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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Edition 09: 26 March, 2009.
Edition 10 : 09
December, 2011.
MENU FOR PEOPLE WHO CARE AND WANT TO MAKE A
DIFFERENCE.
CREATIVE
PRACTICAL SOLUTIONS TO POVERTY REDUCTION.
This website provides simple, down-to-earth
practical solutions to poverty- and
development-related problems. It sets out step by step how the solutions are
put into effect. By
following the steps, users can draft their own advanced
ecological sustainable integrated development projects and apply for their seed
financing. Social, financial, productive and service structures are set up in a
critical order of sequence and carefully integrated with each other. That way,
cooperative, interest-free, inflation-free local economic environments are
formed in project areas. Local initiative and true competition are then free to
flourish there.
More information :
Click here for a very simple summary of a typical integrated
development project.
Click here to see an
executive summary which provides a short analysis of a typical integrated development
project.
Click here to see
the Model itself, a standard project index.
Click here to see a full-year e-learning course at
post-masters level for the Diploma in Integrated Development (
Dip. Int. Dev.) The course is available on-line for use by
all. Anyone interested can follow the full course free of charge. The Diploma
in Integrated Development ( Dip. Int. Dev.) itself is awarded only to students following the course with
tutor support, against payment for tutorship on a costs-recovery basis. Diploma
graduates qualify to lead integrated development projects and to train others.
Just reading the course material provides full information on the concepts and
methods the Model is based on.
PROJECT STRUCTURES.
Integrated
development projects are anthropologically justified. Projects under the Model
are structured for communities of about 10000 households (50000 users),
providing a wide range of goods and services and a local market to consume
them. (Aristotle and
the
There
are about 35-40 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 250 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
All
structures created in each project area operate on all three anthropological
levels. 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
a short summary, see the Powerpoint presentation on
the basic project structures. For full details please
refer to block four : the structures to be created of the Diploma course.
FINANCIAL ASPECTS.
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.
Initial capital investments are covered and repaid where necessary by
the populations in two ways.
The first way is through a menu of 13 applications for CDM finance under the Kyoto Protocol. For full information
on this please refer to Kyoto
Protocol : Analysis of
possibilities for finance. Indications are that net CDM income per project could be 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.
The second (backup)
way of financing integrated development projects is through the Local
Cooperative Development Fund set up in each project area. The beneficiary
populations make a monthly payment of (at least Euro 3 per family of five) 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 € 1.500 per family) over the first ten year period.
The fund is organised so that the amount in it 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
payment, the amount in the Cooperative
Local Development Fund drops temporarily back to zero. The families continue to
make their monthly contributions to the Fund, 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 capital goods 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.
Interest-free, cost-free, micro-finance is provided through the interest-free cooperative
micro-credit structures in each project
area. Micro-credit loans typically amount to at least €1,500 for each family in each
period of ten years. This is a conservative evaluation based on an average two years’
payback period.
For illustrations of the
micro-credit system proposed, please refer to :
Illustration
of the micro-credits system.
How the original grant of
seed-loan is used.
Illustration of the
interest-free loan cycle.
For full details on the economic
aspects of integrated development projects, please refer to Block 8 : Economic aspects
of the Diploma Course.
Detailed work on
the mechanics of the present monetary system and monetary reform proposals
supporting the financial and economic aspects of integrated development
projects can be accessed at the homepage of www.integrateddevelopment.org in the section New
Horizons for Economics : How our Financial System actually works and how to
correct it. This work includes a
three-dimensional drawing showing the DNA of the debt-based financial system.
INTEREST-FREE COST-FREE MICRO-CREDIT SYSTEM.
Interest-free, cost-free micro-finance provided through the interest-free cooperative
micro-credit structures in each project area
typically amounts to at least €1,500 for each family in each period of ten years.
This is an ultra-conservative evaluation based on an average two years’ payback
period.
Interest-free loans for various project structures transferred to
private persons or cooperatives are paid back into the Cooperative Local
Development Fund over a period of 3-5 years. They are taken into account in the
calculations above. These loans include those for the gypsum composites
manufacturing units, the briquette manufacturing units, public transport
cooperatives (buses), and the maintenance and installation cooperatives
(vehicles). In case of loan repayment after ten years, funds available for
interest-free micro-credits will be reduced to zero. Since the families continue
to make their monthly payments to the Cooperative Local Development Fund, the
capital in the Fund for micro-credits will gradually build up again during the
second period of ten years as it did during the first period of ten years.
Where the original seed funding is by way of grant, the large amount of capital
in the Fund at the close of the first period of ten years will continue to
circulate to finance interest-free micro-credits. It can also be used to
finance extensions to project structures.
For details refer to the section on funds available for
micro-credits.
COSTS AND BENEFITS.
Integrated development
projects bring about a general mobilisation of the local populations in each
project area. Real annual benefits are several times the total cost of the
initial capital investment in the projects.
