#### STICHTING BAKENS VERZET

#### 1018 AM AMSTERDAM, THE NETHERLANDS

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T.E.(Terry) Manning,

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The Netherlands.

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Homepage: http://www.flowman.nl

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## MODEL FOR SUSTAINABLE SELF-FINANCING INTEGRATED RURAL AND POOR URBAN DEVELOPMENT FOR THE WORLD'S POOR

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 13: 10 December,2006

(EN FRANÇAIS)

#### 04.07 PRINCIPLES BEHIND THE PROJECT

The basic principles behind the project are:

a)The enhancement of self-sufficiency within the framework of cooperative, interest-free, inflation-free local economies.

b)Existing social traditions will not suffer.

c)Local expertise, labour and materials will be used.

d)Women will play an active role in the project.

e)The people in the project area are able and willing to take full responsibility for all structures, goods and services provided under the project and for its administration.

f)The users contribute financially to capital repayments, cover on-going costs and accept the powers of the elected tank- and well commissions.

g)The project is self-funding. Savings on traditional fuel costs for cooking and services will cover most of the project costs.

h)The supply of traditional natural fertiliser for agricultural purposes will not be compromised.

i)Each individual user will be enabled to meet his financial commitments to the project.

Household difficulties in meeting monthly formal money quotas can be cushioned either from the monthly allowances received by the tank commissions, by social support at tank-commission, well-commission or project level. Local money obligations will be cushioned by creating a simple LETS system safety net. Members temporarily in difficulty will be allowed to run up a larger than usual debit balance. Their debits are covered by social support (families, friends, other groups) at tank-commission, well-commission or project level

j)'Small is beautiful'.

Small decentralised systems are preferred wherever possible. This promotes close contact of the people in the project area with the structures set up and their operation.

k) Local LETS currencies will complement the lack of formal money in the project area that would otherwise be needed to expand the quantity of local goods and services transferred there. Economic development within the LETS systems will also stimulate growth in the formal economy which will increase its formal tax base.

l)The (grant, seed loan) capital will be systematically recycled to users as interest-free micro-credits as it is repaid. The micro-credits will allow goods and services for productivity increase that cannot be locally produced to be bought with formal currency outside the project area.

m)Leakage of formal currency out of the project area will be reduced and if possible eliminated altogether. Seed capital will be retained in the local area at least for 10 years, after which, if it is in the form of an interest-free loan, it will be repaid.

n) 25 Progressive graduated steps to local development

Dan Chiras and Dave Wann of Evergreen, Colorado (USA) have devised a list of 25 steps to help to create sustainable neighbourhoods in developed countries. They are cited from the periodical The Last Straw, Issue 35, Fall 2001, p. 11. Some, but not all, of the initiatives are built into this project. Others could typically be taken under the local money systems set up to strengthen community ties.

o) Articles 119-126 of the 1999 Constitution of Venezuela, on the rights of indigienous peoples.

Forward: five basic conditions.

Back: economic bases of the Model.

Menu work files section 4 : The project goals and the expected results.

Main menu of the project work file groups.

Complete index of the project work files.

Main menu for the Model.

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