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SELF-FINANCING, ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR

 

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Edition 09: 26 March, 2009

Edition 10 : 28 September, 2011.

 

(FRANÇAIS)

MENU FOR UNIVERSITIES, RESEARCH INSTITUTES AND STUDENTS


 

CREATIVE PRACTICAL SOLUTIONS TO POVERTY REDUCTION.

This 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.

More information :

Click here for a very simple summary of a typical integrated development project.

Click here to see an  executive summary which provides a short analysis of a typical integrated development project.

Click here to see the Model itself, a standard project index. 

Click here to see a full-year e-learning course at post-masters level for the Diploma in Integrated Development ( Dip. Int. Dev.)  The course is available on-line for use by all. Anyone interested can follow the full course free of charge. The Diploma in Integrated Development ( Dip. Int. Dev.) itself is awarded only to students following the course with tutor support, against payment for tutorship on a costs-recovery basis. Diploma graduates qualify to lead integrated development projects and to train others. Just reading the course material provides full information on the concepts and methods the Model is based on. 

Click here to see a new section of the course on how to finance integrated development projects using the CDM mechanisms (Kyoto Protocol)

 

 

MILLENNIUM DEVELOPMENT GOALS.

 

Integrated development project meet and surpass all of the millennium goals in each project area, with the exception of vaccinations under Goal 6.

 

For more information see :

 

Millennium Development Goals. How integrated development projects solve them.     

Millennium goals. How integrated development projects achieve them. Powerpoint presentation : 36 slides.

 

For complete information on how integrated development projects meet the Millennium Development Goals, see the goal by goal analysis of the services made available under integrated development projects. This analysis is part of the Diploma Course.

 

Integrated development concepts do not only cover and surpass the Millennium Goals. They provide for powerful on-going development in each project area. This is dealt with in detail at the file on on-going development.

 

 

FACULTIES OF INTEGRATED DEVELOPMENT STUDIES

 

 

 

COURSES AND WORKSHOPS

 

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

 

Introduction :

 

The entire documentation on self-financing, ecological, sustainable, local integrated development projects available at www.integrateddevelopment.org has been placed in the public domain. The documentation includes an advanced 12 months’ e-learning course for the Diploma in Integrated Development  Anyone interested can follow the e-learning course free of charge and in their own time. However, «free »  studies to do not qualify for the academic diploma Dip. Int. Dev. This is because there is no effective control over exercises, research, block reports to guarantee the level of the student’s work. Independent students are not required to sit block and section exams and do not enjoy the benefits of professional tutorship and formal approval of their project work.

 

Only students who complete their courses within the specified academic frameworks qualify for diplomas, degrees, and the study titles associated with them.

 

02. Studies and theses for the title : Master in Integrated Development (M. Int. Dev.)

 

03. Courses for inclusion in University Studies at Master’s level in academic sectors amongst which Development Studies, Ecology, Economy, Women’s Rights, Millennium Development Goals,  according to the choices made by Partner Universities. 

 

 

 

Courses and workshops on the principles behind this Model can be arranged.

The Model for self-financing ecological integrated development projects  itself serves as the basic course material for the courses.

The course covers the simple and logical concepts behind the Model in the following main sections:

An introduction : What is the problem?

What do we have to do to solve it?

How do we do it?

How much does it cost?

 

In the introduction, an analysis is made of the commercial character of western development aid. The second section deals with basic requirements necessary for a good quality of life for all and why the current financial system fails to guarantee them. The role of formal money as a catalyst for commercial transactions is examined, together with the role played by interest and limited liability companies in recent economic development. The self-designed, executed, managed, maintained, and owned  social, financial, production and service structures created in projects according to the Model are described together with the sequence of formation necessary for them to be successful in solving the poverty question. The real cost of development is discussed in the last section where the conclusion is reached that existing funds for development world-wide would be enough to ban the poverty problem from the world within a few years.  On the condition that the parties responsible for them direct their attention to the interests of the poor rather than to those of businessmen in the rich countries themselves.

 

FURTHER STUDY MATERIAL

The attachments to project documents support projects documents. 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.

