NGO Another Way (Stichting Bakens Verzet), 1018 AM Amsterdam, Netherlands.


                                                                                    01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)


Edition 01: 08 December, 2009



Tekstvak:         Quarter 3.










Study points : 05 points out of 18

Minimum study time : 125 hours out of 504


The study points are awarded upon passing the consolidated exam  for  Section C : The Model.



Block 8 : Economic aspects.


                            [Study points 03 out of 18]

[Minimum study time: 85 hours out of 504]


The study points are awarded upon passing the consolidated exam  for  Section C : The Model.



Block 8 : Economic aspects.


Section 1 : Project costs.[40 hours]


01.  General introduction. (02 hours)

02. General sketch of the financial structures.(02 hours)

03. Short budget analysis. (02 hours)

04. Budget organisation. (02 hours)

05. Description of the local contributions. (02 hours)

06. Method for calculating local contributions. (02 hours)

07. Relationship between local money and formal money.(02 hours)

08. The budget (02  hours)

09. The budget in a form requested by donors/financing parties. (02 hours )

10. Annual expenses (budgets per year). (02 hours )

11. Quarterly budgets. (02 hours )

12. Excel spreadsheets for the preparation of the budget.(02 hours )

13. The sustainability of the system.(02 hours )

14. Tenders. (02 hours )

15. The bank structures with limitations imposed on the project coordinator.(02 hours )

16. Auditing structures. (02 hours)

17. Protection of donors and financing parties.(02 hours )


Section 1 report :  (06 hours) .




Section 1 : Project costs.[40 hours]


05. Description of the local contributions. (At least 2 hours)


Take another look at the budget at point 7.10 of the Model for integrated development projects..


Column 5 bears the description  «Hours of local work ».


Look at  group 1 of the budget.  Column 5 shows a total contribution of 41.600 hours’ work.  Column 6 shows a converted formal money value for that work.


1. Research.


Explain on one page to a donor why group 1 contains both formal money amounts and indications of hours of work. [ The issue is when local activities come within the local money system ; therefore when the local money systems become operative.]


2. Research.


Item 3040101 provides for a formal money payment by donors, and 4.000 hours of work for the preparation of  furniture for the workshop buildings, but no converted amount for it in column 6. Items 4020201-4020205 provide for formal money payment by donors and  38.000 hours of work without any formal money equivalent in  column 6. On one page, explain why. [ Use is made of local artisans, but the local money system is not yet in place.]


3. Research.


The (small) item 40403, on the contrary, provides for 400 hours of work, and an equivalent of  Euro 150 i column 6, without any payment in formal money. On one page, explain why. [ It is assumed that maintenance activities will take place AFTER start-up of the local money systems.]


4. Research.


Each group 6 activity is about the creation of one of the planned structure. Each activity is split up into several sub-items.. The actions are mostly local.  The purchase of external goods and services is covered by way of reference to group 7 of the budget. However, some formal money expenditure is provided for in section 6 activities. On one page explain the reason for this. Bear in mind,  for example, that a locally built workshop hall may need some items produced outside the project area. Similarly, some planned structures in Groups 6 may make use of smaller «external »  items purchased locally.


The hours of work linked to the management and maintenance of some structures may be considered very high. For example, item  60704  allows for 160.000 hours’ work,. This allows for just 800 hours for each of the 200 tank commission level operators. This is 400 hours a year, or +/- 8 hours a week, or +/- 1 hour a day. Each operators makes a round of the 40-50 households at least one a day, collecting a recipient with waste and replacing it with a clean recipient. It is a question of the management of organic waste  (not that of toilets !) and the maintenance of the recipients.


5. Research.


Taking into account that each project sets up some 200 hygiene education groups, 200 multi-member tank commissions, 35-45 well commissions ; three-tiered structures of the ’administration of the local money and micro-credit systems etc. On one page  justify to donors the number of working hours allowed for at least three of the main items in section 6 of the budget.


The budget provides only for local work carried out during the first period of 24 months, which is the period allowed for the «execution » or creation of the project structures. During the course of  each project, each structure, once it is created and in operation, is passed over to the Permanent Cooperative for the ongoing management of the Project Structures (See part  06. The permanent cooperative  for the management of the structures of the section on the  Division of tasks in the third block the solutions to the problems.)  The vision concerning the period between the creation of a structure and the formal expiry of project execution after 24 months is that of a period of training.


6. Opinion.


On one page write your opinion on this approach.


 Eighth block :  Economic aspects. 

 Eighth block :  Project costs.

Main index  for the Diploma in Integrated  Development  (Dip. Int. Dev.)

 List of key words.

 List of references.

  Course chart.

 Technical aspects.

 Courses available.

Homepage Bakens Verzet


"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.


“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.



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