NGO Another Way (Stichting
Bakens Verzet), 1018 AM
SELF-FINANCING, ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS FOR THE WORLD’S POOR
Sustainable fully ecological self-financing 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 numerous renewable energy applications.
Version 08 : 05 May, 2011
“Like the biosphere, the living economies we seek will self-organize
within a framework of market rules. Rooted locally everywhere and dependent
primarily on their own resource base, they will have built in incentives to
optimize creative adaptation to local microenvironments. With the
decision-making powers of ownership distributed among the community’s members
in their multiple roles as producers, consumers, and citizens there will be a
natural incentive to internalize costs and manage resources responsibly.” Korten
D., The New Economy : Design for
Life. Can we design a self-correcting society?, YES! Magazine,
The accompanying project has been prepared following an innovative Model for self-financing, ecological, sustainable local integrated development projects. It covers a complete package of social, financial, productive and service structures for on-going sustainable development in beneficiary communities. All of the Millennium Goals are surpassed in the project area except for vaccinations and curative medicine, which are excluded because they tend to cause financial leakage. The project has been worked out together with the people concerned, who plan, execute, run, own and pay for all the structures set up. All structures are organised to ensure that women play the leading role in all project activities. Finance, technology and human capacity building are practically integrated with each other to offer feasible, sustainable solutions to development in the project area.
All integrated development projects are about the same size, provide the same set of basic social, financial, productive and service structures and automatically include all of the people in the project area without exclusion. The overriding concept is the attainment of a good quality of life for all there.
The model for integrated development itself takes the form of a standard project index for the drafting of a project documentation .
Basic issues covered include (in alphabetical order) :
Please click on each of the subject headings for detailed information.
A full-year e-learning course at post-masters level for the Diploma in Integrated Development ( Dip. Int. Dev.) is available on-line for use free of charge by all. Just reading the course material provides full information on the concepts and methods the Model is based on. Material available there includes detailed reference lists and key-words lists linked to the sections of the course where the subjects are handled.
Integrated development projects are
anthropologically justified. Projects under the Model are structured for
communities of about 10000 households (50000 users), providing a wide range of
goods and services and a local market to consume them. (Aristotle and the
For more details refer to the Powerpoint presentation on the basic project architecture.
All structures created in each project area operate on all three anthropological levels. They are created in a critical order of sequence.
The first structures to be created are the social structures, starting with health clubs permitting women to organise and vote en bloc at meetings; then the tank commissions, then the well commissions, then the central committee or project parliament. The financial structures follow, starting with the local money (LETS) system, then the interest-free cost-free cooperative micro-credit system, then the cooperative purchasing groups. Once the first two financial structures are in place, productive structures can be set up to make items needed for the planned services, including distributed drinking water and sanitation services.
Each project in non-pastoralist areas costs about € 5.000.000, of which 25% is provided by the inhabitants themselves by way of work carried out under local money systems set up in an early phase of project execution. This leaves a formal money (Euros) initial financial requirement of about € 3.750.000 per project. Projects in pastoralist areas cost about € 7.000.000 each of which 20% is provided by the inhabitants themselves. This leaves a formal money (Euros) initial financial requirement for pastoralist areas of about € 5.600.000 per project. The difference between pastoralist and non-pastoralist areas is determined by the additional drinking water and food supply requirements of herds in pastoralist areas.
For budget purposes, the participation of the local people (expressed in hours of work under the local money system) is converted into Euros at an agreed rate for each eight-hour working day. This rate is usually Euro 3. Where initial seed capital (respectively € 3.750.000 or € 5.600.000 per project) is not available by way of grant, project applications can be self-financing, subject to an interest-free seed loan repayable in 10 years.
Initial capital investments are covered and repaid where necessary by the populations in two ways.
The first way is through a menu of 13 applications for CDM finance under the Kyoto Protocol. For full information on this please refer to Kyoto Protocol : Analysis of possibilities for finance. Indications are that net CDM income per project could be to the order of € 24.000.000, enabling standard projects ( initial capital € 3.750.000) to be repaid by the end of the sixth year of operation on the basis of CDM income for the first five years, and projects in pastoralist areas (initial capital € 5.600.000) to be repaid by the end of the eighth year of operation on the basis of CDM income for the first seven years.
The second (backup) way of financing integrated development projects is through the Local Cooperative Development Fund set up in each project area. The beneficiary populations make a monthly payment of (at least Euro 3) per family into this fund. The very poor, sick and handicapped can be subsidised under a three-tiered social security system set up for that purpose. The money in the fund is systematically recycled interest-free to the local users for micro-credits for productive investments amounting in all to at least € 16.000.000 (or € 1.500 per family) over the first ten year period. It is organised so that the amount in the fund is sufficient to repay the initial interest-free capital investment in a single lump sum after the first ten year operational cycle. In case of payment, the amount in the Cooperative Local Development Fund drops temporarily back to zero. The families continue to make their monthly contributions to the Fund, so the amount in the Fund gradually builds up again during the second ten years period as it did in the first, and is again recycled interest-free for micro-credits for productivity development until it is needed to pay for capital extensions and replacements after twenty years. At that point, the Fund dips back to zero again and slowly builds up again during the third ten-year period and so on in an inherently permanently sustainable way.
For full information on the Local Cooperative Development Fund please refer to part 5. The interest-free micro-credit systems - introduction and part 6. The interest-free micro-credit systems - more details of section 3 of block 4 of the course for the Diploma in Integrated Development. A detailed costs and benefits analysis is available at Sect. 3 : Costs and benefits analysis.
The long term goals of integrated development projects include:
01. To sustain on-going improvement of the general quality of life well-being and health of the local people.
02. To stop financial leakage from the project area.
03. To free more human resources for local production and development.
04. To reduce water-borne diseases so that medical staff and financial resources can be re-directed to other health objectives such as preventive medicine.
05. To decrease infant mortality and promote family planning.
06. To increase literacy levels.
07. To eliminate dependency on fuels imported from outside the project area.
08. To help reduce deforestation and global warming.
09. To create value added from locally recycled organic waste and non-organic solid waste.
10. To create a "maintenance culture" to conserve the investments made.
11. To increase the local pool of expertise so that local people can improve their sustainable well-being and development by identifying and solving problems, including erosion, with a minimum of outside help.
12. To create full employment in the project area.
13. To offer meaningful opportunities to youth and help stop movement of population from rural areas to towns.
Funds for some “productive structures” are individually listed on the balance sheet to cover the formal money costs of their formation. These interest-free formal money loans are paid back into the project’s Cooperative Local Development Fund, over a period, usually 4-5 years, considered realistic by the participants themselves. Individual loan repayments are financed by the sale of a part of the production for formal money OUTSIDE THE PROJECT AREA until loan repayment is completed.
See 07.20 Short analysis for a an example of a short typical budget analysis.
See 07.30 Systematic out-go for an example of typical on-going costs.
See 07.40 Income for an example of typical on-going income.
"Money is not the key that opens the gates of the market but the bolt that bars them."
Silvio, The Natural Economic Order, revised English edition, Peter Owen,
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