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Liezl Coetzee CORE Metadata, citation and similar papers at core.ac.uk Provided by Stellenbosch University SUNScholar Repository Local Exchange through Community Currency in an Alternative Gift Economy: An Anthropological Analysis of The Cape Town Talent Exchange. by Liezl Coetzee Thesis presented in partial fulfilment of the requirements for the degree of MPhil In Organisations and Public Cultures at Stellenbosch University Department of Sociology and Social Anthropology Faculty of Arts and Social Sciences Supervisor: Prof. CS van der Waal December 2010 i DECLARATION By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the owner of the copyright thereof (unless to the extent explicitly otherwise stated) and that I have not previously in its entirety or in part submitted it for obtaining any qualification. Date: 1 September 2010 Copyright © 2010 Stellenbosch University All rights reserved ii Abstract The Internet has long stimulated thought and discussion around the idea of an alternative economy based on reciprocal exchange. To date, however, the benefits of this gift economy have been largely limited to the realms of cyberspace. Despite the dramatic changes in social interaction and exchanges facilitated by online networking, and the evolution of what may be referred to as a ‘high-tech gift economy’, the potential of the Internet to really revolutionise economic systems has been limited, as the gifting involved did not extend beyond the realms of cyberspace. By contrast to this global, virtual, gift economy that has developed online, this thesis explores the way in which Information and Communication Technologies (ICTs), traditionally renowned for enhancing global reach, can be used to build and strengthen local exchange systems using community currencies. The research focuses specifically on the emergence of an alternative online currency, the Community Exchange System (CES), which originated in Cape Town towards the end of 2002, and has since spread to be used by 218 exchanges in 29 countries. Particular attention is paid to the pilot exchange that was launched in Cape Town, namely the Cape Town Talent Exchange (CTTE). The thesis proposes that web-based community currencies can provide an alternative to the current economic system, allowing for a relationship-centred approach to exchange that can be likened to a type of gift economy, centred on the principle of reciprocity, and fostering a spirit of abundance over scarcity. By doing so it is proposed that what Karl Polanyi (1944) referred to as the ‘great transformation’ of the 20th century, characterised by a shift in emphasis from human relationships to market price mechanisms, may be reversed in the ‘network society’ (Castells, 1996), in which principles of reciprocity and gift exchange are re-embedded in ‘relationship economics’ (Deragon, 2007). Part A provides a review of literature pertaining to online anthropology and the concept of a reciprocal gift ‘e-conomy’, the social dimension of economics, and the theory of ‘money’ and alternative currencies. Part B provides an overview of research findings pertaining to the CES as example of an alternative community currency operating a web-based platform, beginning with an introductory overview of the CES and CTTE, followed by a look at issues pertaining to reciprocity, and speculation on possible futures for this and similar web-based community currency systems. iii Opsomming Die Internet prikkel al lank idees en gesprekke oor ‘n alternatiewe ekonomie gebaseer op, ‘geskenk-handel’. Tot dusver is die voordele van hierdie ’geskenk-ekonomie’ egter beperk tot die dimensies van die kuber-ruimte. Ondanks dramatiese veranderinge in sosiale verkeer, uitruil en handel wat deur die aanlyn-netwerke bewerkstellig is, en die evolusie van wat as ‘high-tech geskenk ekonomie‘ beskryf kan word, was die potensiaal van die Internet om werklik ekonomiese sisteme om te keer, beperk. In teenstelling met die globale, virtuele geskenk/uitruil-ekonomie wat aanlyn ontwikkel het, ondersoek hierdie tesis die manier waarop Informasie en Kommunikasie Tegnologieë, tradisioneel bekend vir hul globale reikwydte, gebruik kan word om plaaslike uitruilsisteme te bou en te versterk. Die navorsing lê klem op die ontstaan van ‘n alternatiewe aanlyn-geldeenheidsisteem, die Gemeenskaps Uitruil Sisteem (‘Community Exchange System’ CES), wat aan die einde van 2002 in Kaapstad ontstaan het. Dit het sedertdien uitgebrei na 218 uitruilskemas in 29 lande. Spesiale aandag val op die loods uitruilskema wat in Kaapstad begin is, te wete die Cape Town Talent Exchange (CTTE) (Kaapstadse Talent Uitruilskema) Die verhandeling voer aan dat ‘n web-gebaseerde gemeenskapmark ‘n alternatiewe ekonomiese sisteem kan teweegbring. Dit kan lei tot ‘n