argentina as the country’s official economy faced meltdown. At its peak, the RT had 2.5 million participants and 4,700 marketplaces. However, although the organizers set codes of conduct and bodies to enforce them, it was impossible to deal with such a large self-regulated market and it collapsed to about a tenth of its peak size in a matter of months.
This is the first book in English to analyse the rise and fall of RT. Gómez advances institutional theory by exploring how structural reforms disrupt institutions, here resulting in segments of unstable and uncertain economic action within the social structure. She identifies rules of governance and sustainability for institutional settings in which compliance is voluntary and state regulation is minimal. Finally, Gómez conceptualizes the economy of the poor and disenfranchised as an economic area driven by the need to survive, thus structured by specific institutions different to those guiding the economic action of the non-poor.
Sample pages
Readership
Institutional Economics, Alternative Currency Systems, Development Studies and Latin-American Studies
Contents
1 Economic Life as an Institutional Process
2 Perspectives on Complementary Currency Systems
3 The Political and Economic Context in Argentina
4 Launching the Club De Trueque
5 From Club De Trueque to Network
6 Governance of the Networks
7 Smaller Scale Trueque
8 Replacing Money for Economic Development
9 Conclusions
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