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

 

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

 

Edition 01:14 November, 2009.

Edition 02 : 01 October, 2012.

Quarter 2.

 

 

 

SECTION B : SOLUTIONS TO THE PROBLEMS.

 

 

 

Value: 06 points out of 18 .

Expected work load: 186 hours out of 504.

 

The points are finally awarded only on passing the consolidated exam for Section B : Solutions to the Problems.

 


 

Fourth block: The structures to be created.

 

Value : 03 points out of 18

Expected work load: 96 hours out of 504

 

The points are finally awarded only on passing the consolidated exam for Section B : Solutions to the Problems.

 


 

Fourth block: The structures to be created.

 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures.

04.00 hours : Preparation report.

 


 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures : analysis.

 

1. The basic concepts  - introduction. [ 2.5 hours]

2. The basic concepts – more details. [ 2.5 hours]

3. The local money systems  - introduction [ 2.5 hours]

4. The local money systems – more details. [ 2.5 hours]

5. The interest-free micro-credit systems  - introduction.[2.5 hours]

6. The interest-free micro-credit systems  - more details.[2.5 hours]

7. The cooperative purchasing  groups - introduction. [2.5 hours]

8. The cooperative purchasing groups – more details. [2.5 hours]

 

04.00 hours : Preparation report.

 


 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures : analysis.

 

1. The basic concepts  - introduction. [ At least 2.5 hours]

 

The goal of integrated development projects under the Model  is to create a cooperative interest-free, inflation-free, local  economic environment where individual initiative and true competition are free to flourish.

 

Doing this means :

 

1.  Introducing local money systems.

2.  Introducing interest-free micro-credit systems without formal money costs.

3.  Creation of cooperative purchasing groups without formal money costs.

 

At the beginning of the course in section 01 .Definition of poverty you came across concepts such as:

 

“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.

 

and, on how money works :

 

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.

 

In section 1 of block 1  analysis of the causes of poverty 02. Some factors linked with poverty the issue of the «value »  of money was raised. In sections 03. Debts and  subsidies- analysis and 03. Debts and subsidies – in depth analysis

1The following slides are part of annexe  09.16 A simple introduction to local money systems  of the Model.

Page 02 : What is money?
Page 03 : Formal money is not necessary
Page 04 : Forming a group
Page 05 : Rotation
Page 06 : “Doits”  (Each group gives its own name to its local currency)

Page 07 : Average hourly wage
Page 08 : Balance
Page 13 : Cheque form

Money represents a right to transfer goods and services.

 

Read annexe Plugging the leaks : Handbook on local economies, New Economics Foundation, London, 2002.

Page 17 reads :

«Imagine your economy as a bucket. The money that comes into your area will flow straight out again if there are many holes in the bucket. A full bucket means that local people have enough money to be able to buy what they need for a good quality of life. But if your bucket is leaky then to fill the bucket you will need to pour the money in at a faster rate than it is pouring out. So there are two strategies to fill a bucket – you can pour in the money faster, or you can slow down its leakage by plugging some of the leaks 

 

1. Opinion.

 

span style='color:#FF6600; text-decoration:none;text-underline:none'>On one page compare the leakage of water through the holes in the bucket with financial leakage as studied in  section 1 of  block 1  analysis of the causes of poverty.

Page 18 reads:

 

«Suppose you paint a pound coin red and watch where it goes. Every time it changes hands within a community, it means income for a local person. The more times it changes hands, the better for that community. In fact, money that is re-spent in a local area is the same as attracting new money into that area. Either way, it is new money into the hands of the person who receives it. » 

 

2. Opinion.

 

Give a one-page explanation of the concept : «money that is re-spent in a local area is the same as attracting new money into that area » 

 

Read Development and sustianability, Capra Fritjof, Center for Ecoliteracy, Berkely, 2005.

 

(1) Development is a Northern concept. The league table—"developed/developing/underdeveloped"—is arranged according to Northern criteria. Those countries that are "developed" are those that have adopted the Northern industrial way of life. It is a profoundly mono-cultural concept. To be a developing country means to be succeeding in the aspiration of becoming more like the North.

(2) Development means economic development. No other social aspirations or cultural values are allowed to get in the way. If they can coexist with that development, okay; if they can't coexist with it, they are overridden.

(3) Economic development is a top-down process. Decisions and control rest firmly in the hands of experts, managers of international capital, bureaucrats of state governments, the World Bank, the IMF, etc.

 

The concept of development comes from rich countries. For them «development » means «economic development”.  That  «economic development » is  controlled from top to bottom by interests based in industrialised countries.

 

3. Opinion.

 

On two  pages, first write a short  introduction, then your opinion on each of the three points raised by Capra, and your conclusion.

 

On the other hand, according to Capra (p. 4), the vision of global civil society it that:

 

“....the development process is not purely an economic process. It is also a social, ecological, and ethical process—a multidimensional and systemic process. The primary actors in development are the institutions of civil society—NGOs and other associations based on kin, on neighbourhood, or on common interests.”

 

According to Simonson M., Étude d’un système d’échange de services sans argent, (Study of a money-free system of exchange) Sociology Thesis, Université Catholoque de Louvain, undated) (Resource available in French only)

 

«In anthropology, it was Marcel Mauss 19 (1872-1950) [M. Mauss,  Écrits politiques, textes réunis par M. Fournier, Paris, Fayard, 1997 ; M. Muss, Essai sur le don, Paris, PUF, 1996] who was the first to express the idea of money as a holistic principle, or rather as a total social fact which crosses and mixes all social functions. As something expiring faith and confidence, from which it derives its value, it has not only a financial meaning,  but a political, moral, social, and psychological one as well» . (Translation T.E.Manning).

 

4.Opinion.

 

Mauss’s  vision  of money as a holistic principle is not  comparable with that of development expressed by Capra. On  one page explain why.

 


 


 Fourth block :  Section 3 : The financial structures.

 Fourth  block : The structures to be created.


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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