Innovative Initiatives for Welfare: Non-Banking and Banking Initiatives, an Overview

This paper states that individuals and institutions are taking innovative initiatives inside and outside the money economy to improve welfare. It presents an overview of the strengths and possible weaknesses of innovative non-banking and banking initiatives being taken worldwide in this direction. The paper looks at innovative initiatives that can be and are being taken in both the economically rich and economically poor countries under given policy to improve welfare. Specifically, it examines:

• Initiatives outside the money economy, mainly taken by individuals and small enterprises (LETS, barter trade systems, local government initiatives);
• Non-interest initiatives in the banking sector (Islamic banking, other non-interest cost-only banking initiatives);
• Environment-friendly banking innovations, with or without below-market rates of interest for loans and deposits (Triodos Bank, ASN Bank, RABO Bank) and;
• Commercial micro banking innovations (BRI Units, the BPR/SFI system, the PHBK project) to improve the welfare of the poor.