Session 1-4
	The Role of Local Currency in Promoting Natural Energy and Activating Local Power 　Mr. Yoshitaka Endo, Policy Promotion Unit, Yasu Town, Shiga Prefecture

　Ever since Yasu Town, Shiga Prefecture, adopted “Smiling Yasu, a town created by its own people” in 1995 as its slogan, the focus has been on energy. The conceptual foundation is ‘life’, and the target vision is ‘to create a society where the value of a life solidly based on human rights and the environment can be appreciated.’ For the environmental aspect of this social vision, we aim at establishing a ‘society with a small and decentralized energy supply system’.

　 Our keywords are ‘local residents’ ‘ownership’ and ‘economy.’ One of the central concepts is that energy should belong to citizens. Energy normally flows towards the political center, and therefore we hope to channel it towards the periphery.

　In 1999, we started to develop the ‘New Local Energy Vision’. Among the most prominent issues here was the establishment of a framework for increasing natural energy use. With a proviso that no one would suffer loss in this new system, a set of policies was implemented in conjunction with the administration, integrating the idea that the environment and the economy can go together. These policies are: i) activating the local economy; ii) not relying purely on citizens’ goodwill; and iii) not depending on corporate donations and public subsidies.


‘Model Project for Power Generation through Local Cooperation’: an Experiment

　 Three years ago, we started circulating, on an experimental basis, our own local currency, the ‘smile’, to use this as a tool for promoting the utilization of natural energy. The administration offices, 15 shops and 150 local residents were involved in this three-month experiment which began in January 2002. By the end of March, it had generated donation totaling 1.5 million yen, and as a result, a solar power generator was installed on the roof of the bicycle parking of the Town Culture Hall.

　 This program has an independent structure, and also allows everyone to gain something, which meets exactly the condition we set ourselves. Let’s look at this ‘triple-win’ program more closely. Users (= contributors) can exchange 10,000 yen for 11,000 smiles, which means that they can make a small profit. By accepting ‘smiles’, shops can expect more customers because of the discount they in effect offer. The Town can install or construct environmental facilities like a solar generator without paying anything.

　However, during this experimental operation, we found that some parts of the system needed improvement. These findings have been reflected in the new model (starting this April). The smallest donation unit (=price of ‘smile’) is now 1,000 yen rather than 10,000 yen, and exchange rate is 1,000 yen for 1,100 smiles, so that people can use up their ‘smiles’ within their valid period of 6 months more easily. To attract more business, it has been decided that a shop which accepted more than a certain amount of ‘smiles’, could change them back into yen. For instance, a shop can exchange 1,000 smiles for 1,000 yen.


　Flexibility, Diversity and Impulsion

　In this program, Yasu Town tries to circulate and stabilize the yen that are invested in the local environment, through making use of local currency in order to establish an environmental infrastructure. Moreover, the town hopes to combine the investment it secures with activating the local economy. If this is successful, more activated the local economy becomes, the greater the benefit to both the environment and the economy. Yasu also wishes to create ‘green economy’ ? which can only be possible in the local community − by integrating and cooperating with other initiatives.

　 For implementing effective countermeasures against global warming, it is crucial that local communities can create environmental societies and cultures which are small-scale and decentralized, and which takes into account the characteristics of the community in question. To realize this, the implementation process should be open to all sectors of society such as citizens, business and administration. And the economic aspect should also be taken into consideration: there will be no success without it. Most important is that both residents and the administration should show flexibility in accepting a diversity of local initiatives. It is vital to have the spirit to make the community itself an experimental ground, or a stage for creativity, while at the same time, standing solid without getting discouraged by failures.

　We hope to develop our system of ‘smile’ into an integral part of the overall structure of our local society. The foundation for this should be ‘Development driven from within the region’, and ‘Effective integration of the system into the daily lives of local citizens.’