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 “catallactics” to describe the economic order of
a free market.

The exchange is the essence of markets and therefore development and wealth. Exchange in its
form of free trade and mutually 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 voluntary 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
opportunities 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:

1.Countries restrict free legal migration and working worldwide while creating
disturbing incentives for illegal immigration

2. High-tax countries punish low-tax countries for corporate vehicles, which serve
entrepreneurs.

3. Banking access is heavily restricted in name of the fight against “terror financing and
fraud”.

4. Legitimate business activities are made difficult by onerous regulation.

5.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 can’t 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 hasn’t led to substantial
advances in the standard of living. Far more, cheap or free goods destroyed local
economies, disincentivized 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 which Katalatto stands for:

• Knowledge Transmission ; David Hume
• Entrepreneurial Action ; Adam Smith
• Free Trade : Richard Cobden
• Spontaneous Order ; Adam Ferguson, Bernard de Mandelville
• Leopold Kohr ; Decentrevolution.