Resilient communities across the world are forging alternative economies amid rising living costs
Key topics:
Community savings systems like susu and stokvels support resilience
Bartering networks in Argentina revive cashless exchange systems
Local food initiatives combat hunger and rising living costs
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By Rebone Masemola
We often use the saying, “when life throws you lemons, make lemonade” loosely to speak to the ability of people to pivot and make do in the face of challenging circumstances. But what if life throws you lemons while simultaneously jacking up the price of everyday needs like electricity, water, food, and rent? In bustling cities like Accra, Ghana, and vibrant markets of Buenos Aires, Argentina, communities are facing a harsh reality: a skyrocketing cost of living that’s impacting people’s quality of life.
Thus, in today’s global context, where crisis and uncertainty have become our norm, the need for alternative economies – new and traditional approaches – is becoming increasingly urgent. Communities are forced to demonstrate remarkable resilience in the face of this crisis. I think for the purpose of this conversation, it’s important to look further into this notion of “resilience” so we are on the same page. According to scholars, the concept of resilience speaks to the ability to “bounce back” from adversity and, possibly, even achieve a state that is better than the original one prior to the misfortune. When applied to communities, the label can be an affirmation of their resourcefulness and capacity to mobilise when faced with environmental, social, economic and political stresses. This notion is hailed as proof that, like any other challenging time in human history, ingenuity can blossom even in the face of adversity.
We see, in the case of the communities below, that they have managed to come together to create new systems or tap into old, tested alternative economies that are organised to overcome the exclusionary aspects of the formal market economy and support those short of money and/or basic needs.
Now, let’s unpack these examples of resourcefulness in the face of a high cost of living:
Ghana’s village safety nets: the power of “susu”
Deep within Ghanaian villages lies a timeless tradition called susu, a community-driven savings scheme that goes far beyond a simple piggy bank. Like South Africa’s stokvels, susu members pool their resources, creating a vital safety net for emergencies, unexpected bills, or entrepreneurial ventures. Dr. Ernest Aryeetey (2008) describes susu as “a form of banking” due to its regular collections and disbursements. Deposits accrue little to no interest, but the system fosters trust and reduces risks associated with traditional loans, as explained by Alabi et al. (2007). Loans are typically short-term, further minimizing risk.
The true essence of susu lies in its ability to empower small business owners, as highlighted in a study of the scheme. By contributing daily or weekly deposits, members “protect their daily earnings from competing claims and ensure working capital to restock supplies at the end of the month” (Mirjam van Donk and Gabeba Gaidien: 2014). This system fosters an unshakeable sense of solidarity and promotes a culture of saving. Women, who often take an active role in susu management, are particularly empowered, becoming not just guardians of shared resources, but also financial decisionmakers within their communities.
The susu concept’s impact extends beyond villages. Recognising its cultural significance, the formal banking sector has even begun naming some of its loan programs for entrepreneurs susu. This strategy leverages the positive feelings of trust and community association that susu evokes in people familiar with the traditional system
Bartering back on trend through Argentina’s “clubes de trueque” revival
Bartering back on trend through Argentina’s “clubes de trueque” revival
Across the Atlantic, in Argentina, a different kind of resourcefulness is flourishing. As economic instability squeezes the middle and working classes, bartering networks, known as “trueques”, are experiencing a resurgence. These clubes de trueque, as scholars describe them, were originally designed to be a unique social and economic space (G. M. Gomez, 2010). They aimed to create “a meeting point of social strata and gender groups”, offering “a market space for women” that wasn’t “second class” for the poor (G. M. Gomez, 2010). However, some argue they primarily benefit the “disenfranchised middle class and the unemployed” without fully addressing the needs of the poorest (G. M. Gomez, 2010). Despite these limitations, trueque networks offer a vital alternative currency system. Individuals can exchange goods and services, from fresh-baked bread for expertly mended shoes to language skills for a haircut, all without relying solely on cash. This bartering system helps mitigate the harsh effects of current severe austerity measures, ensuring essential needs are met even when cash is scarce.
Western Cape ingenuity: Ocean View’s “Kos Gangsters” winning against hunger
With the rising cost of food due to inflation in South Africa, communities in the Western Cape are showcasing remarkable resourcefulness in the fight against food insecurity. Nowhere is this more evident than in Ocean View, where a group of women affectionately known as the Kos Gangsters have cultivated a flourishing urban oasis. Statistics paint a grim picture: a recent study revealed that 45% of households in Gugulethu and 36% in Khayelitsha experience food insecurity, significantly higher than in wealthier areas of Cape Town. This lack of access to fresh, nutritious food is a harsh reality for many.
But amidst these challenges, Ocean View Organics stands as a beacon of hope. This sprawling food garden, built by the “kos gangsters” alongside Ocean View Secondary School, provides not only fresh produce for the community but also valuable agricultural skills training. This empowers residents, steering them away from desperate measures and fostering a sense of self-sufficiency. The garden’s success is a testament to the Western Cape’s spirit of community and its unwavering fight against hunger.
These resourceful practices are more than just clever ways to survive. They foster a sense of connection and collaboration within communities. Whether it’s the shared responsibility of susu or bartering networks that bring people together, these practices strengthen social bonds and create a support system that transcends economic hardship. These stories remind us that even when faced with seemingly insurmountable challenges, ingenuity and a sense of community can pave the way for a brighter future. So, the next time life throws you lemons, remember the communities that not only make lemonade, but also build thriving gardens with the leftover rinds.
