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 10: 28 February, 2011
Edition 11 : 15 August, 2011.
MENU FOR DEVELOPMENT AID MINISTRIES
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.
POLICY IMPLICATIONS.
The structures
created during the execution of each project have many policy implications.
These are described in the paper Policy implications of an
innovative model for self-financing ecological sustainable development for the
world's poor. The
social, financial, and service structures of each project alone create
permanent occupations for about 4.000 people, which is about 10% of the adult
population in the project area. Unemployment there should be eliminated within
two years of the creation of the project structures.
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.
BUILT-IN
PROTECTION FOR FUNDING PARTIES.
Innovative means for the protection of the investments made by funding parties
have been incorporated in the Model. Exposure of investors at any one point of
project execution is limited. This is made possible through the layering, or
sequential order of creation, of the various project structures. 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.
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.
THE COSTS OF INTEGRATED
DEVELOPMENT.
Formal money interest-free or
gift investments of €75 per person would involve a total investment of €337.500.000 for a country, such as
€150 billion is roughly four
times the INCREASE (US$ 48 billion)
in the defence budget of the
(Sources quoted)
1.
2. Leonhardt D, What US$ 1.2 Trillion Can Buy,
New York Times, 17 January 2007.
Associated Press report 9 July 2007 from
3. Dutch Rekenkamer-JSF an expensive
investment, Sdu government information service, 11 October 2006 (costs
Euro 14.600.000.000 for 85 planes).
4. Foreign Trade Statistics, FT900 :
5. Watkins K. Eight broken promises, Oxfam briefing paper 9, Oxfam
International, Washington, 2001 (US$ 350 billion in 2001).
6. OECD Organisation for Economic Cooperation and Development, press
release “Development Aid from OECD countries fell 5.1% in
7. Easterly, William, The
White Man’s Burden – Why the West’s Efforts to Aid the Rest have Done so much
Since the seed money for
projects under the Model does not even have to be by way of grant, it is clear
that the proposed solution to the poverty issue world-wide is not a financial
problem.
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.
WOMEN’S RIGHTS.
Integrated
development projects fully comply with the terms of all international
declarations relating to women’s rights. A majority participation of women in
the management of all project structures at all levels is guaranteed. The
workload on women is strongly reduced. Their health conditions are improved,
and they receive full access to all education facilities available in the
project area. Use of the local money
system and the cooperative interest-free micro-credit structures set up enable
women to increase their income and, where desired, achieve financial
independence.
For
more details, see the file on women’s rights.
Still more information on the relationship between integrated
development projects and the rights of women can be found in Section 1: Gender of
the course for the Diploma in Integrated Development.
ECOLOGICAL ASPECTS AND
SUSTAINABILITY.
Integrated
development projects are fully sustainable. Click the file ecological aspects to see how the project
concepts allow for energy-neutral structures, a wide use of alternative energy
technologies, and the conservation of the natural resources in project areas.
More information on the relationship between integrated development projects
and the protection of the environment is available in Section 5: Sustainability of
the course for the Diploma in Integrated Development.
Click on Kyoto Protocol :
Analysis of possibilities for finance to
see how a menu of 13 CDM methodologies ensure that projects
are CO2 neutral . The methodologies can be applied during project execution
whether or not finance is made available under the
The on-going management of project structures is also
fully sustainable. As social, financial, productive and service structures are
created during project execution they are taken over by the local cooperative for the on-going management of the
project structures. For full information on the management of
project structures, click to see details on the division of responsibilities
amongst the
three administrative levels in each project area.
AGRICULTURAL
PRODUCTION AND FOOD SECURITY.
Integrated development projects cover management of
communal lands. Waste recycling structures include the recycling of urine,
composted faeces, and other organic solids with grey water. This alone ensures
sufficient production of a varied diet even in times of drought and crisis. The
menu of 13 CDM
methodologies to be adopted includes
extensive planting of fruit and nut trees, bamboo (shoots for food), and
horseradish for vegetable oils and edible “spinach” leaves during the dry
season. A three-tiered system of cooperative plant nurseries and seed banks is
set up for local use. Structures for the local production of biomass for
mini-briquettes for cooking are created. Water supply structures include
distributed clean drinking water, rainwater harvesting, the recycling of grey
water, and water conservation methods for forests and agricultural lands.
Click
here for more information agricultural production and food security.
LOGICAL PROJECT FRAMEWORK.
For a general overview of a
typical project application under the Model see : logical framework.
REPLICATION POTENTIAL.
Each integrated
development project is based on a population of about 50.000 people, and
in each project area structures are organised in three anthropologically
justified levels.
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, regional, and
national integrated development 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 perspective for
the rapid achievement of the Millennium Goals is therefore created.
Click here to see an introduction complete with diagrams to regional planning.
Click
here to see an introduction complete with diagrams to national
planning.
Some
examples of regional and national plan proposals.
CONVERSION
OF TRADITIONAL PROJECT STRUCTURES INTO FULLY SUSTAINABLE ONES.
