Director,
T.E.(Terry)
Manning,
Schoener 50,
1771 ED Wieringerwerf,
The
Tel:
0031-227-604128
Homepage:
http://www.flowman.nl
E-mail: (nameatendofline)@xs4all.nl : bakensverzet
Incorporating
innovative social, financial, economic, local administrative and productive
structures, numerous renewable energy applications, with an important role for
women in poverty alleviation in rural and poor urban environments.
"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
Edition 12:
The political situation in the project area is (very stable, fairly
stable, unstable). Long-term political stability at least over the first ten
years’ operational period necessary for integrated development (and
interest-free loan repayment) cannot be guaranteed.
(While the capital structures installed are insurable against loss or
damage by Act of God such as lightning, hurricanes, or earthquakes, it is not
possible to insure them against loss or damage deriving from causes such as Act
of Political and Military Authorities, civil war, commotion, rebellion, and
strikes. The cost of insurance against such risks would be so high that it
would constitute a major on-going financial leakage from the project area,
which is just one of the major problems the project is designed to stop. )
What happens in case of loss of or damage to the capital project
structures (where applicable, before repayment of the interest-free seed loan
after ten years) must therefore be clearly addressed during project funding.
The beneficiaries of this project are by definition poor and the loss or
damage in question derives from causes entirely beyond their control. To
require these poor people to repay (a loan after ten years for) capital
structures they have lost for reasons beyond their control is in profound
contradiction with the short term and long term goals of the project. The
external funding agency (has, has not) access to forms of insurance available
to cover funds at risk in projects in developing countries. It (has, has not)
undertaken to ensure, at its own cost and by way of gift, that funds for this
project are insured.
(Where applicable : Since insurance is not available, the external
funding agency has accepted that in the case of loss of or damage to project
structures deriving from causes beyond the power and control of the users the
interest free loan be converted into a gift so that users are freed from their
contractual obligations. )
Normally, at the time the (uninsured) loss of or damage to the capital
structures occurs, users will have (contributed funds, paid a part of the loan)
into the Cooperative Local Development Fund. The money which has already been
collected in the Cooperative Local Development Fund at the time the loss of or
damage to the capital structures occurs:
((a)
Must be used immediately to reinstate the capital goods lost or damaged.)
((b) Has to be repaid to the lenders at the end of the original ten years'
interest free loan period. )
((c) Has to be repaid immediately.)
((d) Will, subject to analysis of the current political situation, be
integrated by a further loan to enable complete reinstatement of the capital
structures so that the project application can make a re-start. )
Forward: Circulation of funds.
Back: The effects of inflation.
List of drawings and graphs.
Typical list of maps.
List of key words.
List of abbreviations used.
Documents for funding
applications.