NGO Another Way (Stichting
Bakens Verzet), 1018 AM
SELF-FINANCING, ECOLOGICAL,
SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
|
FREE E-COURSE FOR DIPLOMA IN INTEGRATED DEVELOPMENT |
|||||
Edition 25: 26 March, 2009
Edition 26 : 15 August, 2011.
Edition 27 : 27 September, 2011.
MENU FOR INTERNATIONAL AND NATIONAL DEVELOPMENT ORGANISATIONS AND DONORS
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.
MILLENNIUM DEVELOPMENT GOALS.
Integrated
development project meet and surpass all of the millennium goals in each
project area, with the exception of vaccinations under Goal 6.
For more
information see :
Millennium Development Goals. How integrated development
projects solve them.
For complete information on how integrated development projects meet the
Millennium Development Goals, see the goal by goal analysis of the services made
available under integrated development projects. This analysis is
part of the Diploma Course.
Integrated
development concepts do not only cover and surpass the Millennium Goals. They provide
for powerful on-going development in each project area. This is dealt with in
detail at the file on on-going development.
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.
The goals of integrated development projects in relation to financial
structures include :
a) To set up a local money
system.
b) To set up an interest-free,
cost-free cooperative micro-credit system for productivity purposes operating
under the local money system.
c) To avoid financial leakage
from the project area by keeping all available financial resources (local LETS
money and formal money) revolving continuously interest-free within the
beneficiary community.
d) To stimulate on-going local
cooperative industrial and agricultural development through the productive use
of local currency (LETS) and interest-free micro-credit systems.
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.
AUDIT AND PROTECTION OF BENEFICIARIES.
Suggestions
are advanced for auditing structures and indications over
the on-going management of structures is set out in the chain of responsibilities. The effects of inflationary
forces on the project area analysed in section the effects of inflation on the Cooperative Local
Development Fund and gift content. Proposals for loss or damage to
project structures outside the control of the beneficiaries are set out in the
file on project insurance and forfeit in the form of gift in
case of loss of capital structures.
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.
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.
Project
goals with respect to women’s rights include :
a) To reduce the work load on women.
b) To avoid at least 1 hour per day for the fetching of water, through
the supply of [200] drinking water points close to homes.
c) To gain 4 hours a week through the supply of at least [40] washing
facilities within easy reach of homes.
d) To save at least 4 hours per week by avoiding the need to fetch wood
for cooking purposes, alternatively to save at least € 0,50 per day for reduced
formal money cost of fuels for cooking.
e) To eliminate up to 2 hours of work per day through the provision of
milling facilities for staple foods.
f) To provide improved health through the elimination of smoke in and
around homes, stagnant water, and similar.
g) To provide full educational facilities to girls and adult-education
facilities for women, including study rooms.
h) To ensure women’s participation in all project structures in
preparation for their active participation in local, regional, and national
elections and in political decision-making.
i) To ensure economic autonomy of women through the operation of the
local money system and the interest-free micro-credit system for productivity
purposes.
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.
Water and sanitation goals include :
a) To provide a permanent safe drinking water supply in the project area
in all foreseeable circumstances, including periods of drought.
b) To make safe drinking water available within a radius of 150-200m from
users' homes.
c) To install technically appropriate dry ecological sanitation
facilities (composting toilets with urine separation) for the people in each of
the 10.000 homes in the project area and in schools and public places.
d) To provide 10.000 rainwater harvesting systems, being one for each
family in the project area.
Integrated development projects are innovative in
relation to agricultural production and food security because:
01. An innovative menu of CDM
mechanisms is used both to achieve food security and to provide CO2 storage and
funds for the repayment (where necessary) of the initial capital loan.
02. The production of
fertilisers through the recycling of urine and faeces at household and/or local
level is sufficient to grow all basic foods needed.
03. The recycling of household
kitchen and garden waste at tank commission level provides food for chickens,
goats, and where socially appropriate, pigs, thereby providing variety in
diets.
04. The institution of plant
nurseries under the local money system optimises local cultivation and the use
of (local) seeds.
05. The utilisation of
plantations with fruit and nut trees, bamboo, and Moringa and Jatropha trees
provides both food security and raw materials for numerous local productive
applications. Where necessary, it can also be used to repay finance advanced
for the project.
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.
DOCUMENTS FOR FUNDING APPLICATIONS.
The file on documents for funding applications includes
complete information in a form usually required by funding organisations for
project financing purposes. Time schedules for activities month by month and
year by year are given. Charts illustrating expenditure of all budget items are
supplied on an item by item and on a quarter by quarter basis. Expenditure
charts on a month by month basis have not been considered necessary but can be
developed on request should they be needed.
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.
Many existing development projects have already failed or risk failure because they are not fully sustainable over a longer term. This is often because an appropriate framework of enabling social, financial, and productive structures under which management and maintenance costs and long-term replacements of capital goods can be carried out is missing.
The social,
financial, productive and service structures foreseen in the Model for
integrated development projects can be built around structures set up under
traditional projects to create
cooperative, interest-free, inflation-free local economic environments
in the project areas. This way several thousand employment opportunities can be
created in each project area and large amounts of on-going formal money costs
saved. On-going financial leakage from
project areas, typical of traditional
development projects, is blocked. The small amount of formal money reaching the
project areas is, wherever possible, retained and continually recycled there.
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,
This
work is licensed under a Creative
Commons Attribution-Non-commercial-Share Alike 3.0 Licence.