What could National Markets do for us?

Will National Markets be swiftly embraced by firms and individuals? Probably. If properly executed these markets would have:

The lowest conceivable transaction costs Full information to keep localised supply and demand in equilibrium Competitive pricing based on multiple factors among an infinite number of sellers

	Deal protection (for buyers and sellers) from the highest authorities in the land
	Potentially deep "liquidity": maximum numbers of buyers and sellers so offerings can become increasingly flexible (instantly hiring a self drive car from a neighbour for just 2 hours for instance)
	Enormous awareness aided by any number of Value Added Services marketing their version of the system

It would be surprising if the new system was simply ignored.

We can not say what will happen as a result of National Markets and there must be no social engineering attached to the tender. There is no desired outcome beyond a system that welcomes any legal seller and finds the best deal for each buyer’s needs at that time. The following thoughts on potential impact in short, medium and long term are simply supposition.


Short term (0-2 years):

The first markets are likely to be in already easy to enter sectors like tourism services (selling accommodation or travel or "experiences" or hiring cars/boats/bikes/sporting goods to tourists allowing them to construct a personalised holiday experience around the country). As any foreigner can buy on the system this could quickly increase inward investment.

	Travel becomes easier, cheaper and more eco-friendly.
	"Quality of life" markets could also take off: therapists, reflexology, beauticians, domestic helps, etc. Tuition in a variety of skills, particularly those shown to be in demand within National Markets could be co-ordinated as the system pulls together pupils and premises for qualified instructors.
	Micro-credit becomes an everyday tool to fund purchases, training or equipment required to enter new markets. It is administered with efficiency surpassing even the biggest inter-bank transfers today.
	Public sector spending starts to be cut: for instance, government no longer needs multiple I.T. initiatives. It all goes through National Markets as part of the agreement with the consortium.

Mid term (2-5 years)

	Conservative firms who have been distrustful are likely to start embracing the markets for instance by hiring out vehicles, capacity or space that they don’t require even for a few hours.
	A shift towards "portfolio workers" who increasingly use National Markets to do all sorts of work at times of their own choosing rather than having one job.
	Economic cycles are evened out as supply and demand constantly move towards localised equilibrium.
	Crime falls as its cover from the black economy is eroded by the system
	Sophisticated pricing allows "Just in Time" purchasing to extend to previously inconceivable transactions. Hiring a workforce at an hour’s notice for instance.
	Entire new markets begin to emerge: for instance "holders": people who take in goods on behalf of a neighbour and then deliver them when required.

Long term (5-10 years)

	A virtuous circle is established (lower costs in the economy, more trade, greater inclusivity, lower government spending, less tax, less crime). Increased social stability results.
	With tax on any transaction increasingly calculated by the system, taxation can become pinpoint precise. For example the tax take on minicab journeys booked to a school for child passengers can be defined separately from normal taxi market taxes.
	Supply chains are formed and discarded in minutes: firms trade with far higher numbers of suppliers.
	New metrics are required to measure economic activity. The Dow, Footsie or Hang Seng may become less watched indicators than, perhaps, the circulation of money and investment flows within National Markets.
	There is far less waste in the economy, local individuals buy up second hand furniture, books, clothes etc through the system for refurbishment or immediate reselling.

Of course, there could be downsides. Unsustainable consumerism might be unleashed by increased cash circulation. Jobs could be lost if large corporates fail to grasp new opportunities through the system. Fiscal policy will have to deal with these issues as it already has to cope with multiple problems in a world that will never stand still.





© Guaranteed Markets Ltd (UK) 2005. Some of the technology disclosed is patent pending. "NEMs" and the chained faces logo are trademarks used with permission. All rights reserved.