NGO Another Way (Stichting
Bakens Verzet), 1018 AM
SELF-FINANCING, ECOLOGICAL,
SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
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FREE E-COURSE FOR DIPLOMA IN INTEGRATED DEVELOPMENT |
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MODEL (PROJECT) FOR SUSTAINABLE ECOLOGICAL
SELF-FINANCING INTEGRATED RURAL AND POOR URBAN DEVELOPMENT
FOR THE WORLD'S POOR.
Sustainable fully
ecological self-financing poverty alleviation in rural and poor urban
environments, incorporating an innovative package of social,
financial, and
productive structures, with basic services necessary for a good quality of life
for all, a leading role for women, and numerous renewable energy applications.
Version 08 : 05 May, 2011.
Version 13 : 10 January, 2014.
01.02 SAMPLE
EXECUTIVE SUMMARY FOR
(INTEREST-FREE LOAN FINANCED) SUSTAINABLE ECOLOGICAL
INTEGRATED
DEVELOPMENT PROJECT (NAME AND PLACE OF PROJECT)
“Like the biosphere, the living economies we seek will
self-organize within a framework of market rules. Rooted locally everywhere and
dependent primarily on their own resource base, they will have built in
incentives to optimize creative adaptation to local microenvironments. With the
decision-making powers of ownership distributed among the community’s
members in their multiple roles as producers, consumers, and citizens there
will be a natural incentive to internalize costs and manage resources
responsibly.” Korten D., The New Economy : Design for
Life. Can we design a self-correcting society?, YES! Magazine,
This project has been prepared
following an innovative Model for self-financing, ecological, sustainable local
integrated development projects. It covers a complete package of social,
financial, productive and service structures for on-going sustainable
development in the beneficiary community. All of the Millennium Goals are
surpassed in the project area except for vaccinations and curative medicine and
goal 8 which has nothing to do with local
development. They have been excluded because they tend to cause financial leakage. The
project has been worked out together with the people concerned, who plan,
execute, run, own and, where necessary, pay for all the structures set up. All
structures are organised to ensure that women play the leading role in all
project activities. Finance, technology and human capacity building are
practically integrated with each other to offer feasible, sustainable solutions
to development in the project area.
All social, financial, productive and service
structures provided automatically include all of the people in the project area
without exclusion. The overriding concept is the attainment of a good quality
of life for all there. The project promotes a general mobilisation of the local
population.
The model for integrated development itself takes the form of the simple standard project
index used for the
drafting of the project documentation .
For extended information on an given aspect, click on the
blue links.
PROJECT
PRESENTATION.
A 32-slide Powerpoint
presentation.
PROJECT AREA.
[One paragraph on the project location, size, population]
[Maps]
SOME BASIC
ISSUES.
The project provides innovative and complete solutions
to many basic problems in the project area, including the following, which
are listed in alphabetical order.
Agriculture and food security.
Ecology, conservation and adaptation to climate change in
the project area.
ANTHROPOLOGICAL JUSTIFICATION OFPROJECT STRUCTURES.
This integrated development project is anthropologically justified. It is structured for about (10000) households (50000 users), providing
a wide range of goods and services and a local market to consume them.
Individual community members remain close to all project structures and are
free and encouraged to participate in them. This type of structure arose about
3.500 years ago with the Greek city states. There are about (45) intermediate
administrative structures each with 1500-2000 inhabitants, with some
specialisation of tasks. These are called well commissions. This type of
structure arose about 7.500 years ago. There are about (200) local
administrative units, each with about 150-250 people. These are called tank
commissions. This type of structure formed about 13.000 years ago in
The principle of subsidiarity
with its chain of responsibilities
is applied throughout. Structures should operate at the lowest possible
level. Tasks and responsibilities are logically dividedamongst the three
administrative levels. The chart showing some typical examples of vertical specialisation illustrates this.
For full details refer to the
Powerpoint presentation : basic project architecture.
All structures created in the project area
operate on all three anthropological levels described above. They are created
in a critical order of sequence.
The first structures to be created are the
social structures, starting with health clubs permitting women to organise and
vote en bloc at meetings; then the tank commissions, then the well commissions,
then the central committee or project parliament. The financial structures
follow, starting with the local money (LETS) system, then the interest-free cost-free
cooperative micro-credit system, then the cooperative purchasing groups. Once
the first two financial structures are in place, productive structures can be
set up to make items needed for the planned services, including distributed
drinking water and sanitation services.
