Many institutions in our society seem quite inflexible—they follow rigid structures that leave little room for innovation and creativity. We are surrounded by these structures and most of us don’t realize that there is a problem with them. Yet, these structures that keep growing and controlling every aspect of our lives undermine the power we should have over our own lives; they are suffocating our Freedom.
But resisting these structures seems almost impossible. The state, bureaucracy, the financial system, the education system, together they are like the mythical hydra—they keep coming back. We have seen how governments try to limit not only new technologies but even ideas and speech in order to keep their control over individuals. So, the question we must ask ourselves is: Can we reform these structures? Is it even possible to reform them or are we already at the point of no return?
Here is where parallel structures come into play—what if we don’t fight the monster but rather just create an alternative to which the monster cannot join? With the rise of globalization and technology, the over-regulation and prohibitions of states can be overcome easier than ever before. We don’t need nation-states to create wealth and live in a community—those times are over. We can now create our own structures that can overcome all the shortcomings of current ones. We can focus on decentralization and voluntarism rather than rigidness and coercion, innovation and spontaneous order rather than bureaucracy and regulation.
Instead of keeping the human potential confined within these outdated structures, we should pursue unleashing our human creativity and design alternatives. While we see much innovation in the market process, there has been little progress in the way in which individuals live and interact—in the market of living together—in part due to the monopoly of nation-states and their structures. So, what if we create a new framework in which innovation and voluntarism are welcomed in every aspect of our lives?
One of the first projects in this direction are the Zones for Employment and Economic Development (ZEDEs) in Honduras. A framework in which individuals are not coerced by a government but act voluntarily and choose for themselves what is right for their needs and goals. With new frameworks outside nation-states, we could deepen governance innovation and maximise human freedom and prosperity. Bitcoin eliminated the need for an intermediary in financial transactions—let’s try and eliminate the hurdles from other aspects of our life, too. By doing so we can use our creativity to advance a freer and more prosperous life instead of trying to navigate through government forms. In a world pushed by innovation rather than prohibition, we could advance new forms of living together.
Honduras’ institutions have failed: the country is unattractive for businesses and is one of the most dangerous places in the world. Próspera, the flagship of the ZEDEs, is trying to offer an alternative to these institutions. Every person that wants to become a resident needs to accept a written contract that lays out and guarantees the duties and rights of every resident. Hence, the ZEDE’s duties and power over its residents and their property are derived from a real and physical contract. Furthermore, every resident can enforce their civil and political rights against the ZEDE through a court of law or arbitration proceeding. Unlike the current nation-states, no decision can be taken unilaterally. Any change to the contract needs to be agreed by both parties.
One of the perks of parallel structures is that we have room for competition and experimentation. F. A. Hayek advocated for the establishment of private money that could compete with each other. Thanks to cryptocurrencies we are already seeing this among currencies. Now we should expand this into other aspects of our lives. We don’t need to change our structures from within, let them compete with new ideas. Parallel structures can offer a freer alternative to those individuals that want their freedoms back, especially in the market of living together.
Disclaimer:
A longer version of this article in German has been published on the student’s magazine “Der Freydenker”.