Costs of the central management group
With all the issues that a central administrative group has to perform, costs are incurred. These costs must be borne by the general public in the form of donations, as well as through membership fees, since the general public is also the essential beneficiary. But this issue is also important from the spiritual point of view, because the members must be aware that building a parallel economy, training the members requires professionalism, which is not free of costs. Transparency is one of the most important issues here.
Purchasing cooperative
In the course of the project, a purchasing cooperative can be founded to support independent traders. The aim is to create a success and performance-oriented company that feels committed to the free market economy and strives for fair and effective competition. The only requirement is that we find people with the appropriate training or, even better, individual companies on the market who want to join forces. There are corresponding examples that are lived all over the world. At the very end, regional distribution centers are created, managed by the local population. The figure below shows an example.
Why a cooperative?
It is simply the best form for a company or group of companies, as it is collectively based on a founding intention and each member has equal voting rights. Therefore, it is not susceptible to takeovers, just as it can be controlled through a single individual. In addition, a cooperative serves people and is focused on the benefit of its members rather than shareholder value. It is also interesting to note at this point that any person can become a member of the cooperative and that person thus has voting rights. Moreover, ethnic values can be defined in a code of conduct.
Here are some considerations for funding:
Donations and membership dues: The general public and members of the parallel economic structure could provide the necessary financial resources through donations and regular membership dues. These contributions could be used to cover training, resources, and administrative costs.
Crowdfunding and fundraising: The central management group could organize crowdfunding campaigns and fundraising events to raise additional financial support. This could engage a broader community and raise awareness of the project.
Partnerships and Sponsorship: Partnerships with businesses, organizations, or individuals that support the goals of the parallel economic structure could provide financial support or resources in the form of sponsorship.
Fees for services: The central management group could charge fees for certain services offered to individual groups, such as specialized training, consulting, or technical assistance.
Funding and Grants: The management group could seek funding and grants from foundations, government organizations, or other institutions that are committed to social innovation and sustainable economic development.
Revenue from projects: The parallel economic structure could develop its own sustainable projects that could generate revenue and help fund the central management group.
It is important to develop a sustainable and transparent funding strategy that takes into account the needs of the central management group, individual groups, and the community at large. The management group should openly communicate funding and ensure that funds are used effectively and responsibly to achieve the goals of the parallel economic structure.
Transparency is the key issue
Building trust: Transparent financing and management create trust within the community. Members can be confident that their contributions are being used wisely and responsibly.
Accountability: Transparency promotes accountability of the central management group. When decisions and expenditures can be publicly tracked, mismanagement and inefficiencies are minimized.
Open communication: Transparency promotes open communication. Information is provided clearly and promptly, minimizing speculation and misunderstanding.
Credibility: Transparent funding underscores the credibility of the parallel economic structure. External partners, grantors and sponsors will be more inclined to provide support.
Community Involvement: Transparent funding allows the community to actively participate. Members can help shape how resources are used and provide feedback.
Protection against misuse: A transparent structure minimizes the risk of misuse or corruption, as expenditures and decisions are visible to all.
The central management group should establish clear guidelines for transparency, provide regular financial reports, and ensure that all members have access to relevant information. This creates an atmosphere of trust, openness, and community collaboration that is essential to building a successful parallel economy structure.