For details see the Powerpoint presentation on
the basic project structures.
For
full details please refer to the structures to be created.
LONG-TERM GOALS.
The long term goals of this
integrated development project include:
01. To sustain on-going
improvement of the general quality of life well-being and health of the local
people, without exclusion.
02. To promote an
autonomous, cooperative, interest-free, inflation-free local economy in the
project area.
03. To stop financial leakage from the project area.
04. To dedicate human
resources in the project area to local production and development.
05. To permanently reduce water borne, malaria and other
infectious diseases.
06. To decrease child mortality and promote family planning.
07. To increase literacy levels for all,
especially for women and girls.
08. To eliminate dependency
on fuels and food imported from outside the project area.
09. To help reduce deforestation and
global warming and to adapt the project area to
climate change.
10. To create value from locally recycled organic waste and non-organic solid waste.
11. To create a
"maintenance culture" to conserve the investments made.
12. To promote women's rights and
a majority participation of women in all of the project structures.
13. To provide all of the
inhabitants in the project area with full-time cooperative productive
deployment. (“Full employment”)
14. To help stop the
movement of population from rural areas to towns.
15. To surpass all of the Millennium
Development Goals in the project area with the
exception of vaccinations and curative medicine and goal 8, which has
nothing to do with local development.
EXPECTED SHORT-TERM RESULTS.
Once the planned structures
have been created the local population is able to what they want according to their
own capabilities and initiatives. Activities carried out under the local
exchange system using local labour and materials do not need a formal money
(Euros) budget. That is why, for example, so many simple local schools can be
built without adding to the formal money project budget. Since local level development commissions act
independently of each other, a school can be built in each commission area
contemporaneously with schools in all the other areas. The same concept applies
to homes for nurses, food storage facilities, plant nurseries and so on. The
same concept applies at the intermediate level for secondary schools, the
construction of clinics for doctors, seed banks, and so on. That is why these
important activities carry little weight in the formal money budget.
The expected minimum direct
results automatically built in to this project are :
Democratic
social structures preferably with a majority women’s
participation.
01) (200) Community health clubs formed and operating in the project area; on-going hygiene education
courses provided in (35) schools.
02) (200) Local development committees with 5-7 members formed and operative each serving 50
families (250 people).
03) (45) Intermediate
level development committees with 5-7 members formed and operative each serving about 350 families
(1500 people).
04) One central committee with (45) members formed and operative serving the entire project area
(10.000 homes; 50.000 people).
Financial structures to
counter credit crises and related savings.
05) One local exchange system
formed operating serving (200) local development areas, (45) intermediate
development areas, and the whole project area.
06) One interest-free, cost-free
cooperative micro-credit system formed and operating serving
(200) local development areas, (45) intermediate development areas, and the
whole project area.
07) Cooperative purchasing groups
formed and in operation serving (200) local development areas, (45)
intermediate development areas, and the whole project area. (Voluntary
purchasing groups, medicines, education, home power systems etc).
08) The local cooperative development
fund saves Euro
Social security structures.
09) A three-tiered social security system formed and in operation serving (200) local
development areas, (45) intermediate development areas, and the whole project
area.
Water and sanitation and related
savings.
10) Appropriate sanitation installed in each of the (10.000) homes in the project
area and in public places.
11) (45) multi-pump boreholes/wells drilled/dug and
equipped with multi-unit hand-pump installations and washing places. Benefit for washing places 4 hours/woman a week = Euro 624.000 per
year.
12) (200) high-pressure solar pumping systems installed each serving
about 50 families (250 people) providing a permanent safe drinking water supply
in the project area in all foreseeable circumstances.
13) (200) water tank units installed within a radius of 150-200m from
users' homes. Average benefit 1 woman/hour’s water fetching per
day, benefit Euro 1.095.000 per year.
14) 10.000 locally built rainwater collection systems installed on
individual dwellings.
15) Efficient drainage systems for wastewater from [number] inhabited centres.
16) [Number] 5m3 wastewater collection tanks installed on farmland for
micro-irrigation.
Organic and non-organic waste recycling
and related savings.
