Fund Eco city
Funding Eco-cities and Eco-homes without Borrowing
Give people food, they ask for more, give them land to produce it, they ask no more.
All governments own lands and democratic countries and those lands belong to the public. So, it is easy for any government to allocate a large land to build, at least, one large Eco-city in each state. The Chinese are building over 285 urban Eco-cities and about 600 suburban ones, while the West is still talking about it and did not build a single one. They would rather spend billions on warfare instead of welfare.
Most Governments keep borrowing money to spend on less important or unnecessary projects. They keep borrowing to compensate for their failure to charge the richer more taxes and their mismanagement of the economy. In some countries, they even embezzle from the national revenue or steal people’s money.
Building Eco-city is the best value for spending money and the best return on investment instead of any other national infrastructure project. It revives the economy, improves people’s welfare and standard of living, eliminating poverty and homelessness.
An open private investment, so that anybody can invest in mortgaging Eco-homes at 3% interest, eliminates the need for governments’ borrowing.
Conditions to build Eco-cities without government borrowing:
- Either free or leased large public land enough to build over 1 million Eco-homes, needed infrastructure and leasing a portion of the land to agriculture, businesses and industries to sustain all families.
Any government, national forestry, royal family, military, a corporate or rich person may donate or lease public or private land to build an Eco-city.
- A government’s loan guarantee to pay the interest on mortgage loans for the unemployed or unable to work or government’s failure to find the employable ones jobs.
It is much cheaper to pay the interest on a mortgage than paying rent for the unemployed. For example, in Europe and other western countries, renting flat costs about $1000/month, paying 3% interest on $100k Eco-home costs $250/month. It saves $750/month for each family. For 1 million homes, it saves $9bn/year. Governments can borrow money at less than 0.5% and lenders could accept 1.5% interest.
- Open lending is for any individual from anywhere or financier will be accepted to lend for mortgaging an Eco-home, based on a government’s loan guarantee and a 3% interest rate maximum and any family qualifies for a loan regardless of their status.
Banks, financial institutions, rich investors, conglomerates, individuals, charities, housing associations, lotteries and any business can take part in lending people to buy Eco-homes in Eco-cities at a government’s guaranteed 3% interest payment or loan repayment when a family work and have an income. Industries could buy Eco-homes for their employees to ensure their loyalties and help them to repay the mortgaged Eco-homes.
- The government’s spending per head should be diverted to the people who will live in the Eco-city, to spend on its infrastructure, public services, health and social welfare. Alternatively, the taxes from the industries could cover the cost of the infrastructure.
The national infrastructure’s costs for roads, transport, hospitals, administration, utilities and so on are paid by governments for cities, towns, villages and the rest of the country. Part of the national infrastructure costs can be diverted to serve the people who move to the Eco-city. Less important national projects could divert their funding to build a more important national project of Eco-cities.
- Governments should license the Eco-industries and Eco-businesses to operate in the Eco-city, only if they pay local taxes, employ the locals and train them in the required skills, otherwise, revoke their licenses to operate.
The Eco-city’s industries manufacture all the materials needed to build the Eco-homes and the required infrastructure. They are free to export their products after prioritizing the Eco-city’s needs, training its people on required skills and employing them is a contractual and licensing obligation.
- Eco-industries and businesses could be given an incentive to move to the Eco-city to benefit from; free electricity, cheap leased land, lower overheads, lower taxes, cheaper workers available 24/7 to work flexible hours on-site or remotely from their Eco-homes.
In the Eco-city, the outgoings are very low and employees can accept lower hourly rates to compete with others. Eco-industries and businesses could get tax exemption on investment. For example, if an investor borrowed 10 million and has to pay interest 5%, then 5% of the profits will be exempt from taxes. This way, banks will be encouraged to lend to businesses and industries.
- Businesses and industries, regardless of their parent companies or foreign shareholders, must be locally registered, licensed and their names prefixed by Eco- and suffixed by the country’s name, so that local laws and jurisdiction apply and no international law or jurisdiction can override local laws, judgment or jurisdiction.
Currently, in most western countries, tax avoidance and evasion take many forms, including legal ones or loopholes in the national taxation rules. Therefore, local businesses pay local taxes, employ locals and abide by local taxation rules.
- Building Eco-homes must not be contracted to profiteering developers and volunteers must build them. The cost of an Eco-home must not exceed $100k, They must be economically designed and locally manufactured from Eco-friendly materials.
Eco-homes must be pre-fabricated wooden panels and beams for self-build following step-by-step instructions and supervised by a professional builder. Seven volunteers can build a prefabricated Eco-home in seven days and they get virtual credits for the hours worked
- Building materials for the Eco-city must be Eco-friendly and increase CO2 absorption instead of emission. People can build Eco-homes from Hempcrete, processed dead trees, fallen branches and leaves.
The U.K’s researchers at Cambridge built a prototype house from Hemp and proved that it is even more effective than trees in sequestering atmospheric carbon. Planting three new and more CO2 absorbent trees must replace any tree cut. They can be planted inside and outside the Eco-city, including around each Eco-home, street, fences, industry, business and any available area.
- Each Eco-home will produce more electricity than it consumes, collect rain water, filter it for various uses and have access to the internet to learn and work from home.
COVID-19 and future bio-warfare prove that the Ecolism concept of self-sufficient Eco-cities is a national security counter-measure and has many advantages. People could self-isolate, yet learn and work from home, have free electricity from renewable sources, eat from the surrounding gardens, breathe from filtered heat Exchange units and can be sustained by a self-sufficient Eco-city for all other needs.
- The Eco-city residents must accept training on required jobs and work to repay their mortgages, otherwise, leave the Eco-city.
A conditional agreement template must be signed by all Eco-home owners to accept training and work flexible hours to repay flexible amounts for their mortgage and build equity in their Eco-homes. If no job can be found, then the housing welfare system will pay the interest on the mortgage until finding jobs for the unemployed.
- The Eco-city’s local Eco-bank must control the employees’ and self-employed’s income to deduct mortgages repayment and collect taxes at source.
Industries and businesses pay the employees directly to their accounts at the local Eco-bank. The minimum loan repayment can be deducted at source by a flexible bank standing order depending on the available funds and could be increased by account holders.
- The commercial local Eco-bank handles all the financial transactions of the industries and businesses to collect taxes at source, based on local rules and a template agreement that applies to everyone.
Local revenues incur reasonable local taxes, hence; dividends, advertising, research, investments, double accounting and other expenses must be controlled locally to prevent tax avoidance or tax evasion.
- The agricultural land, renewable energy sources and other facilities help to sustain the Eco-city and its industries.
Most agricultural produce does not need large horizontal land and can be grown vertically in green houses or buildings or on the walls of Eco-homes and fences using modern technologies. The wind turbines in every street and the more efficient solar panels on Each Eco-home, besides energy plants, can store and supply the industries, the Eco-city’ facilities as needed.
If people live an Eco-lifestyle abiding by Eco-ethical principles and human rights, they become more civilized. When countries recycle their cities into Eco-ones, they become more civilized. The Eco-socio-economic system; revives economies, eliminates poverty, equalizes justice for all, elevates the living standard for all. protects against recessions and external threats.
One day, humanity wakes up and people elect leaders who elevate them to a higher plane of more civilized existence. There is no need for the illusion of a paradise in the afterlife if we can build it while we are alive.