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Name: Katalatto LP

Jurisdiction: Scotland
Mission Statement: Producing Freedom
Background:
Katalatto is the Ancient Greek term for to exchange. It also means to make foes to
friends. F.A. Hayek derived from it his term cattalactics to describe the economic order of
a free market.
Exchange is the essence of markets and therefore development and wealth. Exchange in its
form of free trade and mutual beneficial cooperation is the guarantor of peace in a
multinational world. The Greek meaning to make foes to friends attests to this.
Unfortunately, exchange in form of volunatry trade and contract is frowned upon by
contemporary political elites. While even in developed, democratic states starting to trade is
onerous at least, people in poorer countries have no opportunity whatsoever. They do lack a
stable rule of law without corruption, access to banking and financing opportunities and
suffer under heavy regulation and taxation.
With the advent of Internet, some Westerners are able to break free from governmental
restrictions. Their upbringing in still wealthy, but obviously degenerating Western societies
and knowledge of diverse languages enables them to search opportunities at home as in
other countries. They acquire knowledge many people cannot access. They see the
opportunties of the world as a marketplace and act on them. They diversify their life globally
without forgetting their heritage.
Even for them, the hassles are multiple:
- Countries restrict free legal migration and working worldwide, while creating
disturbing incentives for illegal immigration
- High-tax countries punish low-tax countries for corporate vehicles, which serve
entrepreneurs
- Banking access is heavily restricted in name of the fight aganst terror financing and
fraud
- Legitimate business activities are made difficult by onerous regulation
- Hiring foreign employees is frowned upon as wage exploitation
As one might imagine, poor people have it even harder. They have hardly any opportunity
for legal emigration, while they cant form a profitable business at home. Not only rule of law,
infrastructure, banking and payment services are lacking, but they face a competitor hard to
perform with: foreign governments.
For decades, poor countries have been hindered in their development by so called
development aid. Yet often well-meaned support for the poor hasnt led to substancial

advances in the standard of living. Far more, cheap or free goods destroyed local
economies, discincentivized local entrepreneurs and created fatal dependencies.
While fatal development aid is likely to continue, local entrepreneurs are not required to
compete with it on the ground. They can orient themselves globally in our modern
knowledge society. They can provide services and sell products with the advent of modern,
decentralized technologies. They can serve their local community better when serving the
global society. There is no need to be subjected to bad laws and structures in most
countries. Already now there are alternatives - people just need to know about and act on
them.

Central Ideas
1. Knowledge Transmission
David Hume

2. Entrepreneurial Action
Adam Smith:

3. Free Trade
Richard Cobden:

4. Spontaneous Order
Adam Ferguson
Bernard de Mandelville

5. Decentrevolution
Leopold Kohr

Core Activities:
1. Business Registration:
To form a sustainable business, a binding legal structure protecting assets is required for
growth. In many countries, forming those structures is near to impossible for many people.

Business entitities tend to be expensive, needing a myriad of documents and visits with the
authorities. In some countries, it can take up to 4 months to form a business.
Even when the entity is successfully formed, complicated laws, onerous regulation and high
taxes make it difficult for low-earning entrepreneurs to make a living. Instead of giving back
their growing wealth to their local community, money too often comes into the pockets of
corrupt officials.
Yet in most of those countries, operating a foreign business is totally legal. Other countries
provide much more favoruable and faster business foundation procedures for a cheaper
price, have less but more efficient regulatation and tax fairly. Greater reputation and the rule
of law make capital accumulation easier over the long-term.
Katalattos mission is to provide the knowledge and access to cheap and good business
entities in other countries. Katalatto identifies opportunites and works with local partners to
make registration of business entities for developing world entrepreneurs possible. Katalatto
helps with financing the start and knowledge for bureacratic things to enable local
entrepreneuers to fully concentrate on their business.
Katalatto currently works with business entities from the following countries.
1. Montenegro
2. Georgia
3. Estonia
4. United Kingdom
5. United States

2. Banking and Payment Access


Undeniably, forming a business alone is worthless without having payment providers and
banks. Yet over 3 billion people in the world are still unbanked. Helping them to save
money and invest into themselves can be a huge leap forward.
Small entrepreneurs need low-cost access to payment providers without hefty fees. Even
more, they need to be able to safeguard their business and personal funds from soaring
inflation, government expropriation and currency devaluation. Being able to work remotely
for high-wage countries and saving money in stable currencies is a way worth considering
for many.
The modern tools of payment and banking are already available - but people have to know
about them. Katalatto works together with financial service providers targeting the
developing world and enabling people there easy and low cost access to payment systems if online or physical POS terminals with low comissions. Katalatto identifies banks, e-money
providers and crypto-wallets enabling people to save in stable currency and withdraw for
less cost when needed. Katalatto informs about low-cost money transfers around the world without the hefty fees of Western Union and alike.

