1(5)2017 International Journal of New Economics and Social Sciences

№ 1(5)2017 International Journal of New Economics and Social Sciences

JEL E 41, 42, 51, 52, 58, F62, G 21, 24, 32, 35 PhD Dariusz Prokopowicz

Institute of Sociology, Faculty of History and Social Sciences, Cardinal Stefan Wyszynski University in Warsaw (Warsaw, Poland) [email protected]

REPORT FROM THE SCIENTIFIC CONFERENCE ENTITLED: "PROJECT OF IMPLEMENTATION OF LOCAL PARALLEL CURRENCY IN THE OTWOCK DISTRICT" WHICH WAS HELD ON 31 AUGUST 2016 IN THE HEADQUATERS OF THE WARSAW HIGHER SCHOOL IN OTWOCK SPRAWOZDANIE Z KONFERENCJI NAUKOWEJ PT.: „PROJEKT IMPLEMENTACJI WALUTY RÓWNOLEGŁEJ LOKALNEJ NA TERENIE POWIATU OTWOCKIEGO”, KTÓRA ODBYŁA SIĘ 31 SIERPNIA 2016 R. W SIEDZIBIE WARSZAWSKIEJ SZKOŁY WYŻSZEJ W OTWOCKU ЗАЯВЛЕНИЕ НАУЧНОЙ КОНФЕРЕНЦИИ: «РЕАЛИЗАЦИЯ ПРОЕКТА МЕСТНОЙ ВАЛЮТЫ В РАЙОНЕ ОТВОЦКА», КОТОРАЯ СОСТОЯЛАСЬ 31 АВГУСТА 2016 В ВАРШАВСКОМ ВУЗЕ В ОТВОЦКЕ Abstract On 31 August 2016, a scientific conference entitled "Implementation of the parallel local currency in Otwock District" was held in Otwock near Warsaw. The main topic of discussion during this Conference was the methodological assumptions of various concepts and formulas for the implementation of the parallel local currency in local government units applicable in the Otwock District. After several years of implementation of this type of parallel currency there should be positive trends confirming the acceleration of growth of the local economy, including improvement of the labor market situation and increase of tax revenues of the budget of the Otwock District, which will translate into increased investment in local infrastructure and improvement of quality of provided public services. Increased expenditure on education and public sector institutions' offerings. Keywords: report, conference, money, parallel currency, self-government currency, local currency, local government, district, monetary policy, financial system.

PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361 International Journal of New Economics and Social Sciences № 1 (5) 2017

Streszczenie W dniu 31 sierpnia 2016 r. w podwarszawskim Otwocku odbyła się Konferencja Na- ukowa pt.: „Projekt implementacji waluty równoległej lokalnej na terenie Powiatu Otwockiego”. Tematem przewodnim dyskusji podjętych podczas tej Konferencji były me- todologiczne założenia różnych koncepcji i formuł dla implementacji waluty równoległej lokalnej w jednostkach samorządu terytorialnego możliwych do zastosowania w Powiecie otwockim. Po kilku latach od implementacji tego typu waluty równoległej powinny poja- wiać się pozytywne trendy potwierdzające przyśpieszenie wzrostu lokalnej gospodarki, w tym poprawę sytuacji na rynku pracy oraz wzrost wpływów podatkowych do budżetu Po- wiatu Otwockiego co przełoży się na zwiększenie inwestycji w lokalnej infrastrukturze oraz wzrost jakości dostarczanych usług publicznych, wzrost wydatków na edukację i ofertę instytucji sektora publicznego. Słowa kluczowe: sprawozdanie, konferencja, pieniądz, waluta równoległa, waluta sa- morządowa, waluta lokalna, samorząd, powiat, polityka monetarna, system finansowy. Аннотация 31 августа 2016 года в Отвоцке около Варшавы состоялась научная конференция на тему: «Проект реализования параллельной валюты в местном районном Отвоцке». Темой дискуссий, проведенных в ходе этой конференции были методологические допущения различных концепций и формул для осуществления параллельной валюты в единицах местного самоуправления для возможного использования в районе Отвоцк. После нескольких лет реализации данного вида параллельной валюты должна появляться позитивные тенденции, подтверждающая ускорение роста местной экономики, в том числе улучшения ситуации на рынке труда и увеличения налоговых поступлений в бюджет района Отвоцка, который переведет на увеличение инвестиций в местной инфраструктуре и повысит качество поставляемых коммунальных услуг, увеличение расходов на образование в государственном секторе. Ключевые слова:доклад, конференция, деньги, валюта параллельная, местная валюта правительства, местная валюта, местные, районные бюджеты, кредитно-денежная политика, финансовая система.

