Practical Integrated Practical Integrated DevelopmentDevelopment

Integrated development concepts. Integrated development concepts.

Terry ManningTerry ManningNGO Stichting Bakens Verzet (Another Way)NGO Stichting Bakens Verzet (Another Way)

bakensverzet@xs4all.nlbakensverzet@xs4all.nl

SummarySummary

1. About integrated development.1. About integrated development.

2. Project structures.2. Project structures.

3. Costs and benefits.3. Costs and benefits.

1. About 1. About integratedintegrated development.development.

1.1 Development of structures.1.1 Development of structures.

1.2 Purpose.1.2 Purpose.

1.3 Mobilisation of local populations.1.3 Mobilisation of local populations.

1.4 The three project levels.1.4 The three project levels.

1.5 Schematic view of a project area.1.5 Schematic view of a project area.

1.6 Schematic view of a regional project.1.6 Schematic view of a regional project.

1.7 Division of tasks at each level.1.7 Division of tasks at each level.

1.1 Development of structures.1.1 Development of structures.

It’s all about It’s all about structures. structures.

““Reform is not an event, it is a process.”Reform is not an event, it is a process.”

(Kofi Annan, report of the Secretary-General to the United Nations Assembly (Kofi Annan, report of the Secretary-General to the United Nations Assembly A/51/950 14 July, 1997, par. 25)A/51/950 14 July, 1997, par. 25)

Once the proposed enabling social, financial, productive and Once the proposed enabling social, financial, productive and service structures are in place in each project area, the service structures are in place in each project area, the local populations possess instruments enabling them to local populations possess instruments enabling them to

decide for themselves what they want to do.decide for themselves what they want to do.

Integrated development involves a structural reform process.Integrated development involves a structural reform process.

Traditional aid projects try to provide solutions to specific Traditional aid projects try to provide solutions to specific problems. They are not holistic.problems. They are not holistic.

1.2 Purpose of integrated development 1.2 Purpose of integrated development projects.projects.

Purpose : to create a cooperative, Purpose : to create a cooperative, interest-free, inflation-free local interest-free, inflation-free local economic environment in each economic environment in each

project area where private initiative project area where private initiative and genuine competition are free to and genuine competition are free to

flourish.flourish.

FINANCIAL LEAKAGE OUT OF PROJECT FINANCIAL LEAKAGE OUT OF PROJECT AREAS AREAS

IS BLOCKEDIS BLOCKED

1.3 Mobilisation of local 1.3 Mobilisation of local populations.populations.

The local people themselves plan, execute,The local people themselves plan, execute, run, manage and pay for all structures.run, manage and pay for all structures.

They are assisted during the initial project They are assisted during the initial project execution period by a (very) small team ofexecution period by a (very) small team of experts led by a local project coordinator.experts led by a local project coordinator.

Each structure operates autonomously atEach structure operates autonomously at each level in its own way and its own speed.each level in its own way and its own speed.

Basic activities and duties are common to all Basic activities and duties are common to all

like structures. like structures.

1.4 The three levels of 1.4 The three levels of structures.structures.

Three levels (in addition to individual families)Three levels (in addition to individual families)::

Basic level : tank commission.Basic level : tank commission.(50 famililes – 250 persons – anthropological justification : (50 famililes – 250 persons – anthropological justification :

Extended family : developed in Mesopotamia about 13.000 years ago. Extended family : developed in Mesopotamia about 13.000 years ago.

Intermediate level : well commission.Intermediate level : well commission.(350 families – 1.500-2.000 persons – anthropological justification : (350 families – 1.500-2.000 persons – anthropological justification :

Groups of clans with chief and a first level of specialisation of activities, Groups of clans with chief and a first level of specialisation of activities, developed about 7.500 years ago. developed about 7.500 years ago.

Project level.Project level.(10.000 families – 50.000 persons – anthropological justification : (10.000 families – 50.000 persons – anthropological justification :

Greek city-state with advanced specialisation of activities : formed about Greek city-state with advanced specialisation of activities : formed about 3.500 years ago. 3.500 years ago.

Level of self-sufficiency (Aristotle).Level of self-sufficiency (Aristotle).

1.5 Schematic view of a project area.1.5 Schematic view of a project area.

Project level (50.000 people)

Well-commissionlevel (1.500 people)

Tank-commissionlevel (250 people)

One per project

About 35/project

About 200/project

Numbers are rarely critical

NGO StichtingBakens Verzet Netherlands

The subsidiarity principle always applies. The subsidiarity principle always applies.

