Monday, January 10, 2011

Developing the Basic Ideas

What one sentence best describes your idea?

Create a globally known social financial institution for local economic renewal, which promotes environmental sustainability, spiritual fulfillment and social justice.

Describe your idea in more depth. 

A completely new financial banking structure is needed. New motives and aims for banking and financing need to sustain an institution that a) would support recirculation and redistribution of official currency that has already being created through the banking system, by allowing its customers to provide investment options in and capital to innovative, progressive, systemic, holistic, environmentally sustainable, socially just and spiritually fulfilling entrepreneurial ventures through their savings, and b) Specialize in local economic renewal plans, local import substitution and, design of mutual credit clearing systems that would work in parallel to official currencies to stabilize the current economic environment and bring forth the transition of regions to sound and vibrant localization. 

General ideas: 

Owned by its workers 
Local democratic decision making 
Meritocratic payment 
Allows and encourages self-organizing processes 
Builds local trust and global reputation 
Welcomes competition 
Business replication by franchises 
Savings in official currency used as finance credits. 
Local currency used as spending credits until local economy evolves enough to provide finance credits with local currency. 
Investment marketplace (you decide where your money goes) 

What problem or issue does your idea address? 

In the current global economic environment, citizens from around the world are either in doubt of the ethical procedures of the banking system, or have been directly affected by their decisions on interest rates on loans, to name the least. What used to be considered part of conspiracy theory against governments and bank about how money is issued into circulation, is now an fact that grows the evidence by itself and is acknowledge by many within and without the banking system. The economic theories of perpetual growth are being debated and increasingly rejected, their effect on environmental degradation are being progressively recognized, and the social alienation produced by the permanent, artificially created, scarcity of money, is also evident [to many of us]. 

A completely new financial banking structure is needed!! 

If your idea were to become a reality, who would benefit the most and how? 

Social entrepreneurs: Business plan mentoring and advice, easier access to funds. ‘We can’t succeed until you do…this bank started as a crazy idea’ 

Local citizens and industries: Employment through economic renewal plans and import substitution. You know and usually decide where your money is going and what it is supporting. Community building and resiliency. ‘We help creating the place you want to live in’. 

Global Citizens: Reduce consumption miles, reduce environmental degradation, create the earth you want to live in. 

What are the initial steps required to get this idea off the ground? 

(not in the linear connection):

* Creating a business plan. 
* Networking, involve as many people worldwide as possible. 
* Developing software system that allows official and local currency activity and trading. 
* Creating an evolving timeline to see/show progress of the project and add items as required. 
* Researching legal options and restrictions

Thomas Greco said to me that we should be careful with the name of the project. Using 'financial institution' may create problems too early in the process. 

He also suggested that we look for banking legislation because they will be the first trying to stop this project. However, I have comments about this. Yes, I agree that we must be aware of the legislation, but I believe that we must create the institution as it should work, and in the end, the legislation somehow needs to change to allow this institution to happen. 

Imagine that we get thousands, or even better millions, of people supporting the final result of the business plan and that we cannot go ahead because the banking regulation does not allow us to do so?? There is potential for this project to help uncover the meaning of the regulations to the public. If the regulation does not allow good banking practices, what can we say about it??

I can almost ensure that the final product of this project will not fit with the current legislations, but I am convinced that they are out of date. We cannot limit ourselves by using tools that do not serve the purpose. Fearless love.

I think I read once that when the people lead, the leaders follow.

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