NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

Most of the productive structures established within the framework of integrated development projects are related to cooperative and individual initiatives taken by the inhabitants under the financial structures created. No attempt is even made to foresee all the possible developments , which are as varied as the ideas and preferences of the inhabitants.

For the purposes of this course a distinction has been made between «productive » structures described in this Section 4: Productive structures of Block 4 of the course and «service » structures described in the following Section 5: Service structures.

Some types of productive structures are often requested by the populations.

Local radio station.

Where political authorities have no objection, the establishment of a local radio station is often an integral part of the project. The station is a part of the management of communications concerning the project. Since most people in the project areas possess a radio, radio is an excellent way to spread information on the project developments and the management of the structures set up. It also enables users to discuss initiatives taken and to be taken, and to express their criticisms. It can also become a vehicle for local commerce.

In some developing countries, independent communication may be seen by political and military authorities as a security threat and forbidden. In other cases, political and military control may take the form of prohibitive annual licensing fees.

For a general reference on local community radio systems see : Mainali, R. et al, Community Radio Performance Assessment System (CR-PAS), Radio Knowledge Centre, Community Radio Support Center (CRSC) and Nepal Forum of Environmental Journalists (NEFEJ), Kathmandu, 2009, ISBN 978-99946-856-7-7.

The radio station will be placed in a location in the centre of the project area so as to limit the transmission radius. A PV operated station may be preferred to one running on "imported" electricity, as this increases the autonomy of the station and reduces long term financial leakage from the project area.

The management of the station will be completely autonomous.

Without influencing this independence in any way, the programme could indicatively comprise the following elements:

(a) Transmission of information on project activities (news bulletins)
- Convocation of meetings for structures (tanks commissions, LETS systems etc)
- Information on decisions taken during meetings
- Information on progress made with the installation/setting up of the various structures
- Information of interest-free micro-credits conceded

(b) Transmissions by interest groups
- Initiatives the groups wish to take
- Information on initiatives under way

(d) Emergency services

(e) Promotion of the project towards the outside.

FINANCING

The setting up of the station is covered by a separate item in the indicative balance sheet. The workshop will decide how this is to be done.

Work is carried out under the local LETS money systems - Expenses in formal currency (electricity?, equipment and the costs of running it) would need to be paid back over 3 or 4 years. The workshop may decide to do this through:

-a) Collection of a small (formal currency) contribution at household level.
-b) Formal money payments for services rendered to people living in the areas surrounding the project area.
- c) Advertising by producers outside the project area towards people living in the project area. Advertising for producers inside the project area will normally be done under the local money system; however, where necessary a part of these costs might be in formal currency.

One Moraisian workshop will be held.

Indicative participation:

The Moraisian trainers.
The project coordinator.
The general consultant.
At least one representative of the NGO.
Representative of the Ministry of Communications.
At least 5 observers (possible coordinators for future projects).
20 persons indicated by the tank commissions interested in participating in the management of the station.
50 persons indicated by the tank commissions, interested in producing programmes for the station.

Duration of the workshop: about three weeks.

The Workshop will be expected to produce the following structures:

a) A coordination structure
- definition of the social form
- statutes
- rules
- professional and administrative structures
- financial aspects including payments
- relations with the local money LETS systems

b) Analysis of requirements
- detailed analysis of the communications needs of the individual structures created under the project
- demand in the project area
- demand outside the project area

c) Material structure
- Land
- Permits
- Office/studio
- Transmission equipment
- Equipment for production and storing of programmes

d) Logistics
- Transport
- Storage of materials
- Organisation of network

Other productive structures.

Apart from structures basic to poverty alleviation and an improved quality of life, such as hygiene education at home and in the schools, water supply, sanitation in the homes at schools and in clinics, solar lighting for study purposes, solar refrigeration for medicines in clinics, improved cooking stoves etc, neither the Model nor the draft rural development projects so far presented attempt to list all of the initiatives which could take place, as these are as varied as the minds and wishes of the people.

However, any services the local people may consider of special importance can always be included in the project and itemised in the budget. Some examples are the setting up of a local radio station, setting up local milk shops for the pasteurisation and distribution of milk, the creation of cooperative storage facilities for food, especially for food for local consumption, the creation of a seed bank and the draining and re-structuring of market squares and public places. Many such poverty alleviation initiatives may require some project-level formal money funds. Other initiatives, for instance, creating sports clubs, theatre groups, local consultants’ offices, or communications centres, plant nurseries, reforestation, locally-produced mosquito-nets (in the colours preferred by the local populations), hand- or bicycle-operated washing machines, bicycles and other items made from locally grown bamboo etc would typically be carried out under a combination of the LETS local money systems and the interest-free micro-credit systems.

