#### STICHTING BAKENS VERZET

#### 1018 AM AMSTERDAM, THE NETHERLANDS

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

## 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

(EN FRANÇAIS)

Edition 12: 01 November 2006

### Four-page summary of the action, for funding applications.

### I. CONCEPT NOTE

#### 1.Summary of the action:

1. Short description of the proposed action.

This innovative sustainable integrated development project is called “New Horizons for (name of project area)”. It is submitted under the section (name the section – an example might be “Co-financing of civil society and decentralised cooperation initiatives” ) of the (reference of the international aid fund or facility in question).

The project refers to (the name of the project area) in the (region of the project area) in (country), with (50.000) habitants living in (200) villages (include description as required) covering a surface of (1000) km2. A new vision of the relationships between the social, financial and productive structures necessary for integrated development makes it possible to offer an entire range of sustainable services to all of the inhabitants, without exclusion, living in the project area at a cost lower than that of a conventional drinking water supply project. The project is prepared in cooperation with the inhabitants themselves, who play an active role in its execution. They take part in the organisation of activities. They run and maintain all of the structures set up, which they own. An important role is reserved for women. The total value of the project is (Euro 5.000.000), which is about (Euro 100) per inhabitant. The contribution of the (name of the Fund) is (Euro 3.707.150) (74,143 %). The contribution of the local population is (Euro 1.249.350) (24,987%). This contribution takes the form of (426.500 days) (3.412.000 hours) of work carried out for the project under the framework of local money systems set up in the project area as an integral part of the project. This work is carried out during the first two, executive, years of the project during which all of the project structures are set up. The work of the local inhabitants is valued on the basis of a nominal rate of exchange of (Euro 3) for each eight-hour working day. All of the transactions carried out by the local populations for the project under the local money systems set up are fully documented and justified. Those doing the work receive real credits for their work, which are used for the purchase of products and services originating in the project area. The debits covering the credits for project work are charged to the local money accounts of all the adults living in the project area.

#### 2.Relevance.

2.1 Needs and constraints.

This proposal refers to decisions taken in connection with ( example : Millennium Development Goals (MDGs) adopted in 2000 with a purpose of reducing the part of the world population without sustainable access to clean drinking water by 50% by 2015) and the decisions taken during (example: the World Summit on Sustainable Development (WSSD) held in Johannesburg in 2002 with a purpose of reducing the part of the world population without sustainable access to sustainable sanitation by 50% and promoting efficient integrated structures for the management of water resources.)

(Name of country hosting the proposed project) is recognised as being one of the poorest countries in the world. The number of people there with access to clean drinking water and sanitation facilities is very low, particularly in rural areas, where the proportion of people with access to clean drinking water is less than (10%), and that with access to sanitation facilities is less than (2%).

(Give a short paragraph of not more than 10 lines, describing the National Plan for Access to Clean Drinking Water and Sanitation in:

(The host country)

(The region where the project area is situated)

(The project area)

It is clear from the foregoing analysis, that so long as traditional concepts of development are followed, the task of supplying clean drinking water and sanitation facilities to the people in the project area and of promoting their general development so as to ensure them a good quality of life is a very difficult, if not impossible one. New integrated development concepts are needed to ensure that the people enjoy a complete range of services essential to a good quality of life. A powerful local general mobilisation of the people in the project area is needed. The formal money cost of the mobilisation must be very low.

The project (New Horizons for (name of project area)) will have a pilot function. Acceptance of the concepts applied in the project as basis for a strategic plan for sustainable integrated development at national level in (name of host country) would involve setting up about (number, being the population of the host country divided by 50.000) . The importance of this first project in (name of country) is then evident. If successful, poverty could be eliminated in (the host country) within a few years, in any case by 2015.

