http://economictimes.indiatimes.com...n-to-barter-networks/articleshow/10214955.cms
3 Oct, 2011, 09.02AM IST, New York Times
Eurozone crisis: Battered by economic crisis, Greeks turn to barter networks
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VOLOS, Greece: The first time he bought eggs, milk and jam at an outdoor market using not euros but an informal barter currency, Theodoros Mavridis, an unemployed electrician, was thrilled.
"I felt liberated, I felt free for the first time," Mavridis said in a recent interview at a cafe in this port city in central Greece. "I instinctively reached into my pocket, but there was no need to."
Mavridis is a co-founder of a growing network here in Volos that uses a so-called Local Alternative Unit, or TEM in Greek, to exchange goods and services - language classes, baby-sitting, computer support, home-cooked meals - and to receive discounts at some local businesses.
Part alternative currency, part barter system, part open-air market, the Volos network has grown exponentially in the past year, from 50 to 400 members. It is one of several such groups cropping up around the country, as Greeks squeezed by large wage cuts, tax increases and growing fears about whether they will continue to use the euro have looked for creative ways to cope with a radically changing economic landscape.
"Ever since the crisis there's been a boom in such networks all over Greece," said George Stathakis, a professor of political economy and vice chancellor of the University of Crete. In spite of the large public sector in Greece, which employs one in five workers, the country's social services often are not up to the task of helping people in need, he added.
"There are so many huge gaps that have to be filled by new kinds of networks," he said.
Even the government is taking notice. Last week, Parliament passed a law sponsored by the Labor Ministry to encourage the creation of "alternative forms of entrepreneurship and local development," including networks based on an exchange of goods and services. The law for the first time fills in a regulatory gray area, giving such groups nonprofit status.
Here in Volos, the group's founders are adamant that they work in parallel to the regular economy, inspired more by a need for solidarity in rough times than a political push for Greece to leave the eurozone and return to the drachma.
"We're not revolutionaries or tax evaders," said Maria Houpis, a retired teacher at a technical high school and one of the group's six co-founders. "We accept things as they are."
Still, she added, if Greece does take a turn for the worse and eventually does stop using the euro, networks like hers are prepared to step into the breach. "In an imaginary scenario - and I stress imaginary - we would be ready for it."
The group's concept is simple. People sign up online and get access to a database that is kind of like a members-only Craigslist. One unit of TEM is equal in value to one euro, and it can be used to exchange good and services. Members start their accounts with zero, and they accrue credit by offering goods and services. They can borrow up to 300 TEMs, but they are expected to repay the loan within a fixed period of time.
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