Katalatto also campaigns for more efficient, streamlined Know-Your-Customers procedures.


The current system regarding Anti-Money-Laundering and Terror Financing makes it very
hard for developing worlds people to verify their identity. They just dont have utility bills,
bank references or even passports. Katalatto identifies modern high-tech compliance
solutions and promotes their usage for banks and payment providers alike.

3. Legal Emigration and Second Citizenship


While it is a hard decision to leave a country, some people have no other choice. Opressive
political systems, bloody civil wars or desperate poorness lead to modern migration to
perceived better countries.
Yet many of those countries create disturbing incentives for illegal immigration, while
blocking out people who really would earn it to live in a country. Modern asylum seekers get
high social security a multiple their local wages. At the same time, they are not allowed to
work or legally start a business. It should not be a surprise to many that wrong incentives
make wrong people come.
Katalatto holds the concept of Open Borders in high esteem, but admits its dysfunctionality
in a welfare world of bad incentives. Thus, Katalatto campaigns for real open borders by
highlighting easy access legal immigration schemes of certain countries while identifying
hypocrisy in others. The paradox of our times is that perceived open border countries have
closed borders and the other way around - the focus needs to be on legal, not illegal
immigration. At the same time, Katalatto shares the information needed to get people on the
right track for legal immigration and integration into the new society.
Even more, Katalatto targets the modern global apartheid of travel restrictions. Being born in
a certain country very much influences where to travel and live in future. Denying people
access to countries based on their arbitrary birth is the worst hypocrisy of mankind. While
nations should be able to protect their borders and keep out terrorists and criminals,
discrimination based on a peoples passport needs to stop. While change is possible,
Katalatto gives people real world strategies to acquire residence and even citizenship in
other countries to give them greater freedom in the global world.

4. Access to and Dealing with Knowledge


Getting the developing world access to business, payment and banking is the second step.
Even before, every human has to make clear to himself his skills, desires and life goals.
Starting a business - even globally - is an idea few people in developing nations have. Yet it
is not that they are not able - they just lack access to the knowledge needed to build skills for
the global marketplace.
Key are languages and the Internet. While teaching people English is a noble aim done by
many organizations, people would probably fare better accessing relevant information in

their mother tongue. Katalatto supports the editing and translation of its knowledge in as
many languages as possible. It aims for modern technology solutions translating English
sources into local languages.
To participate in the global marketplace, internet access is key. Enabling Western citizen to
break free from government, it enables developing world peope to leave misery behind. Yet
internet access - despite many initatives - is far from available for everyone on this globe.
And having internet alone is worthless if not knowing how to use it,
The internet has everything needed for everyone to start any successful business they like,
but people rather use it for leisure. Katalatto shows how to access relevant information
needed to prepare ones business. It supports courses for faster reading and more efficient
data processing as key skills of the modern knowledge economy. It campaigns for the
removal of intellectual propery restrictions as one of the key barriers against giving people
the education they need.
Katalatto moreover is a big proponent of free learning. Decades of government funding and
development aid have hardly elevated people into alphabetism. Children in developing
countries fare much better without top-down education, instead freely learning by doing with
modern technology. As one of the biggest keys to future change, Katalatto identifies and
supports institutions in development countries nourishing childrens born curiosity and
elevating them to a path of entrepreneurship and self-development.

5. Free Trade
What western governments currently do with developing countries is hard to swallow. They
destroy local economies with cheap or free goods while getting celebrated for their
development aid. At the same time, they charge horrendous tariffs and taxes of the remaing
business exports to their countries. It seems there are not interested in change - while their
businesses take in huge profits. And the development aid industry is neither. Getting the fish
is better for survival than teaching how to fish.
Protectionism is on the rise even in the first world - but it always was a problem in the Third.
Speaking of Free Trade is a global affair - not only something to deal betwen the Western
powers. Only real free trade with the developing world enables them to fully participate in the
global economy and elevate their countries out of poverty.
Like open borders for people, Katalatto proposes open borders for goods. Katalatto
campaigns for multilateral free trade and highlights positive examples around the world. At
the same time, it gives knowledge on the ground to developing country entrepreneurs how to
get cheaper access to the world markets and avoid tariffs and taxes.