Introduction On 31 August 2016, a Scientific Confer- Conference on the "Two Pillars of Eco- ence entitled "Implementation of parallel nomic Abundance" organized by the Foun- local currency in the Otwock District" took dation "We are Change", held on 17-18 place at the Warsaw Higher School in Ot- June 2016, in the Auditorium of the Stefan wock. The prevailing topic discussed dur- Demby National Library at ul. Aleje ing this Conference was the methodological Niepodległości 213 in Warsaw [Press con- assumption of various concepts and formu- ference from the International Conference las for the implementation of parallel cur- "Two Pillars of Economic Abundance", rency in local government units that could 2016]. be used in the Otwock District. The initiator The conference entitled "The project of im- of this Conference was Marek Leśkiewicz, plementing parallel currency in the area of the Municipal Councillor of Otwock, in co- the Otwock District" was held by the War- operation with the Foundation "We are saw Higher School in Otwock at ul. Armii Change" (“Jesteśmy zmianą”). This confer- Krajowej 13 which was represented by the ence was a continuation of the International former Rector (in the previous term), the

Head of the Department of Finance and Ac- would be a positive sign for the implemen- countancy, Mr Dariusz Prokopowicz, PhD. tation of the Plan of Responsible Develop- The conference was attended by President ment of Deputy Prime Minister Mateusz of Otwock, Zbigniew Szczepaniak, Vice- Morawiecki in the non-cash, electronic President Piotr Stefański, representatives of transaction execution. the Foundation "We are Change", entrepre- Another positive signal of support of the neurs and representatives of the media. self-government environments was the sup- The conference was opened by the Munici- port for the implementation of local self- pal Councillor of Otwock, Marek Leśkie- government currency in the Otwock Dis- wicz. The first speaker was the former Rec- trict granted by the Otwock Poviat Starost. tor of the Warsaw Higher School, based in On behalf of the Otwock Poviat Starost, in Otwock, Dariusz Prokopowicz, PhD. He a letter addressed to the Councillor Marek expressed a great interest in introduction of Leśkiewicz on 12 August 2016, the support this innovative development project in the and willingness to cooperate in the imple- Otwock District, emphasizing that this mentation of the parallel currency in the would be a great difference for our city. area of Otwock District was expressed by During the first conference panel, the Mirosław Pszonka, the Poviat Starost. Councillor of Otwock, Marek Leśkiewicz During the Conference, a number of discussed ways of reviving the local econ- presentations and lectures were delivered, omy by increasing the turnover and profits which for organizational reasons were di- of local entrepreneurs in the area of Otwock vided into the following 4 thematic panels: County in the situation of introducing local a) contemporary features of the implemen- currency. A few years after the implementation of sovereign currencies in the world, tation of this type of parallel currency, pos- b) economic and political aspects of the im- itive trends should be seen, confirming the plementation of the sovereign currency, accelerated growth of the local economy, c) modern tools for the operation of the lo- including the improvement of the labor cal currency, market situation and the increase of tax rev- d) the nature of the local sovereign cur- enues to the budget of the Otwock District, rency, positive and negative aspects. which will translate into increased invest- Extensive material from the conference was ment in local infrastructure and improve the prepared by the Sejm TV, which was pre- quality of public service delivery, the in- sent at the conference. The main organizer crease in education expenditure and the of this conference was Marek Leśkiewicz, public sector offerings. Then Tomasz Ku- a non-partisan Councillor of the city of Ot- kułowicz, an expert of the Foundation "We wock. The conference is available on the are Change", discussed the issue of the im- Press Warsaw website [Conference Project pact of the process of implementation of the for parallel currency implementation ..., parallel local currency on the territory of the 2017]. Otwock District on the local economy. The President of Otwock, Zbigniew Szczepaniak, expressed his support and ac- ceptance for the implementation of the parallel local currency in the city of Otwock, pointing out in his speech that this process

PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361

International Journal of New Economics and Social Sciences № 1 (5) 2017

1. Experiences of Western countries in the implementation of parallel currencies

Studies and similar financial develop- Bank in the area of Otwock. ments in some West European countries In the course of the lectures given by the show that the introduction of a local parallel experts from the Foundation "We are a currency into the local economy (a region, Change", Paweł Tomasz Kukułowiczand e.g. a district) is primarily a stimulation of Krzysztof Lewandowski pointed out the le- entrepreneurship and the activation of trade gitimacy of the implementation of local and services development guaranteeing a currencies in poviats in Poland, citing nu- decent life for the Otwock District and se- merous examples of similar solutions al- curing financial resources for the education ready existing from many in some of the de- of children, adolescents and adults. veloped countries of Western Europe. In The speeches were mainly aimed at pre- many developed countries, in addition to senting a way of reviving the economy by the traditional national or post-national increasing the turnover and profits of local monetary systems, there are also local cur- entrepreneurs, fighting unemployment and, rencies in the area of a given region or as a consequently, improving economic growth parallel currency for a given local govern- in the area of the Otwock District. During ment unit. In some countries such as Ger- the Conference, it was pointed out that the many, Great Britain or Switzerland, local key financial institution necessary for the parallel money systems have been operat- implementation of the local currency in the ing for years, based on efficient municipal form of self-government parallel money is banks. Such systemic solutions, which the municipal bank. Unfortunately, up to would complement the traditional national now, such banks have not been created in monetary system, did not develop in Po- Poland, despite being a well-known finan- land. The lack of development of these lo- cial institution operating on the basis of the cal, parallel self-governing monetary sys- principles of social market economy. In ad- tems in Poland was primarily a historical dition, the implementation of the local par- condition, i.e. first and foremost a half-cen- allel currency will run smoothly in the Ot- tury of the absence of a market economy wock Province if preceded by the earlier which was arbitrarily degraded and re- creation of the Otwock Special Economic placed by a militarily and politically im- Zone. The design of these institutions was posed model of the centrally steered Polish developed by the experts of the Foundation economy. "We are Change". Various parallel local currencies func- During the Conference, the participants, tion regionally in some of the highly devel- pre-legends and invited guests representing oped countries which currently record mod- the local communities of self-government erate economic growth. Countries such as institutions and entrepreneurs signed a dec- the USA, Canada, Germany, Switzerland, laration of support for the project of imple- and Great Britain are included in a group of mentation of the parallel local currency in high-growth countries, and although they the Otwock county [M. Leśkiewicz, Decla- do not currently record impressive levels of ration ..., 2016]. The participants of the growth, even from the 1990s or from the Conference expressed their support for the fall of 2008. However, the global financial project of implementing the parallel local crisis is characterized by positive and im- currency, the creation of the Otwock Spe- proving economic growth rates, with ac- cial Economic Zone and the Community PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361 № 1(5)2017 International Journal of New Economics and Social Sciences ceptable economic levels of macroeco- many other countries, over all Europe, nomic indicators such as consumption, in- mainly trade and financial convergence flation, labor, investment, income, savings, with Poland, the economic value is defined deposits in banks, etc. [D. Prokopowicz, A. as relatively good and with a tendency to- Dmowski, 2010, p. 312] At present, Poland wards further improvement. Against this is an economically developing country. backdrop of macroeconomic instability, the This is not a situation that can be described concept of the creation and implementation as very good but many economists suggest of certain parallel local currencies is emerg- that in the context of the macroeconomic ing to support the economic development of situation and the level of development of the region.

