In presenting this dissertation as a partial fulfillment of the requirements for an advanced degree from Emory University, I agree that the Library of the University shall make it available for inspection and circulation in accordance with its regulations governing materials of this type. I agree that permission to copy from, or to publish, this dissertation may be granted by the professor under whose direction it was written when such copying or publication is solely for scholarly purposes and does not involve potential financial gain. In the absence of the professor, the dean of the Graduate School may grant permission. It is understood that any copying from, or publication of, this dissertation, which involves potential financial gain will not be allowed without written permission. ______________________________ Faidra Papavasiliou The Political Economy of Local Currency: Alternative Money, Alternative Development and Collective Action in the Age of Globalization By Faidra Papavasiliou Doctor of Philosophy Department of Anthropology ___________________________ Peggy F. Barlett, Ph.D. Adviser ___________________________ Carla Freeman, Ph.D. Committee Member ___________________________ David Nugent, Ph. D. Committee Member ___________________________ Richard R. Wilk, Ph.D. Committee Member Accepted: ___________________________ Lisa A. Tedesco, Ph.D. Dean of the Graduate School ___________________________ Date The Political Economy of Local Currency: Alternative Money, Alternative Development and Collective Action in the Age of Globalization By Faidra Papavasiliou M.A., Emory University, 2003 M.A., University of Texas at San Antonio, 2000 B. A., University of Texas at San Antonio, 1997 Adviser: Peggy F. Barlett, Ph.D. An Abstract of A dissertation submitted to the Faculty of the Graduate School of Emory University in partial fulfillment of the requirements for the degree of Doctor of Philosophy Department of Anthropology 2008 For the past 17 years, Ithaca, New York has been the site of an experiment in alternative money. Parallel to the dollar, the Ithaca HOURS paper currency commands a share of the local economy, circulating within a bounded area around the town. Ithaca HOURS are one of the most prominent grassroots manifestations of a diverse and prolific global social movement of alternative currencies, emerging in response to the adverse economic, social and ecological effects of globalization. The movement brings the question of financial structures to bear on the discourse on globalization and development, which have tended to neglect the role of money as an element that not only enables and measures, but influences and shapes economic realities. An alternative form of money with bounded, circulation is a tool to support local economic activity, encourage fairness and social equity, and promote environmental sustainability. This work is an ethnographic examination of the Ithaca HOURS system, tracing the course and effects of the HOURS economy on the ground, given the theoretical and pragmatic challenges in envisioning and enacting sustainable alternatives to global capitalism, and the dynamics of defining “the local” and engaging “the community” in a socially complex setting. Ithaca is part of the economically depressed “rust belt” and the site of two major educational institutions. A distinctly diverse town, characterized by a highly progressive community Ithaca is also marked by racial, ethnic and class inequalities. The HOURS economy is small, with significant variation among users. While the system has made some inroads it has not broken through present divisions of race and class. For users, however, HOURS affect social relations through consumption. HOURS offer a different way to trade in which users have more of a say as to what is important and how it may be measured. The money used colors the experience and understanding of material exchange, as different currencies codify different ways to consume. This challenges the neutrality of money, indicating that the discourse on sustainability needs to re-problematize not only trade but also its medium. The Political Economy of Local Currency: Alternative Money, Alternative Development and Collective Action in the Age of Globalization By Faidra Papavasiliou M.A., Emory University, 2003 M.A., University of Texas at San Antonio, 2000 B. A., University of Texas at San Antonio, 1997 Adviser: Peggy F. Barlett, Ph.D. A dissertation submitted to the Faculty of the Graduate School of Emory University in partial fulfillment of the requirements for the degree of Doctor of Philosophy Department of Anthropology 2008 Acknowledgments It is, I suppose, no surprise in anthropology that when doing a study such as this, one will almost inevitably come out with much more