Tank commissions Well commissions Project levelTank commissions Well commissions Project level

• Health clubs/hygiene education Management of well sites Supervision and statistics Health clubs/hygiene education Management of well sites Supervision and statistics • Drinking water Drinking water supply back-up Maintenance & statistics Drinking water Drinking water supply back-up Maintenance & statistics

• Family sanitation Washing places Training for housewivesFamily sanitation Washing places Training for housewives• Rainwater harvesting Water sampling Water testing Rainwater harvesting Water sampling Water testing • Local money assistants Registration local money Local money statisticsLocal money assistants Registration local money Local money statistics• transactions Inter-project relationstransactions Inter-project relations• Collection of contributions  Conflict resolutionCollection of contributions  Conflict resolution• Collection of loan repayments  Conflict resolutionCollection of loan repayments  Conflict resolution• About 60% of micro-credit grants About 25% micro-credits About 15% of grants About 60% of micro-credit grants About 25% micro-credits About 15% of grants • First-level social safety net Second level social safety net Project-level safety netFirst-level social safety net Second level social safety net Project-level safety net• Production bio-mass for local use Production of mini-briquettes StatisticsProduction bio-mass for local use Production of mini-briquettes Statistics• Nurse Doctor Local hsopitalNurse Doctor Local hsopital• Primary school Secondary school Trade schools, Primary school Secondary school Trade schools, • propadeuse for Universitypropadeuse for University• Lighting for study purposes   Radio-telephone links Local radio station Lighting for study purposes   Radio-telephone links Local radio station • Sports clubs Intermediate facilities Project level competitionSports clubs Intermediate facilities Project level competition• Theatres, cultural groups Physical Facilities Cultural circuitsTheatres, cultural groups Physical Facilities Cultural circuits• Personal food storage facility Cooperative food storage Export/import cooperativesPersonal food storage facility Cooperative food storage Export/import cooperatives  

1.7 Project structures at each level.1.7 Project structures at each level. (A few typical examples)(A few typical examples)

2. Typical project structures for 2. Typical project structures for each project area.each project area.

Project structures are set up in a Project structures are set up in a critical order of sequence : critical order of sequence :

First theFirst the

2.1 SOCIAL STRUCTURES2.1 SOCIAL STRUCTURESThen theThen the

2.2 FINANCIAL STRUCTURES2.2 FINANCIAL STRUCTURESThen theThen the

2.3 PRODUCTIVE STRUCTURES2.3 PRODUCTIVE STRUCTURESFinally theFinally the

2.4 SERVICE STRUCTURES2.4 SERVICE STRUCTURES

2.1 Typical social structures.2.1 Typical social structures.in sequential order of formation:in sequential order of formation:

2.1.1 Health clubs.2.1.1 Health clubs.

2.1.2 Tank commissions.2.1.2 Tank commissions.

2.1.3 Well commissions.2.1.3 Well commissions.

2.1.4 Central committee. 2.1.4 Central committee.

2.1.5 Three tiered social security 2.1.5 Three tiered social security structure.structure.

2.2 The financial structures.2.2 The financial structures.In sequential order of formation.In sequential order of formation.

First theFirst the

2.2.1 Local exchange system 2.2.1 Local exchange system structures.structures.

Then the :Then the :

2.2.2 Interest-free micro-credit 2.2.2 Interest-free micro-credit structures.structures.

Then the :Then the :

2.2.3 Cooperative purchasing groups.2.2.3 Cooperative purchasing groups.

2.2.1 The local money structures.2.2.1 The local money structures.(Dia. 1)(Dia. 1)

They operate at 3 levels :They operate at 3 levels :

Basic level (water point) : local helper.Basic level (water point) : local helper.

Intermediate, well commission level : Intermediate, well commission level : registration of transactions.registration of transactions.

Project, level: statistics, management.Project, level: statistics, management.

2.2.1 Local exchange system 2.2.1 Local exchange system structures.structures.

(Dia. 2)(Dia. 2)

The system is based on the perceived value of one The system is based on the perceived value of one hour’s work. hour’s work.

Everyone starts with, say, 500 points Everyone starts with, say, 500 points (50 hours’ work).(50 hours’ work).

Credit and debit system : the sum of every Credit and debit system : the sum of every transaction is always zero.transaction is always zero.

The local money system is complementary :The local money system is complementary :Users are always free to choose whether they want to Users are always free to choose whether they want to

use the local money system or the formal money use the local money system or the formal money one.one.

2.2.1 The local money structures.2.2.1 The local money structures.(Dia. 3)(Dia. 3)

2.2.2 The interest-free micro-credit 2.2.2 The interest-free micro-credit system.system.

(Dia. 1)(Dia. 1)

No formal money costs.No formal money costs.(The system operates under the local money (The system operates under the local money

system.)system.)

The system provides each family of 5 with at least The system provides each family of 5 with at least €1500 of interest-free, cost-free finance for €1500 of interest-free, cost-free finance for

productive development in each 10 year period of productive development in each 10 year period of activities.activities. The system operates at three levels.The system operates at three levels.