2.2 Poor and vulnerable populations.

The proposal is based on the improvement of the quality of life of all of the inhabitants in the project area, without exclusion, and in particular of that of women, children, and the poorest. The people themselves, and in particular the women, are mobilised to create thousands (about four thousand) of sustainable jobs. They set a full range of local social, financial and productive structures up. The project is therefore not limited to drinking water supply and sanitation. It also covers, by way of example, structures for hygiene education for women and in schools, autonomous recycling at local level of organic and non-organic wastes, local money systems, interest-free micro-credit structures productivity development, structures for the local production of most of the items necessary for the basic services in question, communication systems, lighting for study purposes, local production of high efficiency stoves to eliminate smoke and health hazards in and around users’ homes, and the production of mini-briquettes for use with the stoves, and structures at household level for the harvesting of rainwater. The drinking water structures are the ones requiring the highest formal currency investment, as they contain elements which are not susceptible to local manufacture under the structures set up by the project.

2.3. Relationship of the project with the goals and principles behind the tender.

The proposal responds to the goals of and the principles behind the tender in a particularly innovative way. It provides for the development of numerous permanent physical and sustainable social, financial, and productive structures which all become the property of the inhabitants themselves, in the management of which women play a dominating role. The inhabitants participate in the planning, execution and management of the project structures. They sustainably organise, run, and maintain all of the structures set up at their own cost. The monthly contribution (usually Euro 0,60-0,75 per person) paid by each family into the Cooperative Local Development Fund covers the entire range of services offered, and is affordable even to the poorest families, who benefit from a three tiered social security system itself integrated into the project structures. Sustainable hygiene education, drinking water, eco-sanitation systems at household level and structures for the recycling of organic and non-organic waste and for the elimination of smoke hazards inside users’ homes improve the conditions of health in the project area, and in particular that of women and children. Elimination of the use of wood for cooking leads to a reduction in CO2 emissions and to the protection of forests and the environment in general. The project sets up a complete, voluntary, cooperative, interest-free, inflation-free local economic environment entirely managed by the community itself.

2.4 Added value and multiplying effects.

The proposed project is fully integrated in an innovative way and represents a world-wide precedent. Poverty can be eliminated in the project area over a period of 4-5 years at a cost of about (Euro 100) per person through the supply of a full range of basic structures necessary to a good quality of life, with the creation of several thousand individual and cooperative jobs (in this case about 4.000) and local money systems enabling limitless exchanges of locally produced goods and services in the project area. Each family receives on an average at least Euro 1500 in interest-free micro-credits for productivity increase over each period of 10 years. The success of this first project in (name of host country) should lead to the formation of an integrated development strategy at national level, and to pilot projects in other countries.

#### 3. Methodology and sustainability.

3.1 Appropriateness, practicability, and coherence of the proposed activities.

The project sets a cooperative, non-profit, interest-free, inflation-free economic environment up in the project area for the benefit of all of the inhabitants there, where individual initiative and true competition can flourish. It produces direct employment for about 10% of the adult population and powerfully influences the economic development of the remaining 90%. All of the social and economic structures and services set up are sustainably created, run owned by and paid for by the people themselves without the need for any financial assistance after their formation. These local economic and management structures are set up during capacitation or organisation workshops run following the concepts presented by the Brazilian sociologist Clodomir Santos de Morais. The order in which these workshops are held is critical.

The new integrated sustainable development principles applied in this project call for a pre-determined sequence of activities offering an optimum guarantee to donors and funding organisations as to how their funds are used. First, the social structures, being the health clubs or the hygiene education structures (they constitute a platform for women’s participation), the tank or local development commissions, the well or intermediate level development commissions, and a central management structure are set up. Secondly, the financial structures, being the local money systems and the self-financing interest-free micro-credit systems are set up. Finally, productive structures are set up for the local production, using the financial systems created, of most of the articles necessary for the range of basic services foreseen, such as the distributed drinking water and eco-sanitation structures.

3.2 Participation of partners and of the beneficiary population.

First, about (200) Health Clubs, each based on (40) families (200-300 people) are set up. They form a platform for women, to make sure they can organise themselves in groups and participate en bloc at local development meetings and to play a dominant role in the various social, financial, service and productive structures set up.

Once the Health Clubs are in operation, about (200) tank or local development commissions are set up. They are based on the same groups of (40) families (200-300 people). The commissions each have 3 - 5 members, all or at least most of whom are women. These commissions are the heart of the project. They in turn elect about (35) intermediate of well commissions, which in turn choose a central management unit.