17) (200) systems for the collection and recycling of wastes set up and
operating at local development area level.
18) (45) systems for the collection and recycling of waste products set
up and operating at intermediate development area level.
19) One system for the collection and recycling of wastes set up and
operating at project level.
20) Fertiliser savings.
Health facilities and related savings.
21) (200)
Local nurses housed and staffed
(and eventually paid) at local development level.
22 ( 45)
Doctors’ facilities built at intermediate development level, to be
staffed according to availability of medical staff.
<23) Plans for a local basic hospital at project level drawn up. Construction maintenance and some services under the local money system. >23)
Plans for a local district hospital drawn up . Construction some services and
maintenance under the local exchange system set up.
24)
Reduction
of medical treatment costs for water-borne diseases, 50% of the population
(25.000 part of 50.000) at least once a year x average cost for medicines and
doctor’s fees average Euro 20
= 25000 x Euro 20 = Euro 500.000
25) Productivity increase due to reduction in illness caused by
water-borne diseases :
26) Reduction of 50% in the cases of malaria, (being 40% of the population at
least once a year) through drainage of surface waters, use of mosquito nets,
hygiene education courses etc.
Reduction of 50% of costs for of 40% of the population at least once a
year, being 50% of the costs of
20.000 persons average anti-malaria treatment (Euro 10 per case) or Euro
200.000, of which 50% = Euro
100.000.
27) Increase of productivity due to reduction in the
number of cases of malaria :
29) 45 bicycle ambulances built and manned, one for each intermediate
development level.
30) 3 simple ambulance structures operating on locally produced fuels,
for urgent cases at project level.
31) (200) Primary schools built at local development level and staffed.
32) (45) Secondary schools built at intermediate development level and
staffed.
33) One trades school established and operative at project level and
staffed.
34) One preparatory year course for
university students at project level set up and staffed
35) (200) primary schools, (45) intermediate schools, (1) trades school
and (1) university course facility equipped with PV solar power for lighting.
36) (200) local study rooms built at local development level.
37) (200) study rooms equipped with solar PV power for lighting.
38) (200) on-going evening classes for adults (especially women) staffed
and in operation.
Improved cooking facilities and related savings.
39) 10.000 locally manufactured improved cooking stoves distributed and
in use with a corresponding reduction in smoke-related health hazards.
40) Elimination of the need to fetch firewood 60% of families (being 60%
of 10.000 families or 6.000 families)
x 4 hours per week (or 40%
of a 10-hour working day) x revenue
Euro 3 or Euro 1,20 per week. Euro
41) Reduction in the costs
of purchase of wood for cooking (or
alternatives) : 40% of
families (or 40% of 10.000 or 4.000
families). In town (or larger centre) a 5 person family typically uses about +/- € 0,75 worth of wood or
equivalent per day. Reduction
of 65% through the use of improved stoves Euro 0,50 per
42).
«Automatic » reforestation
Agriculture and food sovereignty
and related savings.
43) (200) plant nurseries set up and in operation at local development
level.
44) (45) plant nurseries set up and in operation at intermediate
development level.
45) Reduction in the costs of treating people suffering from hunger, or
due to inadequate hygiene, or caused by smoke in and around homes : 25% of
the population at least once a year x average costs for medicines and
doctor’s fees Euro 20 = 25000
x Euro 20 = Euro 250.000.
46) Reduction of 80% in the costs of importation of food into the project
area.
47) (200) Food
storage facilities built and staffed at local development level.
48) (45) Food
storage facilities built and staffed at intermediate development level.
49) Benefits from the plantation of 600.000 fruit and nut trees, 400.000
bamboo plants (bamboo shoots), and 1.440.000 Moringa (horseradish) trees whose leaves can be
consumed as spinach.
50). 45 seed banks set up and operating at intermediate level.
51). 1 seed bank operating at project level.
Food milling and related savings.
52. (200) energy-neutral hand milling installations set up and in
operation at local development level.
53. Through the introduction of mills,
Production of mini-briquettes for cooking.
54. (400) contracts for the supply of bio-mass for the production of mini-briquettes
signed and in operation.
