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partnership. This trend has spread to similar trueque schemes in Bolivia, Paraguay,
Colombia, Ecuador, El Salvador, Peru, Uruguay, Chile and even Spain.
However, despite this initial huge success, things started to go wrong from July 2002. As
Heloisa Primavera, sociologist and currency activist, told a Steyerberg money conference
a year later, the scheme had too many activists and too few loyal managers. When the
Argentinian Ministry of Economics agreed to help develop the system all over the
country, it approached the task from the mentality of scarcity, so that mistakes were
made and inflation set in. There were two major groupings of clubs in operation, but
only one group was recognised as legitimate to train people to join the system. So a
‘franchising’ operation started, with the high risk of concentration of power. 50
According to Lisa Garringues, ‘Most Argentines say they [the barter clubs] ceased
to function because of corruption, counterfeiting of barter “credits” and because many
people simply ran out of items to trade.’ 51 Jorge Marchini, another commentator, is
quoted as saying, ‘The counterfeiting undermined the system’s credibility, but the lack of
basic products, along with inflation – which was almost nine times the level of that in the
formal economy – and the inability to obtain vouchers were the main reasons for the
system’s collapse.’ 52 Whatever the underlying causes, the failure of the clubs had serious
consequences, since so many relied on the créditos for their everyday needs.
The lessons learned from the Argentinian experiment are still being distilled.
Nevertheless, there are some very strong preliminary assessments. First, closed systems
are necessary, where people either stay in the group or surrender their créditos every
time they meet in the weekly markets. Second, good governance and transparency are
essential, as is skilled mediation. Third, when groups become too large the notes are easy
prey for counterfeiters. And, finally, centralised administration is dangerous when it has
no social control.
Fundamental to any community currency enterprise is the need to establish the values
that underpin its objectives, right from the outset, and thorough preparation prior to
launching is also necessary.
A law allowing Argentinian provinces to create their own currencies was passed in
December 2002.
By June 2003, insurance premiums and new farm pick­ups were being bought with grain.
Soy was the standard form of currency used, although sunflower, wheat and corn were
also equally acceptable. About 45 per cent of businesses had no relationship with a bank
at this time, 53 and insurance companies were building silos for grain storage instead. 54
Tlaloc