Parallel Economy Insights

What is a Parallel Economy?
Empowering Parallel Economies

What is a Parallel Economy?

The global economy is undergoing transformative shifts, leading to the emergence of parallel economies worldwide. While traditional structures face challenges, these new economic models are fostering empowerment and inclusivity. Parallel economies encourage local production, sustainable practices, and community-driven initiatives, revitalising communities and promoting social cohesion. This shift towards decentralised and people-centric systems is enhancing resilience, promoting creativity, and redefining prosperity for a brighter future.

  • A humanitarian-based community of like-minded individuals can direct their resources, efforts and initiatives towards providing real healthcare, promoting education and pursuing other humanitarian concerns.
  • The community operating as a parallel economy fosters a sense of togetherness and inclusivity encouraging collaboration, empathy, and solidarity. This promotes social cohesion and creates a supportive environment where individuals feel valued, respected, and included.
  • By adopting sustainable practices, the community can minimise its ecological footprint, reduce resource depletion, and contribute to long-term environmental preservation. This ensures a better future for both the community and the planet.
  • Community members are often motivated to find novel solutions to societal challenges. This can lead to the development of innovative technologies, social enterprises, and alternative models of education, healthcare, and governance. These innovations can have a ripple effect, positively impacting both the community and the wider society.
  • The community can build resilience and self-sufficiency and reduce dependency on external systems. This can be achieved through initiatives such as local food production, community-based healthcare programs, and cooperative models of resource sharing. The community becomes more self-sufficient, capable of meeting its own needs and less susceptible to external shocks and crises.
  • Enhanced well-being and happiness where individuals’ and their family’s basic needs are met, they have opportunities for personal growth, and they feel a sense of purpose and fulfilment.
“The system is designed to be broken, purposely, in order to confuse and discombobulate the people, to twist their minds, to cause cognitive dissonance and to most especially force conformity and compliance; there will never be solutions that support life in the public system because as the saying goes “That which is broken can never be fixed…” so we must always look at situations on that basis, and that our decoding of the system has found where law and structural components actually are established and based on the substance of life as real, and thus the saying continues “That which is real can never be broken” and then the key is that we must learn to direct our consciousness and awareness to the real as the saying completes “So focus on what is real and the rest shall fade away”.
Kenneth Scott

Parallel Economy Dynamics

How Can a PA or PMA Operate with a Parallel Economy?

A Private Association or Private Membership Association (PMA) operates hand in hand with a parallel economy by utilising legal structures and mechanisms to create an exclusive, members-only community or organisation that conducts economic activities separate from the mainstream economy. Here’s how it operates:

Formation and Membership
A group of individuals or businesses forms a Private Association or PMA, often for a specific purpose or shared interest, such as humanitarian, religious, cultural, or economic reasons. Membership is typically restricted, and individuals or businesses must meet specific criteria and or pay membership fees to join.
Legal Structure

The PA/PMA is created as a non-government, non-profit organisation/like a private club, allowing them to enjoy certain legal privileges and exemptions and regulatory oversight.

Exclusive Transactions
PMA conduct economic transactions exclusively among their members. These transactions can include buying and selling goods and services, as well as financial exchanges.
Alternative Currency Systems
Some PMAs may introduce alternative currency systems, such as digital tokens or community currencies, which are used for internal transactions within the association. These currencies may not be recognized or regulated by mainstream financial authorities.
Asset Ownership and Sharing
Members of PMAs may jointly own assets, such as real estate or businesses, and share in the profits or benefits generated by these assets.
Privacy and Secrecy

PMAs prioritise privacy and confidentiality, often limiting disclosure of their activities and financial transactions to those outside the PMA.

Self-Regulation
PMAs typically establish their own rules and regulations governing member conduct and economic activities, reducing their reliance on external government regulations.
Tax Benefits

PMAs may enjoy tax advantages due to their non-profit or private club status, resulting in additional benefits for members and the organisation itself.

Parallel Economy
By operating within this closed network, PMAs effectively create a parallel economy where members can trade, invest, and engage in economic activities separate from the mainstream economy.
Challenges and Risks
PMAs may face legal scrutiny if their activities violate established laws or regulations, particularly if they engage in fraud, or other illegal activities. Maintaining the integrity and sustainability of the parallel economy can be challenging, as it relies on trust among members and adherence to internal rules.
Cultural and Ideological Factors
PMAs often emerge from shared cultural, religious, or ideological beliefs, which can play a significant role in shaping their economic activities and values.

Private Structures is here to support and educate you in every aspect of setting up and operating your PA/PMA.

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