6. Singularity
The world changes rapidly and technological growth gets exponential. The world is forming
into a global knowledge society where manual labor is performed by robots and artificial
intelligence. There is no sustainable future for third-country-nationals to work in production or
agriculture - they need to prepare for the modern knowledge society.
Katalatto is conscious of the evolution of humankind and welcomes rapid technologization.
Advancing freedom by sharing of knowledge, inventing technology and thinking
entrepreneurially is the only viable strategy towards liberty. The singularity is near - while
society largely is ignoring this, Katalatto uses the newest insight of science and technology
to advance local liberty of those who need it.
Particularly, Katalatto campaigns for the idea of decentrevolution - the advancement of
society towards singularity by means of the 6 D - decentralisation, democratisation,
demateralisation, demonetization, disruption and deception (see essay below). Seeing these
natural factors of the spontaneous orders, Katalatto prepares potential entrepreneurs to
exploit these forces for their business ventures. Using them itself, it is able to challenge
much larger NGOs and make a difference in the world.

Operation Objectives:
Katalatto is a personal project trying to operate as cost-efficient as possible. For the
beginning, Katalatto is fully financed by stil low own business earnings. No donations
wanted. Katalatto obliges itself to never accept any government funding or any other funding
which sacrifices its independence. Katalatto is neither a NGO nor Think-Tank in the typical
sense - it is a social business following the principles of free markets. Relevant knowledge
given for free to people in need often is similar relevant knowledge for wealthy people able to
pay. Katalatto thus might be seen as an pro-bono offspring of a profitable consulting
business - wealthy customers get relevant advice and finance with this advice for free for
poorer people.
Being a NGO of the knowledge society, Katalatto will operate in the most decentralized
manner possible. Key is to identify and board interested volunteers helping Katalatto to
spread its work in the local communities. Helping Katalatto, volunteers become part of a
community of liberty-minded shapers growing into something huge. Katalatto consciosly
does not have great plans. Instead, we go with the time and will see, what spontaneous
order brings to us.
Katalatto does not need to reinvent the wheel. Knowledge is available, but needs to be
highlighted in a short, precise manner and made accessible for those in dire need of it.
Instead of being focused on one local project, Katalatto serves the world. It is an aggregator
of and implementer for knowledge able to help people out of their current situation. Katalatto
does not give fish - it teaches people how to fish.

While tiny in the beginning, modern technology makes knowledge easy to scale and
automate. Even with a very small organization we can challenge large constructs by means
of decentralization and voluntary action. We give people in need the tools required to break
free. Over all, we value self-determination, entrepreneurship and local solidarity. People
working at and for Katalatto have utmost indepence nd freedom in doing their work as long
they are following the organizations objectives.

Key tasks for getting started:


1. Building a website highlighting Katalattos mission and giving relevant information
2. Promote the idea by getting active on social media, conferences and more
3. Looking for volunteers dedicating some time to the mission
4. Write key dossiers regarding business registration, payment and banking access, legal
emigration and more. Translate into relevant local languages (volunteers).
5. Look for cooperation partners (authorities, lawyers, registration agencies, payment and
e-money providers, micro-credit institutions, ) and agree on partnerships

Example for a project:

Estonia: Elaborating our ideas to E-residence officials, negiotiating a lower price for
e-residence for third-world nationals, finding a low-cost pro bono agency giving starting
credit, creating dossiers how to start an Estonian company, identifying banking and payment
solutions open for our project, write easy understandable manuals, translate and distribute
them to third-world countries by modern communication and decentralized local action
Estonian companies would make a great start for third-country nationals. They would get
business access to the EU, efficient regulation and rule of law, paying no taxes (retained
taxation) on their business income (only when distributing dividends) with the possibility of a
tax-free salary. Estonian companies have wide range of possible low-cost payment providers
third-country-nationals might be eligible. With e-Residence, they can easily found and
administer an Estonian company from their home country and (finally in 2017) get a bank
account there - with no fees, great for savings and withdrawals - no need to get a Visa and
pay a highly expensive flight. E-Residence companies are cheap (one might convince the
government of not charging fees at all for foundation as real development aid) and dont
need paid-in capital. Estonian companies can invoice clients around the world without
problems and help import goods for much lower tariffs than with local countries. Being a
reputable jurisdicition, it would be no problem to absolutely legally have an Estonian
company in most developing countries, even when using it for a local, physical business.
Same for other countries - like Limiteds in England.

