Category Archives: Community

Cowley time bank has launched

I launched Cowley time bank last week. The first members expressed interest at an event hosted by ArkT Centre to launch a new residents association. Cowley is a ward in Oxford of just over 5,600 people. It is an ethnically diverse community with lots of families.

Oxfordshire Time Banks (Cowley) is now registered with the national network Timebanking UK. It’s initial members are from one neighbourhood in Cowley ward. I am aiming to run neighbourhood clusters within the Cowley time bank to maximise community interaction among near neighbours.  The Time Online software makes it easy to indicate what area people are closest to.

Both individuals and organisations are joining the time bank.  The sorts of things that members are anticipating offering or requesting are: doing errands, giving lifts, visiting, help with form filling, typing/word processing, letter writing, budgeting, computer skills, design work, book keeping, shopping, housework, simple decorating, washing/ ironing, plant watering, teach reading, dog walking, moving/lifting, leafleting, gardening, home repairs, cycle repairs, car washing, sewing, knitting, woodwork, metalwork, odd Jobs, general help, story telling/reading aloud. Not all at once! Organisations who are joining will typically use time credits to encourage volunteers to help them and gain them by offering their facilities for events.

I am interviewing each new member, keeping bureaucracy to a minimum. It takes half an hour to an hour to explain how time banking works, go through a handbook of practical guidelines and principles with them, note the sorts of things that they would like to offer and things they would like help with, and fill out a simple application form. I have adapted a membership handbook based on Gloucester Fair Share’s one. Handbook&ApplicationForm

I ask for references from two people who know the new member well. All this is entered on the Time Online software. I am emphasising that people only do what they really want to do. “You give what you want and get back whatever you need”. It is primarily about interacting with people, not getting lots of work done.

It does feel great to be starting this in a grass roots way within my own community. I have a couple of very supportive local advisors and help from Gloucester Fair Shares including meeting with Gloucester time brokers to compare approaches and learn from their experience. I’ll also go to some of the free training offered by the national network in coming weeks.  I can manage one time bank because I am really keen to see this happen and am willing to put the time in. It may be that this is something that some communities can sustain without external funding. Individuals in quite a few Oxfordshire communities have told me that they would like a time bank in their area. That will require either funding to support time brokers and people to initiate time banking, or enthusiastic and capable people within each community to take it forward.

It’s about time! Initial meeting

A small group held an initial meeting in Oxford on 1 March 2012 to discuss how to get timebanking started in Oxfordshire. This led to more questions and I’ve followed up with practitioners from other timebanks. This blog entry addresses 2 of the questions:

  1. Could valuing community activity with time credits devalue the goodwill that volunteers feel?
  2. How do you ensure safety of vulnerable people?
  3. Is it any different from LETS?

Could valuing community activity with time credits devalue the goodwill that volunteers feel?

  • Many people join timebanking out of a volunteering spirit and are not doing it to get something in return. People who do not want anything in return for their volunteering donate their credits to the timebank and this often happens. These credits can then be given out to particular groups such as people nearing the end of life or new members.
  • Reciprocity is encouraged in timebanking but not enforced in the timebanks that I have spoken to. Some timebanks find that some people always request things without asking for help in return.
  • Timebanks aim to include people who would not normally be involved with community volunteering because the benefits of participation are of particular relevance to socially excluded people (Cahn, 2000). Timebanking leads to expansion of community activityby encouraging the involvement of those on the margins of the conventional economy – the jobless, those in low-income households, the retired etc. It reaches people and activities that normal volunteering does not reach such as people who are isolated or with high needs. In a survey carried out by a London timebank, 40% answered “No” to “have you done volunteering before?”
  • Timebanking is very flexible which is important as some people living on the margins can have up and down days and may not always turn up. The services exchanged typically include companionship, giving lifts, telephone support, sharing skills, small DIY jobs, gardening, dog-walking etc. These are typically tasks that are not relevant to formal volunteering where organisations need consistent commitment of a set amount of time from volunteers.

How do you ensure safety of vulnerable people? Are CRB checks required?

