Meaning: David Korten, a prominent activist, has advocated for the use of local currencies as a means to strengthen local economies and communities. His quote emphasizes the importance of local currencies in supporting and sustaining local economies, challenging the dominance of global currencies in the markets and shops. Korten's perspective reflects a growing interest in local economic initiatives and the potential benefits of local currencies in fostering economic resilience and community well-being.

Local currencies are forms of money that are intended for use within a specific geographic area, typically a town, city, or region. These currencies are often issued and managed by local organizations, businesses, or community groups and are designed to circulate and be spent within the local economy. The use of local currencies is based on the principles of economic localization, which seeks to prioritize local production, consumption, and investment in order to build more sustainable and resilient economies.

One of the key arguments in favor of local currencies, as articulated by Korten, is their ability to maintain a stronger connection with the local reality of markets, shops, and communities. Unlike global currencies, which can be subject to speculative trading and fluctuations in value driven by international financial markets, local currencies are grounded in the tangible economic activities and relationships within a specific locality. This connection to the local economy can help reduce the vulnerability of communities to external economic shocks and disruptions.

Furthermore, the use of local currencies can promote economic democracy and empowerment at the local level. By circulating within the community, local currencies can support small businesses, local producers, and independent entrepreneurs, enabling them to thrive and compete with larger, often multinational, corporations. This can contribute to the creation of vibrant local economies that are more resilient to the pressures of globalization and less dependent on external economic forces.

In addition to their economic benefits, local currencies can also serve as a tool for building social capital and fostering community cohesion. The use of a local currency can encourage people to shop locally, support neighborhood businesses, and engage in economic exchanges that strengthen social ties and build trust within the community. This, in turn, can contribute to the overall well-being and resilience of the community, creating a more sustainable and inclusive local economy.

While Korten advocates for the bulk of the local economy to be covered by local currencies, it is important to note that he does not propose the complete exclusion of global currencies. Instead, he suggests that local currencies should play a significant role in the economic life of a community, complementing and supporting the use of global currencies where necessary. This approach allows for a balanced and diversified monetary system that can harness the benefits of both local and global currencies while prioritizing the needs and interests of the local community.

In conclusion, David Korten's quote underscores the potential of local currencies to enhance the resilience, vibrancy, and sustainability of local economies and communities. By prioritizing the use of local currencies, communities can strengthen their economic autonomy, support local businesses, and foster social connections that contribute to a more inclusive and resilient local economy. As interest in economic localization and community-based initiatives continues to grow, the role of local currencies in shaping the future of local economies is likely to be an important area of exploration and innovation.