PROJECT STRUCTURES

 

The structures created during the execution of each project have many policy implications. These are described in the paper Policy implications of an innovative model for self-financing ecological sustainable development for the world's poor where some of the anthropological bases for the three-tiered on-going project management structures are also discussed.

Charts, drawings and diagrams illustrate the project 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.

 

PROJECT COSTS

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 €1.250.000, or roughly 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 formal money part 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.

 

Interest-free, cost-free micro-finance provided through the 05.22 interest-free cooperative micro-credit structures in each project area typically amount 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 temporarily 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 during the second period of ten years again 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 sections  07.20 Short analysis, 07.30 Systematic out-go, 07.50 Observations, 07.60 Funds available for  micro-credits.

 

PREPARATORY FORMALITIES

Several formalities need to be completed before a project can proceed to an executive phase. They pass from initial partnership declarations to the formation of a working group whose task it is to set NGOs up for the execution of the project and  for on-going management of the project structures. The management NGO is transferred to the local population as soon as the planned project social and financial structures are in operation. Ownership of the structures set up by the project are transferred to the management NGO as they become operational.

 

For more details refer to section 05.09 Illustration of  the formal steps necessary to get project execution started.

 

BUILT-IN PROTECTION FOR FUNDING PARTIES

Innovative means of protection of the investments made by funding parties have been incorporated in the Model.  Exposure of investors at any one point of project execution is limited. This is made possible through the layering, or sequential order of  creation, of the various project structures. Work on next following structures does not take place until the preceding structures are in place and in operation.

 

The new capital content of project structures tends to increase with progress in project execution. The first (the social and financial) structures to be set up have relatively low formal money capital content. The second (the productive) structures have an intermediate level of capital content. The last (the service) structures, and especially the distributed drinking water structures, have the highest level of capital content. By the time the service structures are to be installed, most of the work on them can be done under the local money system, operational costs and formal money reserves for maintenance and long-term replacement  are already being collected, and local production of  items necessary for the service structures is already under way.

 

KYOTO TREATY

 

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.

 

APPLICATIONS FOR SEED 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 have not been considered necessary but can be developed on request should they be needed.  

 

AUDIT AND PROTECTION OF 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 area 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.

 

HEALTH AND EDUCATION

 

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.

  

LOGICAL FRAMEWORK

For a general overview of a typical project application under the Model see : 05.02 logical framework.

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.

 

AGRICULTURAL PRODUCTION AND FOOD SECURITY

 

Section 08.40 agricultural production and food security sets out how the project covers management of communal lands, waste recycling structures including recycling of urine, composted faeces, and other organic solids, food and water security in times of drought and crisis, plant nurseries, cooperative seed banks, biomass for the production of mini-briquettes for cooking, and the protection of water sources and water conservation.

 

SUSTAINABLE ON-GOING MANAGEMENT OF THE PROJECT 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.

 

CREATION OF EMPLOYMENT OPPORTUNITIES

 

Each project creates permanent sustainable employment for about 4.000 people, which is about 10% of the adult population in the project area.

 

 

CONVERSION OF TRADITIONAL PROJECT STRUCTURES INTO FULLY SUSTAINABLE  ONES 

Many existing development projects have already failed or risk failure because they are not fully sustainable over a longer term. This is often because an appropriate framework of enabling social, financial, and productive structures under which management and maintenance costs and long-term replacements of capital goods can be carried out is missing. 

The social, financial, productive and service structures foreseen in the Model can be built around structures set up under traditional projects to create  cooperative, interest-free, inflation-free local economic environments in the project areas. This way several thousand employment opportunities can be created in each project area and large amounts of on-going formal money costs saved.  On-going financial leakage from project areas,  typical of traditional development projects, is blocked. The small amount of formal money reaching the project areas is, wherever possible, retained and continually recycled there.

 


MORE INFORMATION : SOME USEFUL GROUPS OF FILES

 

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. ]

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.

Some appropriate technologies recommended for use in projects under the Model.

 


Back to:

 

Model homepage.

Bakens Verzet homepage 

  


       

"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.

 

"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

 


 

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