Once the tank and well commissions and the central management unit are in place, it is possible to set up the local money systems which offer the inhabitants in the project area means for the transfer of all locally produced and consumed goods and services. The art is at this point to identify and use technologies enabling most of the goods and services necessary to local development and a good quality of life in the project area to be produced with 100% local value added. Such goods and services can then be produced, installed, maintained and paid for under the framework of the local money systems set up, without the need for any formal money at all. An example applied in this project is the possibility to produce, install, manage, and maintain a complete dry composting eco-sanitation structure throughout the project area without the need for a cent of formal money. The costs of running the local money systems are covered under the local money systems themselves.

Once the LETS local money systems are in place, a distinction can be made between what can be done under the local money systems and what must be “imported” into the project area. For goods and services needed for basic urgently needed services such as clean drinking water supply, use is made of the project’s seed funds to cover the formal money (Euros) cost of imported goods and services. For other initiatives cooperative interest-free micro-credit structures are put in place. These recycle the users' monthly contributions (usually between Euro 0,60 and Euro 0,75 per person) to the Cooperative Local Development Fund interest-free for credits for sustainable productivity purposes, for the purpose of purchasing goods for productivity increase not locally produced. The micro-credit systems allow for at least Euro 1500 of interest-free micro-credit for each family during the first ten years of the project. Probably more, as the Euro 1500 is conservatively based on an average two-year pay back time. The Cooperative Local Development Fund is set up as a project structure. It belongs to, and is run by the people themselves, at the beginning with professional support through the project Coordinator.. The costs of running the micro-credit structures are covered under the local money systems.

Once the cooperative micro-credit structures and the LETS local money systems are in place, the production structures can be set up, and in particular units for the production of articles from gypsum composites. Amongst the priority items for manufacture in these factories are products necessary for the water supply project such as water tanks, well linings, water containers, etc. When capacity is available they can start making the planned ecological sanitation systems, and other necessary items such as high efficiency stoves, rainwater harvesting systems, construction components. Since cheap gypsum or anhydrite deposits are (usually) present in or near the project area (indicate where), no formal money is needed either for the raw materials or for production, installation and maintenance.

3.3 Sustainable impact.

Apart from structures basic to poverty alleviation and an improved quality of life, such as hygiene education at home and in the schools, water supply, sanitation in the homes at schools and in clinics, solar lighting for study purposes, solar refrigeration for medicines in clinics, improved cooking stoves etc, no attempt is made in this project to list all of the initiatives which could take place, as these are as varied as the minds and wishes of the people.

However, any services the local people may consider of special importance can always be included in the project and itemised in the budget. Some examples are the setting up of a local radio station, setting up local milk shops for the pasteurisation and distribution of milk, the creation of cooperative storage facilities for food, especially for food for local consumption, the creation of a seed bank and the draining and re-structuring of market squares and public places. Many such poverty alleviation initiatives may require some project-level formal money funds. Other initiatives, for instance, creating sports clubs, theatre groups, local consultants’ offices, or communications centres, plant nurseries, reforestation etc would typically be done under a combination of the LETS local money systems and the interest-free micro-credit systems.

The contributions made by users into their Cooperative Local Development Fund 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 loans for various project structures transferred by the project to private persons or cooperatives are paid back into the Cooperative Local Development Fund over a period of 3-5 years. 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). At the end of the ten years' period, on repayment, where appropriate, of the ten year interest-free loan, large capital reserves will again be built up during the following ten years for use in Micro-credits and, subsequently, for the extension and renewal of capital goods. 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 again as it did during the first period of ten years. Where the original seed funding was 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 for micro-credit loans and accumulate.

The principles of sustainable integrated development on which this project is based are such that all, or at least a part of users’ monthly contributions to the Cooperative Local Development Fund can be covered by savings in their current expenditure which are a direct consequence of the use of the project structures set up. For instance, users no longer need to make formal money payments for drinking water, for wood for cooking, or for rubbish collection. Some sustainable applications under the project reduce CO2 emissions. The main one is through the use of locally-produced high efficiency cooking stoves, others are the substitution of the use of kerosene lamps by solar home systems, and of some pumping systems by solar or advanced hand-pump technologies, and the reduction of the use of non-rechargeable batteries. They therefore qualify under the Kyoto treaty for the issue of CER certificates, which can be traded to industrialised countries. The value of these certificates will contribute to covering the cost of the projects and may, over time, cover all their costs, enabling the seed capital to be recycled for other poverty alleviation initiatives.

