Business-to-Business Portal
The Sectoral Banks would jointly own a business-to-business portal, in the style of Alibaba: a one-stop-shop where companies can find a factory or farm to procure the products they need.
The importance of such a service should not be understated. In China, it has contributed tremendously to the success of manufacturers, and has made the operations of business that rely on them, far easier. Opening such a channel for businesses to trade, would be a boon for the economy.With the Sectoral Banks in place, corporate taxes would be returned to business, in line with Georgist principles and those of the New Physiocrats. Growing corporate profits would translate into balanced, broad-based growth in all sectors and regions. With all cylinders firing in unison, the positive effects of growth would be felt by all, with the most minimal possible tax burden, with minimal state ownership, and with substantial growth in consumer purchasing power. The resulting economic diversification would mean an economy that is prepared for any shock or opportunity that may arise. As the mechanism for distributing the funds in the Sectoral Bank system would be automatic, the opportunities for lobbying, subsidy requests, and corruption would be replaced with a fair means of support for business.
The unused portion of the funds that would be distributed to the Sectoral Banks, would be taxed (as described above) and redistributed back evenly back amongst the Sectoral Banks again. This ensures that capital would always be automatically distributed to the sectors where there is a demand for investment, instead of collecting in pools of unutilized cash.
In the case of customs unions and various other forms of political-economic unions (such as the EU), these principles could still be applied, with each country having its own set of Sectoral Banks. However, the New Physiocratic rules would mean that revenues from sources such as trade tariffs and taxes on short-term capital inflows would have to be distributed to each country by the overarching governing body. If distributed according to population (as opposed to economic output), this may achieve a small but important redistributional effect, and would aid in the industrialization and modernization process.