Both of the proposed Community Development models have their merits and will be utilized within both those environments and circumstances which best suit their nature. Questions regarding the quality of these structures are thoroughly welcomed here … as are any and all questions in truth. However, the responses will be subject to the respective experts for each means of organizational structuring. The idea here is only to convey some of the strengths of the Incorporated Structure proposal in the hopes that people who are considering building such operations will be more well informed and capable of locating the proper people to develop, plan, design and implement such an organizational structure … and perhaps to replenish the losses that the original team(s) have incurred over the course of time. The reason that this is the structure being highlighted, is simply because the author is the major proponent of the Incorporated Model for Organizational Structure.
The Incorporated Model is structured as a means to ensure community “ownership” and oversight of the entire series of operations. In actuality though, both systems are designed in such a fashion, though the process for accomplishing the tasks are different in nature. Any and all corporations as shall be an integral part of the Community Development, will ultimately be funded by, paid for and operated by and/or through the Parent Foundation, though it will be largely run as any major corporation from within … albeit with a substantially more restrictive set of bylaws and Corporate Structure, and the shareholders being the community at large, through the foundation and the Private Hedge Fund. The hedge fund will in turn, establish accounts for medical facilities, educational institutions and other pertinent utilities and social services so as to ensure payment for any and all such services as shall be necessary.
Within the Incorporated Model structure, both the functions of governance and the corporate entities included are run by professionals in their respective fields. The purpose of course, is that there is no room in the (current or proposed) corporate environment for an inexperienced and/or unskilled leader to manage a corporate entity with any real hopes of success. Nobody here hates the CEO, despite some encouragement for just such a combative posture by some of the participants. However, it is again, necessary for each to succeed for the ultimate benefit of the other in such a symbiotic relationship as shall be established within the Incorporated Model.
Corporate Entities at present, will ideally be funded in the early stages of growth, through the utilization of Capital Investors and/or Capital Investment Firms and paid off in the traditional manner of such funding. In short, the Incorporated Model relies on more traditional principles of Capitalism to fund the foundation and to pay for the growth and expansion without the need to rely on charitable donors or other charitable sources that may desire more say in the decision making process regardless of the will of the people.
The foundation, as the owner of the corporation, oversees the corporate executives managing and running the corporation, and ensures that (a currently estimated) seventy percent of the net corporate proceeds are invested into the Private Hedge Fund rather than being paid out directly in dividends or otherwise pocketed as profitsi. The actual creation and establishment of the necessary and requisite accounts in the Private Hedge Fund will be determined by and between the Investment Professionals and the Parent Foundation.
As the original investors are paid off in full, the Assets of the original Corporate Entity (or entities) will be leveraged and utilized to create asset-backed securities which can then be actively traded and/or otherwise utilized to provide working capital for the expansion of the second Corporate Entity. This process will continue until such a time as there is a sufficient level of funds available to either invest in and/or to create a new Private Hedge Fund Group that will be responsible for the oversight and management of the Strategic Investment Plan.
The addition of new Corporate Entities funded by the foundation through the Hedge Fund, the leveraging of assets and strategic investments, will continue so as to allow for the growth and expansion of the Community Development until such a time as it reaches a point of sustainable maturity … the point at which it becomes economically viable for its own growth and maintenance. Furthermore, the growth, expansion and strategic investments must continue so as to allow for the provision of utilities and other basic necessities of the local population.
For example, if a Hospital were to be built, what would be the cost to operate that hospital at full capacity for an entire year? Based on this rate, trade accounts would be established and slowly built up until such a time as the projected “dividends” of that account would equal such an amount. Since it is unlikely that the hospital would be run at full capacity for the entire year, “additional funds” generated through the trade could be integrated into other areas, such as research, educational funding, expansion of conservation efforts or other areas deemed by the foundation, through the popular votes of the community, to be both prudent and beneficial and as such, worthy of consideration for funding.
The ownership of the corporate entities would be held in a community trust fund with a direct system of accountability to the citizens and/or residents of the community in the same way that shareholders and shareholder groups currently have their voice heard in the corporate realm. The success of the corporate entities would fund the community, its operations, utilities and other normal societal functions of the community and in return, it is hoped that the community residents would be willing and capable of opening up their skills and talents, not only for their personal gain, but for the benefit of the community as well. This again, is why it is imperative that corporations be allowed to continue in some ways, much the same as they currently operate, with the only real variation being that the people themselves, through voluntary association, would act as the owners or moreover (rightfully) as shareholders, given the foundation ownership of the incorporated parent. The more creative persons still have a means and an incentive for pursuing the introduction of new business and corporate interests for their own benefit, in addition to the overall benefit of the community.
