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THE DESPERADOS ALTERNATIVE ECONOMY


The social composition of the "indignados", young people with no hope, is shifting towards "desesperados", - desperate -, the number one victims of the crisis: women, older workers, less skilled, less educated. These people are going below the level of poverty and we see outbreaks of humanitarian crisis in developed countries. Desperados may easily go outlaw and express their anger with violence. Political action has to shift from political debate to supporting the desperados. New economy models, rooted on solidarity, would be proven at providing visible solutions to the extreme case of the desperados. A new monetary system should be tested along it. The new monetary system would be the ultimate aggregator allowing consolidating the new solutions in no-return solutions. This large scale test bed should become the show case convincing the vast majority of the 99%, but still living in the system and voting conservative left, that the transition can be a peaceful and safe transition, and reversing the vote into the Constitutional changes that would be necessary for the so called "Great Transition".

            download here the full report            

We know that "ANOTHER WORLD IS POSSIBLE" and "THERE ARE ALTERNATIVES". But we want these alternatives now and we need to show everybody they work!

While the daily newspapers come with the depressing news about more unemployment, more social services cuts, more homeless, greater economy recession, new invented unpayable debt, in one word the dark side of the world, we want to feed the news with good news about more free meals distribution, more unemployed doing useful social work, more products produced in a sustainable way and more sales at the local economy, in one word the green side of the world!

We want to spread hope. 

A Theory for the Desperados Economy

Makes some proposals about the functioning of a desperado Economy designed as an osmotic pump to inject first need goods to the desperados, an alternative economy at regional Insulae running in paralel to the dominating Fractional Reserve Banking dark world.  

A big organizative effort will be needed, not only to set up the Social or Cooperative Enterprises operating this economy, but arranging the market in a way that it works with the new economy principles and using as trading means Community Currencies.

Each Insula will need a substantial planning period. All support that can be obtained from volunteering economists and people with business administration skills will be very valuable.

Community Currencies

Proposes the models for the monetary system based on Community Currencies. In this monetary system, made out of multiple local community currencies, money should be issued on the basis of goods already in the market or on their way to market. A would-be money issuer must, in exchange for the goods or services he buys from the market, place goods or services on the market. Issuers can be enterprises, industrial associations, or social enterprises. Anyone who offers goods and services for sale in the market is qualified to issue currency. In this simple rule of equity lies the essence of money.

With regard to the currency or credit system itself, it must be designed in such a way as to assure reciprocity in free-market exchange. The currency, in its paper or electronic format, is a legal committment of the issuer to redeem it with the goods it has promised. The currency has to take the form of a Ricardian CONTRACT that expresses this committment of the ISSUER with all HOLDERS.

A proportion of desperados will not have the skills or the means to deal with electronic money. The model is conceived as electronic, supported on wallets at PCs, tablets, mobiles or whatever, with very strict data modelling rules, but with a version in paper vouchers as well.

In fact, at the beginning, and until a number of enterprises is running at the Insula market and the relationships are understood intuitivelly, probably its safe to issue the currency contracts electronically but the circulation is all in paper vouchers.

Economy simulation

Lets take ground with a simulation with some guess figures. Imagine a country or region with 20% unemployment. How much, in goods, do we need to pump into the system to make it a noticeable difference?

To make the simulation, population data have been taken by averaging the statistical information of the World Bank about a south European country [1] to a region of 2,5 million people. Insulae may be even smaller, to the level of a neighbourhood, which is the level at which the movement is organizing. However, in view of the separation of space into dormitory towns, offices, industries, etc., a neighbourhood may not have all necessary market actors. Anyhow, proportions apply, and the model should be scalable to smaller populations, if all actors are present.

The volunteering and family average working hours statistics have taken as basis the statistics published by the   European Foundation for the Improvement of Living and Working Conditions - Second European Quality of Life Survey – Participation in volunteering and unpaid job – 2011 [2]. Some degree of prudence has been applied as the new social working only partly overlaps with the old one, and can be reconverted. Most of it will compete with old forms of solidarity works. Nevertheless, all in all, the model assumes a net increase in volunteering participation, a relatively safe assumption. Much of the old channels low participation is due to the lack of transparency of the current NGOs about the net social outcomes and some degree of scepticism. A crystal transparency about results should facilitate a new wave of volunteers.


Files

In the files section we offer some examples of CONTRACTS and digital friendly paper voucher designs, as XLS stylesheets and HTML. In the CC Currencies section we make a fiction of two imaginary currencies used at a Mediterranean region.

All examples work best with Firefox.

desperado.theory@gmail.com

[1] The World BANK Data http://data.worldbank.org/
[2] European Foundation for the Improvement of Living and Working Conditions - Second European Quality of Life Survey – Participation in volunteering and unpaid job – 2011 http://www.eurofound.europa.eu/pubdocs/2011/02/en/1/EF1102EN.pdf
 


Recent announcements

  • 07.- Desperado cooperatives Unemployed should be strongly encouraged to create their own, legal, micro-enterprises, for profit enterprises, preferably co-operatives. Entrepreneurship should be strongly encouraged. Insulae should provide support, advise and training ...
    Posted Jul 20, 2014, 4:18 AM by Desperado PEREZ
  • 08.- Community Currencies New monetary systems New monetary system proposals are blooming. One thing is clear: we must get rid of the Fractional Reserve Banking system (FRBS). For the state money, several proposals ...
    Posted Jul 20, 2014, 4:19 AM by Desperado PEREZ
  • 09.- Insula citizenship and monetary system Desperado registry and citizenship We foresee that there will be as many LETS systems in any community (a new economy island) as people find useful: large and small systems, some ...
    Posted Jul 20, 2014, 4:23 AM by Desperado PEREZ
  • 06.- Insula social enterprises Social enterprises By Social Enterprises we understand Third Sector enterprises, also called non-governmental organizations (NGO), that is any non-profit, voluntary citizens group which is organized on a local ...
    Posted Jul 20, 2014, 4:18 AM by Desperado PEREZ
  • 05.- Desperado jobs Local economy agents, and in special SMEs, have to be provided with a smooth entry into the new economy. The desperado “job” pretends to provide the bridge. It builds the ...
    Posted Jul 20, 2014, 4:17 AM by Desperado PEREZ
Showing posts 1 - 5 of 9. View more »



Recent Files

  • hour.png   20k - Sep 26, 2014, 10:34 PM by Desperado PEREZ (v1)
  • bitmessage.png   1k - Jun 1, 2013, 3:57 AM by Desperado PEREZ (v2)
  • contratoSBC.xsl   16k - May 26, 2013, 11:08 PM by Desperado PEREZ (v1)
  • address.xml   2k - May 24, 2013, 5:15 PM by Desperado PEREZ (v2)
  • xsltforms_profiler.xhtml   4k - May 24, 2013, 5:15 PM by Desperado PEREZ (v2)
Showing 5 files from page Files.

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Desperado PEREZ,
Apr 22, 2012, 3:21 AM
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