Improved social cohesion

Historically trade and then the economy functioned within a social structure. Presently it is the other way around. The economy, and who has ended up with the money, now dominates our existing social structures. The dominance of an economy that is showing itself to be flawed, with large imbalances between different regions of the world, and growing social injustices, can not be expected to result in a stable society.

Poor countries often have a credit based economy with large outstanding loans and an equally large disadvantaged population. Credit is more easily obtained for goods, like natural resources, rather than services or labor. Consequently poor societies are more goods/material dominated than otherwise would be the case. The money that does enter the economy from the sale of natural resources quickly flees through the sale of imported goods like electric products. This takes away the very money, that if circulated within the local economy, would help organize and encourage a more sustainable local economy by providing the purchasing power which is the life blood of entrepreneurs and new business.

In this way, through the under-use of capacities, the present monetary system jeopardizes the natural development of cooperation and social cohesion that a more diversified economy would offer.

Social TRade focuses on changing conditions in such a way that the community diversifies its economy and unemployment is reduced. The clearest examples are the social currencies, such as Time-banks, that encourage interaction withhin the local community.