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
and
"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,
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th
annual NGO Conference, United Nations,
5.21
: PRINCIPLES OF THE LOCAL MONEY SYSTEMS.
Establishing local exchange trading (LETS) systems to overcome the
chronic lack of "formal" money in the project area is fundamental to
the project. LETS systems create local currency units to exchange goods and
services. They eliminate common complaints concerning the operation of
development projects such as:
"There's no
money to pay people to write out the water bills"
"There's no money to collect the monthly contributions"
"The people can't afford san-plats for their toilets"
Very often, all that
is needed is a way to transfer goods and services within the community without
having to use formal money. This helps to avoid financial leakage from the
local economy system.
New Economics
Foundation, Powerpoint presentation on local economies "Plugging the
leaks".
New Economics Foundation,
Handbook on "Plugging the leaks" in local economies.
We propose to make participation in the LETS systems compulsory for all
people in the project area of working age because everybody will benefit from
and participate in some of the community level initiatives undertaken within
the project. For instance, PV lighting for study will be financed at local tank
commission level and its costs written off against the users in that tank area
only. Others, such as tree-planting or road building may benefit the whole
community and every member will be charged for his share. Compulsory membership
is also needed where common assets are being used or sold or when goods and
services for the project have to be supplied in the local currencies.
Nearly all LETS
transactions are open to normal "free market" negotiation between the
parties.
Many goods and services like those provided by the Community Health
Clubs, and those needed to build the sanitation and water supply services can
be paid for using the LETS systems. We have included formal currency estimates
for these goods and services so that enough micro-credit loan money is
available to start developing local production.
LETS system(s) will
be set up in (name of places.)
The local money
system(s) is organised at tank-commission, well-commission, and central
management level.
The structure of the local money
system(s).
At the level of each
of the 297 tank-commissions in the project area a number of facilities are set
up.
These include:
-
professional assistance for completing transactions (at
least one job for each tank commission area).
-
points for the deposition of transaction slips.
-
information boards.
-
fixed agenda point during tank-commission meetings.
-
transfer of transaction slips for registration.
Transaction
registration centres are built and equipped at the level of each of the 66 well-commissions in the
project area. Each centre can support
from 2 to 6 transactions registration staff, with a registration rate of 200
transactions per hour, for one, two or three shifts. Maximum daily capacity is
therefore 4.800 transactions for each of
the 66 offices, or about three transactions per day for every adult in the well
commission area. The registration centres keep back-up, electronic and paper records of transactions.
The transactions
centres liaise with the central system management.
The central system
management keeps back-up, electronic and paper records of transactions and
prepares statistics. It liaises with other local money systems, resolves
operational conflicts, and is responsible for any decisions not taken at
tank-commission and well-commission level.
For detailed
information on LETS systems refer to:
Annexe 06: Simple LETS course.
Annexe 07: LETS UK information pack.
Annexe 21: Computerised administration of
local money systems.
THE
LETS LOCAL MONEY SYSTEMS
One or two Moraisian
workshops will be held..
Indicative
participation (all workshops together)
The Moraisian
trainers.
A member of the project coordination team.
The general consultant.
2 representatives of the NGO.
Representative of the Finance Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
132 persons, indicated by the well commissions, who will have indicated their
interest in registering transactions.
297 persons (men and women) indicated by the Tank Commissions interested in
taking responsibility for the management of the LETS systems at tank commission
level.
Duration of (the,
each) workshop: about six weeks.
The Workshops will be
expected to produce the following structures:
a) Definition of the
social form of the LETS structures
- statutes.
- rules.
- professional and administrative structures.
- financial aspects.
- relationships with other non-formal local money systems.
b) Structure for the
registration of transactions.
- physical working space (offices).
- adaptation of environments against weather and dust.
- safety and back-up procedures to protect information.
- purchase of computers, printers, equipment for registration of members et
electrical connections eventually using PV.
- distribution of physical structures: LETS boxes, notice boards.
- preparation of cheques or other instruments of exchange to be used.
- publication of the services available within the system.
c) Coordination with
users.
- preparatory meetings with users at tank commission level.
- presentation of the local coordinator.
- registration of members.
- distribution of cheques or other instruments of exchange.
- starting transactions.
d) A communications
structure.
- vertical, at project level (the project coordination team, transaction
registrars, those responsible at tank commission level, users).
- horizontal, with the various persons responsible at the same level (amongst
transaction registrars, amongst tank commission level operators).
- horizontal, amongst local money systems.
- commercial, radio, website
Next file :
05.22 Interest-free cooperative micro-credit
structures.
Back to:
05.17
Environmental impact report.
