Director,
T.E.(Terry)
Manning,
Schoener 50,
1771 ED Wieringerwerf,
The Netherlands.
Tel:
0031-227-604128
Homepage:
http://www.flowman.nl
E-mail: (nameatendofline)@xs4all.nl : bakensverzet
Incorporating
innovative social, financial, economic, local administrative and productive
structures, numerous renewable energy applications, with an important role for
women in poverty alleviation in rural and poor urban environments.
"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
Edition 13: 03
January, 2007
5.69 BENEFICIARIES’ CONTRIBUTIONS
5.69.1 CONTRIBUTIONS TO PROJECT COSTS.
Willingness to pay at least Euro 3 per month per
family of 5 into a Cooperative Local Development Fund was a condition precedent
for the drafting of these project documents.
Drawing showing how
the users' contributions are built into the financial structures of the
project.
The monthly payment of (Euro 0,60) per person
is enough to cover the entire basic package of services offered. As soon as
users are able to pay more than Euro 3 per family of 5 per month, the services
offered can gradually be extended. The minimum services set up during the first
two executive years of the project are not, therefore, necessarily permanent.
Dynamic local development will take place over the following years. This
development will vary considerably from one part and another in the project area.
Water sources throughout the project area (are,
are not) deep-set. Boreholes (need, do not need) to be drilled. (Distributed
drinking water costs will tend to be
higher than those in areas where protected wells can be dug under the local
money systems set up.)
This project application is self-financing because it
allows the recipient communities to fully exploit a network of sustainable
development activities using:
(i) The initial capital grant or interest-free seed loan itself
(ii) Local Exchange Trading Systems (LETS)
(iii) Multiple re-cycled interest-free micro-credits administered by the people
themselves. The micro-credits (typically at least Euro 1500 per family during
the first ten years’ period) are generated by recycling as rapidly as possible
the monthly contributions paid by families into their Cooperative Local
Development Fund, the repayments of
loans for productivity structures established as part of project execution, and any project reserves available during the
loan term.
The compensation principle.
Under the compensation principle applied in the
Model, users’ monthly contributions of (about Euro 0,60) per person are covered
by savings on some of their current expenditure as a result of the execution of
the project. For instance, where families now spend a large slice of their
income for wood for cooking or for drinking water or medicines, these costs
will be eliminated or reduced under the projects, releasing formal money for
other uses. Wood will not be used. It will be replaced by mini-briquettes
grown, produced, and distributed under the LETS local money systems. The supply
of drinking water and the maintenance of water supply structures are already
covered under the monthly contributions. General increases in living conditions
(hygiene education, clean drinking water, sanitation, elimination of smoke,
better drainage, a more varied diet) should lead to less illness and less need
to buy medicines.
The Kyoto Treaty.
Some sustainable applications under the
proposed project reduce CO2 emissions. The main one is through the use of
locally-produced high efficiency cooking stoves, others are the substitution of
the use of kerosene lamps by solar home systems, and of some pumping systems by
solar or advanced hand-pump technologies, and the reduction of the use of
non-rechargeable batteries. The application therefore qualifies under the Kyoto
treaty for the issue of CER certificates, which can be traded to industrialised
countries. The value of these certificates will contribute to covering the cost
of the projects and may, over time, cover all their costs, enabling the seed capital
to be recycled for other poverty alleviation initiatives.
Each typical family in the project area
typically uses 10kg of firewood per day for cooking. Efficient cooking stoves
should reduce this by 65%, or 6.5kg of firewood per day. There are (10.000) families in the
project area. They represent a typical expected saving of
(10.000) x 6.5kg of wood per day. This is (65) tons per day and (23.750)
tons per year. Expressed in CO2 at a typical ratio of 0.80 tons of CO2 to 1 ton of wood, annual CO2
savings amount to 18705 tons. The credit
for one ton of CO2 has fluctuated violently since the Kyoto Treaty entered into
effect. In Europe it is currently worth (6,25) per ton, but higher prices can
be negotiated in other regions. At Euro 6,25/ton the total annual credit for
the project would be about Euro (120.000). This is in addition to social
savings deriving from improved health, especially of women and children,
time-savings for women who no longer have to fetch wood, and formal money
savings on present outgo for the purchase of fuels for cooking.
(Status of application under the Kyoto Treaty)
5.69.2 CONTRIBUTIONS TO
HEALTH COSTS.
Curative health structures are not formally a
part of this project. The relationship of the project with them is described in section 5.62 of the
project documents. As nursing, doctors’, hospital and ambulance structures are
set up, users at the levels of the respective tank commissions, well commissions, will make modest formal
money contributions into the various sub-funds of Cooperative Health Fund to
cover formal money costs of medicines, materials, and long term capital
replacement of equipment and structures.
5.69.3 CONTRIBUTIONS TO
COOPERATIVE PURCHASING FUNDS.
Cooperative purchasing groups can be set up
amongst interested users, or amongst all the users reporting to a tank
commission, well commission or to the project as a whole. The project will on request provide free of
formal money charges bulk purchasing and
administration facilities for the purchasing groups, provided all the
members of the groups are able to cover both their normal monthly formal money
contributions to the project costs and the extra costs as a member of the
cooperative purchasing group.
Typical annual
income of a project under the Model.
Typical
annual expenditure of a project under the Model.
Forward: 06.01
Activities schedules per year.
List of drawings and
graphs.
Typical list of maps.
List of key
words.
List of abbreviations
used.
Documents
for funding applications.