Compartienda (Share-Shop)

The system of a Virtual Commercial Cooperation with a Complementary Social

Currency

Initial considerations:

We feel it is important to start by making a series of observations of the current concepts

with which the systems of alternative currencies are related in life today. Our intention is to
highlight some of the special characteristics of the model which we have continued to use
as the referential basis to the concepts already known by those reading this document.

Alternative monetary systems have arisen and disappeared many times throughout human
history as a tool to overcome difficult times. For example, during conflicts of war or deep
economic depression when the national currency is scarce or it lacks the value to maintain
the process of the exchange of goods and services.

The complementary currency, says Bernard Lietaer 1, is an agreement between members

of a community to accept an untraditional form of legal tender as a means of exchange, so
that the methods and ways to facilitate this exchange become many: time, points and
electronic systems. The best-known models of a complimentary alternative currency are:

a) The Local Exchange and Trading Systems (LETS), developed in the 1980s in
Canada by Michael Linton, introduced in 1993 and restructured in the year 2000 in
the city of Victoria, Canada. Currently, this model is used in communities
throughout Canada and in other countries, most notably the UK, Australia, South
Africa, Norway and France.

b) Time Banks, invented in the 1980s by Paul Glover in the USA and used for the first
time in 1991 as a system called HOURS in the city of Ithaca, in the state of New
York. Today, this model is used extensively in the USA and by communities
principally in Mexico, Argentina, Chile, Brazil, Japan and Italy.

c) Commercial Systems which facilitate the exchange between companies or

between companies and their clients. This idea, which is different to the previous
ones, is developed from the practical use of the traditional commercial system.

Nowadays (from the 1990s until today), in a context of relative economic and social
stability (in comparison to years of war or the Great Depression in America in the 1930s)
and in developed as well as developing countries, a resurgence of this type of currency is
being experienced.

The justification of the existence of these new systems of alternative currencies,

particularly those of LETS and Time Banks, differs greatly from their predecessors. The
creators of these systems argue that the process of globalization through which the world
economy today has generated great wealth, has at the same time created inequality and
social unrest. Therefore, the current models of alternative currencies establish as their
objectives to alleviate the process of social and economical erosion, unemployment,

1
Lietaer, Bernard. The Future of Money: Creating New Wealth, Work and Wiser Work, (Longseller, 2005)
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poverty, the lack of an intimate social network, as well as the stranglehold the multinational
companies have over the smaller local businesses.
Cantero2 confirms that the proposal of these systems is the creation of a parallel economy,
which develops and grows with the national economy. However, it can be controlled by the
interests of the community by means of the consumption of products and local services
through the use of the alternative currency, allowing local businesses to develop. This
system can later be integrated to the national and international economic system, and, at
the same time, can generate a stronger social network which can improve the quality of life
of the people who make up the community. The system is based upon the concept of
“think global, act local”.

In comparison with the material of academic work of traditional economics, little research
has been done for these new systems of local currencies, which have been expanded
throughout all the developed countries of America, Europe, Asia and Oceania, and are
starting to be established in developing countries throughout the world.

The most prolific researchers of this material are Stephan Brunnhuber, Tomas Greco,
Margrit Kennedy, Agnieszka Komoch and Bernard Lietaer among others. They principally
concern the experiences observed and documented in the developed countries of Europe,
North America and the Far East, and they revise, in an ordered and systematic way, the
research conducted by Gessell and Untergruggenburger in the 1930s, in order to propose
a new monetary paradigm that allows an equal, persistent, sustainable and responsible
development. There have also been examples of alternative money which have resulted in
a social, economic and monetary crisis in developing countries, whose societies have
imposed on the system a character different to that of its own culture. These cases arise
spontaneously and develop chaotically like in Argentina and to a certain degree in Brazil.
The differences between the development and the intrinsic characteristics of the
alternative monetary systems in developed and developing countries make up a
fundamental element in the understanding of the worldwide phenomenon of the surge of
alternative monies in its entire dimension. Therefore, it is also important to consider the
work of other researchers like Marcos Arruda, Frederico Cantero, Luis Lopezllera,
Euclides Mance, Heloísa Primavera y Paul Singer. In order to understand the argument
presented in this work we must recognize these differences.