Essay about Decentrevolution:


Decentrevolution dawns: The Trend Towards Tininess
Decentrevolution dawns. A cloud of key technologies is mounting unrecognised by many.
They have the potential to sustainably change and improve our society. Decentrevolution is
a revolution, but peaceful. It is a revolution which will not be showed in TV. It is a bottom-up
revolution, which is not recognized at the top yet. It is a revolution of the small that strives to
be big. Basically, it is only an evolution. An evolution towards tininess - towards more
decentral organisation.
I will call Decentrevolution what I as well as some others see mounting on the horizon.
However, what conceals this neologism? Why do its implications not show up in any
debate? Why is no one speaking about it?
Already now, politics and society are overburdened with the change the world is facing.
Complexity increased by technology and globalisation is indeed overburdening. Filed
lawsuits against new companies like Uber, AirBnB, Tesla or Drone-producers show this
clearly. Moreover, the problems of the present are more urgent for many than the
opportunities of the future. And the future is not a concept to predict, is it?
Although one cannot prophesy the future fully, one can rather forecast it on base of the
current reality. The reason many people being sceptically towards future and its implicated
progress lies in human nature. Humans are grounded into linear thinking, not into
exponential one. However, exponentiality is, what the upcoming decentrevolution still
conceals for many. Those who learn to think exponentially are those, who could capitalise on
the future. Those who continue thinking linearly, would have increasing problems to adapt to
the world they soon will live in. For example, a study of M. Olin School of Business at
Washington University suggests that 40% of the current Fortune500 companies wont
survive the upcoming 10 years.
When comparing linearity and exponentiality one recognises two different curves. Linearity
continously grows with the same factor, while exponential growth is doubling at the same
time. For some years, linear growth may have an advantage while exponential growth
vegetates below the perception threshold of many. If however a certain point is reached,
exponential growth will explode abruptly. Just near this point we are now.
Moores law describes many of those exponential developments. It is basically the
observation that, over the history of computing hardware, the number of transistors in a
dense integrated circuit doubles approximately every two years. Effectively, this means that
the output is improved or the price divided every two years. Despite that some see technical
limits to this law, others think that the integrating technical and exponential progress will
continue for a long time. They also believe the law can be applied to many other areas,
which can shape the future of our society.

To illustrate this let us go back to the computing power. Already nowadays, poor people in
third world countries of Africa have access to smartphones, which correspond to the best
possible technology available 25 years ago for former US president George Bush sr. Already
in 2020, it is estimated that the computing power of a 1000$ laptop corresponds to the brain
power of an insect. In 2040 the simulation of mice brain will be possible, already in 2060 the
human brain. Less than 20 years later exponentiality enables simulating the brain power of
all humans worldwide - from a normal laptop, note well.
As great as this sounds, one does not have to wait that long. Very much human brain power
is available for human progress much earlier. Starting with 23% in 2010, in 2020 66% of the
global population will have access to the internet, estimated conservatively. This will even be
more than 3 billion new brains able to bring about much more innovation through their
knowledge, experiences and ideas. Looking at ambitious projects like those of
Facebook-founder Zuckerbergor Tesla-founder Elon Musk, these numbers could even
increase. While the former is thinking about improved internet access through ballons and
drones, the latter thinks even higher and wants to enable global unlimited internet access
through satellites in the orbit. These technophilanthropists, whose number is likely to
increase in future by successfully created businesses in the new economy, will provide the
necessary capital - together with a growing number of people giving funding through
crowdsourcing a legitimate chance.
Now, what does this development mean for decentrevolution? To explain we can rely on the
six stages of exponentiality called the six D by X-Prize founder and bestselling-author Peter
Diamandis: Digitalisation, Deception, Disruption, Demonetisation, Dematerialisation and
Democratisation. For me, Decentralisation is step number seven for the exponential
revolution, uniting the former stages. First of all, I however want to give a short explanation
for each D:

Digitalisation: There are still many things in our daily life which work analogous, although
we may ask how long they still will. Our life has digitalised itself and will continue this. It will
be cheaper, faster and more efficient. Analogous companies will face a difficult situation in
future - digitalisation will consume them slowly but clearly. Best example for this is the former
camera producer Kodak. Once most famous company in the foto-business, the still huge
company had to file in bankruptcy in the same year as small digital 13-people start-up
Instagram was bought by Facebook for 100 million dollars.

