Whaingaroa Alternative Economy news
Whaingaroa Alternative Economy (WAE) members of the first savings pool movement Raglan will be proudly celebrating 10 years of group lending this September.
Member Phil McCabe helped start the movement locally with an article into the Chronicle about the millions of dollars in interest leaching out of Raglan to overseas banks. A community centred and socially interactive method of exchange was sought. Heads got together, discussion ensued and The Living Economies Educational Trust (www.le.org.nz) offered guidance and help in the search for alternatives to corporate banking. Subsequently a savings pool based on the moral precept of reciprocity or utu was formed in which members saved to and borrowed, interest free from the pool. The first utilisation of funds were for smaller amounts but as the “pool” funds grew so did the availability of borrowing for larger needs.
News of the success of the first savings pool spread amongst family and friends and sparked the establishment of a second savings pool. By 2014 they too were effectively lending within their group. The groups are proud of successful lending among members for items and projects as varied as paying off credit card debt to house mortgages and helping in the establishment in Raglan of small enterprises leading to self-employment.
More and more people aware that their interests are poorly served by lending institutions are returning to traditional money pooling practices in which making your money available interest free to others allows you to access interest free money in return.
Word of mouth has spread and interest is growing to the point that the formation of a 3rd group in Raglan is now highly probable. If you want to find how to form a savings pool with a group of friends contact Suz at raglansuz@hotmail.com Interestingly several members have used the pool to enable the purchase of their fully electric cars and they are so impressed with their “Green Cars” that they are keen to promote them to support Raglan moving towards being a Carbon Neutral Town. There is talk of holding a “look and try” an EV day in the near future.
This is another example of how circles of support can create strength and form community wealth and resilience.