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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Edition 09: 26 March, 2009
Edition 10 : 28 September, 2011.
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.
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.
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.)
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:
"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
This
work is licensed under a Creative
Commons Attribution-Non-commercial-Share Alike 3.0 Licence.