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
5.69 BENEFICIARIES’ CONTRIBUTIONS
5.69.1 CONTRIBUTIONS TO PROJECT COSTS.
Willingness to pay at least Euro 3 per month per family of 5 into a Cooperative Local Development Fund was a condition precedent for the drafting of these project documents.
The monthly payment of (Euro 0,60) per person is enough to cover the entire basic package of services offered. As soon as users are able to pay more than Euro 3 per family of 5 per month, the services offered can gradually be extended. The minimum services set up during the first two executive years of the project are not, therefore, necessarily permanent. Dynamic local development will take place over the following years. This development will vary considerably from one part and another in the project area.
Water sources throughout the project area (are, are not) deep-set. Boreholes (need, do not need) to be drilled. (Distributed drinking water costs will tend to be higher than those in areas where protected wells can be dug under the local money systems set up.)
project application is self-financing because it allows the recipient
communities to fully exploit a network of sustainable development activities
(i) The initial capital grant or interest-free seed loan itself
(ii) Local Exchange Trading Systems (LETS)
(iii) Multiple re-cycled interest-free micro-credits administered by the people themselves. The micro-credits (typically at least Euro 1500 per family during the first ten years’ period) are generated by recycling as rapidly as possible the monthly contributions paid by families into their Cooperative Local Development Fund, the repayments of loans for productivity structures established as part of project execution, and any project reserves available during the loan term.
The compensation principle.
Under the compensation principle applied in the Model, users’ monthly contributions of (about Euro 0,60) per person are covered by savings on some of their current expenditure as a result of the execution of the project. For instance, where families now spend a large slice of their income for wood for cooking or for drinking water or medicines, these costs will be eliminated or reduced under the projects, releasing formal money for other uses. Wood will not be used. It will be replaced by mini-briquettes grown, produced, and distributed under the LETS local money systems. The supply of drinking water and the maintenance of water supply structures are already covered under the monthly contributions. General increases in living conditions (hygiene education, clean drinking water, sanitation, elimination of smoke, better drainage, a more varied diet) should lead to less illness and less need to buy medicines.
The Kyoto Treaty.
Some sustainable applications under the proposed project reduce CO2 emissions. The main one is through the use of locally-produced high efficiency cooking stoves, others are the substitution of the use of kerosene lamps by solar home systems, and of some pumping systems by solar or advanced hand-pump technologies, and the reduction of the use of non-rechargeable batteries. The application therefore qualifies under the Kyoto treaty for the issue of CER certificates, which can be traded to industrialised countries. The value of these certificates will contribute to covering the cost of the projects and may, over time, cover all their costs, enabling the seed capital to be recycled for other poverty alleviation initiatives.
Each typical family in the project area typically uses 10kg of firewood per day for cooking. Efficient cooking stoves should reduce this by 65%, or 6.5kg of firewood per day. There are (10.000) families in the project area. They represent a typical expected saving of (10.000) x 6.5kg of wood per day. This is (65) tons per day and (23.750) tons per year. Expressed in CO2 at a typical ratio of 0.80 tons of CO2 to 1 ton of wood, annual CO2 savings amount to 18705 tons. The credit for one ton of CO2 has fluctuated violently since the Kyoto Treaty entered into effect. In Europe it is currently worth (6,25) per ton, but higher prices can be negotiated in other regions. At Euro 6,25/ton the total annual credit for the project would be about Euro (120.000). This is in addition to social savings deriving from improved health, especially of women and children, time-savings for women who no longer have to fetch wood, and formal money savings on present outgo for the purchase of fuels for cooking.
(Status of application under the Kyoto Treaty)
5.69.2 CONTRIBUTIONS TO HEALTH COSTS.
Curative health structures are not formally a part of this project. The relationship of the project with them is described in section 5.62 of the project documents. As nursing, doctors’, hospital and ambulance structures are set up, users at the levels of the respective tank commissions, well commissions, will make modest formal money contributions into the various sub-funds of Cooperative Health Fund to cover formal money costs of medicines, materials, and long term capital replacement of equipment and structures.
5.69.3 CONTRIBUTIONS TO COOPERATIVE PURCHASING FUNDS.
Cooperative purchasing groups can be set up amongst interested users, or amongst all the users reporting to a tank commission, well commission or to the project as a whole. The project will on request provide free of formal money charges bulk purchasing and administration facilities for the purchasing groups, provided all the members of the groups are able to cover both their normal monthly formal money contributions to the project costs and the extra costs as a member of the cooperative purchasing group.