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

Warning : The national structures in this section are the very last to be set up, once more than one regional system is already in operation. Regional systems are set up once there are more than one local projects in operation in the region concerned The volume of transactions between regions should, furthermore, not exceed 0,25% du 100%. The national structures are, therefore, relatively marginal within the general framework of integrated development systems. This is exactly the opposite to what might be expected with the application of conventional economics.

In the part on regional integrated development plans of this section 1 it was seen how regional level «patchwork quilt » systems are set up at regional level.

Refer also to the drawing showing national plans in the anthropological analysis which is part of the third block the solutions to the problems of the course.

At national level a patchwork quilt of regional structures is set up.

Regions (in some countries they are called «provinces » in others «districts») have different surface areas and different populations. Their size has no influence on the patchwork quilt of the regions. A region with a population of 2.000.000 will have +/- 40 individual local projects. A region with a population of 200.000 will have +/- 4 individual local projects.

There is no risk that a «big » region can «invade » a smaller one.

Usually, the bigger the country, the bigger the number of regions (provinces, districts) forming the national market.

At regional level a high level of specialisation of goods and services has already been achieved.

Transactions between regions.

The general vision is that of a four-tiered national system.

The first level is at individual project level, with a market of +/- 50.000 persons, which is large enough to support a pronounced specialisation of products and services.

The second level is a ring of adjacent individual systems where more specialised products and services can be traded.

The third, regional, regional is for even more specialised gods and services It is made up of all of the local economic systems in a regional.

The fourth level accounts for goods and services which are extremely specialised and available in few regions, perhaps just in one.

Local economic systems under the Model are balanced, open, systems. However, since the highest level of self-sufficiency possible is the main objective at each level, the percentage volumes of trading decrease rapidly in inverse proportion to total market size. Most trading is done within each individual system. Some trading takes place between adjacent systems. Relatively little trading takes place at regional level, while national level trading is very low.

Ecological aspects – balance between regions.

Purpose of local economic development systems is always the reduction of the ecological footprint, whether it is related to transport costs, packaging, deterioration of fresh goods etc.

The supply of goods and services following the shortest possible line between supplier and consumer is a leading objective.

This means that local potential within each individual project area is developed to the maximum degree possible.

On the other hand, there is no theoretical limitation to transactions between individual project areas in a region, or to those between regions, on condition that trading («exports » against «imports ») is balanced. A heavy negative debt of one region to another represents financial leakage from the one to the other. Regional system coordinators must take steps at that point to correct the situation. They might, for example, elect to increase temporarily the range of goods and services exportable from the debtor region to the creditor region, or organise special markets for the sale of the debtor region’s products in the creditor region. Key to he success of the system is that exports and imports between regions remain balanced, tending towards zero.

If the current dominating globalisation of trade is taken into account, control over transactions between one region and another may seem to be an insurmountable task. The volume of goods and services under way between regions would be too high. However, applying integrated development concepts the volume of transactions will be very modest, to the point of being the exception instead of the rule.

The percentage of transactions foreseen at the different levels.

Experience alone will create reliable precedents.

Supposing that individual integrated development structures are all in operation, the quantity of transactions will reduce from level to level.

Here is a hypothesis :

At the first level, inside each individual project area, 90% of 100% of the transactions.

At the second level, between adjacent systems, 7,5 % of 100 % of transactions.

At the third level, between local systems not being adjacent ones within a region, 2,25% of 100% of transactions.

At the fourth level, between regional systems at national level, 0,25% of 100% of transactions.

Click here for an illustration of the system.

Formal money transactions.

Except for products and services necessary for the basic structures of individual projects, populations are always free to elect to pay for goods and services using the formal money of their country. Local money does not substitute formal money. The two system operate in parallel. This possibility puts a brake on monopolist activities at both regional and national levels. Where the price expressed in local money terms is considered too high, populations can refuse toi trade with their local economy suppliers through the purchase of competing goods and services in the formal money system.

1. Research.

Consider the economic situation in your chosen area. Suppose that a patchwork quilt of local money systems were to be created at regional level in your country.

a) Which products and services would be available at individual local project level ? (Make a list of the 20 most common items).

b) Which products and services would be available amongst adjacent local systems ? (Make a list of the 10 most common items).

c) Which products and services would be available at regional level ? (Make a list of the 10 most common items).

d) Which products and services would be available at national level ? (Make a list of the 5 most common items).

2. Opinion.

On the basis of your lists, make a one-page commentary on hypothesis given above on the percentage of transactions to be expected at the different levels.

3. Opinion.

On the basis of you commentary, make a single page analysis for the relationship you think would develop between transactions under the local money systems and formal money transactions.

Look at part 1. Basic concepts : further analysis of section 3 financial structures of the fourth block the structures to be created.. Review the document Financial system mechanics explained for the first time.

The document Financial system mechanics explained for the first time is about macro-economic systems. Integrated development projects under the Model are about local economies. The two works together offer an alternative to the traditional dominating financial system.

4. Research.

On one page list 10 aspects of the two documents that you consider most important for a new economic system.

5. Opinion.

On a maximum of 2 pages use thes 10 points you have listed to evaluate the alternative economic systems being made available to you. Begin with a short introduction to the problem. Then discuss the ten points (in a logical order !) in turn. End with your conclusion.

◄ ►

◄ Seventh block : Section 1: Regional and national plans.

◄ Seventh block : Regional and national plans.

◄ 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 Septembre 2005.

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