The return of the barter


Barter as a tool to overcome the economic crisis caused by the pandemic

Bartering is a system of exchanging goods or services between two or more economic entities such as individuals, businesses, organizations or governments, without the use of money. This tool is considered the first form of commercial activity in history. However, there is no historical, anthropological or ethnological evidence of the existence of a society or economy based primarily on this medium.

Like everything in life, bartering has declined, virtually disappearing with the passage of time and the progress of human activities. The turning point occurred around the fifth millennium BC when human beings began to give some simple objects (shells, salt, arrowheads, etc.) an intrinsic value to facilitate negotiations. Basically, money-based trading was born around that time.

The New Barter Boom

A chapter had closed. But not definitively. Because today, this means of exchanging goods and services is making a comeback, albeit in a more modern way. In particular, in the last two years, bartering has experienced a real boom. A non-random period but coinciding with the worldwide spread of Covid-19.

In fact, the economic crisis exacerbated by the health emergency has not only upset our daily lives but has produced devastating effects for many sectors. And so, the exchange of goods and services has begun to represent an important resource as it does not involve the exchange of money. Money that, in some cases, is limited or unavailable.

Modern bartering is also a practical way to make the most of new technologies, overcoming physical obstacles, including lockdowns and isolation, imposed by anti-contagion restrictions. It is no coincidence that sites based on the "circularity" of use have become very popular recently, and numerous apps have been developed for the exchange of goods.

These tools encourage the circular economy, producing, at the same time, two positive consequences: a strong reduction in waste and a reduction in carbon dioxide emissions into the atmosphere (because the more it is reused, the less it is produced). And less damage to nature means an improvement in the quality of life of human beings and lower costs to defend the environment.

Equally important is the recent development of forms of administrative barter, which allows you to pay fines by engaging in community service work.

An ancient means useful for overcoming current difficulties

Barter: an evolution towards the future

Bartering is an ancient form of exchange that dates back to ancient times, but which today is undergoing a real evolution, becoming more and more modern and technological. As can be seen from the true-news.it website, the world of finance is also starting to use bartering as a compensation tool.

The introduction of "financial barter" in the 2021 Budget Law has allowed companies to offset their positions without the use of currency, thanks to a multilateral offsetting system of trade receivables and payables linked to exchange transactions proven by the presence of electronic invoices. This system was designed with the aim of creating a secure system for businesses, in order to support businesses in liquidity crisis.

Even the Public Administration has begun to use bartering to help citizens who are struggling to pay the fines. In certain limited cases, fines can be converted into charitable activities, thus offering an alternative for those who are unable to pay their fines in cash.

But it's not just the institutions that are exploiting barter. Many companies are adopting this form of exchange to increase their visibility by offering advertising space in exchange for goods or services.

The company purchases the surplus goods in the producers' warehouses, offering advertising space in exchange, and puts them back on the market at a significantly lower price than those on the market, even by 50%.

This circular and vertically integrated business model has been designed to ensure maximum benefit for both producers and consumers.

In short, bartering is no longer considered just a tool of the past, but is increasingly becoming a valid and modern alternative to overcome the difficulties of the present. Due to its flexible and innovative nature, bartering is set to play an increasingly important role in the economy of the future.

Francesca Bianchetti

Project Manager