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E Volving Reciprocal Relationship E Conomies

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This presentation examines human interaction in the virtual world created by networked communication systems, focusing on the formation of reciprocal networks of information sharing. Mauss’s theory of ‘the gift’ is used to indicate the essentially reciprocal nature of gift giving, which creates an obligation for some form of exchange, although not by means of direct payment as expected in market relations. Free exchange of information based on reciprocal sharing has been central to the development of the Internet. Where commercial interests have come in to enforce copywriting and licensing (notably in proprietary software), Free and Open Source Software movements have sprung up with copyleft licensing to protect the right to free sharing of code and other information. In this way what is referred to as the ‘High-Tech Gift Economy’ is directly challenging its capitalist counterpart in technology development, with the development of free software designed through the co-operation of ‘techies’ across the globe competing with commercial products. The paper argues that despite limitations the world wide web of information sharing does create an environment for giving gifts of information to a global audience. It is furthermore argued that reciprocal exchange of such gifts through generalized exchange with a worldwide network requires a heightened sense of presence in the virtual gift society.
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Association of Internet Researchers Association of Internet Researchers Milwaukee, Wisconsin Milwaukee, Wisconsin October 2009 October 2009 Global tools enhance local exchange Global tools enhance local exchange through Community Currency in a through Community Currency in a Complementary Complementary “Gift” Economy “Gift” Economy Liezl Coetzee Liezl Coetzee University of Stellenbosch University of Stellenbosch South Africa South Africa
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Page 1: E Volving Reciprocal Relationship E Conomies

Association of Internet ResearchersAssociation of Internet ResearchersMilwaukee, WisconsinMilwaukee, Wisconsin

October 2009October 2009

Global tools enhance local exchange through Global tools enhance local exchange through Community Currency in a Complementary Community Currency in a Complementary

“Gift” Economy“Gift” Economy

Liezl CoetzeeLiezl CoetzeeUniversity of StellenboschUniversity of Stellenbosch

South AfricaSouth Africa

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OverviewOverview

Reciprocal Gift E-conomy Reciprocal Gift E-conomy

““The High-Tech Gift Economy”The High-Tech Gift Economy”

Money 2:0 Money 2:0

Community Exchange System Community Exchange System

Mutual trust and reciprocity in Mutual trust and reciprocity in (online) Community Currency (online) Community Currency Networks Networks

Generalized ExchangeGeneralized Exchange

Features to encourage online Features to encourage online reciprocityreciprocity

Building community offlineBuilding community offline

ConclusionConclusion

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Reciprocal giftingReciprocal gifting

Mauss’s Tripartite formula for ‘total Mauss’s Tripartite formula for ‘total prestation’ – obligation to:prestation’ – obligation to:

GiveGive ReceiveReceive

RepayRepay

Reciprocity in gifting emphasizes Reciprocity in gifting emphasizes relationship between giver and relationship between giver and receiverreceiver

““Gift economy”Gift economy”

Driven by social Driven by social relationsrelations

Commodity economyCommodity economy

Driven by priceDriven by price

vsvs

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Reciprocal Gift E-conomyReciprocal Gift E-conomy

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““The High-Tech Gift Economy”The High-Tech Gift Economy”

““[A]t the 'cutting edge' of the emerging information [A]t the 'cutting edge' of the emerging information society, money-commodity relations play a society, money-commodity relations play a secondary role to those created by a really secondary role to those created by a really existing form of anarcho-communism… In the existing form of anarcho-communism… In the absence of states or markets to mediate social absence of states or markets to mediate social bonds, network communities are instead formed bonds, network communities are instead formed through the mutual obligations created by gifts of through the mutual obligations created by gifts of time and ideas”time and ideas” (Barbrook, 1998:5). (Barbrook, 1998:5).

“a kind of gift economy where people do things for one another out of a spirit of building something between them, rather than a spreadsheet-calculated quid pro quo.” (Rheingold, 1991)

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Limitations of the Limitations of the “High-Tech Gift Economy”“High-Tech Gift Economy”

Focused on exchange of Focused on exchange of virtual, digital goods/ virtual, digital goods/ informationinformation

Continued dependence on the Continued dependence on the ‘money’ economy‘money’ economy

Accessibility across the digital Accessibility across the digital dividedivide

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Money 2:0 Money 2:0

Money as memoryMoney as memory

Juno Moneta – goddess of Juno Moneta – goddess of memorymemory

MonetaMoneta from from moneo = moneo = remind/ remind/ rememberremember

Money = ‘information system’Money = ‘information system’

Community CurrencyCommunity Currency ““Community” = Community” =

‘‘munus’ (gift) + munus’ (gift) +

‘‘cum’ (together/ among each cum’ (together/ among each other)other)