Deception: Deception means that our current technology often deceives us. We do not
recognise new technologies because we think linear and do not see the opportunites of
exponentiality. However, what lies below our perception threshold today, can lead to
explosive exponential growth already tomorrow. Be it 3D-printers or crypto-currencies - often
it is the calmness after a hype where technology grows rapidly, albeit no one recognises it or
even sees a decay. For example, crypto-currency Bitcoin is not affected very much by its

dramatic price decline - more important is its blockchain technology and the resulting
opportunities also seen by many investors.
Disruption: Disruption is the creative destruction of old business areas, which creates new
and better things. Be it the limousin company Uber revolutionising urban mobility or AirBnB
revolutionising traditional vacationing - disruption is a new popular term, which will show up
increasingly in future. Despite all resistance from politics and society, it seems only a
question of time until the next business area is overrun by better ideas and recreated from
scratch.

Demonetisation: Closely connected to disruption is demonetisation. Old business areas like


hotels or taxi companies, where much money is wasted, will give way to more efficient
solutions. Money flows from the pockets of big business and government back in the hands
of individuals. Even intermediaries, which currently gain a lot with these businesses, have to
take care not to get disrupted themselves. Decentralised ideas like LaZooz try already now
to replace relatively new services like Uber. This development wont spare any business
areas - competiton cares for continous innovation.

Dematerialisation: Even 20 years ago there have been radios, televisions, computers,
GPS-systems and the first smartphones. However, they were comparatively expensive,
heavy, slow and hard to carry. Nowadays almost everyone has these things in his pockets.
Current smartphones unite thousands of functions into one where in the past one has
needed single appliances. This trend towards tininess will continue. It goes into direction of
tininess, which unites everything in itself. Already today, a growing number of digital nomads
exploits dematerialisation to earn money from every possible location in the world. All they
need comfortably suits a backpack - and soon probably even into pockets.

Democratisation: Democracy is no exclusive domain of politics, but also one of technology.


No democratic government in history enabled the equality which the internet offers us. Free
access to knowledge, entertainment, business opportunities and much more is maybe the
most joyful progress exponential growth of the internet has provided us - a trend which is
likely to continue. In the long-term, diverse technologies have the potential to fully
democratise the world and make equality of opportunities possible. All they will do without
restricitng freedom like practised by governents - in contrary they will enable freedom.
Freedom which also includes freedom to not be dependent on companies one do not want to
support. What one still buys without being informed, may well soon provide ones own 3D
printer.

Decentralisation: Revolutionary Decentralisation - Decentrevolution - I see as a immediate


consequence of the explicated six D. Decentralisation is not restricted to the linearity of
politics, its is enabled by the exponentiality of technology. Decentralisation is the movement
towards smaller units - the trend towards tininess. The consequences of decentralisation are
demonstrated by demonetisation, dematerialisation and democratisation. Its method is
digitalisation, which steps forward deceptively to suddenly reorder old business areas
disruptively.
Philosophers like Leopold Kohr have convincingly a
rgued, how tininess can improve our
world for the better. Ironically, he is most popular with those green citizen which try to resist
every new technology. Decentralisation by exponentiality of new technology can enable us
tininess. Yet greens think linearlyand see only the dangers of new technologies, for example
for the environment, while their exponential opportunities to solve those dangers and other
problems are not recognized at all. The upcoming Decentrevolution will teach them better. It
will even teach Leopold Kohr, who himself believed in the unreformability of capitalism by
itself - just where capitalism provides the main incentive for new technologies. Kohr belived
in the big bang - and maybe he is not that wrong with it. The Bang, the period where
exponentiality will show itself with an sudden explosion, is not that far away. Its implicatons,
which will radically decentralise and improve our lifes, are reachable. And no one is able to
delay them: decentrevolution dawns!