Director,
T.E.(Terry)
Manning,
Schoener 50,
1771 ED
Wieringerwerf,
The Netherlands.
Tel:
0031-227-604128.
Homepage:
http://www.flowman.nl
E-mail:
(nameatendofline)@xs4all.nl : bakensverzet
Sustainable fully
ecological 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 renewable
energy 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, London 1958, page 228.
Edition 02: 16
December, 2007.
This work is licensed under a Creative Commons
Attribution-Noncommercial-Share Alike 3.0 Licence
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.
COURSES AND WORKSHOPS
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.
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 are 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.
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.
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.
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