1771 ED Wieringerwerf,
E-mail: (nameatendofline)@xs4all.nl : bakensverzet
Incorporating innovative social, financial, economic, local administrative and productive structures, numerous renewable energy applications, with an important role for women in poverty alleviation in rural and poor urban environments.
"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, London 1958, page 228
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.
Edition 12: 17 January, 2008
In the first place, partners sign their partnership declaration as in section 4.10 Partners and co-donors.
The partners then form the 05.22 Project NGO [project name] for project execution.
Article.21 of the project NGO statutes provides that the members of the association are named one for each of the signatory partners.
Article 23 of the project NGO statutes provide that all of the members of the Board of Directors countersign authorisation for withdrawals from the capital fund on request of the Project Coordinator.
Article 24 of the project statutes provides that funds withdrawn from the capital account be placed in executive accounts operated by project coordinator.
Article 25 of the project statutes provides that withdrawals from the EXECUTIVE ACCOUNTS for amounts greater than [amount] be subject to the co-signature of the Chairman of the Board of Directors of the Project NGO, and that withdrawals for amounts greater than [amount] be subject to specific authorisation of the Board of Directors.
In practice this means that funds supplied by funding parties for the project are paid into a capital account in the name of the project directly controlled by the Board of Directors who directly represent the funding parties.
The project coordinator (who is nominated by the Board of Directors of the Project NGO who are in turn nominated by the project partners and funding parties) asks the Board of the Directors to pay the money needed into one or more executive accounts. The project coordinator is authorised to make smaller payments of up to [amount] independently, without further formalities. For larger payments, he must have payment vouchers countersigned by the Chairman of the Board if they are between [amount] and [amount]. For payments over [amount] he must seek the express approval of the Board of Directors.
4.20 audit structures enable the auditing commission (nominated by the partners and other funding parties) to carry out on-going checks of work progress. The auditing commission can do this both as a preliminary to release of funds from the capital account of the project to the executive account(s), and as a preliminary to the payment of larger sums from the executive accounts.
This form of protection is the most effective and innovative.
Project execution passes through a series of logical steps in the creation of the project structures. First the social structures are created, then the financial structures, then the productive structures, and finally the service structures. Exposure of investors at any one point of project execution is limited. Work on next following structures does not take place until the preceding structures are in place and in operation.
The new capital content of project structures tends to increase with progress in project execution. The first (the social and financial) structures to be set up have relatively low formal money capital content. The second (the productive) structures have an intermediate level of capital content. The last (the service) structures, and especially the distributed drinking water structures, have the highest level of capital content. By the time the service structures are to be installed, most of the work on them can be done under the local money system, operational costs and formal money reserves for maintenance and long-term replacement are already being collected, and local production of items necessary for the service structures is already under way.
The graphs in section 7.11 quarterly outgo show how a given structure must be created, according to the point reached in project execution, before the following structures can be set up. They also show that the most important formal money investments, especially the ones for distributed drinking water supply, can only be made once the social, financial and productive structures are in operation. The exact sequential order for execution of the various project activities is set out in section 06.01 the annual activity plan.
The formal money investments needed for the creation of the social and financial structures are not very large. Refer to :
Hygiene clubs, items 60101-60203.
Social and financial structures, items 60301-60505. ([amount])
Much of the work for the project is done by the local populations. Until the local money system and the micro-credit system are in operation, it is not possible to proceed beyond the first 15 items part of the activities of the third quarter.
Funding parties never have risk from following investments until the preceding structures are successfully operating. Total costs of setting up the social and financial structures up amount to about Euro 800.000, of which at least half should be recoverable through the sale of capital goods.
In the same way, service structures, the ones with the most formal money capital content, are not set up until the local production structures are in place and in operation.
The total amount at risk at any given moment during the project may not be greater than about Euro 1.000.000, part of which is expressed in capital items part of the cost of which should be recoverable.