  • Timebanks can and do carry out CRB checks where necessary, for example for work with vulnerable children and adults. But they emphasise that they try to avoid situations where CRB checks are needed as they are a major barrier, breaking down trust, taking up to 8 weeks which discourages new members. CRB checks are not needed for many activities.
  • Timebanks get lots of questions about the risks but so far no one has had a serious problem of stealing or assault. The only problem I have heard of was theft of a mobile phone which was soon recovered by people in the community. The types of people who are interested in timebanking “are not dodgy”.
  • Activities such as babysitting may not be offered in timebanking. Instead, one timebank offered activities for parents and children to come to. Parents may meet people who they grow to trust through timebanking, but they are unlikely to accept child minding services from a stranger, no matter whether they are CRB checked.
  • Timebanks typically take up references in the community (eg two people of standing such as their GP). Often new members come recommended by those already in the network.
  • Timebanks focus on building up trust. In very local schemes everyone lives locally and knows one other.
  • The broker role is very important. Successful schemes have a broker who matches people well. They need to get to know members, have an initial chat with each new member for about one hour (can involve existing members in this), and find out what they are interested in offering and receiving. The broker needs to be sensitive to the needs of each person.
  • The broker needs to use good judgement in matching people and know which people are vulnerable and need a different approach. One broker always goes with a new member to their first exchange and follows up afterwards to find out how it went. Another always ensures that any timebank service is provided at a time that a support worker is with a vulnerable recipient.

How is it different from LETS?

  • Timebanking is essentially similar to alternative currency schemes such as LETS, and began from the same movement in the 1990s. In Oxford a LETS began in 1992 and grew to almost 700 members which was the largest in the country at that time.
  • However, time credits are not particularly useful as a currency as they are not fully exchangeable. They are a tool for encouraging neighbourly interactions and are unlikely to be used for things that people can earn money for.
  • In timebanking there is no ambiguity on value. 1 hour given = 1 hour received. Some LETS systems equated their unit of currency to time but not all. However, in many timebanking schemes members can also exchange time credits for goods and services from organisations. This requires a decision about how many hours something is worth. The goods and services offered are often spare capacity and/or things that meet the organisations’ objectives. Examples of goods and services offered by organisations within timebank networks are discounted theatre tickets (spare seats which haven’t been sold), or use of meeting rooms or of a leisure centre at times they are not much used.
  • All of the timebank practitioners I have spoken to emphasised that the broker plays a very active role. There is a paid person (or sometimes a volunteer) at the centre of each timebank who interviews and gets to know members, and matches people requesting time with suitable people offering time. The timebank brokers are involved in every exchange. The administrator role was the focal point of LETS schemes as well but exchanges were facilitated at one remove by regular mailings of offers and requests, newsletters and trading days.

References:

Fair Shares Gloucester

Timebanking UK

Rushey Green TImebanking

Newsome Ward Timebanking

The benefits of timebanking

The benefits of timebanking are well documented in  literature based on the experience of existing schemes.

In timebanking, work is redefined to be “whatever it takes to raise healthy children, make neighbourhoods safe, care for the frail, redress injustice and make democracy work” (ref E. Cahn). This is mostly work that takes place in the informal (unpaid) economy and it is greatly under-rated and undervalued in our society. Timebanking involves reciprocal give and take and replaces one way acts of largess or service delivery with two way transactions. “You need me” becomes “we need each other”.

Timebanking unlocks hidden assets which are often not recognised in the formal economy such as people’s skills and resources or under-used facilities). We can use these abundant assets to improve social connections, confidence, skills, health and well-being in our neighbourhoods.

This helps some of the most marginalised people to feel a sense of self-worth and belonging. It helps to bridge previously unbridgeable divides such as race, class, gender, national origin, because it defines people by what they are prepared to do for others. It builds social networks and strengthens communities, empowering individuals and groups to take control of their own lives and neighbourhoods.

Timebanking also enables us to document and mobilise the vast asset base that exists among people who are often written off, validates their contribution and converts time into purchasing power.

Timebanking attracts people who would not normally get involved in traditional volunteering eg low income. It creates a greatly increased pool of resources and sphere of possibility without having to raise additional finance.

Sounds good – it seems well worth exploring further.

Ref: “No More Throw-away People: The Co-production Imperative” (Edgar S. Cahn 2000)

What is timebanking?

Timebanking is a system of reciprocal exchange based on time. Everyone’s time is equal: 1 hour = 1 hour. Neighbours provide services for neighbours and in turn request services from others in the network. Participants decide what they can offer and what they need. A coordinator matches requests/offers.

Timebank UK video clips of timebanks show how it works and why people value it.

Other useful references are

  • “No More Throw-away People: The Co-production Imperative” (Edgar S. Cahn 2000)
  • “Your Money or Your Life: Time for Both” (Martin Simon) and
  • “Right Here, Right Now: Taking co-production into the mainstream” (David Boyle, NEF 2010) http://neweconomics.org/publications/right-here-right-now

Timebanking – can we do this in Oxfordshire?

As a social enterprise committed to local community building, I’m excited about timebanking because it offers a simple way of massively boosting neighbourly interactions. It has the potential to strengthen the social fabric, build neighbourhood resilience and empower some or our most marginalised and vulnerable people in local communities.