The self-financed cooperative local development fund is owned The self-financed cooperative local development fund is owned and operated by the local populations themselvesand operated by the local populations themselves..

At the close of the first ten year cycle of project activities, the At the close of the first ten year cycle of project activities, the amount in the fund should be amount in the fund should be enough to re-imburse the initial enough to re-imburse the initial

capital investment in the project should this be required.capital investment in the project should this be required.

2.2.2 Micro-credit structures:2.2.2 Micro-credit structures:(Dia. 2)(Dia. 2)

Illustration of typical development over ten years.Illustration of typical development over ten years.

(Each family receives at least Euro 1500 (Each family receives at least Euro 1500 based on an average 2 year payback period)based on an average 2 year payback period)

2.2.3 Cooperative purchasing 2.2.3 Cooperative purchasing groups.groups.

The groups can operate act any or all of the The groups can operate act any or all of the three project administrtive levels.three project administrtive levels.

They can be voluntary of compulsory, at the They can be voluntary of compulsory, at the choice of the local populations. choice of the local populations.

Examples:Examples:Insurance coopératives.Insurance coopératives.

Purchase of photovoltaic home systems.Purchase of photovoltaic home systems.Selfterminating buying cooperatives.Selfterminating buying cooperatives.

Cooperatives for the purchase of medicines.Cooperatives for the purchase of medicines.

Project structures provide free Project structures provide free administrative support to the groups administrative support to the groups

within the framework of the local within the framework of the local exchange (LETS) systems set up. exchange (LETS) systems set up.

2.2.4 F2.2.4 Financing projects via the CDM mechanism of inancing projects via the CDM mechanism of the Kyoto Protocol.the Kyoto Protocol.

METHOD.METHOD.

a) Set up a menu of 13 programmes of activities (PoA) at a project or a) Set up a menu of 13 programmes of activities (PoA) at a project or dominant level.dominant level.

One application of the menu for each individual integrated development One application of the menu for each individual integrated development project. project.

The methodologies chosen for any given project make up a sub-programme The methodologies chosen for any given project make up a sub-programme of activities (sub-PoA). of activities (sub-PoA).

b) Apply the sub-programme of activities to the individual project.b) Apply the sub-programme of activities to the individual project.

10.000 applications per project for te improved stoves methodology.10.000 applications per project for te improved stoves methodology.One or two reforestation applications.One or two reforestation applications.

200 applications for forestation initiative in inhabited areas.200 applications for forestation initiative in inhabited areas.200 applications for the use of bamboo.200 applications for the use of bamboo.

Etc.Etc.

(See table www.integrateddevelopment.org/coursesdiplomablock8section5-(See table www.integrateddevelopment.org/coursesdiplomablock8section5-01.htm)01.htm)

The market for CER certificates has collapsed. Financing via the CDM mechanism is no longer a practical proposition at this time.

2.2.5 Green fund for Adaptation to 2.2.5 Green fund for Adaptation to Climate Change.Climate Change.

New fund in formation for management under the New fund in formation for management under the United Nations Framework Convention on Climate United Nations Framework Convention on Climate

Change. (UNFCCC). Change. (UNFCCC).

Projects automatically cover nearly all Projects automatically cover nearly all of the actions recommended for the of the actions recommended for the

project area concerned. project area concerned.

The national government can include The national government can include integrated projects in its national plan for integrated projects in its national plan for

adaptation to climate change. adaptation to climate change.

2.3 Summary of the productive 2.3 Summary of the productive structures provided by each structures provided by each

project.project.

Units for the manufacture of items from Units for the manufacture of items from gypsum-based composites.gypsum-based composites.

Production of mini-briquettes for cooking Production of mini-briquettes for cooking purposes.purposes.

Production of biomass for mini-briquettes.Production of biomass for mini-briquettes.

Cooperatives for installation and Cooperatives for installation and maintenance.maintenance.

Others, too many to name, in the minds of Others, too many to name, in the minds of the people.the people.

2.4 Summary of the service structures provided.2.4 Summary of the service structures provided.(Dia. 1)(Dia. 1)

Water : solar powered distributed drinking water Water : solar powered distributed drinking water

systems at +/- 200 water points; triple manual systems at +/- 200 water points; triple manual backup hand-pump systems at +/- 40 backup hand-pump systems at +/- 40

boreholes/wells; 10.000 rainwater harvesting boreholes/wells; 10.000 rainwater harvesting systems at household level.systems at household level.

Sanitation : dry composting ecological sanitary Sanitation : dry composting ecological sanitary systems for each of 10.000 households, and at systems for each of 10.000 households, and at

schools, clinics and public places.schools, clinics and public places.

Waste recycling system : Complete system at Waste recycling system : Complete system at three levels for the productive recycling of three levels for the productive recycling of

waste. waste.

Photovoltaic lighting systems.Photovoltaic lighting systems.