benadering tot uitruil wat verhoudings-gesentreerd is, vergelykbaar met ‘n soort geskenk-ekonomie wat toegespits is op die beginsel van wederkerigheid. So kan ‘n oorvloed-bewustheid, pleks van skaarsheidsbewustheid bevorder word. Dit word aangevoer dat dit waarna Karl Polanyi (1944) as die ‘Groot Transformasie’ van die 20ste eeu verwys het, gekarakteriseer deur ‘n klemverskuiwing van menslike verhoudings na markgedrewe meganismes, kan terug verander na ‘n ‘netwerk-gemeenskap’ (Castells, 1996). Hierin is die beginsels van wederkerigheid en geskenk-uitruil ingebed in 'n tipe ‘verhoudings-ekonomie’ (Deragon, 2007). Deel A gee ‘n oorsig van die literatuur oor aanlynantropologie en die konsep van ‘n wederkerige geskenk ‘e-ekonomie’, die sosiale dimensie van ekonomie, en die teorie van ‘geld’ en alternatiewe betaalmiddele. Deel B gee ‘n oorsig van navorsingbevindings ten opsigte van die CES en CTTE as voorbeeld van ‘n alternatiewe gemeenskapsbetaalmetode wat van ‘n webgebaseerde platform gebruik maak. Dit word, gevolg deur opmerkings oor wederkerigheid (en) spekulasie oor die moontlike toekoms daarvan en van soortgelyke Internet-gebaseerde gemeenskapsbetaalsisteme. iv ACKNOWLEDGEMENTS To my supervisor, Kees van der Waal, for providing continued support, comments, and suggestions throughout the research process. To my mother Bettie Coetzee who once upon a life when I nervously proposed dropping out of university to go travel was my greatest encouragement, always knowing I’d get back to studies, but fearing mostly that I might not travel. Well I did and I did and still do, on both accounts. To Tim Jenkin, founder of the Community Exchange System (CES), for his in improving my understanding of the background and workings of the system, as well as contacts and references to other resources related to community currencies. To CES administrator Dawn Pilatowics for sharing her personal experiences of the CES with unrivalled enthusiasm. To respondents to the online survey for their time in completing the survey, sharing their experiences and perceptions of the CES, and thoughts about alternative currencies. To those who, despite not completing the online questionnaire, responded by email to discuss their perceptions of the exchange To CTTE members who were willing to discuss their experiences of the system and site with me during informal interviews at markets and other social events. To my friends who supported me through many years of greater and lesser enthusiasm and excitement for this research, coupled with varying degrees of frustration, including particularly Cate Erlank and Timothy Spring. To my dear one Ian Smith who, in the last stages of writing this thesis, re-inspired me when we discovered he has been implementing in practise over the last five years much of what I have been theorising about in terms of designing online communication platforms and payment systems, and who is currently involved in designing greater networking functionality for the CES. To Stephen DeMeulenaere who responded to the email about the Survey Monkey questionnaire, providing me with links to the appropriate economics site he administers, and extensive online resources on community currencies. To Les Squires for sharing his invaluable insights into community currencies as well as online networking. To Tony Khulule and Wilson Kambeva for sharing their experiences and perceptions of the Cape Town Talent Exchange in Khayelitsha. v TABLE OF CONTENTS DECLARATION ................................................................................................................II ACKNOWLEDGEMENTS................................................................................................ V TABLE OF CONTENTS .................................................................................................. VI LIST OF TABLES............................................................................................................ XI LIST OF FIGURES .......................................................................................................... XI 1 CHAPTER ONE: INTRODUCTION AND METHODOLOGY ......................................1 1.1 Research motivation ............................................................................................ 1 1.2 Research problem ................................................................................................ 1 1.2.1 Research objectives ........................................................................................... 2 1.3 Methodology.........................................................................................................3 1.3.1 Literature review.................................................................................................3
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