1. Practical Integrated Development Integrated development concepts. Terry Manning NGO Stichting Bakens Verzet (Another Way) bakensverzet@xs4all.nl

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

3. 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.

4. 1.1 Development of structures. It’s 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.

5. 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

6. 1.3 Mobilisation of local populations. 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 execution 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 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 like structures.

7. 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).

8. 1.5 Schematic view of a project area. Project level (50.000 people) Well-commission level (1.500 people) Tank-commission level (250 people) One per project About 35/project About 200/project Numbers are rarely critical NGO Stichting Bakens Verzet Netherlands

11. The subsidiarity principle always applies. Tank commissions Well commissions Project level Tank 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 housewives Family 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 statistics Local money assistants Registration local money Local money statistics transactions Inter-project relations transactions Inter-project relations Collection of contributions Conflict resolution Collection of contributions Conflict resolution Collection of loan repayments Conflict resolution Collection 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 net 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 Production bio-mass for local use Production of mini-briquettes Statistics Nurse Doctor Local hsopital Nurse Doctor Local hsopital Primary school Secondary school Trade schools, Primary school Secondary school Trade schools, propadeuse for University propadeuse 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 competition Sports clubs Intermediate facilities Project level competition Theatres, cultural groups Physical Facilities Cultural circuits Theatres, cultural groups Physical Facilities Cultural circuits Personal food storage facility Cooperative food storage Export/import cooperatives Personal food storage facility Cooperative food storage Export/import cooperatives 1.7 Project structures at each level. (A few typical examples)

12. 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

13. 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.

14. 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.

15. 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.

16. 2.2.1 Local exchange system structures. (Dia. 2) The system is based on the perceived value of one hour’s 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.

17. 2.2.1 The local money structures. (Dia. 3)

18. 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.

19. 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)

20. 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.

21. 2.2.4 Financing projects via the CDM mechanism of the Kyoto Protocol. 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/coursesdiplomablock8section5-01.htm) The market for CER certificates has collapsed. Financing via the CDM mechanism is no longer a practical proposition at this time.

22. 2.2.5 Green fund for Adaptation to Climate Change. 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.

23. 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.

24. 2.4 Summary of the service structures provided. (Dia. 1) 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.

25. 2.4 Summary of the service structures provided. (Dia.2) 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.

26. 2.4 : Summary of the service structures provided. (Dia. 3)

27. 3. Costs and benefits. 3.1 Costs. 3.2 Benefits.

28. 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 project’s 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.

29. 3.1 Costs. (Dia. 2) Project costs can in princple be covered: As a first line : By the capital deposited in each project’s 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.)

30. 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.

31. NGO STICHTING BAKENS VERZET (“ANOTHER WAY”) NETHERLANDS MODEL FOR SELF-FINANCING, ECOLOGICAL, SUSTAINABLE, LOCAL INTEGRATED DEVELOPMENT PROJECTS Schoener 50, 1771 ED Wieringerwerf Netherlands. Tel. 0031-(0)227-604128 Skype : temanning bakensverzet@xs4all.nl Website : www.integrateddevelopment.org Chamber de Commerce registration no. NL 34235506 Amsterdam; VAT code : NL 8150.17.972.B01 Bank : Triodos 3700 AB Zeist IBAN NL 90 TRIO 0781327598