2. Innovation and fiscal issues of the implementation of the self-government currency in Poland

The analyzes carried out on the analo- innovative companies with high growth po- gous processes of the implementation of lo- tential. It should be taken into account that cal government currency in some Western small and medium-sized businesses ac- European countries show that tax incen- count for over 90% of all countries. This is tives can be a useful instrument in this type why the issue in recent years has achieved of parallel currency creation. These incen- exceptionally high levels of relevance. tives can stimulate the development of In the absence of this type of systemic solu- transactions for a specified level of turnover tion, the first concepts of implementation of of business entities, the value of transac- the local self-government currency are tions or the initial period of implementation characterized by innovations based on the of the local currency. As a consequence, the Polish pro-development economy of local experts of the Foundation "We are Change" governmental systems, which according to dealing with this problem point out that the the experience of analogical solutions that crucial factor for the effective implementa- have been in operation for years in the tion of the local currency in the Otwock countries of Western Europe confirms the District is the establishment of determi- significant contribution of this type of par- nants of the non-fiscal character of the local allel local monetary system to stimulating currency trading, including the determina- entrepreneurship, increasing the turnover of tion of turnover ceilings for a single entity locally operating economic entities and, e.g. up to 150 thousand per year. This type consequently, increasing the growth of the of relatively low threshold could be estab- local economy. The fact that recent discus- lished for the smallest enterprises, micro- sions in business circles have been taking enterprises and service establishments op- place in Poland in the context of local gov- erating in the area of the Otwock District. ernments with the participation of academ- The issues, such as those relating to the fis- ics is also highlighted by the high level of cal system, should be regulated by the reg- this issue. Typically, this type of panel drive ulations prepared by the Minister of Fi- will eventually lead to the development of nance [Local Government Project, 2016]. a specific formula, standard, local currency Organized relief in the fiscal system would model that will be implemented in a given be a solution similar to that already prac- self-government unit and will be taken at ticed in China. In this very fast-growing conferences and scientific symposia but country, such fiscal incentives in local cur- also involving entrepreneurs and local gov- rency systems support the development of ernment officials. This type of conference micro-, small- and medium-sized enter- took place in Otwock near Warsaw and was prises, including start-ups, usually the most described in this paper. PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361

International Journal of New Economics and Social Sciences № 1 (5) 2017

During the lectures given by the experts growth. The introduction of local self-gov- from the Foundation "We are Change", they ernment currencies should improve liquid- pointed out that the introduction of local ity, contribute to increase the volume of self-government currencies could be a rec- transactions between the various entities, ipe for payment congestion and unemploy- and, as a consequence, stimulate the devel- ment, i.e. negative aspects of economic pro- opment of local production, trade and ser- cesses that are aggravated by low economic vices [Local Government Project, 2016].

3. The role of community banks in the system of a self-government currency

A key financial institution that can fa- tion and increase the sovereignty of domes- cilitate the process of implementing local tic monetary policy, particularly in the area currency in the form of self-government of money supply to the economy through parallel money is a community bank. Un- credit? Why are not you considering such fortunately, such banks have not been cre- solutions in which, for example, Warsaw ated in Poland, despite being a well-known would be served by its own financial insti- financial institution operating on the basis tution rather than by participating in the of the principles of social market economy. global financial casino, Citybank. This This means that the main goals of the banks' bank has exposure to speculative instru- operations are determined by the function ments thirty times greater than its own as- of the service to the community in which sets! Such a situation could lead to a local they function, preventing the flow of capital financial crisis for the Warsaw municipal- that should serve the community. Banks of ity. The bankruptcy of the bank, which was this type operate in many countries: e.g. in once saved from taxpayers' money, is Germany or in Scandinavia. They also enough to finance a loss of 4% because of functioned in interwar Poland. They sur- this type of instruments. In such a situation, vived the war but were liquidated by the the bank's central bank may take over a sig- communist authorities. Experts from the nificant part of the city's financial turnover Foundation "We are Change" in the discus- through repo transactions [D. Prokopowicz, sions at the Conference point out that finan- S. Gwoździewicz, Administrative, supervi- cial barriers are the only barrier to the crea- sory ..., 2015, p. 212]. tion of communal banks which are orga- The creation of municipal banks in all prov- nized as commercial banks with a 100% inces so that their activity covering the shareholding of self-governments that are whole country would give the opportunity indebted for projects co-financed by EU to take advantage of the current legal sys- funds, the use of financial resources to cre- tem of creating a credit money in relation to ate a community bank can be difficult. In cash of about 12 to 1. This means that such situations, the only solution to this Polish local governments could create problem may be the support of the State needed money without paying the high cost Treasury in the creation of the first such of borrowing financial capital to foreign banks in selected self-government units banks that transfer profits abroad. In the [2016]. context of such a problem, a key question is In today's Poland, there are no big debates why foreign financial institutions have the about this issue. For example, why there are enormous benefits of money creation while no alternative scenarios of the transfor- exiting the real money from the market and mation of the financial system in Poland citizens are paying the high cost of taxes help to speed up the process of repoloniza- and handling costs as well as repayment of public debt.

