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October 2009

By Jennifer Allford

Perhaps you’ve stopped and read the label of the t-shirts they’re
giving away on the sale rack to see they were made in
Bangladesh.prosumerism-in-times-of-recession.jpg Maybe you’ve thought twice about buying the plastic
toy that was made in China or picking up the bag of oranges
from South Africa. If so, you may be a prosumer.

“A prosumer is a proactive consumer, rather than a passive one” says Todd Hirsch, the senior economist at ATB Financial. “The new prosumer gets more involved in the act of consumption, demanding more information about what the product is, where it was made, etc.”

That means instead of just blindly buying goods that come from half way across the world, more people are paying much closer attention to what they buy. “It’s a positive development,” says
Hirsch. “But it will require more time, energy, and probably money
for the consumer.”

REAP and Calgary Dollars are two organizations that have been developed to try to make shopping locally easier – and more cost effective – for consumers.

Calgary Dollars – a complementary currency – was started by the Arusha Centre to encourage local consumerism, reduce poverty and build community at the same time.

“Our goal is to ultimately have every Calgarian using Calgary dollars, to have some in their wallet and to know what it means to shop locally,” says Kirti Bhadresa, the Calgary Dollars coordinator.

“We’re looking for people to stay within this region in terms of shopping, travelling, those things that we do that have a lot of impact. If we could live within our bioregion, then we could live much more sustainably,” she says.

Hirsch says reducing the carbon footprint and costs associated with transportation are among the compelling benefits of shopping locally. “And, if you are selling your goods or services to your friends and neighbors, I think you can expect a higher level of quality than if the same item is made thousands of miles away,” he says.

But Hirsch also warns that shopping locally has to remain a choice – not a requirement. “I think “Buy Local” regulations are more harmful than beneficial. We’re seeing this in Canada right now with a rising protectionist sentiment in the U.S.” he says.

“We like the idea of buying local when it comes to our own market, but we all suffer if everyone buys only locally – especially if it is legally required.” Politics has always had a role in commerce says Hirsch. And when it’s necessary, governments have even set up their own complementary currencies.

In the global depression of the 1930’s, banks were failing and tying up the supply of money and people with cash started hording it. To get people spending and economies moving, municipal and regional governments all over North America started printing their own money, called scrip.

In 1936, Alberta’s Aberhart government started issuing “Prosperity Certificates” to help pay government employees. “You actually got charged for this money the longer you held on to it.” says Bhadresa of Calgary Dollars. “If you kept it for a week you have to pay a penny. If you keep it for two weeks you have to pay another penny.” This encouraged people to spend their scrip, keep it circulating and stimulate the economy.

People had to be very creative just to survive during the Great Depression, says Hirsch. “My grandmother used to save the string that came on cuts of meat, and when she had enough string, she’d knit them together to make pot-scrubbers. That’s creative!” But Hirsch says in the current recession people are just buying cheaper cuts of meat. “The string still gets tossed out,” he says.

We may not be as creative as our grandmothers, but it seems we still like our scrip. Calgary Dollars has had a surge of popularity since the recession hit. “We’ve seen enormous growth over the last little while,” says Bhadresa. “Over just two months, we had a 25 per cent increase in listings.” These days, there are 80,000 Calgary Dollars in circulation; in 2002, there was 24,000. And Bhadresa says she’s getting calls from cities around Canada and the world looking for information about setting up complementary currency systems.

TAKE ACTION:

  1. Join the growing movement of prosumers in Calgary. Support local businesses that demonstrate their commitment to a greener economy. Check the listings of REAP Members for local suppliers of goods and services that you can feel good about buying.
  2. Purchase a REAP Passport for more than $7000 in coupons for socially and environmentally responsible products and services from local businesses. Coupons range from beauty and fashion products to groceries and building materials.
  3. Everybody has something to offer the community and the first step in becoming a participant in Calgary Dollars is to figure out what you have to offer – from books in your basement or a lawn mower for rent – then go to listings.calgarydollars.ca to sign up. You’ll get 20 Calgary Dollars in the mail to start spending.
  4. When you go into a local store, ask about their commitment to sustainable practices. And ask whether they take Calgary Dollars. Watch for the REAP logo or ask them if they’re a member.
  5. To learn more about local currencies – whether you’re an individual, business or a non profit organization – email Calgary Dollars at info@calgarydollars.ca or call 403.270.8002. Visit the website at calgarydollars.ca.
  6. The next time you buy local, track your actions to see the difference your prosumerism is making.
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