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: 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 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.
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.
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.
MORE ON SOME BASIC ISSUES COVERED BY THE MODEL FOR
INTEGRATED DEVELOPMENT PROJECTS.
Agriculture and food security in integrated development
projects Credit crises. Solutions offered by integrated development
projects.
Ecology and conservation in integrated development
projects. Education in integrated development projects.
Fight against corruption in integrated development
projects. Financing integrated development projects using the CDM
mechanism.
Gender and women's rights in integrated development
projects. Health aspects and integrated development projects.
Millennium Development Goals. How integrated development
projects solve them. Millennium goals. How integrated development projects
achieve them. Powerpoint presentation : 36 slides.
Policy
implications of integrated development projects. Poverty, its causes, what is needed to eliminate it.
Powerpoint presentation : 24 slides.
Project architecture for integrated development.
Powerpoint presentation : 14 slides. Project structures for integrated development. Powerpoint
presentation : 43 slides.
Water and sanitation in 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
The complete Model for
self-financing ecological integrated development projects.
Short introductions to
projects and instructions on how to get started.
Short
summaries, including an executive summary, with basic information on
projects. This group of files includes
instructions on how to get a project started.
Illustrations of project structures.
Charts,
drawings and diagrams illustrating the main features of projects.
Attachments to project
documents.
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.
Articles published on specific aspects of the Model.
The list includes articles on policy aspects, the use of alternative
energy, micro-credits, and drinking water supply.
Some draft projects prepared in English and French
using the principles introduced by the Model.
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,
"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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