NGO Another Way (Stichting
Bakens Verzet), 1018 AM
SELF-FINANCING, ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
Edition 10: 26 March, 2009.
Edition 11 : 09 December, 2011.
MENU FOR DEVELOPMENT AID PROFESSIONALS.
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 to see an executive summary which provides a short analysis of a typical integrated development project.
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.
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.
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.
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
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.
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 :
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.
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.
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 :
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
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
More specifically :
Costs and benefits analysis : introduction.
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.
BUILT-IN PROTECTION FOR FUNDING PARTIES.
Innovative means of 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 FOR PROJECT BENEFICIARIES.
Suggestions are advanced for auditing structures and indications over the on-going management of structures is set out in section 4.21 the chain of responsibilities. The effects of inflationary forces on the project are analysed in section 4.15 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 4.16 Project insurance and forfeit in the form of gift in case of loss of capital structures.
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 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.
MORE INFORMATION : SOME USEFUL GROUPS OF FILES
Short summaries, including an executive summary, with basic information on projects. This group of files includes instructions on how to get a project started.
Charts, drawings and diagrams illustrating the main features of projects.
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.
The list includes articles on policy aspects, the use of alternative energy, micro-credits, and drinking water supply.
"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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