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 About Bakens Verzet

STICHTING BAKENS VERZET

1018 AM AMSTERDAM, THE NETHERLANDS

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

 

 


KIOGORO  INTEGRATED SELF-FINANCING RURAL DEVELOPMENT PROJECT

 

KIOGORO DIVISION IN KISII CENTRAL DISTRICT IN THE REPUBLIC OF  KENYA

INCORPORATING LETS AND COMMUNITY BANKING

 

 

PREPARED FOR THE NGO "NYAKWENGATA  WOMEN GROUP"

KIOGORO DIVISION, KISII CENTRAL DISTRICT, NYANZA PROVINCE, KENYA

 

(partnership applications invited)

 

and

NGO STICHTING BAKENS VERZET, WIERINGERWERF, NETHERLANDS


"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.


 (Edition 02 : 10th July, 2008)


 

 

04.00 PROJECT GOALS AND EXPECTED RESULTS 

04.06 GENERAL ECONOMIC BASES OF THE PROJECT

01. The project encourages open competition and free enterprise within the framework of a cooperative and non-profit-making interest-free global financial structure.

02. The amount of the project budget is €100  per person, or €8.000.000  for the whole project area with a population of 80.000.

03. 75% of this capital will be contributed by (external funding parties – name them- or the national or state government) and the remaining 25% by the people themselves in the form of work done under the local money systems set up for the execution of the project through conversion into formal money at the rate of  €3 per each eight-hour working day.

05. The formal money necessary,  €6.000.000 for the whole project area with 80.000 inhabitants, is financed by way of seed capital in the form of a gift or in the form of an interest-free ten year loan.  

05. General financial supervision will be on terms agreed with the lenders of the seed capital, but with the elimination of unnecessary bureaucratic restraints, in accordance with the auditing structures, the statutes of the NGO Project New Horizons for Kiogoro (responsible for project execution) and the statutes of the NGO Cooperative New Horizons for Kiogoro (responsible for on-going managements of the project structures).

06. Users will be 100% responsible through their management NGO “Cooperative New Horizons for Kiogoro” for all on-going administration, capital repayments, and maintenance costs. Each household will pay a monthly contribution sufficient to cover those costs and long-term replacement of capital goods. The instalments will be to a large extent covered by savings on funds traditionally spent on fuel, water , batteries and waste removal.

07. Seed capital repaid by users in monthly instalments will be retained in the local area in the Cooperative Local Development Fund for the first ten years. During that time, the repayments will be used to grant revolving interest-free micro-credits for local development. At the close of the first period of ten years, the amount collected in the in the Cooperative Local Development Fund is sufficient to pay back, where necessary, any interest-free seed loans used for project execution.

08. Inhabitants start making their contributions once the interest-free micro-credit system is set up in an early phase of project execution.

09. Money from the repayment of  micro-credit loans is in turn recycled interest-free to finance more micro-credit loans in favour of local development.

10. The local currency (LETS) systems will form the general method of payment for (most) local goods and services at community level, including those provided for the project from within the local community.

11. Funds reserved for maintenance and long-term replacement of capital goods will also be recycled for interest-free micro-credits until they are needed.

12. Administration, construction, inspection and maintenance work will be done by local operators and villagers who will be paid mostly in local LETS currencies to be set up in any early phase of project execution. The applicable tariffs are those of the local money system. The formal money salaries of the project coordinator, his consultants and advisers are included as specific items in the project budget.

13. Each individual user is in a position to meet his or her financial obligations. Three levels of social protection are set up for poor, elderly, sick, and handicapped users. First through the tanks commissions who receive a small amount of formal money each month for distribution to those most needing help.

 

14. Full use is made of  local knowledge and experience and of local work and materials, with full respect for local social traditions.

 

15. Local economic self-sufficiency is encouraged and financial leakage from the project area reduced and if possible blocked altogether.

16. The social, financial, productive and services structures created in the course of project execution ensure that women play an important, dominating, role   at all levels during all the phases of execution and management of the project structures.

17. Individual women or women's groups will, without payment, each look after the sanitation units installed in their own homes. Public sanitation structures will be run as businesses under the local money systems.

18. The operation of the micro-credits structure will be carried out by an administration unit set up under the project itself and owned and operated by the people in the project area through the Cooperative New Horizons for Kiogoro. The costs of running the micro-credits system are covered under the local money systems.

19. The Government of  the Nyanza Province, The Kisii District Commissioner, and the Local Councils in the project area (will undertake)(have undertaken) not to intervene to impede the development of the local LETS currencies either during or after the project period in any case for the first period of ten years.

20. The Project Coordinator (will reach) (has reached) a specific agreement with the (applicable) tax authorities before the start of the project as to taxation of activities under the Local Exchange Trading (LETS) systems.

21. Before the project starts,  funding parties set up the NGO Project New Horizons for Kiogoro for the execution of the project. The statutes of  the NGO Project New Horizons for Kiogoro must provide for passage of ownership of all project structures as they are created and enter into operation to the NGO New Horizons for Kiogoro, which represents the various administrative levels of the beneficiary communities. The NGO Cooperative New Horizons for Kiogoro retains all rights of reversion of ownership in case of default by any administrative organ in making any contributions or instalments.

22. The project will create about 6000 jobs.

 

 


 

Return to:

01.02  Menu of the project executive summary.

 

 


FROM SECTION 01.00 GENERAL INFORMATION

 

Next file :

01.03  List of drawings and graphs.

 

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01.01 General presentation.

 


FROM SECTION 04.00 PROJECT GOALS AND EXPECTED RESULTS

 

Next file :

04.07  Some basic concepts behind the project.

 

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04.05 Expected results of the project.

 


 

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