Towards Regulation of the Barter Industry

In: Business and Management

Submitted By ormita
Words 8559
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An Argument for Regulation of the Reciprocal Trade (Barter) Exchange Industry
Daniel Evans, Ormita Commerce Network

It is well known that trust is the corner-stone of the financial services industry.
Keynote speech by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, The Asian Banker Summit 2012 “Trust as a Pillar of the Industry”, Bangkok, 26 April 2012.

Introduction Trust is a critically important ingredient in the recipe for well-functioning markets and a successful and vibrant economy. Unfortunately, due to market scandals, incompetence and fraud, trust in our neighbours is something that is in shorter supply today than any other time in history. As Alan Greenspan once remarked: "[O]ur market system depends critically on trust—trust in the word of our colleagues and trust in the word of those with whom we do business."1 Despite outward appearances, public confidence in the integrity of the reciprocal trade exchange industry is alarmingly low. While numerous factors have contributed to this problem, one of the most potent is the widespread failure of reciprocal exchange networks of all sizes over the past 30 years. These failures include the spectacular collapses of large commercial exchange networks such as Bartercard (in USA, Canada, India, China, Hong Kong, Singapore, Turkey, South Africa, Jordan 2 3 ), BarterTrust/Tradaq (USA, UK, Canada) 4 , BarterNet/Intagio (Canada, Mexico, USA & Europe) and Bigvine (Australia, Canada, USA)5; through to the dramatic downsizing of the once-wildly successful government supported 6 Argentinean “Red Global de Trueque” community currency system 7 , which grew to a peak of nearly 1,000,000 participants and an annual trade volume of $4-600 million US dollars8 before dramatically halving in size almost overnight910.
1 R. William Ide III & Douglas H. Yarn, Public Independent Fact-Finding: A Trust Generating…...

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