NGO Another Way (Stichting
Bakens Verzet), 1018 AM
SELF-FINANCING, ECOLOGICAL,
SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
FREE E-COURSE FOR DIPLOMA IN INTEGRATED DEVELOPMENT |
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Sustainable fully
ecological self-financing poverty alleviation in rural and poor urban
environments, incorporating an innovative package of social, financial, and
productive structures, with basic services necessary for a good quality of life
for all, a leading role for women, and numerous renewable energy applications.
Version 08 : 05 May,
2011
“Like the biosphere, the living economies we seek will self-organize
within a framework of market rules. Rooted locally everywhere and dependent
primarily on their own resource base, they will have built in incentives to
optimize creative adaptation to local microenvironments. With the
decision-making powers of ownership distributed among the community’s members
in their multiple roles as producers, consumers, and citizens there will be a
natural incentive to internalize costs and manage resources responsibly.” Korten
D., The New Economy : Design for
Life. Can we design a self-correcting society?, YES! Magazine,
The accompanying project has been prepared following an innovative Model
for self-financing, ecological, sustainable local integrated development
projects. It covers a complete package of social, financial, productive and
service structures for on-going sustainable development in beneficiary
communities. All of the Millennium Goals are surpassed in the project area
except for vaccinations and curative medicine, which are excluded because they
tend to cause financial leakage. The project has been worked out together with
the people concerned, who plan, execute, run, own and pay for all the
structures set up. All structures are organised to ensure that women play the
leading role in all project activities. Finance, technology and human capacity
building are practically integrated with each other to offer feasible,
sustainable solutions to development in the project area.
All integrated development projects are about the same
size, provide the same set of basic social, financial, productive and service
structures and automatically include all of the people in the project area
without exclusion. The overriding concept is the attainment of a good quality
of life for all there.
The model for integrated development itself takes the form of a standard project index for the drafting of a project documentation .
Basic issues covered include (in alphabetical order) :
Agriculture and Food Security.
Financing using the CDM mechanism under the Kyoto
Protocol.
Please click on each of the subject headings
for detailed information.
A full-year e-learning course at post-masters level for the Diploma in
Integrated Development ( Dip. Int. Dev.) is available on-line for use free of
charge by all. Just reading the course
material provides full information on the concepts and methods the Model is
based on. Material available there includes detailed reference lists and
key-words lists linked to the sections of the course where the subjects are
handled.
Integrated development projects are
anthropologically justified. Projects under the Model are structured for
communities of about 10000 households (50000 users), providing a wide range of
goods and services and a local market to consume them. (Aristotle and the
For more details refer to the Powerpoint
presentation on the basic project architecture.
All structures created in each project area
operate on all three anthropological levels. They are created in a critical
order of sequence.
The first structures to be created are the
social structures, starting with health clubs permitting women to organise and
vote en bloc at meetings; then the tank commissions, then the well commissions,
then the central committee or project parliament. The financial structures
follow, starting with the local money (LETS) system, then the interest-free
cost-free cooperative micro-credit system, then the cooperative purchasing
groups. Once the first two financial structures are in place, productive
structures can be set up to make items needed for the planned services,
including distributed drinking water and sanitation services.
For a short summary, see the Powerpoint
presentation on the basic project structures. For full details please refer to block four : the structures to be created of the Diploma course.
Each project in non-pastoralist areas costs about € 5.000.000, of which 25% is provided by the inhabitants themselves by way of work carried out under local money systems set up in an early phase of project execution. This leaves a formal money (Euros) initial financial requirement of about € 3.750.000 per project. Projects in pastoralist areas cost about € 7.000.000 each of which 20% is provided by the inhabitants themselves. This leaves a formal money (Euros) initial financial requirement for pastoralist areas of about € 5.600.000 per project. The difference between pastoralist and non-pastoralist areas is determined by the additional drinking water and food supply requirements of herds in pastoralist areas.
