Director,
T.E.(Terry)
Manning,
Schoener
50,
1771 ED
Wieringerwerf,
The
Tel:
0031-227-604128
Homepage:
http://www.flowman.nl
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
Edition 14:
5.21
: PRINCIPLES OF THE LOCAL MONEY SYSTEMS.
Establishing
local exchange trading (LETS) systems to overcome the chronic lack of "formal"
money in the project area is fundamental to the project. LETS systems create
local currency units to exchange goods and services. They eliminate common
complaints concerning the operation of development projects such as:
"There's
no money to pay people to write out the water bills"
"There's no money to
collect the monthly contributions"
"The people can't afford san-plats for
their toilets"
Very
often, all that is needed is a way to transfer goods and services within the
community without having to use formal money. This helps to avoid financial
leakage from the local economy system.
New
Economics Foundation, Powerpoint presentation on local economies "Plugging the
leaks".
New Economics Foundation,
Handbook on "Plugging the leaks" in local economies.
We
propose to make participation in the LETS systems compulsory for all people in
the project area of working age because everybody will benefit from and
participate in some of the community level initiatives undertaken within the
project. For instance, PV lighting for study will be financed at local tank
commission level and its costs written off against the users in that tank area
only. Others, such as tree-planting or road building may benefit the whole
community and every member will be charged for his share. Compulsory membership
is also needed where common assets are being used or sold or when goods and
services for the project have to be supplied in the local currencies.
Nearly
all LETS transactions are open to normal "free market" negotiation between the
parties.
Many
goods and services like those provided by the Community Health Clubs, and those
needed to build the sanitation and water supply services can be paid for using
the LETS systems. We have included formal currency estimates for these goods and
services so that enough micro-credit loan money is available to start developing
local production.
LETS
system(s) will be set up in (name
of places.)
The
local money system(s) is organised at tank-commission, well-commission, and
central management level.
The structure of the
local money system(s).
At
the level of each of the (200) tank-commissions in the project area a number of
facilities are set up. These include:
-
professional
assistance for completing transactions (at least one job for each tank
commission area).
-
points
for the deposition of transaction slips.
-
information
boards.
-
fixed
agenda point during tank-commission meetings.
-
transfer
of transaction slips for registration.
Transaction
registration centres are built and equipped at the level of each of the (35) well-commissions in
the project area. Each centre can
support from 2 to 6 transactions registration staff, with a registration rate of
200 transactions per hour, for one, two or three shifts. Maximum daily capacity
is therefore 4.800 transactions, or
about three transactions per day for every adult in the well commission area.
The registration centres keep back-up,
electronic and paper records of
transactions.
The
transactions centres liaise with the central system management.
The
central system management keeps back-up, electronic and paper records of
transactions and prepares statistics. It liaises with other local money systems,
resolves operational conflicts, and is responsible for any decisions not taken
at tank-commission and well-commission level.
For
detailed information on LETS systems refer to:
Annexe 06: Simple
LETS course.
Annexe 07: LETS UK
information pack.
Annexe 21: Computerised administration of
local money systems.
THE
LETS LOCAL MONEY SYSTEMS
(One,
two, three, four) Moraisian workshops will be held, one for each local money
LETS system.
Indicative
participation (all workshops together)
The
Moraisian trainers.
The project coordinator.
The general consultant.
2 representatives of the NGO.
Representative of the Finance Ministry.
Representative of the Rural Development ministry.
At least 5 observers
(possible coordinators for future projects).
100 persons, indicated by the
well commissions, who will have indicated their interest in registering
transactions.
400 persons (men and women) indicated by the Tank Commissions
interested in taking responsibility for the management of the LETS systems at
tank commission level.
Duration
of (the, each) workshop: about six weeks.
The
Workshops will be expected to produce the following structures:
a)
Definition of the social form of the LETS structures
- statutes.
-
rules.
- professional and administrative structures.
- financial
aspects.
- relationships with other non-formal local money systems.
b)
Structure for the registration of transactions.
- physical working space
(offices).
- adaptation of environments against weather and dust.
-
safety and back-up procedures to protect information.
- purchase of
computers, printers, equipment for registration of members et electrical
connections eventually using PV.
- distribution of physical structures: LETS
boxes, notice boards.
- preparation of cheques or other instruments of
exchange to be used.
- publication of the services available within the
system.
c)
Coordination with users.
- preparatory meetings with users at tank
commission level.
- presentation of the local coordinator.
-
registration of members.
- distribution of cheques or other instruments of
exchange.
- starting transactions.
d)
A communications structure.
- vertical, at project level (project
coordinator, transaction registrars, those responsible at tank commission level,
users).
- horizontal, with the various persons responsible at the same level
(amongst transaction registrars, amongst tank commission level operators).
-
horizontal, amongst local money systems.
- commercial, radio, website
Forward:
micro-credit structures.
Back: environmental
impact report.
List of drawings and
graphs.
Typical list of maps.
List of key
words.
List of
abbreviations used.
Documents for
funding applications.
