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
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 14: 17
April, 2007
5.21 : PRINCIPLES OF THE LOCAL MONEY SYSTEMS.
Establishing local exchange trading (LETS)
systems to overcome the chronic lack of "formal" money in the project
area is fundamental to the project. LETS systems create local currency units to
exchange goods and services. They eliminate common complaints concerning the
operation of development projects such as:
"There's no money to pay people to write out the
water bills"
"There's no money to collect the monthly contributions"
"The people can't afford san-plats for their toilets"
Very often, all that is needed is a way to transfer
goods and services within the community without having to use formal money.
This helps to avoid financial leakage from the local economy system.
New
Economics Foundation, Powerpoint presentation on local economies "Plugging
the leaks".
New
Economics Foundation, Handbook on "Plugging the leaks" in local
economies.
We propose to make participation in the LETS
systems compulsory for all people in the project area of working age because
everybody will benefit from and participate in some of the community level
initiatives undertaken within the project. For instance, PV lighting for study
will be financed at local tank commission level and its costs written off
against the users in that tank area only. Others, such as tree-planting or road
building may benefit the whole community and every member will be charged for
his share. Compulsory membership is also needed where common assets are being
used or sold or when goods and services for the project have to be supplied in
the local currencies.
Nearly all LETS transactions are open to normal
"free market" negotiation between the parties.
Many goods and services like those provided by
the Community Health Clubs, and those needed to build the sanitation and water
supply services can be paid for using the LETS systems. We have included formal
currency estimates for these goods and services so that enough micro-credit
loan money is available to start developing local production.
LETS system(s) will be set up in (name of places.)
The local money system(s) is organised at
tank-commission, well-commission, and central management level.
The structure of the
local money system(s).
At the level of each of the (200) tank-commissions in
the project area a number of facilities are set up. These include:
-
professional assistance for completing transactions
(at least one job for each tank commission area).
-
points for the deposition of transaction slips.
-
information boards.
-
fixed agenda point during tank-commission meetings.
-
transfer of transaction slips for registration.
Transaction registration centres are built and
equipped at the level of each of the
(35) well-commissions in the project area.
Each centre can support from 2 to 6 transactions registration staff,
with a registration rate of 200 transactions per hour, for one, two or three
shifts. Maximum daily capacity is therefore
4.800 transactions, or about three transactions per day for every adult
in the well commission area. The registration centres keep back-up, electronic and paper records of transactions.
The transactions centres liaise with the central
system management.
The central system management keeps back-up,
electronic and paper records of transactions and prepares statistics. It
liaises with other local money systems, resolves operational conflicts, and is
responsible for any decisions not taken at tank-commission and well-commission
level.
For detailed information on LETS systems refer to:
Annexe 06: Simple
LETS course.
Annexe 07: LETS UK
information pack.
Annexe
21: Computerised administration of local money systems.
THE LETS LOCAL MONEY SYSTEMS
(One, two, three, four) Moraisian workshops will be
held, one for each local money LETS system.
Indicative participation (all workshops together)
The Moraisian trainers.
The project coordinator.
The general consultant.
2 representatives of the NGO.
Representative of the Finance Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
100 persons, indicated by the well commissions, who will have indicated their
interest in registering transactions.
400 persons (men and women) indicated by the Tank Commissions interested in
taking responsibility for the management of the LETS systems at tank commission
level.
Duration of (the, each) workshop: about six weeks.
The Workshops will be expected to produce the
following structures:
a) Definition of the social form of the LETS
structures
- statutes.
- rules.
- professional and administrative structures.
- financial aspects.
- relationships with other non-formal local money systems.
b) Structure for the registration of transactions.
- physical working space (offices).
- adaptation of environments against weather and dust.
- safety and back-up procedures to protect information.
- purchase of computers, printers, equipment for registration of members et
electrical connections eventually using PV.
- distribution of physical structures: LETS boxes, notice boards.
- preparation of cheques or other instruments of exchange to be used.
- publication of the services available within the system.
c) Coordination with users.
- preparatory meetings with users at tank commission level.
- presentation of the local coordinator.
- registration of members.
- distribution of cheques or other instruments of exchange.
- starting transactions.
d) A communications structure.
- vertical, at project level (project coordinator, transaction registrars,
those responsible at tank commission level, users).
- horizontal, with the various persons responsible at the same level (amongst
transaction registrars, amongst tank commission level operators).
- horizontal, amongst local money systems.
- commercial, radio, website
Forward:
micro-credit structures.
Back: 05.17 : Environmental impact report.
Menu group 52 work files : the planned financial structures.
Main menu for the project work file groups.
Complete index of the project work files.