Local Exchange Trading Systems and Impact Assessment – Application Guidance Notes

Local Exchange Trading Systems (LETS) are schemes that aim to allow alternative means of access to local markets and economic systems. There is no one single LETS scheme. LETS are a very flexible tool and the features of the scheme should be designed to meet the particular circumstances in which the LETS seeks to provide support. As with all schemes that have the same broad objective, that is, to create a sustainable local economy not dependent on either the national currency or the wider national markets to survive, there are protagonists arguing that adoption of such a scheme will result in a wide range of benefits that only such a scheme is able to generate. Protagonists are usually unwilling to take a balanced view. The risk from this is that LETS can be introduced in the most inappropriate circumstances and therefore not only fail to achieve the sought for benefits and perhaps even cause actual damage to fragile communities, but also lead to damage to the whole LETS idea leading ultimately to its lack of use or even abandonment as a useful tool.