NGO Another Way (Stichting Bakens Verzet), 1018 AM Amsterdam, Netherlands.

 

                                                                                    01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)

 

Edition 01: 07 December, 2009

 

 

Tekstvak:         Quarter 3.

 

 

 

 

Tekstvak: SECTION C : THE MODEL.

 

 

 

 

Study points : 05 points out of 18

Minimum study time : 125 hours out of 504

 

The study points are awarded upon passing the consolidated exam  for  Section C : The Model.

 


 

Block 8 : Economic aspects.

 

                            [Study points 03 out of 18]

[Minimum study time: 85 hours out of 504]

 

The study points are awarded upon passing the consolidated exam  for  Section C : The Model.

 


 

Block 8 : Economic aspects.

 

Section 1 : Project costs.[40 hours]

 

01.  General introduction. (02 hours)

02. General sketch of the financial structures.(02 hours)

03. Short budget analysis. (02 hours)

04. Budegt organisation. (02 hours)

05. Description of the local contributions. (02 hours)

06. Method for claculating local contributions. (02 hours)

07. Relationship between local money and formal money.(02 hours)

08. The budegt (02  hours)

09. The budget in a form requested by donors/financing parties. (02 hours )

10. Annual expenses (budgets per year). (02 hours )

11. Quarterly budgets. (02 hours )

12. Excel spreadsheets for the preparation of the budget.(02 hours )

13. The sustainability of the system.(02 hours )

14. Tenders. (02 hours )

15. The bank structures with limitations imposed on the project coordinator.(02 hours )

16. Auditing structures. (02 hours)

17. Protection of donors and financing parties.(02 hours )

 

Section 1 report :  (06 hours) .

 

 


 

Section 1 : Project costs.[40 hours]

 

02. General sketch of the financial structures.(At least 2 hours)

 

Click to view a  chart showing the financial structures  for the execution of a typical integrated development project.

 

This is obviously about formal money payments involving the initial financing provided by donors and financing parties.

 

Initial finance is received interest-free from donors, the funds are spent on project structures, and  where necessary can be repaid in a single lump sum at the end of the first ten year period.

 

Review the introduction and the in-depth analysis  of the financial structures in the fourth block the structures to be created of the course.

 

1. Research.

 

At the centre of the chart, towards the bottom, the «project coordinator » in marked in.. On one page, trace and described the financial operations of the project coordinator.

 

2. Research.

 

A the top of the chart, toward the left, there are three crimson  blocks under the heading «external finance ». On one page, trace and describe the operations concerning external funds, both in relation to expenditure and (eventual) repayments.

 

3. Research.

 

The formal money (Euro 3.750.000 for each individual project) is spent at three different levels :.directly in Euros /dollars from a foreign bank ; from a national level bank account ; and from a local bank account. On one page explain the reasons for this.

 

4. Research.

 

At the bottom of the chart, towards the left, there is an orange block  named « cooperative local development fund». On one page, trace and describe the financial operations relating to the Fund, above all its relations with the  micro-credit system, the production units, and the tank commissions.

 

Consult, as necessary :

 

Interest-free micro-credit systems - introduction and Interest-free micro-credit systems - details in the section on  financial structures in the fourth block the structures to be created of the course.

 

Units for the production of articles from gypsum-based composites, Units for the production of mini-briquettes, Installation and maintenance cooperatives  in the section productive structures of the fourth block the structures to be created.

 

The tank commissions, one of the social structures of the fourth block the structures to be created.

 

5. Research.

 

In the upper part of the chart, towards the left, there is an orange and red block with the «Executive NGO» .Its financial role seems to be rather limited. On one page explain why. If necessary consult :

 

The cooperative for the execution of the project in the section on the division of tasks in the third bock solutions to the problems.

 

 

During the course, reference has often been made to financial leakage from poor areas. Above all in section 1 analysis of the causes of poverty in the first block poverty and quality of life. From the chart, it can be seen that an large part of the formal money finance for the projects is paid out directly from Euro/dollar accounts. This money «never reaches its final destination ». It could be said that the errors committed over 60 years of the modern history of foreign aid are merely being repeated.

 

6. Opinion.

 

Write a dialogue of up to two pages between you and a foreign aid operator who has chosen to take this critical point of view.

 Eighth block :  Economic aspects. 

 Eighth block :  Project costs.

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

 

 

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