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Economy and Finances

Monetary systems, indicators and alternative credit mechanisms so that money stops being the center of the system

At Permact, we dedicate a paragraph to the economy, because the manner in which the official monetary system functions today is part of the cause of the global social and ecological crisis. Money that is issued centrally, and in some cases like the dollar, privately, makes the process of money creation more inefficient from a democratic point of view. The issuance of money based on bonds with interest is a mechanism that promotes hoarding, and worsens the inequalities between and within countries. In addition, it makes growth all-important in the economic system. Economic growth simultaneously becomes a necessity of the system, and a biophysical impossibility.

A sustainable world needs a financial system that is conceptually different. There are many proposals to establish a relationship that is different from the current mechanism of securing resources and services, thus achieving a more efficient use of money. Some of these proposals include: local or regional currency, ethical investment and fair commerce, markets of producers and agriculturists supported in the community, networks that foster the exchange of services (Woof, Work away…), use of alternative indicators to GDP, consumer co-operatives, ethical banking, credit co-operatives, collaborative consumption initiatives… At Permact we are interested in projects that not only create different monies, but those that also change the relationship we have with it.

Translated by Vongai Mlambo and Leanne Herbert