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 within regions but outside adjacent project areas should not exceed 2.25% du 100%. The volume of transactions between adjacent individual project areas in the same region should not exceed 7.5% of 100 %.

The creation regional- and national level local economic systems was covered in section 1: Regional and National Plans of this seventh block.

For regional level structures see part 06. Drawing showing regional plans in section 1 anthropological analysis of the third block solutions to the problems of the course.

The question which arises is that of the relationship between individual projects at regional level, and between regional systems at national level.

This first part deals with the relationship between individual projects within a given region. The second part relationship between regional economic systems deals with relations between regional-level systems.

About 90% of commercial activities are expected to take place within each individual integrated project area.

Click to see an illustration.

If a good or service is not available within a given project area, it may in principle be sought in adjacent project areas.

For example a product made from gypsum composites made in system A may be exported to system B. Material made in system B may be exported to system A. Fruit and vegetables not cultivated in one area can be imported from others, so as to increase the variety of diet in the project area in question.

Suppose that a gypsum composite item is sold by a system A member to a system B member. The transaction would take place in local money A.

The following series of registration would automatically take place.

a) The manufacturer of the gypsum composites item would get credited in local money A.
b) Group A coordinator would advise his counterpart of the group B member’s debit.

c) Group A coordinator would create a credit for group A for the same amount of group B money.
d) Group B coordinator would create a debit in group B money for the group B member.
e) Group B coordinator would create a group B debit in group A money in favour of group A.

f) Goods and services from group B to group A would in turn be registered as set out in a) to e).

g) The coordinators of groups A) and B) write their respective credits off against their credits, coupling them one to one.

h) The procedure in point g) serves to create a (zero) balance of the assets and debits of the various groups.

The description of the passages may seem complex. In reality, steps a) to f) are executed automatically and contemporaneously. Steps g) and h) take place on a regular basis agreed between the local money system managers. They can also, in principle, take place automatically, subject always to on-going control to make sure the respective balances are in order.

For complete information on the local money systems see parts 3. Local money system - introduction and 4. Local money systems – more detailed analysis in section 3 the financial structures of block 4 the structures to be created.

Each tank commission (see Section 2: the social structures of block 4 the structures to be created names a representative responsible for the operation of the local money system. The representative may be a member of the commission itself, or another person from one of the families served by the tank commission. n. Following the division of tasks strictly, the members of the tank commissions name a representative to their well commission (see Section 2: The social structures in block 4 the structures to be created.) The well commissions members in turn name their representative to the 4. central committee.

Participants in the workshop for the formation of local money systems (see, above all, 4. Local money systems : detailed analysis of section 3 the financial structures) of block 4 the structures to be created) may prefer an alternative system. In that case, each tank commission would nominate a person in charge of the local money system. The person might be a member of the tank commission itself, or another person from the families served by the commission. The persons in charge at tank commission level would nominate a member at the well commission level., who might be a member of the well-commission or another person from the families served by the well commission. The persons in charge at well commission level, would each nominate a representative to the central committee level. They would then form the «Parliament » for the management of the local money systems. This Parliament might in turn choose to nominate a general management for the management of local money operations in the project area.

This means that the management of the local money system may (eventually) operate in parallel with that of other structures. This choice remains always with the inhabitants themselves.

The representatives at each of the three levels of the local money system act as antennas for the expression of the needs of the inhabitants, each at his/her own level.

For example, where inhabitants need goods and services which are not available at the level in question, they can follow three paths. These, in order of sequence are :

a) See, in cooperation with the micro-credit structures (see especially parts 5. Interest-free micro-credit systems : introduction. and 6. Interest-free micro-credit systems : more detailed analysis in section 3 The financial structures) of block 4 The structures to be created) whether it is possible to start production of the service or good at the local level in the project area.

b) See, in cooperation with the local money system managers in adjacent project areas whether they can supply he goods and services in question.

c) See, in cooperation with the local money system managers in other parts of the region (province, district) if the products and services can be provided by them.

In practice, steps b) and c) can be done through the regional management committee, if it has already been set up.

Individual transactions are never authorised. The management operates with classes or categories of goods or services.

In cases b) and c) managers will always take their respective balances with each other into account, so that they tend towards zero. Where necessary, they can take steps to put them back in balance.

Where balances mutually tending towards zero cannot be organised, contact can be made with another adjacent project area, or, eventually, with the closest non-adjacent qualifying area in the same region.

Systematic export-import operations between local systems.

The main goal of local economies is self-sufficiency. This means that wherever possible, goods and services for local consumption should be produced locally. The market size (50.000 people) in each project area is designed to meet most requirements for a good quality of life.

Each project area tries to limit its imports.

Commercial relations amongst regions should always be in balance. Financial movements (balances) in favour or one project area in relation to another, so typical of modern globalisation techniques, cannot take place. Systems cooperate with each other.

Where production of a good or service commences within a region which was previously imported from another region, those responsible at regional level will cancel the import-export agreement for the category of goods and services in question. Risk of overproduction always lies with the producing region. The other side of the medal is there is in principle always the freedom to exploit, in the common interest, resources, specialisation, and the particular experiences of each region.

Competition.

The rules on competition in the part on regional level extensions of this block 7 are reflected in inter=project relations as well..

Where there is specialisation of activities the supplier of a product or service may be in a monopolist position. This might occur at individual project level, or in an adjacent systems area, or even at regional level. The people who are duly elected to manage the local money systems at regional level will in that case support the formation of competing suppliers in their region. In any case consumers are always free to buy competing goods and services using the formal money system. This possibility puts a brake on monopolist tendencies in local money systems at regional level.

The transactions.

There is, in principle, no limit to the transactions carried out between any two persons of the same system. They always take place under the leadership of the seller, whose interest it is to make sure the transaction is duly registered.

Where the parties to a transaction a members of two different local money systems, the seller must make sure his product or service is amongst the categories authorised for trading between the systems. If this is not so, the seller cannot be paid within the local money system framework, since the «payment » will not be recognised by the management services. In cases of doubt, the transaction can always be carried out under the formal money system.

1. Opinion.

Give a one-page opinion on the measures taken to avoid monopolist activities at local level. Do you think they are sufficient ? Are there any more measures you would like to propose ?

2. Opinion.

Provide a one-page opinion on the concept : «The risk of overproduction always lies with the producer. »

3. Opinion.

You are in charge of local money transactions at your tank commission level. Explain on one page how you have organised your operations relating to the control over the import-export of goods and services within the project area, that is, with other tank-commission areas and with the well-commission.

In section 1: Regional and national extensions of this seventh block: Regional and National Plans you made lists of products and services which could be imported from adjacent project areas and from other project areas in the same region.

4. Opinion.

You are a member of the team in charge of relations between your local money system and the adjacent systems and other systems in the same region. On one page explain how you would organise the import-export operations.

5. Research.

You are in charge of local money transactions at your tank commission level. At the local market, a woman sells some perfume she has produced herself for 5 local money units to a person from an adjacent area with another local money system. The export-import is authorised by the two systems. On one page, explain to the woman (the seller) in very simple terms how her transaction cheque will be processed.

◄ ►

◄ Seventh block : Section 2: Inter-project relations.

◄ 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^th September 2005.

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