In reaction to the many shortcomings of globalization, a worldwide movement emphasizing the preservation and integrity of local economies has been taking place in recent years. Among the many innovations of the “going local” movement is the rebirth of an ancient practice: the use of local currencies. In his book, When Corporations Rule the Earth, David C. Korten notes: “In hundreds of communities in Canada, Argentina, Australia, New Zealand, the United States and elsewhere, people are creating their own community currencies — known variously as LETs, green, or time dollars — to free themselves from colonization by the global financial system, revitalize their communities, and build economic self-reliance.”

The particular power of currency — a standard monetary unit which serves as a medium of exchange for a given region or country — lies in part in its flexibility and efficiency as a tool of trade. The use of money or currency as a standard of exchange greatly facilitates both simple and complex transactions and can minimize, even eliminate, the need for negotiation altogether, thereby saving time. Naturally, today’s complex global economy would be inconceivable without national currencies and the exchange rates that “translate” monetary value across borders into other currencies. By contrast, barter can be cumbersome. In barter, the relative worth or value of commodities to be traded has to be negotiated with each new transaction. However, both barter systems and local currencies appear to be increasingly relevant to communities far and near.

The benefits of local currencies are many. They can be employed as advertisement for local business. They may be purchased to ensure the support of local businesses and the consumption of locally produced goods and services; in other words, they can be utilized to keep money from leaving town. They may also be used to “restrict” purchases for the benefit of the community. Ithaca, N.Y., was the first city in the U.S. to develop a widespread local currency, Ithaca HOURS, which has been running since 1991 and has widespread support from the local business community. The system was so successful, in fact, that it helped spawn a health cooperative, aiding Ithaca in controlling medical costs. Madison, Wis., has another successful program, the Madison Hours Cooperative.

While there are several kinds of local currencies currently available in Boulder, the most successful is arguably Boulder Change, developed by Boulder’s Carriage House Community Table.

The Carriage House is a wide-ranging resource for the homeless of the Boulder community. Tucked away behind First Congregational Church on Pine Street in downtown Boulder, Carriage House provides day shelter and basic services for the homeless and working poor. It also interfaces with local churches to provide meals and shelter for the homeless. Vera Line, director of Human Resources at Boulder’s Carriage House Community Table, describes her organization as “a good community to support the working poor.” And one of Carriage House’s most innovative and successful programs is the local currency, “Boulder Change.”

Boulder Change is a voucher that is issued in one-dollar denominations, and may be used to buy food and services at a variety of local businesses. Among these: Abo’s Pizza, Boulder County Farmer’s Market, Boulder Recreation Centers, Mental Health Center of Boulder County and RTD. The voucher may also be used for the purchase of gasoline.

Even in affluent Boulder, there are many in need. You give change on Pearl Street Mall with all good intentions, thinking that it will go toward a sandwich or a cup of coffee. Not necessarily so.

“You want to help. But is it the best decision to give cash? Just giving cash doesn’t leave you with a good feeling,” Line says.

The restrictive beauty of Boulder Change is that it cannot be used for the purchase of alcohol or tobacco. Neither is change provided upon completion of the purchase. By giving Boulder Change to people in need, “one does not support destructive behavior, illegal drugs,” Lines says.

Another program, set to launch on July 1, is Boulder Barter Exchange, created by partners Herschel Goldberg and Boulder Weekly Publisher Stewart Sallo. Boulder Barter Exchange will provide local businesses and professionals an online network where they can barter goods and services with other Exchange members.

“That’s a big benefit of it. You don’t have to find a match for what you hope to sell or purchase,” Goldberg says.

The network will enable businesses owners to obtain the goods and services they need without having to buy those goods or services with cash, he says.

“It conserves cash and improves cash flow, and also it will build a community of people,” he says. “Typically when you barter for something you have a much higher degree of interaction with the person you’re bartering with.”

And building community is one of the best things that local currencies and barter systems provide — something money truly can’t buy.

For more information about Carriage House, go to www.BoulderCarriageHouse.org, or call 303-442-8300. For more information on Ithaca HOURS, go to www.ithacahours.com. For more information about Boulder Barter Exchange, go to www.boulderbarter.com.