55. One Demonstration project for the
recovery of forest lands and natural parks and reserves using traditional
species set up and in operation. 1.200.000 trees (400 trees per hectare over
56. (200) initiatives at local
development level for small-scale agro-forestry
activities such as distributed bamboo plantations on grasslands and croplands
carried out. Average
57. (200)
small-scale
agro-forestry activities – distributed demonstration plantations for
practical purposes for local use, including but not limited to Moringa
plantations on marginal lands. Average
58. (200)
demonstration forestation and/or reforestation projects
using Jatropha
or equivalent on
lands having low inherent potential to support living biomass.
Average
PV
lighting for study purposes; lighting and photovoltaic refrigeration in clinics
and related
savings.
Biofuels.
65.
Transport and communications.
66. (500) km of tree-lined paved and drained
bicycle/footpaths laid and in use.
67. (200) local radio-telephone units or
equivalent created and in operation at tank commission level.
68. 1 local radio station
established, staffed, and in operation.
Production facilities.
69. 4 cooperative units for the production of
items made from gypsum composites established
and in operation.
70. (45) cooperative units for the production of
mini-briquettes for high efficiency stoves
established and in operation at the intermediary development level.
71. One cooperative for the installation and on-going maintenance
of water system structures set up and operative.
COMPLIANCE WITH THE EARTH CHARTER.
This integrated development
project fully complies with all of the requirements of the Earth Charter. They
surpass all of the requirements of the Millennium Development Goals in the project
area except those related to vaccination and curative medicine and some parts
of goal 8 which have nothing to do with local
development.
PROJECT COSTS.
Each project in
non-pastoralist areas costs about € 5.000.000, of which 25% is provided
by the inhabitants themselves by way of work carried out under local money
systems set up in an early phase of project execution. This leaves a formal
money (Euros) initial financial requirement of about € 3.750.000 per project.
Projects in pastoralist areas
cost about € 7.000.000 each of which 20% is provided by the inhabitants
themselves. This leaves a formal money (Euros) initial financial requirement
for pastoralist areas of about € 5.600.000 per project. The difference
between pastoralist and non-pastoralist areas is determined by the additional
drinking water and food supply requirements of herds in pastoralist areas.
For budget purposes, the
participation of the local people (expressed in hours of work under the local
money system) is converted into Euros at an agreed rate for each eight-hour
working day. This rate is usually Euro 3. Where initial seed capital
(respectively € 3.750.000 or
€ 5.600.000 per project) is not available by way of grant, project
applications can be self-financing, subject to an interest-free seed loan
repayable in 10 years.
REPAYMENT (WHERE NECESSARY) OF INITIAL INVESTMENT LOANS.
Initial capital investments
are covered and repaid where necessary by the populations.
Local cooperative micro-credit fund.
The fail-safe way of financing
integrated development projects is through the local cooperative development
fund set up in the project area. The local population makes a monthly payment
of (at least Euro 3) per family into this fund. The very poor, sick and
handicapped can be subsidised under a three-tiered social security system set
up for that purpose. The money in the fund is systematically recycled interest-free
to the local users for micro-credits for productive investments amounting in
all to at least € 16.000.000 (or more than € 1.500 per family) over
the first ten year period.
The fund is organised so that
the amount in the fund is sufficient to repay the initial interest-free capital
investment in a single lump sum after the first ten year operational cycle. In
case of repayment, the amount in the
fund drops temporarily back to zero. The families continue to make their
monthly contributions, so the amount in the Fund gradually builds up again
during the second ten years period as it did in the first, and is again
recycled interest-free for micro-credits for productivity development until it is
needed to pay for capital extensions and replacements after twenty years. At
that point, the Fund dips back to
zero again and slowly builds up again during the third ten-year period and so
on in an inherently permanently sustainable way.
For full information on the
Local Cooperative Development Fund see part the interest-free micro-credit systems-introduction
and part the interest-free micro-credit systems - more details. A detailed costs and benefits analysis is
available.
An innovative menu of 13
applications for CDM finance under the Kyoto Protocol would also have provided
full finance for integrated development projects within a period of six or
eight years. Unfortunately, the bottom has fallen out of the CDM carbon credits
market. Prices for carbon credits are now so low that compliance costs are
higher than the benefits to be gained, notwithstanding the simplification
procedures introduced to pay lip service to the introduction of CDM projects in
poor countries.