4. Different forms of existing local parallel currencies

At the Conference entitled "Local Par- this Conference, the speakers noted that due allel Currency Deployment Project in the to time constraints they were unable to dis- Otwock District", one of the speakers, Da- cuss all aspects and types of local parallel riusz Prokopowicz, PhD., stated in his currencies that existed or exist in Poland speech that the local currency as a parallel and other countries. For example, an inter- currency to a traditional national or interna- esting issue that was not developed in detail tional monetary system has a rich history of at this Conference is the issue of alternate, functioning in various conditions- eco- parallel currencies that emerged during nomic and cultural. It has often been the deep economic and financial crises. Speak- case in the past that the local currency ers agreed that such issues and other forms which was not a national legal tender, ap- of parallel money will be discussed at sub- peared in local, regional communities sequent conferences planned to be orga- where the traditional national monetary nized on this issue. At that time, issues such system exhibited a specific malady or that as alternative forms of commodity money, the whole country was in a serious currency which could, in the periods of economic cri- crisis. Normally, local parallel currencies ses, be considered as parallel currencies, have emerged in situations of economic cri- will be discussed, with focus on currently ses with high inflation, i.e. hyperinflation. developing systemically parallel local cur- Where traditional money was characterized rencies. In the past and now in different by low purchasing power, it lost its value countries of the world, local currency- evidently day by day or became almost un- based monetary systems have been operat- changeable with other currencies, then ing and are still operating, which consider- there was strong pressure to create parallel ably more omit their traditional form of currencies. However, often in such situa- money as coins and banknotes than the var- tions of deep economic crisis parallel cur- ious types of commodity money known in rency was not a coin, specifically made for the past. There are also situations where this this purpose, or a new type of printed bank- type of currency may appear during periods notes, only specified difficult-to-access of deep financial crises. For several years items or commodities, money is based on there have been discussions on this subject, objects that are characterized by the fact e.g. in the Greek debt and economic crisis that they did not lose their value overnight, [D. Prokopowicz, S. Gwoździewicz, Sys- but were sought after by a considerable part tem and normative ..., 2016, p. 87). of the local community. In times of deep In this country, especially in times of in- economic crises, e.g. during the Great De- creasing scarcity of the officially function- pression of 1929-1934, such money was of- ing currency of the inter-national Euro, ten cigarettes. Of course, in the so-called there was pressure to create a variety of par- primitive cultures of human societies which allel local currencies to solve the problem usually did not produce state organs and in- of liquidity loss and the slowdown of cash stitutions at that time, the money was also flows in various economic spheres. Such the made of shells from coral reefs or teeth periods occurred as the deadline for repay- of hunted predators. However, if this was ment of the next installment of debt to the the only accepted form of currency in the German and French banks came to a close, community, it would not be included in the which financially supported the roll of parallel currency group, which was devoted Greek Treasury bonds. Such situations also to the deliberations made at the Conference. appeared in the bankruptcy notices of some During the discussions underway during bank, not necessarily Greek, or in the panic PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361

