Presentation on 21st C approach to co-ownership and the Resolution Trade. Exchange of Care for Property use

1. Fostering Mutualisation of Goods & Services
with Economic and Legal Frameworks
Eco Cities Conference - SF5
Chris Cook
Nantes 26th September 2013

2. “21st
Century problems cannot be solved
with 20th
Century solutions”

3. Introduction - Resilience
Resilience - the enduring power of a body or bodies for
transformation, renewal and recovery through the flux of
interactions and flow of events
Resource Resilience – Natural Grid
Financial Resilience – Open Capital

4. Financial Resilience – Open Capital
Prepay – credit returnable in payment for value
Protocols – Contrats de Société/social agreements

5. Prepay
Tax

6. Tax Prepay
Tax Prepay – credit returnable in payment of taxes
Tax Return – 'stock' part of tally stick returned to Treasury
Rate of Return - rate over time at which stock is returnable
for cancellation
eg Prepay £8 for £10 tax - £2 profit 25% pa rate of return
- not fixed - depends on existence & quantity of flow

7. Capital Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
UserUser
Prepay
%
ManagerManager
Value

8. Capital Partnership
An agreement or Protocol: not an Organisation
A consensually negotiated framework agreement for
self organisation to an agreed common purpose
Does not own anything; employ anyone; borrow
anything; or contract with anyone
A Co-operative of Co-operatives or Partnership of
Partnerships

9. Land Partnership
Custodian
(Community)
Custodian
(Community)
InvestorInvestor
OccupierOccupier
Rental
Prepay
%
%
ManagerManager
Rental

10. Land Prepay – the Value Proposition
Community
- sells rentals forward and locks in price
- interest-free loan until prepay unit returned vs rental
Occupier
- prepays rental and locks in price

11. Land Prepay – the Value Proposition
Investor
- direct 'inflation hedge' investment in land
- Occupiers buy prepay credits from Investors at best
price below issue price & return against rental
Manager
- shares in gross rentals or production
- interests aligned with Investor
- no 'Principal/Agency' problem

12. Land Partnership - Outcomes
Contrat de Société - relationship-based not transaction-
based - costs transformed to revenue shares
Neutral – removes ego and politics
Collaborative - stakeholder interests aligned
Sustainable - shared interest in minimising cost over time

13. 21st
Century Problem
Retiring Generation
-'long' of Property and 'short' of Care for themselves and
their property
- poor returns on deposits (loans to banks)
Working Generation – burdened with bank property debt
Young Generation – long of Care but short of Property

14. 21st
Century Resolution
Retiring Generation
- exchange rental credits for care
- invests directly 'Peer to Asset' in rental credits
Working Generation – direct investment in rental credits
replaces bank property debt
Young Generation – care exchanged for rental credits

15. 21st
Century problems cannot be solved with 20th
century solutions.........

16. …....21st
century solutions pre-date modern finance