Stichting Bakens Verzet (NGO “Another
Way”)
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Commerce/KvK
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Homepage: http://www.flowman.nl : bakensverzet
Edition 03: 09 January, 2008
"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,
"In the end, it's about love for mankind. Freedom begins with love.
Our challenge is to learn to love the world"
Nigerian writer Ben Okri, interview in Ode
Magazine, Dec 2002-Jan 2003, p.49
MODEL FOR SELF-FINANCING ECOLOGICAL SUSTAINABLE INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
CREATIVE
PRACTICAL SOLUTIONS TO POVERTY REDUCTION
This
innovative website provides simple, down-to-earth practical solutions to poverty- and
development-related problems. It sets out step by step how the solutions are
put into effect. By following the steps, users can draft their
own advanced ecological sustainable integrated development projects and apply
for their seed financing. Social, financial, productive and service structures
are set up in a critical order of sequence and carefully integrated with each
other. That way, cooperative, interest-free, inflation-free local economic
environments are formed in project areas.
Local initiative and true competition are then free to flourish there.
A LEADING RESOURCE ON A
Most
internet search engines (including Google ®, Alltheweb
®, and Live ® and meta-search instruments) rank this website as one of the
world’s leading resources on sustainable integrated development for the world’s
poorest. Top rankings cover a wide range of subjects, often out of tens of
millions of hits. Special reference is made to search results for the innovative structural
and economic solutions to development issues presented. The Alltheweb
® results indicate the website may be considered the world leader in the field.
Google ® search results produced on 26
December 2007.
All the web ® search results produced on
06 and 07 January, 2008.
STRUCTURES
A short summary of the project structures is
set out in section 05.06 Summary of the project
structures of the Model. For more detail see 4.09 Institutional structures. Each project area forms a local economy
system with between 50.000-70.000 inhabitants. Each local economy system is
designed to be large enough to offer wide possibilities of specialisation of
productive activities, yet small enough for each individual to be able to
comprehend, associate with, and participate in all of the project structures.
The project areas interact with each other to form a patchwork quilt of local
economy systems which together make up a powerful national economy.
For a general overview of a
typical project application under the Model see : 05.02
logical framework.
BUDGET
A
typical project budget for an area with 50.000 inhabitants is €5.000.000, or
€100 for each inhabitant. Of this, 25% is contributed directly by the
people themselves. This is done by way of conversion into Euros of the costs of
goods supplied and work done by the local inhabitants for the execution of the
project under the 05.21 interest-free cooperative local
money structures set up in an early phase of the project. This contribution usually
amounts to 425.000 days of 8 hours’ work. Allowing for a rate of conversion of
Euro 3 for each day of work, the amount contributed by the people is roughly €1.250.000,
or about 25% of the total project costs. This means the amount made available
by third parties by way of gift or by way of interest-free ten year loan is 75%
of the total project costs being about €3.750.000 in all or €75 for each
inhabitant. Exactly how this money is split up amongst the various project
structures is set out in detail in 07.10 the balance sheet. Some 35-40% is used for
the drinking water structures, to cover the cost of drilling boreholes (where
necessary), pumps, solar panels and other equipment. About 15-20 % is used for
interest-free loans to enable local people to set up production facilities to
make items necessary for the execution of the project structures. There are no
costs involved in the drafting of the project documents and applications for
their seed financing, as these are done under the Model. This means that the
cost of foreign consultants for pilot projects in each country is limited to
10% (about € 350.000) of the project budget.
The execution of each project includes the training of people to lead
the execution of similar projects in adjacent areas, so that the system is sustainably self-propagating.
As is shown in the table 07.40 Income families contribute €0,60 per person or about €3 per family of five each month
into the project’s Cooperative Local Development Fund. The
budgeted net annual income of Euro 290.500 is sufficient to finance and repay
an interest free formal currency loan for up to Euro 3.750.000 over a period of
10 years, taking the various reserves and loan repayments into account. Should
payments out of reserves be higher than expected, the project administration
may choose to increase the monthly contribution of the families after four or
five years, as their standard of living improves.
For more details refer to the sections 07.20 Short
analysis, 07.30 Systematic
out-go, 07.50
Observations, 07.60 Funds
available for micro-credits.
Projects, at least in theory, can qualify for
Carbon Emission Reduction Certificates under the Kyoto Treaty. Within the
framework of self-financing integrated development projects there is a market
for 20.000 – 30.000 high efficiency cookers in at least 10.000 families.