In theory net CDM income per
project would have been to the order of € 24.000.000, enabling standard
projects ( initial capital € 3.750.000) to be repaid by the end of the
sixth year of operation on the basis of CDM income for the first five years,
and projects in pastoralist areas (initial capital € 5.600.000) to be repaid by the end of
the eighth year of operation on the basis of CDM income for the first seven
years.
Green Climate Fund for climate
adaptation.
Integrated
development projects automatically incorporate nearly all action recommended
for adaptation to climate change in poor countries and communities. For this
purpose, a Green Climate Fund for Climate Adaptation
is in the course of being set up as an operating entity of the United Nations
Framework Convention on Climate Change (UNFCCC). Subscriptions by donor nations
to the fund amounted to the princely sum of about US$ 9 million on 17
September, 2013. As the country hosting this project qualifies for assistance
for adaptation to climate change under the Green Climate Fund, the national
government could include the project in its climate adaptation plan.
For information on
how integrated development projects deal with climate change issues see : climate adaptation
applications built into integrated development projects.
PROJECT
BUDGET.
Full technical information on
project budgets is available at the section project costs</a: which contains the
following 17 files :
02. General sketch of the
financial structures.
05. Description of the local
contributions.
06. Method for calculating
local contributions.
07. Relationship between local
money and formal money.
09. The budget in a form
requested by donors/financing parties.
10. Annual expenses (budgets
per year).
12. Excel spreadsheets for the
preparation of the budget.
13. The sustainability of the
system.
15. The bank structures with
limitations imposed on the project coordinator.
17. Protection of donors and
financing parties.
Funds for some
“productive structures” are individually listed on the balance
sheet to cover the formal money costs of their formation. These interest-free
formal money loans are paid back into the project’s Cooperative Local
Development Fund over a period, usually 4-5 years, considered realistic by the
participants themselves. Individual loan repayments are financed by the sale of
a part of the production for formal money OUTSIDE THE PROJECT AREA until loan
repayment is completed.
INNOVATIVE ASPECTS OF THE PROJECT.
General
notes :
01. The concept of the creation of enabling
social, financial, productive and service structures as a foundation for
integrated development in project areas is profoundly innovative. The
development revolution lies in the organisation of the proposed project
structures. Once the structures are in place, the local populations will have
the instruments available to be able to take their preferred development
initiatives.
02. The critical order of sequence for the
creation of project structures is vital, starting with social structures, using
the social structures to set up the financial structures, then using the
financial structures to set up production units for locally produced items
needed for the service structures, then finally the service structures
themselves.
04. The local people themselves plan, execute,
run, manage and, where necessary, pay for all structures. They are assisted
during the initial project execution period by a (very) small team of experts
led by a local project coordinator.
Agriculture
and food security :
01. The production of fertilisers through the
recycling of urine and faeces at household and/or local level is sufficient to
grow all basic foods needed.
02. The recycling of household kitchen and garden
waste at tank commission level provides food for chickens, goats, and where
socially appropriate, pigs, thereby providing variety in diets.
03. The institution of plant nurseries under the
local money system optimises local cultivation and the use of (local) seeds.
04. Plantations with fruit and nut trees, bamboo, and Moringa
(horseradish) and Jatropha trees provide both food security and raw materials
for numerous local productive applications. Had the bottom not fallen out of
the market, carbon emission reduction certificates (CERs) under the Kyoto Protocol’s
CDM mechanism could have been used to repay initial capital advanced for the
project.
Ecology,
conservation and energy :
03. The proposed combination of methods and
technologies is in line with the principles of Mother Earth recently introduced
by legislation in
04. Extended use is made of sustainable
energy technologies, such as widespread application of photovoltaic energy
installations.
05. The project is CO2 neutral. All energy involved is sustainably produced and consumed in the project area itself.
06. Wide use is made of gypsum composites.
Gypsum is 100% inert. While gypsum-based products which are no longer needed
will be returned to the production units for 100% recycling into new products,
they do not cause any harm to persons or to the environment in any way even
where they are abandoned in nature. The gypsum needed for the project can be
mined (locally) on a very small scale for local consumption only.
Education
:
01 It is possible to build any required number
of schools and accommodation for teachers using local labour and materials
under the local money system. This means the schools are cooperatively built
and owned by the local populations, while at the same time, local builders and
suppliers are always fully paid for the work they do.
