Economics

Overall Project Economics

1. The material and financial base of all parts and structures of the project consists of:

— revenue from economic activities (development of methodologies and technologies, manufacturing of goods, provision of services, agricultural production, consulting, educational activities, etc. carried out by the divisions and structures operating within the project)

— donations from organizations and individuals whose reputation and sources of income do not conflict with the project’s concept

— grants and targeted investments in technology development from organizations whose reputation and sources of income do not conflict with the project’s concept

2. The distribution of funds and other material assets received by the project among the subdivisions is handled by the coordinating bodies of the respective subdivisions in consultation with the main coordination center.

3. The material and financial base of eco-cities consists, among other things, of:

— mandatory contributions from the operations of any income-generating entities located within the ecocity’s territory (stores, cafes, etc.)

— mandatory contributions from eco-city residents for general needs

— revenue from the economic activities of the ecocity itself, as a project unit (ecotourism, leasing of urban real estate, leasing of land for economic and agricultural activities, etc.)

— voluntary donations from organizations and individuals

— grants and targeted investments

The Eco-City’s Financial System

  1. To regulate economic activities within the ecocity, an internal system of mutual settlements is used among all residents and city divisions, based on “city money” issued by the city.
  2. “City money” is a notional unit of account that is not legal tender outside the city; its liquidity and value are backed by the city’s real assets. “City money” is issued and circulates according to the principles of “free money”; read more here, here, and here.
  3. For settlements and the regulation of the eco-city’s economic activities with external counterparties and other structures and divisions, the currency of the host country and/or one of the currencies used for international settlements is used.
  4. The eco-city’s budget is formed from the sources listed in the “Economy” section and from targeted investments by other project structures and divisions, as well as targeted funding from central coordinating bodies.
  5. The expenditure side of the city’s budget is formulated by elected experts selected from among the city’s residents and is coordinated with residents through public presentations and an open call for feedback.
  6. If local sources of funding are insufficient to meet essential living needs, the city budget may be temporarily supplemented from the project’s general central budget, subject to subsequent repayment.
  7. If the city budget contains funds that have not been used for local needs for an extended period, such funds may be allocated, in consultation with city residents, to other structures and units of the project on the condition of subsequent repayment.
  8. The expenditure side of the eco-city’s budget consists of the following items in order of priority:

— maintenance and development of life support systems (heat, water, and power supply; wastewater disposal; and solid waste disposal)

— salaries for employees of citywide agencies

— medical care

— social support and services

— K-12 education

— Development and improvement of public spaces

— Repair and construction of public buildings

— Development and support of the city’s economy, insurance fund, and research fund

— adult education

9. In the event of a prolonged municipal budget deficit lasting more than three months, the local budget is placed under the full control of central coordinating bodies.