““a community currency means that a community currency means that members of the group empower members of the group empower themselves to create their own themselves to create their own

“money,” which they agree to use in “money,” which they agree to use in paying for purchases made among paying for purchases made among

themselves.themselves.” (Greco, 2001: 14)” (Greco, 2001: 14)

Types of community currencies:Types of community currencies: Backed, Backed, Fiat. Fiat. Mutual CreditMutual Credit

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Impact of ICTs on community currenciesImpact of ICTs on community currencies

Potential impacts on Mutual Credit currencies:Potential impacts on Mutual Credit currencies: Reduced administrative burdenReduced administrative burden

Search engine functionalities Search engine functionalities

Communication tools Communication tools

Networking tools Networking tools

A web-based system allows for transparencyA web-based system allows for transparency

Expanding geographical scopeExpanding geographical scope

““a radical change in the future of money, a radical change in the future of money, if [its] technical mechanisms are used to if [its] technical mechanisms are used to support the creation and maintenance of support the creation and maintenance of 'local currencies' – a medium of 'local currencies' – a medium of exchange that many communities around exchange that many communities around the world are beginning to experiment the world are beginning to experiment with.”with.” (Rheingold,. 1997)

““Moneys are programmed”Moneys are programmed”““[w]e are proving more likely to [w]e are proving more likely to treat our money as software, treat our money as software, and to write our own… and to write our own… alternative, net-enabled, alternative, net-enabled, bottom-up money systemsbottom-up money systems” ” (Rushkoff, 2009) (Rushkoff, 2009)

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Community Exchange System Community Exchange System

Initiated by SANE (South African New Economics) Initiated by SANE (South African New Economics) network network

Piloted in Cape Town in 2003Piloted in Cape Town in 2003

Cape Town Talent ExchangeCape Town Talent Exchange

Talent exchanges spread across SATalent exchanges spread across SA

First international exchange (Australian LETS group) First international exchange (Australian LETS group) joined in 2005joined in 2005

Currently used by 150 Exchanges in 19 CountriesCurrently used by 150 Exchanges in 19 Countries

CES split from SANE in 2008CES split from SANE in 2008

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How it worksHow it works

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Mutual trust and reciprocity in (online) Community Mutual trust and reciprocity in (online) Community Currency Networks Currency Networks

Some take from the Some take from the system without system without giving back, or don’t giving back, or don’t trade at all.trade at all.

Initial enthusiasts Initial enthusiasts dedicate time and effort dedicate time and effort to provide goods for to provide goods for community currency.community currency.

Credits earned cannot Credits earned cannot be redeemed due to be redeemed due to limited offerings in limited offerings in system.system.

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Generalized Exchange Generalized Exchange

Online giftingOnline gifting

Anonymous recipientsAnonymous recipients

Direct exchange impossibleDirect exchange impossible

Give to the communityGive to the community

Receive from the communityReceive from the community

Community currenciesCommunity currencies

Known & unknown recipientsKnown & unknown recipients

Direct exchange impossibleDirect exchange impossible

Give to the communityGive to the community

Receive from the communityReceive from the community

Generalized exchange (Ekeh, 1974)Generalized exchange (Ekeh, 1974)

Network-wide accounting systemNetwork-wide accounting system

Benefit given is reciprocated not by recipient but by someone else in the Benefit given is reciprocated not by recipient but by someone else in the groupgroup

More generous & riskier than direct reciprocation – no guarantee of More generous & riskier than direct reciprocation – no guarantee of immediate return immediate return

Temptation to free-ride on others’ efforts could lead to social dilemma Temptation to free-ride on others’ efforts could lead to social dilemma (individually reasonable behaviour leads to collective disaster.(individually reasonable behaviour leads to collective disaster.

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Promoting reciprocity Promoting reciprocity

Motivation for giving:Motivation for giving:

Anticipated ReciprocityAnticipated Reciprocity

Expressing IdentityExpressing Identity

ReputationReputation

Sense of efficacySense of efficacy

Attachment/ Group Dynamics, Attachment/ Group Dynamics, andand

Fulfilling a need of the Fulfilling a need of the community. community.

Methods to encourage (online) Methods to encourage (online) reciprocity:reciprocity:

Promote identity persistencePromote identity persistence

Ensure transparency Ensure transparency

Provide recognitionProvide recognition

Expand group size, and Expand group size, and

Build community. Build community.

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CES Online features CES Online features

IdentityIdentity

Limited profile informationLimited profile information

Contact detailsContact details

Description of offeringsDescription of offerings

New profile pic featureNew profile pic feature

RecognitionRecognition

Recommendations featureRecommendations feature

Rarely usedRarely used

Users discouraged from trading with Users discouraged from trading with ‘bad traders’‘bad traders’

Bad traders blocked.Bad traders blocked.

