Stichting Bakens Verzet (NGO “Another Way”)

1018 AM Amsterdam, Netherlands

Reg.nr. 34235506 Chamber of Commerce/KvK Amsterdam

BTW/VAT nr. NL8150.17.972 B01

Bank: Triodos Bank : IBAN NL90 TRIO 078.13.27.598

Direction

T.E.(Terry) Manning

Schoener 50, 1771 ED Wieringerwerf, The Netherlands

Tel 0031-227-604128;

E-mail: (nameatendofline)@xs4all.nl; 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

"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

(EN FRANÇAIS)

MENU FOR DEVELOPMENT AID PROFESSIONALS.

PURPOSE

This website has been designed especially to help professionals working under difficult conditions in developing countries. Communications there are often expensive, and telephone lines and computer equipment for internet connections slow. Website texts are therefore presented on a plain background. First-line files are always simple text files, to speed up navigation within the website. The many photographs, drawings, illustrations, charts and graphs included in the website material can all be viewed "on demand". The Model for self-financing sustainable integrated development projects itself is a project index. Each item on the index is linked to a sample file. The Model is in the public domain. It is available for use free of charge under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 Licence.

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 WIDE RANGE OF INTEGRATED DEVELOPMENT ISSUES

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 €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.

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 temporarily 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% sustainaibly 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.

Back to:

Model homepage.

Bakens Verzet homepage.

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.