02. Teachers can be paid, or their state-paid salaries supplemented, by the local populations under the local money system.
Finance :
01. An innovative local money system is blended with a cooperative interest-free, cost-free, micro-credit system operating under the local money system. This may be the single most innovative aspect of the project proposal.
02. The local exchange system is used to mobilise the local populations. All adult members of the population are automatically members of the system, but users may always choose whether to use the local money system or the formal money system for their transactions. The local money system supplements and therefore does not replace the formal money one.
03. The innovative interest-free and cost-free
micro-credit system proposed is run by the people themselves and the funds used
are theirs. Fierce social control should ensure repayment of all loans.
Conservatively based on an average pay-back time of two years, the system
generates at least € 1.500 of interest-free credits for productivity
development for each family in each period of ten years.
Health :
01. Health proposals covered by the project are
based on preventive social health action and not on curative medicine.
02. Subject to the availability of doctors over time, up to [45] local medical centres including appropriate accommodation for doctors can be built under the local money systems using local labour and materials. This means the centres are cooperatively built and owned by the local populations, while at the same time, builders and suppliers are always fully paid for their work.
03. Doctors can be paid, or their state-paid salaries supplemented, by the local populations under the local money system.
04. Up to [200] nursing points including accommodation for nurses will be built under the local money systems using local labour and materials. This means the nursing points are cooperatively built and owned by the local populations, while at the same time, builders and suppliers are always fully paid for their work.
05. Nurses can be paid, or their state-paid salaries supplemented, by the local populations under the local money system.
06. Medicines are cooperatively purchased in
bulk by the project according to medical prescriptions. For the purpose a
cooperative health insurance fund is set up. Local nurses ensure the medicines
are administered according to prescription.
Water
and sanitation :
01. For drinking water supply, a hub and spoke
concept is used whereby, assuming borehole capacities permit, several high
pressure solar pumps can be installed in series in one large diameter borehole
feeding 5-8 distributed drinking water points, forcing water where necessary
over a distance of several kilometres. This means that just [45] high capacity
boreholes need to be drilled instead of [200] boreholes as would be the case in
conventional projects, leading to important cost reductions for the drinking
water supply system.
02. Use is made of gypsum composite
technologies for the local manufacture of water tanks, toilet systems, high
efficiency stoves, support structures for buildings, school furniture etc.
These can in principle be 100% manufactured, installed and maintained under the
local money system set up without the need for any formal money capital at all.
03. Ecological locally built dry composting
toilet systems with separation of faeces and urine are used. Urine and faeces
are safely recycled at tank commission level for productive purposes.
Women’s
rights:
01. An elective system ensuring a leading role for
women in all structures at all levels is applied.
02. Women are the major beneficiaries of the wide
menu of time-saving and capacity building-structures set up during project
execution.
03. The autonomy of women in the project area is
improved through the interest-free, cost-free micro-credit loans for
productivity purposes made available to them.
04. Women’s rights as defined in human rights treaties are fully
respected.
REPLICATION POTENTIAL.
The project documentation has been drafted under an innovative Model for
self-financing, ecological, sustainable local integrated development projects.
About 20 individual projects are therefore needed for each 1.000.000
inhabitants
By way of example, a sub-regional plan for the integrated development of
West Africa under the auspices of the Organisation of West African States
(ECOWAS, French UEMOA) excluding
Depending on accessibility and population densities, detailed district
plans, regional plans and national plans can be prepared for just a
few Euro cents per inhabitant. Students and NGO members drafting project
documentations automatically qualify to act as project coordinators for the
individual projects they have drafted.
Each integrated development project sets up an autonomous, interest-free,
inflation-free, cooperative local economy system. Subject to availability of
finance, there is no limit to the number of projects which can be executed contemporaneously.
A COMPLETE POST-GRADUATE COURSE.
Just reading the course material provides full
information on the concepts and methods the Model (and therefore the project)
is based on. Material available there includes detailed reference lists and
key-words lists linked to the sections of the course where the subjects are
handled.
Forward: list of drawings and
graphs.
Money
is not the key that opens the gates of the market but the bolt that bars
them."
Gesell,
Silvio, The Natural Economic Order, revised English edition, Peter Owen,
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