The angry people crowding the streets of Buenos Aires, Argentina last January were armed with casseroles and wooden spoons and making a hell of a ruckus. Unemployment was at historic highs, crime had skyrocketed, and the political system was on the verge of collapse. What was responsible for the sudden onslaught of bad fortune in this historically wealthy country? The long answer: a complex intermingling of social, political and economic forces. The short answer is money.

Money has long had globe-trotting tendencies, and the fortunes of countries have often been subject to rapid change. Bernard Lietaer, author of The Future of Money: Beyond Greed and Scarcity (Century, 10.99 [pounds sterling]), writes, "When a government does something not to the liking of the market, nobody sits down and says, `You shouldn't do this.' A monetary crisis simply manifests in that currency."

And yet the picture is not entirely grim. Global capital investment has brought much positive change, including economic development in India and China. Is there a way to minimize the instability the system can engender without jettisoning the gains?

Think Globally, Act Locally

One response to the downside of our money-based economy is the recent growth of alternative currency and barter trading systems. These programs stimulate local economic activity, easing the pain of recessions and currency crises. They tend to encourage a more trusting, cooperative community, since everyone is linked in local trade. They can also engender accountability, since all business is out in the open.

Thomas Greco, author of Money: Understanding and Creating Alternatives to Legal Tender (Chelsea Green, $19.95), believes these systems improve the health of communities. "Locally owned businesses are more likely to use local suppliers, reducing the environmental costs of transport and stimulating local production. They are more likely to employ local people, and they contribute to the culture and uniqueness of a community."

With standard currency, there is always incentive to chop down non-interest bearing trees and put the proceeds into interest-bearing bank accounts. Because alternative currency systems do not bear interest--and in some cases, actually have negative interest--there is less incentive to plunder natural resources.