Chapter 17.1.

👉The table of contents so far is here.

Chapter 17: Economic Transition Plan II: Initial Phase

17.1. Overview of the Initial Phase

After the transition period in the implementation process of the economic transition plan, as discussed in the previous chapter, the initial phase begins. This initial phase is precisely the start of a sustainable planned economy. The central event here is the launch of the first three-year economic plan.

As a prerequisite, the abolition of the monetary system, which is also the core of the sustainable economic plan, is a major event. Ultimately, the abolition of the monetary system and the launch of the first three-year plan are the two major events in the initial phase.

The initial phase unfolds based on various preparatory actions during the carefully planned transition period. Compared to the transition period, which requires a considerable amount of complex transition work, it is simpler, condensed into the two major events mentioned above, and the disruption associated with the initial phase is minimized.

17.2.  Abolition of the Monetary System ①: Financial Liquidation Corporations and Financial Liquidation Directorate

Among the events in the initial phase, the most significant is the abolition of the monetary system. Here, "money" refers to currency issued by the state. Therefore, more precisely, it is the abolition of the monetary system. As will be mentioned again later, private currencies issued by private entities are not included in the abolition targets here.

The abolition of the monetary system and the exchange economy based on currency represents almost a civilizational shift, and therefore, while it is retained during the transition period to avoid economic disruption, its complete abolition is aimed for in the initial period.

In this respect, the most desirable and simplest way to completely abolish the global monetary system without disruption is to implement it simultaneously worldwide based on a treaty, yet this is the most difficult to achieve, which is frustrating.

It is likely that once a sustainable planned economy model has spread almost worldwide, a currency abolition treaty or an international agreement equivalent to a treaty will be concluded, but here we will consider a more complex case in which the monetary system is abolished based on the laws of individual individual Zones (countries).

The laws abolishing the monetary system in each territory will come into effect immediately upon promulgation, and based on this, existing currencies will expire prospectively (not retroactively). However, foreign currency is an exception; it remains valid until the issuing Zone abolishes its own currency system.

Abolishing a monetary system involves the complete liquidation of the existing financial system, and therefore, the central bank is the most suitable entity to lead such a process. In a modern monetary economy, the central bank is the guardian of the monetary system and, therefore, can also act as its liquidator.

Specifically, based on legislation, clearing corporations for commercial banks and all other types of financial institutions are established, and these are comprehensively seized by the Financial Liquidation Corporations and Financial Liquidation Directorate established within the central bank, where all financial accounts are settled.

All deposits in these liquidation accounts are sealed and invalidated under the central bank's control. However, as mentioned above, when a region abolishes its monetary system, procedures for withdrawal and return of depositors' money are necessary for accounts held in the names of foreigners (including corporations) in countries that still maintain their monetary systems.

The central bank will oversee the entire process of abolishing the monetary system and will ultimately be liquidated and abolished itself. However, the Financial Liquidation Directorate will be separated and become an independent institution, remaining in place for a while as a body to handle the remaining affairs after the abolition of the monetary system.

Furthermore, personal money, such as cash kept at home and not deposited in financial institutions, will also become invalid under the abolition of the currency law. Therefore, there is no need to request its return or confiscate it; it will become an antique, like old coins today, and revert to the private property of its owner.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 16.8.

👉The table of contents so far is here.

Chapter 16: Economic Transition Plan I: Transition Period

16.8. Preparation for the establishment of pharmaceutical business organization, etc.

While pharmaceuticals can be classified as food in the broadest sense, their purpose and nature differ significantly from general food. Therefore, they are produced based on a pharmaceutical-specific production plan Division C, distinct from both the consumption plan for ordinary consumer goods and the production plan Division A for core industrial sectors and Division B for agriculture, forestry, and fisheries.

In this respect, since pharmaceuticals, in principle, should be supplied universally to maintain the life and health of all individuals worldwide, the principle is that key pharmaceuticals should be manufactured and supplied under a global common plan (see my article).