The development of alternative systems of money we have mentioned, share the following
general characteristics3:

• In general they are local systems for exchange which operate in a

complimentary manner.
• They are created in a decentralized way through a democratic and participatory
process.
• Their use promotes cooperation and a sense of community (horizontal thinking)
• Generally the alternative money can not be accumulated.

2
Cantero, Frederico. Monedas Alternas como una Herramienta for the Doctoral Development Thesis,
University of Guanajuato, Mexico, 2001, Document version PDF
3
Komoch, Agnieszka. Complementary Currency: its importance for social economy and local development.
Money Network Alliance, 2004. Document version PDF
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According to Cantero´s research, the results, based upon the analysis of three systems of
alternative monies, show important differences between developed and developing
countries 4:

In developing countries:

• The alternative monetary system is used as a way of survival, as a second priority

in the conformation of these philosophies is the revival of social, cultural and
ecological values.
• The percentage of the average total annual income, which represents the incomes
of the members within the system, is between 5.5% and 25%.

• Less than 40% of the members are formally active in the economy and/or in the
established local business; however, for the majority, the activity of contributing
products and services to the system of alternative money, provides their principal
source of income.

• The Tax register and the formalization of activities are not promoted by the group;
the majority of the members are in the subterranean or informal economy, and they
prefer it to stay that way.

• The members participate in open public markets (a type of flea market and in
Mexico they are more identified with the traditional figure called "Tianguis"5) where
periodically they try to sell their products and services to third-party none members;
the members of the group take advantage of the event to carry out exchange
activities among themselves.

• The main systems of communication between the members and coordinators in

order of importance are:
1. Reunions in the popular market, "tianguis" or popular fairs.
2. Telephone
3. E-mail
4. Post

From 2004 onwards, Margrit Kennedy and Bernard Lietaer have developed a new model:
the regional complementary currency. This system tries to unite the aspects of the
complementary money with consumption and local business. This concept looks more like
the one which operates the system which we have presented here and which will be
analyzed later.

4
Cantero, op.cit. 2001. The cases of LETS were examined, taking as examples: Victoria, in British Colombia,
Canada; the HOURS system in Ithica, in the State of New York; and the system of TLALOC, in Mexico City
which uses characteristics of both. This comparative chart is of our own elaboration based upon the
conclusions of the thesis of Cantero, pp. 52-58, the personal experiences and notes taken from different works
of Heloisa Primavera as well as articles and conferences by Luis Lopezllera.
5
See the definition of “Tianguis” in section no. 3
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2. Background:

The case which is being presented here, is a system based upon the traditional practices
of business of the old settlers in Mexico and the use of contemporary methods of
communication. It has been developed by the members of Fundacion Ahora, A.C. (FAH),
with basis on the experience provided from the group known as the EcoSol-Mexico Space
which involves more than 200 organizations and communities. Its proposal is to offer an
alternative front to the economic erosion provoked by global capitalism in many places of
the vast region which we know as Mesoamerica and Aridamerica. In these areas, an
increasing number of people are being gradually excluded from the circles of great wealth,
and are unable to gain access to the activities which generate money by general
circulation. The deterioration of an enormous number of communities, villages and
neighbourhoods in big cities increases the direct relation it has to the few beneficiaries of
economical gain and consistently goes against the ecological sustainability of the land, air
and water of the region, and consequently, of the Earth itself.

