Local exchange trading systems—a rural response to the globalization of capitalism?

The local exchange trading system represents a possible community-level response to the globalization of capitalism. However, few studies have examined the potential of the LETS concept in rural areas, and no studies are available of LETS in rural Scotland. The present research employs empirical evidence from the Isle of Skye to investigate the potential of LETS for relocalising social and economic relations in remoter rural areas. This particular socio-cultural milieu presents both obstacles and opportunities for the development of LETS. It is suggested that further expansion of the Skye system could be stimulated by a focus on local food production. A LETS-based food co-operative can promote direct links between producers and consumers, extend the membership base and thereby reduce the frictional effect of distance on trading and social contact. It is concluded that to achieve such an objective the efforts of LETS members would be facilitated by the support of a sympathetic local authority.