based on a philosophy of mutual support and trust. Discouraged with government attempts of engineering solutions, they are asking the question: How can concerned citizens help create conditions that foster more self-reliant local economies in a manner that is socially, environmentally, and culturally responsible? In her book Cities and the Wealth of Nations, Jane Jacobs suggests that local currencies are an elegant tool for rebuilding regional economies in a sustainable way. She believed that currencies circulating only in a defined region encourage import-replacing businesses, which in turn create new jobs, foster technological innovation, retain manufacturing skills, and further regional capital. Individuals engaged in their local economy may rely on more trips downtown but on fewer trips across oceans and countries. BerkShares is the leading North American example of local currency issue. Developed by the E. F. Schumacher Society for the southern Berkshire region of Massachusetts, the notes were first issued in September of 2006 in cooperation with BerkShares, Inc., a non-profit membership organization. The program was designed to create consumer awareness about the consequences of spending practices, to support local businesses, to facilitate the development of new productive capabilities in the local economy, and to serve as a model for other regions. Most importantly, for producers, distributors, and consumers alike, BerkShares provide the hope and possibility of regaining economic sovereignty. As large banks fail, stocks collapse, and investment value continues to disappear in global markets raising fear and panic, Berkshire residents have the security of their own local currency system, as solid and sound as the neighborhood businesses accepting them, and the community banks handling them.

Describe the current stage of your initiative and your implementation plan over the next three years

BerkShares have transformed the way the southern Berkshire community thinks about money. With a population of only 19,000, the twelve participating banks have already issued over two million BerkShares. 350 businesses formally accept BerkShares and an equal number do so informally. Citizens exchange 90 federal dollars for 100 BerkShares at banks, then trade at full value providing a 10 % incentive to shop locally.

Beautifully designed and printed, the currency honors local historic figures and features landscapes by local painters, reflecting the culture and values of its place. Residents are proud to handle and display the notes.

The currency has helped re-establish face-to-face relationships that were lost in the fast paced global economy. BerkShares are a slow money. It takes more time to process a transaction, time for graciousness, time for building connection with community of place.

Growth in BerkShares use is steady. Still, the program is only at a midpoint in building a truly independent local currency that will be an engine for local sustainable development. Future plans include expanding to all of Berkshire County, identifying new import-replacement business ventures, making loans in BerkShares, fostering greater philanthropy in BerkShares, and eventually creating a local standard for the currency independent of fluctuations in the federal dollar.

Buckminster Fuller envisioned a kilowatt hour currency backed by renewable energy sources. In this way economic values would be linked closely to ecological values. For similar reasons BerkShares staff is exploring the creation of a basket of local commodities to value BerkShares exchange.

Prize monies will be used to staff the expansion and development of the program, creating a more robust model for replication in other regions.

Describe how your strategy meets the entry criteria ("What We're Looking For")

BerkShares local currency has set in motion a revolution in which locally owned businesses thrive and economic self-reliance can be nurtured as an alternate model to the nameless, faceless global economy.

The intention is to evolve what initially is a buy local program into a self-sufficient sustainable development program, shaped by citizen initiative. Its success will be determined by the Berkshire community itself, but the elements of the successful evolution of the program are built into its original design--both simple and sophisticated at the same time.

BerkShares has educated individuals to make economic choices based on more than just price. Taken into consideration are the ecology, community, sustainability, and economy of the region--infusing in the community the seeds for local economic transformation.

BerkShares stand as an innovative example for addressing the issues of globalization and loss of local economic control. We welcome your support.

Describe the qualifications and experience of you and/or your team and your ability to execute your implementation plan

The E. F. Schumacher Society has been a pioneer in developing the theory and practice of local currency issue since its beginnings in 1980. Susan Witt is executive director of the Society and founder of BerkShares, a model local currency program.

Recognizing the powerful tool that local currencies offer regions and the integrity of the BerkShares model, The New York Times, The London Times, ABC World News, CBS, BBC, Reuters, French TV1, NTV (of Moscow), Finnish TV, and Yahoo News have all carried prominent stories on BerkShares. Community groups throughout the US and Britain have sought consultation from board and staff. The BerkShares website averages 6,000 hits per day attesting to the richness of its content.

Though beginning as a program of the Schumacher Society, the directors of BerkShares, Inc. are assuming ever increasing responsibilities for administration. Once the currency has moved from the research and design stage to program maintenance, BerkShares, Inc., representing the businesses, banking, and citizen communities, will assume full accountability and finance operations through fees to businesses.

The E. F. Schumacher Society will continue to elaborate on the place of local currencies in shaping vital, self-reliant economies.