International Journal of New Economics and Social Sciences № 1 (5) 2017 of the mass population trying to withdraw application are the "1 Dino" coins in the bank deposits caused by delays in payouts "JuraPark Bałtów" theme park in the to employees hired by public institutions, Bałtów Complex of Tourism in Bałtów in offices but also in situations of delays in the Świętokrzyskie Province. This type of implementation of transfers to pensioners. monetary unit, due to its very limited area However, such crises that determine the and institutional scope, does not signifi- need to create and operate a local parallel cantly contribute to the activation of the re- currency are not the subject of this article. gion's economic growth. The functionality In this paper, the main focus has been on of this type of local monetary unit, specifi- the existing local currency systems that are cally the "1 Dino" money, is limited in prac- not present in economic or financial crises tice to mainly the role of a token accepted but in economically justified or effectively as a form of payment for a part of the ser- functioning economies characterized by a vice offered by an amusement park, possi- positive level of economic growth [B. Do- bly also of negligible numismatic signifi- mańska-Szaruga, 2014, p. 27]. cance and an additional tourist attraction. During the discussions, the speakers One of the speakers, Dariusz Brzozowiec, pointed to different forms of parallel, local discussed the example of the "corporate" money that already exist in some places, variant of the local currency which was in- cities, municipalities in Poland. During the troduced over two years ago in Starachow- Conference, it was assumed that in Poland, ice in Poland. According to the presentation different places of some cities or rural gmi- of Mr. Dariusz Brzozowiec one of the "cor- nas operate in the local monetary units, porate" forms of local money is the "Green" which are primarily an additional tourist at- currency system functioning in Starachow- traction and at the same time functioning as ice, which operates in the local system, a a ticket or means of payment for selected parallel currency introduced into the local services e.g. in a particular par entertain- community as a part of the bonus paid in ment. An example of such a very local cur- addition to the basic salary in local busi- rency of a very narrow area and economic nesses in Starachowice County.

5. Determinants of the introduction of the parallel self-government currency in the Otwock District

During the final discussion, the speak- (b) a significant proportion of economic op- ers identified the key determinants of the erators, local businesses, service establish- implementation process of the parallel, lo- ments accept the local currency and, at least cal bank on the basis of the plan for the in- partially, carry out payments, enter into troduction of this type of currency in the Ot- transactions or pay remuneration in the lo- wock District. During the Conference the cal currency, following assumptions were made for the (c) the local parallel currency is signifi- implementation of the local parallel cur- cantly more important for supporting the rency as a form of money of a regional economic development of a given region of monetary system functioning in a given a self-governing unit than for a currency- municipality or district in Poland: only formula or a currency being an attrac- (a) the local community generally accepts tion for tourists, the use of parallel currency and treats that d) the national and local government is not currency as analogous to the traditional na- in a deep economic, financial or debt crisis, tional monetary unit of national or transna- but this determinant does not need neces- tional reach sarily to be required but rather tied to the

PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361 № 1(5)2017 International Journal of New Economics and Social Sciences current or relatively good state of the econ- in its public emissions and means the inde- omy, pendence of the issuer of money from the e) the local parallel currency is not an alter- global financial markets and their global native to the traditional national monetary decision-makers; this means that such a system; it only functions as a supplemen- parallel currency would be non-exchangea- tary, partially alternative, local business, ble and interest-free and would operate in trade, clearing and payment for goods and parallel with the national currency being the services offered mainly or exclusively by legal tender in the concerned country. local or regional operators, During the course of the above-mentione f) the process of systemic implementation Conference, the speakers agreed on the of the local parallel currency may require need to implement a parallel local currency the establishment of institutions supporting in the Otwock District. A number of key as- the process of putting into circulation and pects of this process have been discussed, efficient operation of that currency in the and the most important issues for this im- region of a given local government, county plementation have been emphasized. One or municipality, i.e. entities such as com- of the messages that has been adopted as an munity banks and special economic zones . additional determinant of the choice of a g) local parallel currency systemically specific formula of a local parallel currency based on the development of a local para- is the systemic approach and the creation of monetary system designed for the develop- the necessary institutions, primarily finan- ment of the local paramonetary system, e.g. cial ones, and the creation of conditions for municipal banks should be implemented in the launch and implementation of processes the area and with organizational support of that will enable the efficient development local government units at the poviat level. of the system of this parallel currency. The h) currently dominated by scientific con- state system should inevitably be involved cepts propagated, among others, by Izabela in the process of creating, organizing and Litwin, an economist, suggesting that the coordinating the development of the local parallel currency should be a sovereign cur- currency by local self-government entities. rency; the independence of money consists

PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361

International Journal of New Economics and Social Sciences № 1 (5) 2017

Conclusions Summing up, the conclusions of the the process of implementing the local cur- Conference, it was argued that an additional rency was more efficient for a given self- determinant and motive for the implemen- government unit in the Polish context, i.e. tation of the parallel currency in a given re- the district or county should be appointed gion may be the issue of a progressively self-government special economic zones. deeper deficit of traditional currency emit- The creation of self-government special ted by the central bank of legal tenders on a economic zones will contribute signifi- local, regional or national basis. This short- cantly to local production, trade, services fall may be due to various cash flows oc- and other types of SME. Systematic support curring in the commercial financial system, for novice microenterprises is particularly i.e. mainly in commercial banking or in the important at the stage of setting up and public finance system and in international launching business activities - preferential settlements and treasury bonds. In some de- taxation at local exchange with the local veloped countries, against the background currency of goods and services, and also of these imperfections in the domestic com- standard forms of business support, typical mercial financial system and in the context and traditional specialties of Economic of the theory of technological advance- Zones [Otwock Special Economic Zone, ..., ment, which generates the potential in- 2016]. In the course of the final discussion, crease in unemployment, consideration is it was also pointed out that there was a need given to the introduction of guaranteed in- to organize a conference on related bureau- come for citizens in order to maintain do- cracy in the future on issues related to the mestic consumption in an acceptable level local currency, namely the question of de- of economic efficiency. At present, some terminants and the possibility of introduc- research centers are also considering the ing a parallel sovereign currency in Poland. concepts of implementation of the local Such currency solutions have also been op- parallel currency that would be introduced erating in some Western European coun- into the local community through the use of tries and have been particularly effective in a mechanism according to the formula of supporting and maintaining liquidity in guaranteed income. This type of parallel lo- monetary systems in the face of deep eco- cal government currency combined with nomic and financial crises such as the Great the issue of guaranteed income belongs to Depression during the 1930s or the Crisis innovative solutions of paramonetary fi- of raw materials from the 70s of the last nancial systems which have recently been century [R. A. Werner, Lost Century ..., discussed in Poland at scientific confer- 2016, p. 38]. An example of monetary re- ences, symposia and public debates by sci- form in Iceland, reforming the country's entists, academics and entrepreneurs. In the banking system in the context of the deep- current year 2016, this type of conferences ening global financial crisis of 2008, are taking place in Poland more and more wasdescribed by Sigurjonsson in a book en- often. The leading and coordinating organ- titled "Monetary reform. A better monetary ization party of such discussions, the Foun- system for Iceland "[F. Sigurjonsson, 2015, dation "We are Change" is based in p. 12]. During the conference on the "Im- Zielonki, the municipality of Stare Babice plementation of parallel local currency in in the Masovian Province, in Western part the Otwock District", it was pointed out the of Warsaw. need to develop such issues during subse- Lecturers Tomasz Kukułowicz and quent planned conferences. Krzysztof Lewandowski pointed out that PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361 № 1(5)2017 International Journal of New Economics and Social Sciences

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PhD Dariusz Prokopowicz Opublikowany: 2017-06-30 DOI: 10.5604/01.3001.0010.2597 Wydanie: International Journal of New Economics and Social Sciences 2017; 1 (5): 349-361