In the year 2002, convening to unite forces amongst the great alternative plurality,
nineteen groups of networks, amongst them FAH, integrated a group whose activities were
centered on the revival of traditions and culture, and the promotion of activities in the area
of marginal and popular economy. Starting with trying to stop the spread of poverty with
solidarity and subsidiary work, various organizations of civil society (NGOs), groups of
promoters in indigenous regions and some academic institutions from the whole country
have come together to form the EcoSol-Mexico Space. (See “Rules of EcoSol” in Annex 1)

The work dedicated to the attention of people with socioeconomic needs in the
marginalized areas of the city of Aguascalientes since 1989, has allowed those people,
twelve years on from joining FAH, to count on their experience in the promotion of popular
workshops of production for self-consumption, as well as incipient use of values of
exchange for hours of work in the community or neighbourhood. Today, with its basis upon
the principles and characteristics commonly accepted by the Social and Supportive
Economics, the work of FAH is aimed at making citizens conscious as consumers,
producers, servers and innovators, who make those paradigms stand-out which allow
fundamental changes in values and hierarchical interests; healthy personal and collective
conduct in favour of a dignified and sustainable way of life for everyone. The members of
the “EcoSol Mexico Space”, in coordination with environmentalist groups, have started to
create an economical and social alternative of fair-trade and supportive producers. For this
reason it has defined its line of action as: the education and spreading of the proposals of
a supportive economy, the production (in order to satisfy needs in relation to nature), the
storage, distribution, commercialization and exchange (within reach of all, of the
enterprising products which need a market), the responsible consumption and the
recyclable and environmentally friendly post-consumption.

In this group dynamic, since 2003 until 2006, based upon observations, research,
communal work and many hours of discussions, the founders of FAH designed a ‘pilot test’
in 2006. Since 2004, with the label of The III National Meeting of EcoSol-Mexico, they
have already carried out workshops among 500 plus workers in order to test the methods
which were in process of being defined. The result of this work was the System of Virtual
Commercial Coordination for Supportive Enterprises which operate on top of the network
of popular shops or “Compartiendas (Share-shops).

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3. The VCC System

In Mexico, there has been very little diffusion of the alternative money systems as they are
known in the circles of exchange or LETS. Nowadays, there are less than ten systems in
operation. They follow the example of Red Tlaloc 6, which has been in operation in Mexico
City since 1993. However, the concept of exchange as a commercial system is part of the
indigenous culture which prevails in Mexico, predominantly in the southern states of the
country. Many of the 200 plus networks, organizations which today form part of the
“EcoSol Space” collective, work in indigenous areas and, through the coordination work
which we started in 2002 and particularly during our annual meetings, share our cultural
ancestry. In our work with other members of the EcoSol Space in urban areas, or with
people who do not have indigenous roots, we have adopted some of the aspects of the
ancestral culture through support with the demand of civil rights of the marginalized
people, as a reference of identity, in order to encourage the revival of their own personality
in the face of the predatory7 capitalist model which is imposed during the process of
globalization.

Of the ancestral cultures and the indigenous villages which survive, from the EcoSol
Space we have selected three. In FAH we have kept these three to design the system of
Virtual Commercial Cooperation for Supportive Enterprises (VCC). These concepts are:
“Trueque” (exchange), “Tequio” and “Tianguis” (open-air market). The first is understood
all over the world as the fundamental practice of exchange, from which develops business.
The second concept refers to community work; “Tequio” is a basic requirement for social
living as it refers to group work and activities for general benefit. The third term requires a
more detailed explanation. A “Tianguis” can be defined in two dimensions. Firstly, the
place or space where the market exists. And secondly, the way in which the people carry
out the process of exchange and their way of operating.

In terms of the place, the process is carried out in an open plaza, where traders come from
different parts of region with a wide range of products. They place their goods on the floor
or on tables which they bring themselves. They organize themselves in zones according to
their type of product while respecting the paths where the buyers walk. In this way, by
having similar products in the same place, it allows the buyer to compare the different
qualities. This is all done while respecting the accepted rules with little or no supervision
from any type of authority.