In the case of many entrepreneurs, this would be accomplished by providing incentives for the more entrepreneurial to gain personally while not having to worry about funding or excessive liabilities in the pursuit of their individual endeavors. The entrepreneur would receive the lion’s share of the profits from their ventures while the excess … the funds that would normally be redistributed to stockholders, bondholders and/or shareholders, would be packaged into a community trust fund for investment and reinvestment back into the community, albeit through a private hedge fund type of investment. There are however, a great many very creative and inventive people who are much happier (and more productive) in their garages and/or basements being creative than they are running their own corporate entity and every allowance should be made for these individuals as well.
Those who are more on the artistic and inventive side, with no desire to run any business ventures, will likewise be well-remunerated for their efforts and contributions, though such funds will also have to be divided among those who will actually be running the corporate interests as well. While the community may receive a smaller, direct financial gain, it will hopefully receive a great deal indirectly through further inventions and/or ideas created by the same individuals or others like them. Again, those funds that would normally be returned to the corporate investors, would be invested back into the community through the private hedge fund and strategic investments.
The funds returned to the community would pay for reduced or fully subsidized health care costs, education, the production of large-scale crops through environmentally friendly and sustainable means, the introduction of green energy solutions into the community developments and ideally, most of the basic needs of life including venues for public entertainment. The homes would be “owned” by the people who selected them, but could not be bought or sold on the open markets. As is the case in “Special Economic Zones” around the world, these homes would be leased out for a term of ninety-nine or perhaps only fifty years, though “ownership” could continue on through direct descendants en perpetuity. The minutia and details are far too complex and numerous to include in any single volume, much less a single chapter, but in essence, the Organizational Structure overseeing and operating the community development would be owned by the people even if indirectly. This does however, lead to the question of citizen oversight of those entrusted with the powers of the finances and governance within the community developmentsii.
Community Oversight would be the responsibility of a Citizen Review Board or Panel and an Ombudsman program held in an “Ombudsman Forum”. The Ombudsman Program will provide a public format for the airing of grievances by the general population and a means for dispute resolution and/or arbitration which will be binding on the government, even to the extent of changing outdated, irrelevant and/or oppressive laws and/or legal decisions. The representative of the organizational structure shall be provided by a member of a committee of the organizational structure, said committee being proposed for exactly that purpose. There will also be a representative of a Citizen Review Board.
The Citizen Review Board will have a limited number of permanent members, and this number shall be supplemented by the members of the local populace who shall serve for set periods of time. When a complaint is brought forth, it will be addressed to both groups individually and separately in order to give an enforceable means for the people to ensure that the foundation itself, the corporate entities and even the government do not become overly oppressive or restrictive to the point that they become a detriment to societal growth and human development.
Some have argued that mandatory citizen participation in the Citizen Review Boards or within the Ombudsman Program is somehow or another oppressive, but it is not seen as being any more of an “inconvenience” on those who wish to enjoy all of the benefits of an integrated society than jury duty is for those persons insistent on voting for the left or the right jackboot in the modern political system. History has given us every indication that people are indeed willing to suffer and endure a creeping usurpation of their lawful rights and liberties, often under the color of law or the color of authority. General apathy may be wholly understandable under the confines of the current political realm, but it should never be viewed as acceptable behavior. However, neither should it ever be used to coerce the individual citizen into decisions, none of which bode well for the health and well being of the citizen.
In short, along with social benefits and privileges, and even rights, comes a reciprocal responsibility that must be adhered to lest all rights be lost. Unfortunately perhaps, the average person has become largely apathetic in regards to their own governance and in many cases, have never had the opportunity to have their voices heard. For every aspect of the Community Development, it is imperative that the people have and retain an active voice if the will of the people is ever to be practically applied in their daily lives. However, neither does this mean that a group of unqualified citizens should rule either, and the checks and balances must flow both ways so as to disallow the ability of the people to run the path to ruin.
i Some have questioned why not all of the net corporate proceeds would be introduced into the community accounts of the private hedge fund. However, aside from corporate bonuses for the executive and administrative personnel, there should be bonus levels (such as the “Thirteenth Month” common in the Philippines) for the individuals as may be employed at the lower levels of the corporate structure as well. Furthermore, if the corporate management is not actively pursuing the growth of the corporate entity, it is likely time to change the management team anyhow. Thirty percent of the net positive proceeds should allow for both the growth and expansion of the Corporate Entity in addition to providing adequate bonuses for the low-level employees as well as funding any and all such educational programs as will be run within the corporation … though may or may not be written off as tax deductions or a means to reduce overall tax liabilities.
ii The same also holds true for the need and the enforceable ability of the people to keep the corporations in check as well, not just government. However, this is also a two-way street in that the people cannot be given the ability to run roughshod over the corporation or government to the extent that the people inhibit the ability of the government or the corporation to function as per designed.