TransparencyTransparency

Trading balances for all users Trading balances for all users visible to membersvisible to members

Few use this feature but many Few use this feature but many appreciate that it is there.appreciate that it is there.

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Group size Group size

Potential constraints i.t.o. scale and scope of a community exchange Potential constraints i.t.o. scale and scope of a community exchange network:network:

Failure to achieve critical size of the participant baseFailure to achieve critical size of the participant base Too narrow an assortment of goods and services offeredToo narrow an assortment of goods and services offered Failure to attract participants from all levels of the supply chain (production/ Failure to attract participants from all levels of the supply chain (production/

distribution circuit), and distribution circuit), and Failure to gain wide acceptance among the mainstream business Failure to gain wide acceptance among the mainstream business

community.community.

Internet expands scopeInternet expands scope

Larger groups complicate community buildingLarger groups complicate community building Transactors do not know each otherTransactors do not know each other Long distances to travel between traders & to markets.Long distances to travel between traders & to markets.

CTTE sub-areasCTTE sub-areas Aim to encourage more Aim to encourage more locallocal focus focus Have not reached sufficient size to function independently as offerings within Have not reached sufficient size to function independently as offerings within

sub-areas are limited.sub-areas are limited.

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Building communityBuilding community

OnlineOnline

Group & Announcement Group & Announcement featuresfeatures

Social networksSocial networks

OfflineOffline

MarketsMarkets

ShopsShops

SlipsSlips

Across the Digital Divide…Across the Digital Divide…

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Groups & AnnouncementsGroups & Announcements

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Online social networksOnline social networks

FacebookFacebook

Community Exchange Network group Community Exchange Network group created in 2007created in 2007

Current membership 836Current membership 836

NingNing

http://communityexchange.ning.com/http://communityexchange.ning.com/ created in 2008created in 2008

Current membership 347 Current membership 347

Membership globalMembership global

Forum for general discussion/ Forum for general discussion/ ideas exchangeideas exchange

Limited Limited locallocal networking networking

Interface between FB/ Ning & Interface between FB/ Ning & CES site proposed in discussionsCES site proposed in discussions

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Offline links Offline links MarketsMarkets

Talent markets held ~monthlyTalent markets held ~monthly

Trade & new registrations Trade & new registrations notably increase during notably increase during marketsmarkets

Members to take initiative to Members to take initiative to organise own marketsorganise own markets

ShopsShops Talent shop opened in Talent shop opened in

October 2005October 2005

SANE premisesSANE premises

Hoped more would open but Hoped more would open but none havenone have

Shop closed after split with Shop closed after split with SANE – lost premisesSANE – lost premises

SlipsSlips

Paper based system Paper based system available for those available for those without regular Internet, without regular Internet, and use at markets.and use at markets.

Trades captured by those Trades captured by those with access – ‘mediators’with access – ‘mediators’

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Bridging the digital divide Bridging the digital divide

CES aims to reform monetary system to benefit those lacking Internet access CES aims to reform monetary system to benefit those lacking Internet access 90% of SA population – no access90% of SA population – no access

Pilot social outreach programme targeted 3 areasPilot social outreach programme targeted 3 areas Harare in Khayelitsha; Delft; Harare in Khayelitsha; Delft; MasipumaleleMasipumalele

New economics courses heldNew economics courses held

Opened offices & held markets in each communityOpened offices & held markets in each community

Donor funding through SANEDonor funding through SANE

Activities declined after SANE splitActivities declined after SANE split

Mobile platform – potential to increase access, though at present few have suitable Mobile platform – potential to increase access, though at present few have suitable phones/ know how to use itphones/ know how to use it

Still interest in concept Still interest in concept Some with Internet mediate for othersSome with Internet mediate for others

Residents starting a food garden Residents starting a food garden

Obtain inputs through Talent ExchangeObtain inputs through Talent Exchange

Aim to sell produce for TalentsAim to sell produce for Talents

CES likened to ‘Ubuntu’ philosophy of communal support & sharingCES likened to ‘Ubuntu’ philosophy of communal support & sharing

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““I want to see somebody set up a barter I want to see somebody set up a barter network where I could trade poetry for network where I could trade poetry for turnips. Or not even poetry--lawn turnips. Or not even poetry--lawn cutting, whatever. I want to see the cutting, whatever. I want to see the Internet used to spread the Ithaca dollar Internet used to spread the Ithaca dollar system around America so that every system around America so that every community could start using alternative community could start using alternative labor dollars. It is not happening. And so labor dollars. It is not happening. And so I wonder, why isn't it happening?” I wonder, why isn't it happening?” (LambornWilson, 2004). (LambornWilson, 2004).

ConclusionConclusion


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