The FAZ, FINANCIAL AUTONOMOUS ZONE is an alternative economic system based on abundance rather than scarcity. The objective of the FAZ is to create communities among people who share values, economic and social relationships and productive activities, providing them a legal tool of exchange like a complementary currency.
The theoretical basis for the creation of an Abundance Economy is the fact, that we can prove, that the resources are always sufficient in the sense that they are always sufficient for each living unit in the time of his life.
We think that the information is the real Wealth. If resources are not infinite but abundant and their use is related to knowledge, it must be redefined the concept of wealth. The wealth of a community is given by the ability to organize information flows that generate income opportunities and this ability of the organization depends on the creativity and the cultural level of the given society. If wealth is not material, it follows that it is no longer necessary to be accumulated. That’s change the idea of money, paving the way for the emergence of a notmoney.
The capital required for the development of a company is given by the knowledge of a society and their ability to organize it. Without this element, all the raw materials of the world would be useless and could not produce anything.
We call this body of knowledge the Social Capital, the engine of development and growth of a society.
The remuneration of the Social Capital as a factor of production justifies a theoretical level the establishment of a basic income, defined Life Credit: all members of a society have the right to participate in the distribution of income resulting from the use of a factor of production in the formation of which everyone participates, regardless of any measure of participation.
In the FAZ, money is issued in the form of negative rate bonds (TITAN). The money supply is made up of different monetary instruments and paper money is only one of them.
Since there is no need for capital accumulation, the currency can die over time relative to its capacity to stimulate investment. Those that are accumulated, is the knowledge of the company which in turn determine its level of wealth.
We have developed a model in which the money supply must be set on the quantity and quality of investments, and that distributes Life Credit extent appropriate to the level of production, tangible or intangible, of society.
The model makes the rules, according to Keynes model, for the issue of complementary currency for the financing of investments and for distribution as Credit Life.
It does not require a Public Institution to start a Faz. It may be an Association in which the members, companies, shops, individuals, agree to accept at least 50% of the price, complementary currency in payment, and a company that issues the currency in the form of bonds a negative rate. This promotes local economies, of course, but in a short time it is likely that the bad money drive out from the market the good money, according to the law of Greesham.
Domenico de Simone (Cenpea – Centro Studi per un’Economia dell’Abbondanza)
Download the full document .pdf)