For budget purposes, the participation of the local people (expressed in
hours of work under the local money system) is converted into Euros at an
agreed rate for each eight-hour working day. This rate is usually Euro 3. Where initial seed capital (respectively € 3.750.000 or €
5.600.000 per project) is not available by way of grant, project applications
can be self-financing, subject to an interest-free seed loan repayable in 10
years.
Initial capital investments are covered and
repaid where necessary by the populations in two ways.
The first way is through a menu of 13
applications for CDM finance under the Kyoto Protocol. For full information on
this please refer to Kyoto Protocol : Analysis
of possibilities for finance. Indications
are that net CDM income per project could be to the order of € 24.000.000,
enabling standard projects ( initial capital €
3.750.000) to be repaid by the end of the sixth year of operation on the basis
of CDM income for the first five years, and projects in pastoralist areas (initial
capital € 5.600.000) to be repaid by the end of the
eighth year of operation on the basis of CDM income for the first seven years.
The second (backup) way of financing integrated development projects is
through the Local Cooperative Development Fund set up in each project area. The
beneficiary populations make a monthly payment of (at least Euro 3) per family
into this fund. The very poor, sick and handicapped can be subsidised under a
three-tiered social security system set up for that purpose. The money in the
fund is systematically recycled interest-free to the local users for
micro-credits for productive investments amounting in all to at least €
16.000.000 (or € 1.500 per family) over the first ten year period. It is
organised so that the amount in the fund is sufficient to repay the initial
interest-free capital investment in a single lump sum after the first ten year
operational cycle. In case of payment, the amount in the Cooperative Local
Development Fund drops temporarily back to zero. The families continue to make
their monthly contributions to the Fund,
so the amount in the Fund gradually builds up again during the second ten years
period as it did in the first, and is again recycled interest-free for micro-credits
for productivity development until it is
needed to pay for capital extensions and replacements after twenty years. At
that point, the Fund dips back to zero
again and slowly builds up again during the third ten-year period and so on in
an inherently permanently sustainable way.
For full
information on the Local Cooperative Development Fund please refer to part 5. The interest-free micro-credit systems - introduction and part 6. The interest-free micro-credit systems - more details of section 3 of block 4 of the course for the Diploma in Integrated Development.
A detailed costs and benefits analysis is available at Sect. 3 : Costs and
benefits analysis.
The long term goals of integrated development projects include:
01. To sustain on-going improvement
of the general quality of life well-being and health of the local people.
02. To stop financial
leakage from the project area.
03. To free more human
resources for local production and development.
04. To reduce water-borne
diseases so that medical staff and financial resources can be re-directed to
other health objectives such as preventive medicine.
05. To decrease infant
mortality and promote family planning.
06. To increase literacy
levels.
07. To eliminate dependency
on fuels imported from outside the project area.
08. To help reduce
deforestation and global warming.
09. To create value added
from locally recycled organic waste and non-organic solid waste.
10. To create a
"maintenance culture" to conserve the investments made.
11. To increase the local
pool of expertise so that local people can improve their sustainable well-being
and development by identifying and solving problems, including erosion, with a
minimum of outside help.
12. To create full
employment in the project area.
13. To offer meaningful
opportunities to youth and help stop movement of population from rural areas to
towns.
Funds
for some “productive structures” are individually listed on the balance sheet
to cover the formal money costs of their formation. These interest-free formal
money loans are paid back into the project’s Cooperative Local Development
Fund, over a period, usually 4-5 years,
considered realistic by the participants themselves. Individual loan repayments
are financed by the sale of a part of the production for formal money OUTSIDE
THE PROJECT AREA until loan repayment is completed.
Full information on project
budgets is available at Section 1 : Project costs
of block 8 of the course for the Diploma in
Integrated Development.
See 07.20 Short analysis for a an example of a short typical budget analysis.
See 07.30 Systematic out-go for an example of typical on-going costs.
See 07.40 Income for an example of typical on-going income.
Forward: list of drawings and
graphs.
List of drawings and graphs.
Typical list of maps.
List of abbreviations used.
Documents for funding
applications.
"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,
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