Abstract
The article aims to present how the COVID-19 pandemic lockdown affects the functioning and circulation of complementary currencies in entities that have joined the complementary currency system with a special focus on the complementary currency Zielony (PLZ) in Poland. The main research problem of the paper is formulated in the form of a question concerning the impact of the lockdown during the COVID-19 pandemic on the use of the Zielony in Poland in commercial transactions by entities belonging to the local currency system. In order to achieve the objective and solve the main problem, the article uses such research methods as: the method of critical analysis of literature, historical method, statistical method, comparative method, observational method, free expert interview, as well as analysis and synthesis, deduction and induction and abstraction. We conducted a critical analysis of the literature and analysis of statistical data of the complementary currency Zielony in Poland in the period from March 2015 to June 2021, and the results of the expert interview showed that this currency is not a tool to support the functioning of local economy entities during non-financial crises, such as COVID-19 pandemic. This is influenced by, among other things, full or partial lockdown and other restrictions on the functioning of commercial entities during a pandemic. The consequences of such solutions include the weakening of economic activity and a decrease in the value of turnover of entities operating in various sectors of the local economy, especially entities of a service nature, which constitute about 80% of the structure of the Zielony complementary currency system in Poland. The main conclusion resulting from the conducted research is as follows: the complementary currency Zielony in Poland can influence the creation of local entrepreneurship and sustainable development and support the activities of the sector of small- and medium-sized enterprises, but these benefits are possible to achieve primarily in conditions of stable and undisturbed functioning of the economy. The realization of the payment function of the complementary currency, the Zielony, and its use in payments of entities belonging to those industries covered by lockdown and other administrative restrictions is impossible (or insignificant) at this time due to the absence (or hindered) of its circulation in the economy. The research results and conclusions presented in the article meet the assumptions of the application objective and can provide the entities of the micro-, small- and medium-sized enterprise sector with knowledge about the dependencies resulting from the use of the complementary currency in the lockdown period by the entities that implement the assumptions of the system of complementary currencies.
Highlights
Complementary currencies are not a new phenomenon cf. [1]
The thesis adopted in the study is as follows: “The complementary currency Zielony in Poland is not a tool that would support the functioning of entities during a crisis of a non-financial nature, on which lockdown and other restrictions have been imposed, the consequence of which is, among others, the weakening of economic activity in various sectors of the local economy, in particular with regard to entities of a service nature.”
Economic practice and the presented data indicate that complementary currencies contribute to the building of local capital, foster the creation of conditions for sustainable development, as well as serve as a tool to support the activities of entities of the local economy that operate in it
Summary
Complementary currencies (community alternative; in Poland called “local”) are not a new phenomenon cf. [1]. They have accompanied communities for probably thousands of years, yet a systematic increase in interest in complementary currencies around the world, mainly in Europe, the Americas, Australia and Oceania and Japan, has been observed since the 1980s. 64), on the one hand, taking the form of innovation, covering a wide spectrum of different models of complementary currencies, and on the other hand, taking the form of experiment within the monetary systems of different countries. They are referred to as quasi-money because they perform the function of money in certain communities and are created by groups of citizens, companies, associations and private capital firms (i.e., local private initiatives in various formats) and are complementary to national currencies in circulation
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