Sect. 5 : Kyoto Treaty : Analysis of possibilities for finance provides full details of a menu of 13 CDM methodologies which could be used to guaranteed full occupation for all (including the blind) in each project area. Whether of not they can all be used to finance the project, afforestation and reforestation activities provide an on-going supply of a vast range of fruits, nuts, bamboo shoots, edible oils and leaves, and materials resources for productivity purposes.

Job creation.

Integrated development projects do not recognise the employer-employee relationship. The term «jobs » as used here does not mean the same as «employment » in traditional industrial relations. It refers to occupation at cooperative, family, and individual levels.

On the other hand there is no conflict between industrial trade relations and integrated development projects. The traditional formal economy continues to operate in parallel with the structures created under integrated development projects. A steel works for example will continue to operate with all its employees, markets, and activities. The existence of an integrated development project in its area has no legal nor any other influence on it. Its work force, whether those living within the integrated development area or those living outside it , will receive their salaries in formal money as before. Other activities of workers living in the project area where the steel works is situated can take place under the local money system set up by the project. The steel works itself cannot become a member of the Permanent Cooperative for the Management of Project Structures. It cannot benefit from the local money structure set up, or from the micro-credit structures. It can, however, make «traditional » use subject to formal money payments of structures set up under the project.

Cooperative, family, or individual metallurgical activities set up by members of the Permanent Cooperative for the Management of Project Structures ( inhabitants in the project area) on the other fall fully under the project structures. An example is the local recycling of local waste, especially for the production of items for local consumption, which would benefit directly from all of the project structures, including the financial ones, set up by the project..

Each project can be expected to directly mobilise and/or employ about 4000 people, being about 10% of the adult population in the project area.. Some typical purely indicative examples are::

200 health club leaders;
1000 tank commission members;
200 well commission members;
10 members of the central management group;
100 people involved with the registration of local money transactions;
200 local money transaction assistants;
200 people responsible for local recycling activities at tank commission level;
100 people responsible for recycling at well commission level;
200 guards for structures at well-commission level;
400 farmers growing bio-mass for mini-briquettes;
100 mini-briquettes manufacturers;
100 manufacturers of items made from gypsum composites, such as tanks, stoves, sanitary ware;
50 installation technicians;
20 maintenance technicians;
10 people responsible for water quality control.

Once the financial structures are in place, potential for job creation in project areas is greatly enhanced. This potentially includes jobs for the blind and the handicapped. For instance, an appropriate radio-telephone network operated at tank commission level could alone provide occupation for up to 400 blind telephone operators.

1. Research.

Make a list on one page of at least 5 productive activities, excluding the ones mentioned in this Section 4: Productive structures of the course that the populations in your project area would like to see established. Next to each activity, give the reasons for their choice..

Review the 05.07 Statutes for the Cooperative for the Permanent Management of the Project Structures .

You are an inhabitant in an integrated development project area, and therefore a member of the Management Cooperative. You would like to set up milk pasteurisation point up for the sale of milk and other local food products at well commission level to service the 350 families in the well commission area. You will organise the collection of milk once or twice a day from the small local producers currently without outlet to the local market. You expect to sell part of your products for formal money at the central market which is visited by clients from outside the project area.

2. Opinion.

Set out your business plan on two pages. You write an introduction, then a description of the activity in question, and of your suppliers and clients. You analyse the amounts (volumes) in question. You describe the necessary equipment and their formal money price. You make a calculation of your income and your costs both in formal money and in local money. You indicate the amount of micro-credit finance needed, how you would repay it, and over which period. End with your conclusion..

3. Opinion.

Review the contents of part 3. Local money systems - introduction of Section 3: Financial structures of this Fourth block: The structures to be created. Using the preceding example, assume there is a second integrated development project area adjacent to yours where no milk pasteurisation unit has yet been established. You would like to sell your products to the nearest market in the adjacent project area, which also uses a local money system. You would like to sell your products under the local money systems, because that make it easier for you to sell your products. On one page, make an application for authorisation to those responsible for the local money system at central committee level in your project area. At the end of your application, make a chart showing the mechanism used to carry the transactions out.

◄ ►

◄ Fourth block : Section 4: Productive structures.

◄ Fourth block : The structures to be created.

◄ Main index for the Diploma in Integrated Development (Dip. Int. Dev.)

◄ List of key words.

◄ List of references.

◄ Course chart.

◄ Technical aspects.

◄ Courses available.

◄ Homepage Bakens Verzet

"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, 58^th annual NGO Conference, United Nations, New York 7^th September 2005.

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