2.4 Summary of the service structures provided.2.4 Summary of the service structures provided.(Dia.2)(Dia.2)

20.000 Improved high-efficiency cook-stoves 20.000 Improved high-efficiency cook-stoves (elimination of risks associated with smoke).(elimination of risks associated with smoke).

Education : as required. Up to 200 primary Education : as required. Up to 200 primary schools; 40 secondary schools; 1 trades school; schools; 40 secondary schools; 1 trades school; 1 institute for first year university studies; 200 1 institute for first year university studies; 200

study rooms with photovoltaic lighting.study rooms with photovoltaic lighting.

Health : as required. Up to 200 nursing units; 40 Health : as required. Up to 200 nursing units; 40 doctors’ surgeries with medicine distribution doctors’ surgeries with medicine distribution points; 1 local hospital; bicycle ambulance points; 1 local hospital; bicycle ambulance

system.system.

Formal money cooperative purchasing groups Formal money cooperative purchasing groups for medicines.for medicines.

Cooperative formal money health insurance Cooperative formal money health insurance system.system.

2.4 : Summary of the service structures 2.4 : Summary of the service structures provided.provided.

(Dia. 3)(Dia. 3)

3. Costs and3. Costs and benefits. benefits.

3.1 Costs3.1 Costs..

3.2 Benefits.3.2 Benefits.

3.1 Costs.3.1 Costs.(Dia 1)(Dia 1)

The entire package of integrated development structures The entire package of integrated development structures costs only costs only €176 per person.€176 per person.

Of that, 42% is provided by the local populations themselves Of that, 42% is provided by the local populations themselves in the form of work carried out under the local exchange in the form of work carried out under the local exchange (LETS) systems created to set the project structures up.(LETS) systems created to set the project structures up.

Initial formal capital (58% of the total) can, if necessary, take Initial formal capital (58% of the total) can, if necessary, take the form of an interest-free development loan for a period the form of an interest-free development loan for a period

of ten years. of ten years.

The repayable amount is collected in each project’s The repayable amount is collected in each project’s cooperative local development fund over the first ten-year cooperative local development fund over the first ten-year period of activities, and is repeatedly recycled during that period of activities, and is repeatedly recycled during that

period for interest-free cost-free micro-credit loans.period for interest-free cost-free micro-credit loans.

3.1 C3.1 Costs.osts.(Dia. 2)(Dia. 2)

Project costs can in princple be covered:Project costs can in princple be covered:

As a first line :As a first line :By the capital deposited in each project’s cooperative local By the capital deposited in each project’s cooperative local development fund during the first ten-year period of project development fund during the first ten-year period of project

activities. In the meantime the funds are used to finance interest-activities. In the meantime the funds are used to finance interest-free, cost-free micro-credits for productive purposes. free, cost-free micro-credits for productive purposes.

And as a second line :And as a second line :Through the Adaptation Commission and the Green Fund for Climate Through the Adaptation Commission and the Green Fund for Climate

AdaptationAdaptationTo be set up Following the Conférences of Cancùn (2010) and Durban To be set up Following the Conférences of Cancùn (2010) and Durban

(2011). (2011). (Projects cover a full range of climate adaptation measures).(Projects cover a full range of climate adaptation measures).

And, eventually as a third line:And, eventually as a third line:By the application of a menu of 13 methodologies for the reduction of By the application of a menu of 13 methodologies for the reduction of

CO2 emissions and the creation of CO2 sinks under the terms of CO2 emissions and the creation of CO2 sinks under the terms of the Kyoto Protocol.the Kyoto Protocol.

(This was originally the primary way of financing the projects but the (This was originally the primary way of financing the projects but the bottom has fallen out of the CO2 market and compliance costs are bottom has fallen out of the CO2 market and compliance costs are

now higher than the benefits.)now higher than the benefits.)

3.2 3.2 BenefitsBenefits(Dia. 1)(Dia. 1)

Once the project structures are in place, the Once the project structures are in place, the annual benefits of each project are greater annual benefits of each project are greater

than the investment capital.than the investment capital.

AnnualAnnual savings on the costs of food savings on the costs of food currently imported into project areas alone currently imported into project areas alone amount to nearly 90% of the investment amount to nearly 90% of the investment

costs.costs.

Interest saved on micro-credits conceded Interest saved on micro-credits conceded amounts to amounts to € 1.000.000 to € 3.000.000 € 1.000.000 to € 3.000.000

per year depending on the assumed per year depending on the assumed average interest rate taken into account. average interest rate taken into account.

NGO STICHTING BAKENS VERZET (“ANOTHER WAY”)NGO STICHTING BAKENS VERZET (“ANOTHER WAY”)NETHERLANDSNETHERLANDS

MODEL FOR SELF-FINANCING, ECOLOGICAL, MODEL FOR SELF-FINANCING, ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT

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