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Kirschner, Amy

Natural Resources

2010

MS

This study explores the factors that enhance or prohibit the success of a community currency organization and trace the development cycle of organizations that issue them, with an emphasis on factors that allow the currency to reach a 'tipping point' into mainstream economic acceptance. The Burlington (Vermont) Currency Project will serve as a case study. It was founded in 1997 and closed in 2007, during which time it attempted to address issues of social inequality, global resource depletion, and unemployment at a local level by circulating a paper currency.
To explore the strategies and success factors for designing and delivering a local currency system, this study applied qualitative research methodologies of interviews and review of primary source material. Arguably, all community currency systems have struggled to achieve market presence and long-term organizational sustainability. This research looked at the experience of community currency organizers in developed countries to create a set of success indicators for analyzing the Burlington Currency Project. The hypothesis was that community currency organizations undergo stages of development that have not yet been defined but approximate the stages of development of a small business. Understanding these stages can inform organizers of community currencies in their pursuit of mainstream acceptance in their local economies.
The study identified success factors for community currency organizations, provided a detailed history of Burlington Currency Project, and developed recommendations for future studies.