With respect to how it operates, the process is fundamentally of exchange. The trader who
comes to the market does so in a dual role of seller and buyer. When he puts his goods in

6
Tlaloc is the name of the Aztec deity of rain; it is the masculine aspect of fertility.
7
When we use the qualifying term ‘predatory’ for capitalism, we do so with reference to the system which
Michel Albert refers to in his book “Capitalisme contre Capitalisme”, (Editions du Seuil, Paris VI, 1991)
http://www.cam.org/~mdumont/0596/0596-f3.htm and which is related to the model which has been imposed
by the United States upon various countries of the world in conflict to the capitalist Rhône model most
identified with the Social Market Economy. (Sozial Marktwirtschaft).We use this term, in this context, in
order to underline the harmful character of this approach by the capitalist system towards local economies and
cultures and towards the environment, and also to avoid referring to the countries whose governments have
promoted this system, for example the USA, out of respect and sympathy for the section of the population
who are fighting this economical approach. Through the vast means of communication in Europe, some
aspects of the ‘Zapatista’ movement have been confused to a certain degree; for those who have knowledge of
the reasons why the movement has spoken against capitalism and in favour of the indigenous culture, you will
find it easier to understand what we have referred to in this paragraph.
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the corresponding place, he gains a reference of value with which he can start to look for
what he needs to acquire. His merchandise is his ‘currency of exchange’. In the traditional
“Tianguis”, a skilled trader will firstly exchange all or part of his goods for a product which
the “Tianguis” community considers a good which can easily exchanged. In the past, these
products have been grains of cocoa, seashells, jade stones or fabric. Nowadays,
indigenous villages that conserve the tradition, value most the goods of salt, edible oil,
tinned or canned food.
In the “Tianguis”, everyone looks after
each other, and operates under the
principles of the “Tequio” 8. The work in
favour of the common good and the
appropriate operation of the market
comes from the work that each
individual carries out in his own favour,
of exchanging goods and services. In
the event of difference of opinions from
both sides of an exchange, the case is put to the rest of the participants of the “Tianguis”
and with their consensual opinion, the problem is resolved. It is only when an agreement
cannot be reached, that they ask for the intervention of a
local authority.

Today, the “Tianguis” is a common practice which is

carries out in public plazas of small towns as well as in
modern and big cities. The main characteristic, which has
also been the case in the past, is that the traders from the
region only come to the market once a week and
therefore the majority have lost the practice of exchange.

It is because of these cultural aspects and because of the requests from the members of
the EcoSol Space that in FAH we have proposed since 2004 to offer a system that allows
the development of the supporting enterprises. With a system based upon a complete
economic scheme with its own complementary currency, these enterprises can continue to
revive the value of local production, the value of communal work and of work in general,
which has greater importance in face of increasing unemployment caused by globalization.

A complete economic scheme is what contributes to the entire circuit of the economic
process: production, storage, promotion, distribution, selling, consumption and investment.
Our vision is that this scheme must benefit the overall development of people and their
towns, in their culture, health and sustainability, something that will not be achieved with
an economic paradigm in which competition prevails behind the generation of profits. With
the prevailing economic system of predatory capitalism there is not room for our system.
For this reason we have thought it necessary to create a parallel economic paradigm
supported by different principles. These principles which we have already spoken about
are detailed in Annex 1. The 200 plus members of the EcoSol Space are located in the
central and southern areas of Mexico (see the maps in the finals sections: Catalogue of
Images). For the simple reason that FAH is located in Aguascalientes, our work has
started from here. With the proposal of integrating communal work of economic support
and alternative money in locations as far as Mexico City (540 Km south of Aguascalientes)

8
It is interesting to note here that within the indigenous languages of the central region of Mexico, there does
not exist the word for ‘I’, in order to refer to oneself, there only exists the word for ‘we’.
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as if it were just one location, we decided to work principally through the internet. In this
way the Virtual Commercial Cooperation for Supportive Enterprises (VCC) project arose,
which is attempting to resolve the following problem:

The community producers, enterprisers and traders on a small scale, share the same
problem of commercialization of their goods and services. For this reason, their work does
not offer them a sufficient income to sustain a dignified life and neither can they offer work
in their local town, this leads to the emergence of problems including poverty and social
demoralization.

VCC is a system which sustains a network of physical places, called “Compartienda”

(Share-shops), where all the
producers/consumers who are accepted as
affiliated suppliers, share, do business,
distribute and exchange raw goods,
merchandise, and physical and ethical
values. Today, the system is administered
by FAH and from 2008 the administrator will
be a cooperative in which the shopkeepers
(who run or own the “Compartiendas”) and
the supportive suppliers (producers and
lenders of services) participate.

