Overview

What is a giftmoot economy?

A giftmoot economy is an economic system based on the primary activity of non-reciprocal gifting resources rather than exchanging resources. This non-reciprocal gifting is coordinated by a network of voluntary, private democratic associations called giftmoots.

Gifts are voluntary, one-way, non-reciprocal transfer of resources, where one party gives another party a gift with no obligation or expectation to provide something in return. This differs from an exchange where a transfer of resources creates an obligation to provide something of somewhat equivalent value in return.

Non-reciprocal gifting is already ubiquitous in society, through charity, welfare, volunteering, community work, mutual aid, and family caring.

As an economy without exchanges, a gift-based economy would not need a medium of exchange such as money.

Why have a giftmoot economy?

An economic system is a complex model of resource production and allocation. Our current economic model is a relatively decentralised system - where private actors make autonomous decisions - where the primary economic activity is the exchange. In order to get the right resources to the right places, the economic system needs to send and receive signals about production, supply, demand, wants and needs. Unfortunately, using the exchange to send and receive these signals causes some systematic issues, leading to poverty, wealth inequality, worker tension, inefficiencies, economic instability, and a need for constant growth.

A non-reciprocal gifting economic system avoids these signalling problems. In fact, we tend to see non-reciprocal gifting within our current economy specifically to patch up the issues that the exchange creates, “plugging the holes” in the exchange economy. An economy centred around non-reciprocal gifting would avoid creating these holes in the first place.

How could a giftmoot economy work?

Non-reciprocal gifting doesn’t suffer from any of these signalling issues; a person in need doesn’t need to meet any specific requirements (such as owning assets or having the ability to labour) in order to signal their needs and be allocated resources. That's why non-reciprocal gifting is already the method that is used to resolve the issues created by the exchange.

However, non-reciprocal gifting would still need some level of coordination, and in the same way that an exchange economy has networks of financial institutions that facilitate and coordinate exchanges, a non-reciprocal gifting economy would need a network of institutions to coordinate non-reciprocal gifting.

A natural fit for this network can be drawn from the theory of associative democracy - a democratic model of voluntary, independent and private democratic associations, which may centre around localities, industries, causes, cultures or more. Democracy provides a good foundation for clear and legitimate signalling, and democratic deliberation has a track-record of sharing a developing new information. Democracy can also provide transparency, accountability, and a framework for equality and rights, so that members of an association are treated fairly. People could then “shop around” between associations, and associations could choose how to interact with each, providing a decentralised, cooperative and competitive economic environment.

These associations, called giftmoots, would act as resource hubs akin to shopping centres, economic travel agents, investment banks, and industry bodies.

When a member joins a giftmoot, they are part of the decision-making process of how to allocate resources, the rights of members, and the types of investments they want to see in society.

What benefits would a giftmoot economy have?

Because there would be less signalling deficits, a giftmoot economy should see a reduction in poverty. With no counter-signalling, wealth inequality should decrease as well. A giftmoot economy would have no paradox of efficiency, so labour efficiency gains should result in all parties happy to have less labour requirements, and no need for constant economic growth. Finally, without signal inversion, there would be greater economic stability.

There are other benefits to a giftmoot economy as well, such as improved labour conditions, less consumerism, wealth playing a much smaller role in politics, and a naturally democratic role for labour in society.

A giftmoot economy would also not delineate between “productive economic” work and “domestic” work. Cooking dinner for children, maintaining the house, caring for family members, volunteering at schools and community centres - these jobs would be just as important as building houses, working in healthcare, or teaching at schools. This division of labour has traditionally meant that a lot of work by women has been undervalued or ignored because it doesn’t involve the transaction of money, but in a giftmoot economy it would be equally valuable.