Practical Integrated Development

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Practical Integrated Development

• Integrated development concepts.
• Terry Manning
• NGO Stichting Bakens Verzet (Another Way)
• bakensverzet_at_xs4all.nl

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Summary

• 1. About integrated development.
• 2. Project structures.
• 3. Costs and benefits.

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1. About integrated development.

• 1.1 Development of structures.
• 1.2 Purpose.
• 1.3 Mobilisation of local populations.
• 1.4 The three project levels.
• 1.5 Schematic view of a project area.
• 1.6 Schematic view of a regional project.
• 1.7 Division of tasks at each level.

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1.1 Development of structures.

• Its all about structures.
• Reform is not an event, it is a process.
• (Kofi Annan, report of the Secretary-General to
  the United Nations Assembly
• A/51/950 14 July, 1997, par. 25)
• Once the proposed enabling social, financial,
  productive and service structures are in place in
  each project area, the local populations possess
  instruments enabling them to decide for
  themselves what they want to do.
• Integrated development involves a structural
  reform process.
• Traditional aid projects try to provide solutions
  to specific problems. They are not holistic.

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1.2 Purpose of integrated development projects.

• Purpose to create a cooperative, interest-free,
  inflation-free local economic environment in each
  project area where private initiative and genuine
  competition are free to flourish.
• FINANCIAL LEAKAGE OUT OF PROJECT AREAS
• IS BLOCKED

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1.3 Mobilisation of local populations.

• The local people themselves plan, execute,
• run, manage and pay for all structures.
• They are assisted during the initial project
• execution period by a (very) small team of
• experts led by a local project coordinator.
• Each structure operates autonomously at
• each level in its own way and its own speed.
• Basic activities and duties are common to all
  like structures.

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1.4 The three levels of structures.

• Three levels (in addition to individual
  families)
• Basic level tank commission.
• (50 famililes 250 persons anthropological
  justification
• Extended family developed in Mesopotamia about
  13.000 years ago.
• Intermediate level well commission.
• (350 families 1.500-2.000 persons
  anthropological justification
• Groups of clans with chief and a first level of
  specialisation of activities,
• developed about 7.500 years ago.
• Project level.
• (10.000 families 50.000 persons
  anthropological justification
• Greek city-state with advanced specialisation of
  activities formed about 3.500 years ago.
• Level of self-sufficiency (Aristotle).

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1.5 Schematic view of a project area.
Project level (50.000 people)
Numbers are rarely critical
Well-commission level (1.500 people)
Tank-commission level (250 people)
One per project
About 35/project
NGO Stichting Bakens Verzet Netherlands
About 200/project
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1.7 Project structures at each level. (A few
typical examples)

• The subsidiarity principle always applies.
• Tank commissions
  Well commissions Project level
• Health clubs/hygiene education Management
  of well sites Supervision and
  statistics
• Drinking water
  Drinking water supply back-up Maintenance
  statistics
  
• Family sanitation
  Washing places
  Training for housewives
• Rainwater harvesting
  Water sampling Water
  testing
• Local money assistants
  Registration local money Local money
  statistics
• 
  transactions
  Inter-project relations
• Collection of contributions 
  
  Conflict resolution
• Collection of loan repayments 
  
  Conflict resolution
• 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 net
• Production bio-mass for local use
  Production of mini-briquettes Statistics
• Nurse
  Doctor
  Local hsopital
• Primary school
  Secondary school
  Trade schools,
• 
  
  propadeuse for University

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2. Typical project structures for each project
area.

• Project structures are set up in a critical order
  of sequence
• First the
• 2.1 SOCIAL STRUCTURES
• Then the
• 2.2 FINANCIAL STRUCTURES
• Then the
• 2.3 PRODUCTIVE STRUCTURES
• Finally the
• 2.4 SERVICE STRUCTURES

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2.1 Typical social structures.

• in sequential order of formation
• 2.1.1 Health clubs.
• 2.1.2 Tank commissions.
• 2.1.3 Well commissions.
• 2.1.4 Central committee.
• 2.1.5 Three tiered social security structure.

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2.2 The financial structures.

• In sequential order of formation.
• First the
• 2.2.1 Local exchange system structures.
• Then the
• 2.2.2 Interest-free micro-credit structures.
• Then the
• 2.2.3 Cooperative purchasing groups.

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2.2.1 The local money structures.

• (Dia. 1)
• They operate at 3 levels
• Basic level (water point) local helper.
• Intermediate, well commission level
  registration of transactions.
• Project, level statistics, management.

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2.2.1 Local exchange system structures.(Dia. 2)

• The system is based on the perceived value of one
  hours work.
• Everyone starts with, say, 500 points
• (50 hours work).
• Credit and debit system the sum of every
  transaction is always zero.
• The local money system is complementary
• Users are always free to choose whether they want
  to use the local money system or the formal money
  one.

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2.2.1 The local money structures.(Dia. 3)
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2.2.2 The interest-free micro-credit
system.(Dia. 1)No formal money costs.(The
system operates under the local money
system.)The system provides each family of 5
with at least 1500 of interest-free, cost-free
finance for productive development in each 10
year period of activities.

• The system operates at three levels.
• The self-financed cooperative local development
  fund is owned and operated by the local
  populations themselves.
• At the close of the first ten year cycle of
  project activities, the amount in the fund should
  be enough to re-imburse the initial capital
  investment in the project should this be
  required.