There are more than 200 timebanks in the UK and they have been going for more than 10 years. The Timebank UK map shows some of them.

Timebanks near Oxfordshire

Timebanks near Oxfordshire

I’d like to see timebanking happening in neighbourhoods across Oxfordshire (the area within the green circle with no flags).

Click on the “timebank” tag on this blogsite for ideas, links to references and resources, and checking on the progress of timebanking in Oxfordshire.

Its Our Money!

The way our money is created contributes to several major issues that affect local communities: rising house prices; increasing inequality; and environmental degradation. Positive Money held a workshop “Its Our Money” on 29 Oct 2011 that explained the problems and proposed solutions. Here are some highlights.

In a nutshell (Ben Dyson, Positive Money):

Banks have monopoly power to create money out of nothing when they issue loans by writing lines in a ledger. As soon as borrowers spend the money that they have borrowed that money exists. Banks create up to £226 million of new money each year in this way.

Many people believe that governments print money but Maastricht Treaty rules actually prevent EU governments from creating money. “Many people would be surprised to learn that even among bankers, economists, and policymakers, there is no common understanding of how new money is created.”

Banks must balance out the money taken out with money coming in at the end of each day, but they do not need any capital reserve apart from this. “Reserve ratios are old textbook model, has not applied in UK for twenty years.”

Bank staff have to meet sales targets for lending. These are the people deciding how much money to create. “The supply of money is determined by the demand of borrowers to take out loans and on how confident the banks are”. (Charles Goodheart).

Political choices have caused the crisis. Before 1975 housing booms and busts did not happen. Then tax subsidies kicked in. In the early 70s banking was deregulated and mortgage funding flooded into the market. In 1971 The Competition and Credit Control Act freed bank lending, removing cash reserve requirements, liquidity requirements, and all controls on credit. This was followed by the Big Bang deregulation in 1986, demutualisation of building societies in the 80s and 90s, deregulation of housing finance, and the Maastricht Treaty 1992 removed power of money creation from nation states, removed all measurement and monitoring of money and credit allocation.

It’s a trap – if we all pay down our debt and don’t take out more loans, this will slow the system causing recession and unemployment.

Debt based money causes rising house prices (Toby Lloyd, Shelter):

The incentives for bank lending staff are to sell. They prefer to lend against collateral so tend to lend to house buyers. Because of this 92% of all UK bank lending is to house buyers for unproductive assets and only 8% to businesses for productive activity.

House prices reflect what people can be persuaded to borrow. The average house price is now 6 times average earnings. A whole generation is priced out of the market. Rents are increasing above affordable threshold of 35% of average earnings. Two thirds of households are owner occupiers but many are under enormous debt burdens.

Debt based money increases inequality:

There is never enough money in the system to pay back all the debt plus interest. The system creates the boom bust cycle. A stable money supply would stop this.

There is far more poverty in the system than you would have if banks did not create the money. Some people inevitably default.

There are redistributions (interest payments) from the poor to wealthy owners of capital, from the rest of the UK to London where the financial sector and wealthy owners of capital are clustered, and from the productive economy to the financial sector. Everyone goes into debt and has to repay. The misallocation of capital into housing and away from productive assets increases structural unemployment and blocks economic development.

Debt based money worsens environmental degradation (Beth Stratford, Friends of the Earth):

The debt based nature of money makes us structurally dependent on growth. If the economy is not moving forward at a rate of around 2%, it becomes unstable, like a bike. If the money supply were fixed there would be no way to pay the interest on debt. This leads to perpetual exponential growth being a requirement of the banking system. Growth does not create greater wellbeing and contributes to environmental degradation.

Solutions? (Michael Meacher, MP)

  • Separate retail from investment arms. Basel3 capital ratios have increased to 10%, but these are not adequate to control the banks and won’t come in for years.
  • Control of the money supply must come back into public domain.
  • Credit controls (these are used by successful countries),
  • Control financial instruments and discourage offshore hedge funds
  • Give priority to productive sectors in allocating finance
  • Increase the powers of public institutions to control credit in order to avoid busts
  • Reconsider Maastricht: governments should create money (avoids interest payments, restores democratic accountability for money)
  • The public sector must create jobs, improve infrastructure
  • Set up special banks for research and development, green technology, mortgages

Useful refs:

  • Where does money come from? New Economics Foundation: http://www.neweconomics.org/publications/where-does-money-come-from
  • Creating New Money by James Robertson and Joseph Huber (free download) http://www.jamesrobertson.com/
  • The Grip of Death: A Study of Modern Money, Debt Slavery and Destructive Economics Michael Rowbotham
  • Centre for the Advancement of the Steady State Economy. http://steadystate.org/