Assuming a fuel saving of 6.5 kg/day of fuel in each family, savings amount to
65 tons of wood per day or 23725 tons per year. Converted into tons of CO2,
that is 18705 tons of CO2 per year. Assuming a market value of Euro 24 per ton of CO2, this amounts to a
credit of nearly €450.000 per project per year to which other cost and time
savings can be added. Over ten years this alone would be enough to finance the
project. As described in 09.33 CER certificates Kyoto Treaty : programme of activities as a single CDM project
activity some timid steps are being taken to help groups of smaller projects
participate in emission rights trading.
Carefully managed high application and compliance costs have so far kept
them out.
INTEREST-FREE COST-FREE MICRO-CREDIT SYSTEM
Interest-free, cost-free micro-finance provided through the 05.22
interest-free cooperative micro-credit structures in
each project area typically amounts to at least €1,500 for each family in each
period of ten years. This is an ultra-conservative evaluation based on an
average two years’ payback period.
Interest-free loans for various project structures transferred to
private persons or cooperatives are paid back into the Cooperative Local
Development Fund over a period of 3-5 years. They are taken into account in the
calculations above. These loans include those for the gypsum composites
manufacturing units, the briquette manufacturing units, public transport
cooperatives (buses), and the maintenance and installation cooperatives
(vehicles). In case of loan repayment after ten years, funds available for
interest-free micro-credits will be reduced to zero. Since the families
continue to make their monthly payments to the Cooperative Local Development
Fund, the capital in the Fund for micro-credits will gradually build up again
during the second period of ten years as it did during the first period of ten
years. Where the original seed funding is by way of grant, the large amount of
capital in the Fund at the close of the first period of ten years will continue
to circulate to finance interest-free micro-credits. It can also be used to
finance extensions to project structures.
For details refer to the section 07.60
Funds available for
micro-credits.
PROJECT FUNDING
Section 07.01 documents for funding
applications includes complete information in a form usually required by
funding organisations for project financing purposes. Time schedules for
activities month by month and year by year are given. Charts illustrating
expenditure of all budget items are supplied on an item by item and on a
quarter by quarter basis. Expenditure charts on a month by month basis are not
considered necessary but can be developed on request should they be needed.
AUDIT AND PROTECTION FOR PROJECT BENEFICIARIES
Suggestions
are advanced for auditing
structures and indications over the on-going management of structures is
set out in section 4.21 the chain of responsibilities.
The effects of inflationary forces on the project are analysed in section 4.15 The
effects of inflation on the Cooperative Local Development Fund and gift content.
Proposals for loss or damage to project structures outside the control of the
beneficiaries are set out in 4.16
Project insurance and forfeit in the form of gift in case of loss of capital
structures.
INTEGRATION
OF HEALTH AND EDUCATION SERVICES
Sections
05.62 Health aspects and 05.63 Education describe how the
project structures can be used to support advanced health and education
policies at local and national level.
WOMEN’S RIGHTS
Section 08.20
women’s rights sets out how women’s full participation in the projects is
guaranteed.
ECOLOGICAL ASPECTS
Section 08.30
ecological aspects sets out how all project structures are energy-neutral
and describes the many project applications using advanced
alternative energy technologies and how conservation of natural resources in
project areas is promoted.
ON-GOING MANAGEMENT OF STRUCTURES
As
social, financial, productive and service structures are created during project
execution they are taken over by the three-tiered 05.07 Local Cooperative for the
on-going management of the project structures. The local cooperative is
100% sustainably
operated.
JOB CREATION
Each
project creates permanent sustainable employment for about 4.000 people, which
is about 10% of the adult population in the project area.
HOW TO USE THE MODEL
Instructions
on how to use the Model are to be found at the main menu of the Model.
MORE INFORMATION : SOME USEFUL GROUPS OF
FILES
The complete Model for self-financing ecological integrated
development projects.
Short
introductions to
projects and instructions on how to get started.
Short summaries, including an executive summary, with basic
information on projects. This group of
files includes instructions on how to get a project started.
Illustrations of project
structures.
Charts, drawings and diagrams illustrating the main
features of projects.
Attachments to project documents.
A list of documents with
information supporting projects. The list provides extra information on
concepts and technologies used in the Model, such as information on the work of
the Brazilian sociologist Clodomir Santos de Morais, local money systems, micro-credit systems, some
recommended appropriate technologies, and hygiene education courses.
Articles
published on specific aspects of the Model.
The list includes articles on
policy aspects, the use of alternative energy, micro-credits, and drinking
water supply.
Some
draft projects prepared in English and French using the principles introduced
by the Model.
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This work is
licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 Licence.
Bakens Verzet is a member
of the One World network.