Grassroots Change: Imagining Alternative Economies

Challenges of Mobilizing Counter-Imaginaries

Grassroots organizations, deeply rooted in local communities, strive to challenge mainstream systems and envision alternatives. Yet, they face unique challenges in mobilizing these "counter-imaginaries" to effect broad social change.

Our research explores the case of Grassroots Economics in Kenya, examining how counter-imaginaries can both empower and hinder grassroots initiatives.

Origins of a Complementary Currency

In 2013, Grassroots Economics faced backlash from the Kenyan central bank for implementing a complementary currency system. This led to widespread support for the initiative.

Complementary currencies aim to complement official currencies, fostering local trade and meeting unmet community needs. Grassroots Economics' success in promoting this alternative economic vision propelled them towards their goal of local empowerment.

Scaling Up Digitally

In 2018, Grassroots Economics sought to scale up its complementary currency by transitioning to a digital token system using blockchain technology.

Embracing blockchain's disruptive potential, Grassroots Economics believed it could overcome limitations of traditional currency systems. They attracted a diverse group of technology partners, including an international NGO and a dynamic open-source community.

Unforeseen Consequences

As the digital currency system expanded, a disconnect emerged between Grassroots Economics' vision and some technology partners' profit-driven motives.

To incentivize spending within local economies, the organization introduced mechanisms that discouraged cash-outs. However, these measures led to unintended consequences:

• Traders refused digital currency payments due to concerns about devaluation.
• Speculative behaviors compromised the system.

Tensions arose between Grassroots Economics and local communities, deepening the rift within the coalition.

Lessons Learned

The Grassroots Economics case study highlights the challenges of using imaginaries to drive social change.

• External Collaboration Risks: External actors may not always align with grassroots organizations' visions or local community needs.
• Shared Imaginaries Matter: Partnerships require stakeholders to share common imaginaries and goals to avoid unintended consequences.
• Time Scale Mismatch: Misalignments between stakeholder time scales can disrupt shared commitments and undermine long-term goals.

Our findings urge grassroots organizations to proceed cautiously when engaging with external partners, carefully evaluating whether their imaginaries truly align.

By promoting desirable shared outcomes and fostering a shared commitment, grassroots organizations can harness the transformative power of counter-imaginaries while minimizing potential pitfalls.