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2.2.2 Micro-credit structures(Dia.
2)Illustration of typical development over ten
years.(Each family receives at least Euro 1500
based on an average 2 year payback period)
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2.2.3 Cooperative purchasing groups.

• The groups can operate act any or all of the
  three project administrtive levels.
• They can be voluntary of compulsory, at the
  choice of the local populations.
• Examples
• Insurance coopératives.
• Purchase of photovoltaic home systems.
• Selfterminating buying cooperatives.
• Cooperatives for the purchase of medicines.
• Project structures provide free administrative
  support to the groups within the framework of the
  local exchange (LETS) systems set up.

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

• METHOD.
• a) Set up a menu of 13 programmes of activities
  (PoA) at a project or dominant level.
• One application of the menu for each individual
  integrated development project.
• The methodologies chosen for any given project
  make up a sub-programme of activities (sub-PoA).
  
• b) Apply the sub-programme of activities to the
  individual project.
• 10.000 applications per project for te improved
  stoves methodology.
• One or two reforestation applications.
• 200 applications for forestation initiative in
  inhabited areas.
• 200 applications for the use of bamboo.
• Etc.
• (See table www.integrateddevelopment.org/coursesdi
  plomablock8section5-01.htm)

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2.2.5 Green fund for Adaptation to Climate
Change.

• New fund in formation for management under the
  United Nations Framework Convention on Climate
  Change. (UNFCCC).
• Projects automatically cover nearly all of the
  actions recommended for the project area
  concerned.
• The national government can include integrated
  projects in its national plan for adaptation to
  climate change.

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2.3 Summary of the productive structures provided
by each project.

• Units for the manufacture of items from
  gypsum-based composites.
• Production of mini-briquettes for cooking
  purposes.
• Production of biomass for mini-briquettes.
• Cooperatives for installation and maintenance.
• Others, too many to name, in the minds of the
  people.

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

• Water solar powered distributed drinking water
  systems at /- 200 water points triple manual
  backup hand-pump systems at /- 40
  boreholes/wells 10.000 rainwater harvesting
  systems at household level.
• Sanitation dry composting ecological sanitary
  systems for each of 10.000 households, and at
  schools, clinics and public places.
• Waste recycling system Complete system at three
  levels for the productive recycling of waste.
• Photovoltaic lighting systems.

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

• 20.000 Improved high-efficiency cook-stoves
• (elimination of risks associated with smoke).
• Education as required. Up to 200 primary
  schools 40 secondary schools 1 trades school 1
  institute for first year university studies 200
  study rooms with photovoltaic lighting.
• Health as required. Up to 200 nursing units 40
  doctors surgeries with medicine distribution
  points 1 local hospital bicycle ambulance
  system.
• Formal money cooperative purchasing groups for
  medicines.
• Cooperative formal money health insurance system.

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2.4 Summary of the service structures
provided.(Dia. 3)
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3. Costs and benefits.

• 3.1 Costs.
• 3.2 Benefits.

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3.1 Costs.

• (Dia 1)
• The entire package of integrated development
  structures costs only 176 per person.
• Of that, 42 is provided by the local populations
  themselves in the form of work carried out under
  the local exchange (LETS) systems created to set
  the project structures up.
• Initial formal capital (58 of the total) can, if
  necessary, take the form of an interest-free
  development loan for a period of ten years.
• The repayable amount is collected in each
  projects cooperative local development fund over
  the first ten-year period of activities, and is
  repeatedly recycled during that period for
  interest-free cost-free micro-credit loans.

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3.1 Costs.(Dia. 2)

• Project costs can in princple be covered
• As a first line
• By the capital deposited in each projects
  cooperative local development fund during the
  first ten-year period of project activities. In
  the meantime the funds are used to finance
  interest-free, cost-free micro-credits for
  productive purposes.
• And as a second line
• Through the Adaptation Commission and the Green
  Fund for Climate Adaptation
• To be set up Following the Conférences of Cancùn
  (2010) and Durban (2011).
• (Projects cover a full range of climate
  adaptation measures).
• And, eventually as a third line
• 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 the
  Kyoto Protocol.
• (This was originally the primary way of financing
  the projects but the bottom has fallen out of the
  CO2 market and compliance costs are now higher
  than the benefits.)

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3.2 Benefits

• (Dia. 1)
• Once the project structures are in place, the
  annual benefits of each project are greater than
  the investment capital.
• Annual savings on the costs of food currently
  imported into project areas alone amount to
  nearly 90 of the investment costs.
• Interest saved on micro-credits conceded amounts
  to 1.000.000 to 3.000.000 per year depending
  on the assumed average interest rate taken into
  account.

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NGO STICHTING BAKENS VERZET (ANOTHER
WAY)NETHERLANDSMODEL FOR SELF-FINANCING,
ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED
DEVELOPMENT PROJECTSSchoener 50,1771 ED
WieringerwerfNetherlands.Tel.
0031-(0)227-604128Skype temanningbakensverzet_at_
xs4all.nlWebsite www.integrateddevelopment.org
Chamber de Commerce registration no. NL
34235506 Amsterdam VAT code NL
8150.17.972.B01Bank Triodos 3700 AB Zeist
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