The name “Compartienda” is formed by the

Spanish words, COMPARTIR (to share),
which underlines the importance of creating
a space for collective effort and enjoyment.
The word TIENDA (shop) is simply the
place where suppliers and plaintiffs,
vendors and buyers, come together to ‘do
business’. The difference with the “Tianguis”
and with the idea of offering a real
alternative to all consumers in face of the
prevailing economic system is that the
“Compartiendas” are permanent physical

places, which belong to a supportive commercial network,

which emulates the franchise system of the commercial
networks. In these shops, all the member ‘prosumers’9 of a
network, share, trade, distribute and exchange raw goods,
merchandise, and physical and ethical values. They are also
neighbourhood shops (although they differ from the large scale
self-service shops like Carrefour, Wal-Mart, etc.), which, like
any other shop, also offer other consumer products which are
not made by the supportive enterprisers and is open to all the
public.

Although the proposal of the project is to reinforce local

9
‘Prosumer’ is the term coined by Alvin Toffler, the author of “The Third Wave” which implies the dual
quality of people as producers and at the same time consumer.
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development, the “Compartiendas” are not in one single place, they are a network of
shops which is growing and covers new regions and locations. Due to bioregional reasons,
in each location there is usually only one particular type of crop and consumer product
offered which have the suitable cultural characteristics. By forming a network and offering
a system managed through the internet in order to support the publication of offers and
demands, as well as the logistical coordination of transport and of the exchange of
merchandise between shops supported by free money, each “Compartienda” has the
chance to offer products from all the regions to which the “Compartiendas” belong.

Supportive Suppliers:

In order to be accepted by the administrator as a supplier for the

“Compartiendas”, the traders have to agree to work communally (a
communal company, a collective, a family organization or other) and have
to comply with the certificate of quality for both their products and their
system of operation. The certificate covers the necessary fulfillment of the
principles of EcoSol and the international criteria accepted by Fair Trade.

The supportive suppliers receive from FAH all the support necessary in order to
understand their role in this project which helps them to improve their selling capacity by
being able to offer their products in all the shops within the network without any additional
effort other than transporting their products to their local “Compartienda”. Promotion work,
distribution and marketing are done through the internet. In exchange for this, the traders
assume the agreement of consumption and to satisfy their purchase needs through the
network of “Compartiendas”. In order to facilitate this aspect, the local shopkeeper partially
pays for the goods with Alternative Money (ECOSOLES), a minimum of 10% of the price
of the product. In this way, the supportive suppliers, the ‘prosumers’, can buy what they
need in the “Compartienda” with ECOSOLES.

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Free Money/Alternative Money

The administrator runs the information and the operation of the system through the
website www.aahora.org, which can be defined as a virtual “Tianguis”. This is because the
products are viewed in terms of quality of appearance in their photos and of their price,
and the running of it is through exchange. Each shopkeeper of a “Compartienda” receives
the products of the supportive suppliers from their location. Part of which goes for sale in
the shop, and the other part stays in storage. The part that stays in storage is what is
publicized on the internet and the given price of each product is equal to the cost for the
supportive producer. To release the products in the system, the shopkeeper receives
ECOSOLES at the rate of one ECOSOL for one peso (the Mexican peso is the current
form of money). From there, he pays the producer the agreed minimum 10% and the rest
he uses to buy through the internet the products which the other “Compartiendas” have
publicized.

These printed vouchers are used for the payment to the supportive suppliers.

As there are communities that

already have their own local
free money/alternative
money, the VCC offers to all
its members the possibility to
manage their balance with an
electronic purse in the form of
these memory cards like this:

In this way, the alternative

currency in its role remains in
its own location, whether they
are ECOSOLES, TLALOCS,
PENCAS, etc, or any other
form of free money of any
place. This is how the
members of the VCC system
can use their card to buy from
“Compartiendas” in other
places. If there are currencies whose value is based upon hours of work, energy, or any
other reference of value, each location uses the value of conversion to their money. The
conversion is simple, given that the value of ECOSOLES is of one per peso. For example:
1 TLALOC = 30 pesos = 30 ECOSOLES.