than data for an argument and an interesting story. It is for the story which follows, and for a whole lot more that I am deeply grateful to the people in Ithaca, and before all, to the αρχηγός Stephen Burke, and the amazing LeGrace Benson and Monica Hargraves for more than could possibly go in a page like this. My many thanks also go to Laurie Konowski, the ever-inspiring Paul Glover, Teresa, Gretchen, and Arden, for stories, insight, patience, friendship, guidance, vibe, and wisdom. A special thanks goes to Corinne Stern and Margaret McCasland, the coolest landladies and friends anyone could ever wish for. I consider myself fortunate to have, for nearly eight years now, been part of Emory University’s Department of Anthropology. Above all, it has been a true privilege to be working with Peggy F. Barlett, whose persistence, mentorship, influence and contributions go well beyond anthropology, or even public or engaged scholarship, and into the territory of how to properly live. The presence of Dr. Barlett was beautifully complemented by the rest of my committee members. Early on, I was especially lucky to work with Hudita Mustafa, who is a true master at inspiring both engagement and play with theory and abstraction, and Tracy Rone, to whom I am indebted for offered me new perspectives and ways to approach ethnography. For the latter phases of this work, I have often said that I could have not imagined a better committee. I can now state this formally. To Richard Wilk, who saw me through this entire process, el generalissimo David Nugent, and the simply brilliant Carla Freeman, members of Committee Awesome, thank you, thank you, thank you! Regina Werum and Yvonne Newsome should not be missing from this list. Thank you for all your friendship, mentorship, advice, support, tenacity, and in the case of Regina, a very well-placed metaphoric smack upside the head. I am indebted to Emory University, for various fellowships and grants, as well as Ithaca HOURS Inc. and the A. W. Mellon Foundation whose material support allowed me to complete this project. I would like to particularly acknowledge Yvan Bamps whose help with all the practical aspects of completing a dissertation and a degree has been invaluable. I could not have done this without the love and support of my family, Theodora, Thomas and Kriton (you are up next!). Equally so, my love to Scott and Persephone who dove in with me, and saw me through. Lastly, my love, respect and thanks go to a number of friends and colleagues, the head of the Heidra, Heide Castañeda, and Shanti Morell-Hart, my fellow graduate students, including but not limited to Sarah Mathis, Leandris, Maurita, Brandon, Dan, Sarah Lyon, Maysoun, and Yaya, my Mellon cohort, Kristi, Caitlyn, Carol, Antoinette and Natasha, and Jeanine, Adrien, Matthias, and Elisa. My love and best of wishes to all of you. Πολλή αγάπη! Σας ευχαριστώ! The Political Economy of Local Currency: Alternative Money, Alternative Development and Collective Action in the Age of Globalization Table of Contents Chapter 1 – Introduction: The Political Economy of Alternative Currency 1 - Money, Stage Left 2 - Choosing the Site: Case and Problematics 11 - Social Mobilization, Alternativity and Value 15 - Structure of the Work 25 Chapter 2 – Money and Movement 30 - Money in a Global Perspective 30 - The Complementary Currency Movement in Context 35 - Resistance, Reform, Alternatives 37 - Local Money and the Economy 47 - Local Money and Society 51 - The Ecology of Local Money 58 - System Types 62 Commodity Currencies 62 Mutual Credit Currencies 62 Fiat currencies 63 Time Dollars 64 LETS 65 HOURS Scrip Systems 66 - A Different Development? The Problematic of Alternativity 67 Interlude – On Methods and Fieldwork 70 Chapter 3 – Ithaca: History and Context 75 - A Sense of This Place 75 - The Land and What Grew on It 78 - Communities in Community 82 - That Other Money 87 Creation 87 Evolution 95 Mechanism 98 Chapter 4 – HOUR Economy 106 - How Much Is an HOUR? 106 - The System’s Outline: Currency and Members 107 - A Macroeconomic Take 115 - The “Active User” Perspective 118 - Study Design and Problems with the Data 127 - Users 134 - Transaction Patterns: Earning and Spending 139 - Indirect Effects 149 Labor and Value 150 HOURS as a Safety Valve 153 When Shopping is Difficult: An Overaccumulator’s Tale 156 - Partial Summary and Discussion 159 Chapter 5 – Social Life in a Local Currency Economy: Phenomena 162 - The Problem of Understanding Hominids En Masse 164 - Community as Place 167 - “In Ithaca We Trust:” Internal Differentiation and Community 171 - The Social World According to Hours 177 - Hours as Grassroots Organization 187 - The Experience of Exchanging Community 197 Personal Interactions and Participation 198 On Finding One Another