Total
potential annual benefits amount to more than €
The costs and benefits are described in the simple summary of a typical integrated development
project.
They include
:
Agriculture and
food security : Savings for food importation Euro 6.387.500 per year; CDM (Kyoto) application fruit and nut trees up to a total
of Euro 6.590.000 over 50 years (average €
Ecology, conservation and
energy : Potential sale value of extra standing timber Euro 178.000 per year;
savings in fertilisers Euro 217.000 per year; reforestation of local forest
lands parks and reserves under the Kyoto protocol for a total of up to Euro
10.500.000 over 50 years (average €
Finance : Reduction in the
costs for the purchase of wood (or
alternative fuels) for cooking, Euro 730.000 per year; savings in formal money
interest and costs in connection with the operation of the Cooperative Local
Development Fund, Euro
Health : Reduction of
costs of medical treatment for water-borne diseases, Euro 500.000 per year;
productivity increase due to reduction of illness due to water-borne diseases,
Euro 450.000 per year; reduction in the
costs of treating suffering from hunger, due to inadequate hygiene and smoke in
and around homes, Euro 250.000 per year; reduction of 50% in the costs of treatment
for malaria, Euro 100.000 per year;
increase of productivity due to reduction in the number of cases of
malaria, Euro 90.000 per year; reduction in the cost of urgent transportation
of sick family members to hospital, Euro 190.000. The expected total annual
benefits in the health sector amount to € 1.490.000.
Water and sanitation : Water points at
100m. from homes, Euro 1.095.000 per year; benefits
from local washing places, Euro 624.000 per year. The expected total annual
benefits in the water and sanitation sector amount to € 1.719.000.
Women’s rights : Elimination of the
need to fetch firewood, Euro
For full information on the costs
and benefits of integrated development projects, please refer to Sect. 3 : Costs and benefits
analysis of Block 8 : Economic aspects of the Diploma Course.
More specifically
:
Costs and benefits analysis :
introduction.
Costs and benefits analysis :
details.
PREPARATORY
FORMALITIES.
Several formalities need to be completed
before a project can proceed to an executive phase. They pass from initial
partnership declarations to the formation of a working group whose task it is to
set NGOs up for the execution of the project and for on-going management of the
project structures. The management NGO is transferred to the local population
as soon as the planned project social and financial structures are in
operation. Ownership of the structures set up by the project is transferred to
the management NGO as the structures become operational.
For more details refer to section illustration of the formal steps necessary to get
project execution started.
A cooperative formed by a consortium usually including
the local council, one or more local NGOs with direct access to the local
populations, and one or more national and/or international development NGOs is
responsible for project execution. For information on this cooperative see : statutes of the NGO responsible for project execution. For still more detail see file
: Cooperative for project execution.
MORE ON SOME BASIC ISSUES
COVERED BY THE MODEL FOR INTEGRATED DEVELOPMENT PROJECTS.
Agriculture and food security in integrated development
projects Credit crises. Solutions offered by integrated development
projects.
Ecology and conservation in integrated development
projects. Education in integrated development projects.
Fight against corruption in integrated development
projects. Financing integrated development projects using the CDM mechanism.
Gender and women's rights in
integrated development projects. Health aspects and integrated development projects.
Millennium Development Goals. How integrated development
projects solve them. Millennium goals. How integrated development
projects achieve them. Powerpoint presentation
: 36 slides.
Policy implications of integrated development projects. Poverty, its causes, what is needed to eliminate it. Powerpoint presentation : 24 slides.
Project architecture for integrated development. Powerpoint
presentation : 14 slides. Project
structures for integrated development. Powerpoint presentation : 43 slides.
Water and sanitation in
integrated development projects.
MORE INFORMATION : SOME USEFUL GROUPS OF
FILES
The complete Model for
self-financing ecological integrated development projects.
Short introductions to projects and instructions on
how to get started.
Short summaries, including an executive summary, with basic information
on projects. This group of files includes
instructions on how to get a project started.
Illustrations of project structures.
Charts,
drawings and diagrams illustrating the main features of projects.
Attachments
to project documents.
A list of documents with information supporting
projects. The list provides extra information on concepts and technologies used
in the Model, such as information on the work of the Brazilian sociologist Clodomir Santos de Morais, local money systems,
micro-credit systems, some recommended appropriate technologies, and hygiene
education courses.
Articles published on specific aspects of the Model.
The list includes articles on policy aspects, the use of alternative
energy, micro-credits, and drinking water supply.
Some draft projects prepared in English and French
using the principles introduced by the Model.
Back to:
"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,
"In the end, it's about love for mankind. Freedom begins with love.
Our challenge is to learn to love the world"
Nigerian writer Ben Okri, interview in Ode
Magazine, Dec 2002-Jan 2003, p.49
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work is licensed under a Creative
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