#### 4.Operational capacity and expertise.

4.1. Applicant’s experience.

(Applicant must adapt this section to meet the specific requirements of the project application. The following is intended to give an outline of the type of short description commonly required. Space for detailed information is included in other funding application documents).

Applicant has been active since (years) in rural development initiatives in rural (or other) areas in (host country). (Make special reference where applicable to experience in the project area). Applicant is a member of (list of Associations and Federations of which applicant is a member) and is currently active in (areas where applicant is active, with special reference to the project area). Applicant’s partners include ( list of international, national and local partner organisations). In (year) applicant (received, was recognised for) (list of awards, recognitions at international and national level). Applicant is specialised in (carefully describe areas of specialisation, with special reference to integrated development, hygiene education, drinking water supply and sanitation, rights of women, micro-credit development, and environmental protection.) The new concepts presented in this project enable applicant to make a high quality contribution to the quality of life of all of the inhabitants without exclusion in the project area in all of the named sectors, in particular hygiene education, drinking water supply, and sanitation through the formation of a full range of social, financial, service and productive structures there. The project calls for a good existing relationship with the people in the project area, where, because of the poverty of the people, few national and international aid structures are present . (Describe how the applicant enjoys such a relationship).

4.2.Technical expertise sufficient to carry the project out.

Local people running the social, financial and productive structures and services set up under the project are themselves responsible for most of the project activities. A single project coordinator with a general consultant for integrated development of the type foreseen and three specialists over a period of 6-12 months are sufficient for the formal execution of the project. In view of the depth at which water is expected to be found in the project area, the services of a drilling company (are, are not) required. The project coordinator and his assistants are “the government” of the project. The applicant has the role of “parliament” and is responsible for on-going monitoring of the project activities. Applicant is qualified to do this through its office (where?) , (a general manager, a qualified economist, a civil engineer, a sociologist, a secretariat and an independent auditor. )(Applicant also has a local office in the project area, with (personnel)). Applicant is able to supply financial guarantees through (name of leading bank). For specified services (name them) applicant can call upon the advice of (names of associates listed under point 4.1). Applicant possesses its own all-weather means of transport to carry out independent spot checks on project activities anywhere in the project area without the use of project structures.

The nominated project coordinator is (name, main qualification and details from his curriculum). (List experience specific to his responsibilities as project coordinator.) He knows the project area well, and is well known to and respected by the population in the project area. He is co-author of this project. He has contributed to the drafting of the project without remuneration in the sole interests of the beneficiary population. He has expressed his willingness to act as Project Coordinator for the (maximum daily pro-diem payment foreseen by the European Union for European expatriate staff) in (host country).

The named consultant (Terrence Edward MANNING) is (director of the Dutch NGO Stichting Bakens Verzet.) He is the author of the innovative Model on the basis of which this project has been drafted. (Stichting Bakens Verzet is responsible for the promotion of the Model for sustainable integrated development in question, which it has placed in the public domain. Stichting Bakens Verzet, through its director Mr Manning, has also cooperated in the drafting of this project, in the sole interests of the local population and without remuneration, as a voluntary contribution to the development of the project area. The NGO Stichting Bakens Verzet has agreed to make Mr. Manning available to act as general consultant to the project coordinator for the executive management of the project for the maximum daily pro-diem payment foreseen by the European Union for European expatriate staff in (host country). The dedication of the NGO Stichting Bakens Verzet to the preparation of this project and Mr Manning’s unique personal knowledge of the innovative development principles in question make him particularly suitable for this position.) One of the secondary project goals is the training of younger people to repeat this experience in other areas in (the host country) and in other countries. For this purpose, interested parties, especially parties originating in the project area, are invited to participate in the Moraisian workshops and in the activities of the project to gain the experience necessary to ensure ever-widening repeatability of this project initiative.

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