Furthermore, production plans for each zonal area will be independently formulated and implemented by a pharmaceutical business organization formed by integrating pharmaceutical companies. During the transitional period, the integration of individual pharmaceutical companies will be aimed at preparing for the establishment of the pharmaceutical business organization.

However, it is not necessary to integrate all existing pharmaceutical companies; the integration of companies responsible for manufacturing basic drugs such as representative disease treatments and vaccines that become prescription drugs for physicians, as well as a small number of specialized drugs for treating intractable diseases, will suffice.

Furthermore, the integration does not necessarily have to be company-wide; it would be acceptable to integrate after spinning off some departments into separate companies. The remaining departments not integrated, and pharmaceutical companies not involved in the manufacture of prescription drugs, will continue to exist as free production companies.

Incidentally, since the pharmaceutical business is inseparable from the existence of an independent and neutral drug regulatory and supervision system that conducts pre- and post-release reviews of drug efficacy and safety, preparations for the establishment of a regulatory and supervision agency completely separate from the pharmaceutical business organization will also be carried out in parallel.

This agency will not be a corporate entity but will basically have the characteristics of an administrative agency, and should have separate functions for pre-release efficacy and safety reviews and post-release safety reviews.

Of these, the latter, the post-release safety review agency, will have a quasi-judicial function for public protection, hearing specific drug-induced harm complaints from patients and providing relief to victims and taking action against those involved. Therefore, it will include not only medical and pharmaceutical experts but also lawyers well-versed in pharmaceutical laws.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 16.7.

👉The table of contents so far is here.

Chapter 16: Economic Transition Plan I: Transition Period

16.7. Preparation for the integration of agriculture, forestry, and fisheries

In a sustainable planned economy, agriculture, forestry, and fisheries, which are involved in food production, are treated separately as production plan Division B, distinct from production plan Division A for the core industrial sectors. However, the planning and implementation of production plan Division B are carried out by the integrated enterprise itself, such as the Agriculture, Forestry and Livestock Business Organization or the Fisheries Business Organization, similar to production plan Division A.

During the transitional period, the preparatory process for establishing the integrated enterprise that will be the planning body for Production Plan Division B will be carried out. In particular, the agriculture, forestry, and livestock sectors are closely related to the land system, and therefore overlap with the process of abolishing the land ownership system, as seen previously.

That is, it is assumed that farmland, forests, and pastures, which are factors of production in agriculture, forestry, and livestock, will all be liberated from the concept of ownership and placed under public management as ownerless property. In this respect, it is necessary to note that this is a completely different process from the land confiscation and distribution often carried out as socialist "land reform" policies.

Furthermore, the nature of the preparatory process will differ depending on the management form adopted by agriculture, forestry, and livestock at the start of the transitional period. In cases where self-employed family businesses are the dominant form of operation, establishing a consolidated enterprise will require a cautious process involving notification to each family and trial runs.

If cooperative organizations are well-established within the framework of self-employed family businesses, forming a consolidated enterprise by merging these cooperative organizations is relatively easy. In this case, the central cooperative organization will form the core.

In either case, traditional farmers, foresters, and livestock farmers will be incorporated as local managers or work instructors for agricultural, forestry, and livestock workers within the future Agricultural, Forestry, and Livestock Business Organization, requiring training to accompany this change in status.

On the other hand, if a semi-feudal system of large-scale land ownership still exists at the start of the transition period, former landowners who lost land ownership but were not absentee landlords and were actively engaged in agricultural, forestry, and livestock operations themselves may be rehired as local managers within the Agricultural, Forestry, and Livestock Business Organization. The basic process described above is largely applicable to the fisheries sector, but since the water bodies equivalent to land in the fisheries sector are not inherently subject to individual ownership, preparations related to the abolition of ownership rights, as seen in the agriculture, forestry, and livestock sectors, are not necessary.

However, if semi-feudal fisheries management systems, such as the net owner system by fishing vessel owners, still exist at the start of the transitional period, the process of dismantling such old systems will precede the establishment of integrated corporations.

👉The papers published on this blog are meant to expand upon my On Communism.