#### 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

Edition 13: 01 November 2006

(EN FRANÇAIS)

#### 04.06 GENERAL ECONOMIC BASES OF THE PROJECT

a)The project encourages open competition and free enterprise within the framework of a cooperative and non-profit-making interest-free global financial structure.

b)The project will be financed by interest-free seed capital in the form of a (grant) ( 'green' loan repayable over a period of 10 years.)

c)75% of this capital will be contributed by (external funding parties – name them- or the national or state government) and the remaining 25% by the people themselves in the form of work done under the local money systems set up for the execution of the project.

d)General financial supervision will be on terms agreed with the lenders of the seed capital, but with the elimination of unnecessary bureaucratic restraints.

e)Users will be 100% responsible for on-going administration, capital repayments, and maintenance costs. Each household will pay a monthly contribution sufficient to cover those costs. The instalments will be to a large extent covered by savings on funds traditionally spent on fuel, water and waste removal.

f)Seed capital repaid by users in monthly instalments will be retained in the local area until the end of the loan term. During that time, the repayments will be used to grant revolving interest-free micro-credits for local development.

g)Seed capital not required for short term use, will similarly be used to grant interest-free revolving micro-credits.

h)The part of the maintenance money destined for long term replacement of capital items will also be recycled as interest-free micro-credits until it is needed.

i)The local currency (LETS) systems will form the general method of payment for (most) local goods and services at community level, including those provided for the project from within the local community.

j)Administration, construction and maintenance work will be done by local operators and villagers who will be paid mostly in local LETS currencies.

k)Local work will be paid for at current local pay rates expressed in the local LETS currencies.

l)The on-going administration costs of the Project Coordinator will be agreed and set out in the project documentation.

m)Users must make their first monthly contribution in advance, when their project systems are put into use.

n)The tank commissions will be paid a small monthly amount in formal currency for social security purposes. The members of the tank commissions and the well commissions will be paid a monthly allowance under the local LETS currencies for their work.

o)Individual women or women's groups will, without payment, each look after their own home sanitation units. Public sanitation structures will be run as businesses under the local money systems.

p)Regular inspection of installations will be paid for as necessary in the local LETS currencies.

q)The operation of the micro-credits structure will be carried out by an administration unit set up under the project itself and owned and operated by the people in the project area. (Its activities will be supported and supervised by a recognised external bank (Green Bank) under a separate cooperation agreement.) The costs of running the micro-credits system are covered under the local money systems.

r)The Regional Government of (where the project area is situated) and the (names) Local Councils (will undertake)(have undertaken) not to intervene to impede the development of the local LETS currencies either during or after the project period.

s)The Project Coordinator (will reach) (has reached) a specific agreement with the (applicable) tax authorities before the start of the project as to taxation of activities under the Local Exchange Trading (LETS) systems.

t)Before the project starts, forms of formal agreement will be made to ensure ownership of the project structures is vested in the beneficiary communities, with right of reversion of ownership to the project in case of default in making any contributions or instalments.

Forward: 04.07 Main principles behind the Model.

Back: 04.05 Expected results of the project.

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