The use of the card and

the internet system cuts
time and distance. This
makes it possible for the
alternative currency to
be operated locally in
various regions. This is
an operation local-
global.

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The process:

a. Member producers of the system take their product to their closest “Compartienda”.

And the shopkeeper pays for part of the product in ECOSOLES.

b. The producers use the ECOSOLES to purchase or acquire other products or services in
the circle of local exchange from the “Compartienda”.
c. With the
income of
pesos, the
farmers of
the UDEC
organization
can save in
their local
building
society.

d. The shopkeeper, with the value of the ECOSOLES representing the product which he
has received, carries out the exchange with other “Compartiendas” through the internet.

By exchanging products between the “Compartiendas”, each one of them has a variety of
products and from different regions to offer to their clients: the members of the network or
any other buyer.

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Picture Gallery:

Mexico

Area of participation of the 10 “Compartiendas”

Promotion and explanation of the system to its members through the radio.

A course for the supportive producers in a state school of Aguascalientes..

The countryside of the municipality of El

Llano, Aguascalientes .

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Promotional flyers:

Alternative money of the Tlaloc System, the pioneer in Mexico.

Simple products for basic consumption offered in COMPARTIENDAS.

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References and links

Project COMPARTIENDA on the Database of Complementary Currency run by Stephen of

Meleuneare / Strohalm Foundation

http://www.complementarycurrency.org/ccDatabase/le_systems_admin.php?action=view&
systemld=18&which=0&PHPSESSID=5628b4515cbfeed0e16305d225a9d7b

Fundación Ahora, A.C. website:

http://www.aahora.org/

Description of the concept of the COMPARTIENDA on the Fundación Ahora A.C. website:

http://www.aahora.org/t2.htm

PowerPoint presentation (presented in the International Conference of Complementary

Currencies 2007; Brihuega, Guadalajara, España, 2nd March 2007)

http://www.aahora.org/aahora-docs/Docs_FundAhora/PresentacionBrihuega,Guadalajara-
2deMarzo2007.ppt

Picture Gallery from the Tourist Office of Aguascalientes

http://www.aguascalientes.gob.mx/Turismo/galeria/GalFoto01.aspx

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Annex 1.

The “Ten Commandments” of the Supportive Economy (EcoSol)

1. Wealth. It is possible for another form of economy to replace capitalism. An

economy based upon the paradigm of wealth. The earth gives us its wealth in a
free and abundant way to all, this new economy helps to share this wealth.

2. New Word, New Spirit. The word creates, with continued renovation and
conscience of the words and concepts of these “commandments ”; we can try to
make these concepts evident in day-to-day life.

3. Associationism. The organized communal work is the most appropriate form to

produce and reward fairly. This philosophy, in each of its forms, involves internal
democracy among the supportive enterprisers.

4. Working in Networks. The organizations and enterprises of the supportive

economy work horizontally in networks. In this way and as a large supportive
network, the multi-sectorial exchange and cooperation is applied and favoured.

5. Incorporation of Local Cultural Values. Everything that the members of the

network produce incorporates their own local cultural values, with which everyone
benefits. These include productive techniques, processes and designs etc.

6. Responsible Consumption and Production. I consume what the network

produces and I produce what the network consumes. This promotes equal
business and the sharing of the wealth.

7. Your own methods of exchange. The members of the Supportive Economical

network develop their own methods of exchange, like the local currency and the
systems of exchange which complement the social financial methods.

8. Sustainable Consumption and Production. We respect and contribute to the

health of Mother Earth. The supportive Economy uses natural resources in a
responsible way that is environmentally friendly.

9. Economic Democracy – Political and Social Democracy. Through the existence

of democracy and the respect towards the domestic diversity of the organizations
and the networks, political and social democracy is promoted.

10. Integrated Human Globalization. In the face of capitalist economy which is

simplistic, which specializes, divides and exploits, the Supportive Economy is
complex, it reforms, reintegrates and enriches. Another World Is Possible.

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