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

PROJECTSPROJECTS

Part OnePart OneCauses of poverty and what to do Causes of poverty and what to do

about them.about them.(Twenty-four slides)(Twenty-four slides)

1. Poverty1. Poverty

• "Money is not the key that opens the gates of the market but the "Money is not the key that opens the gates of the market but the bolt that bars them.“ Gesell, Silvio, The Natural Economic Order, bolt that bars them.“ Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228revised English edition, Peter Owen, London 1958, page 228

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

The subjective definition of poverty used by the authors of this Model The subjective definition of poverty used by the authors of this Model is:is:

““Poverty is a state in which one's perceived quality of life isPoverty is a state in which one's perceived quality of life is lower than is felt to be needed for survival and reproduction, lower than is felt to be needed for survival and reproduction,

or than is desired.”or than is desired.”

2. Some factors related to poverty2. Some factors related to poverty• Monetisation and the economy.Monetisation and the economy.• Where is the value-added in a can of peas?Where is the value-added in a can of peas?• Efficiency and length of the production chain.Efficiency and length of the production chain.• Inefficiency of marketing, packaging and transport.Inefficiency of marketing, packaging and transport.• Role of money: catalyst.Role of money: catalyst.• No catalyst, no transaction.No catalyst, no transaction.• Financial leakage.Financial leakage.

The most important single cause of poverty is on-The most important single cause of poverty is on-going financial leakage from poor areas to richer going financial leakage from poor areas to richer

ones.ones.

3. Financial leakage : interest and 3. Financial leakage : interest and subisdysubisdy

We live in a society based on debt where most new money is created We live in a society based on debt where most new money is created by private bankers against interest.by private bankers against interest.

In 2001, farmers in industrialised countries received agricultural In 2001, farmers in industrialised countries received agricultural subsidies for US$ 350 billion. This is more than three times the total subsidies for US$ 350 billion. This is more than three times the total amount of aid for development (including debt relief) paid by all the amount of aid for development (including debt relief) paid by all the

OECD donor countries together in 2006 (US$ 103,9 billion).OECD donor countries together in 2006 (US$ 103,9 billion).

• The interest factor built into prices The interest factor built into prices • Final user borrowing.Final user borrowing.• What happens to the interest?What happens to the interest?• Migration of payment for the bona-fide content of a transaction.Migration of payment for the bona-fide content of a transaction.• Migration of the interest content of a transaction.Migration of the interest content of a transaction.• Migration of local savings.Migration of local savings.• Lack of means to transfer goods.Lack of means to transfer goods.• Interest built into the cost of necessary imported goods and services.Interest built into the cost of necessary imported goods and services.• The principle of divide and ruleThe principle of divide and rule• Monopolistic control; monoculture.Monopolistic control; monoculture.• Subsidy to offset the parasitic interest costs created.Subsidy to offset the parasitic interest costs created.• Interest is paid by the individual buyer, subsidies by taxpayers in general.Interest is paid by the individual buyer, subsidies by taxpayers in general.• The subsidy game.The subsidy game.• The power of multinational companies.The power of multinational companies.• Remittances by emigrants. Remittances by emigrants.

4. Financial leakage : the food and 4. Financial leakage : the food and water industrieswater industries

Producers lose control over their Producers lose control over their productsproducts

• Food dependence.Food dependence. • Imposed production standardsImposed production standards• Conservation of foodConservation of food..• Freezing and packaging.Freezing and packaging.• Monoculture and imported Monoculture and imported

food supplies.food supplies.• Water dependence.Water dependence.

5. Financial leakage : energy5. Financial leakage : energy

Local energy production for local use Local energy production for local use

• Solar energy : the world runs on it. (Amish)Solar energy : the world runs on it. (Amish)• Transformation of energy into a commercial Transformation of energy into a commercial

product.product.• Energy, an important cause of financial Energy, an important cause of financial

leakage.leakage.• FertilisersFertilisers• Fuel for cooking.Fuel for cooking.• Energy as a means for sustainable Energy as a means for sustainable

production.production.• Sustainable energy sources.Sustainable energy sources.• New products (Kyoto) excluding the poor. New products (Kyoto) excluding the poor.

6. Financial leakage : communications6. Financial leakage : communications

An important source of financial leakageAn important source of financial leakageThe new “untouchables”The new “untouchables”

• Centrally owned, large investments.Centrally owned, large investments.• Consumer and “professional” use.Consumer and “professional” use.• Telephone costs.Telephone costs.• Internet and its costs.Internet and its costs.• Sale of “knowledge” (patents)Sale of “knowledge” (patents)• Smoke signals, drums, and radio-Smoke signals, drums, and radio-

telephones.telephones.• RadioRadio

7. Financial leakage : health and 7. Financial leakage : health and educationeducation

The holy cows of developmentThe holy cows of developmentHealthHealth• Better health.Better health.• Health and local development.Health and local development.• Role of pharmaceuticals multinationalsRole of pharmaceuticals multinationals

EducationEducation• The costs of education.The costs of education.• Education and local development.Education and local development.• The brain drain. (Professionals get jobs The brain drain. (Professionals get jobs

abroad)abroad)

8. Financial leakage : theft of natural 8. Financial leakage : theft of natural resourcesresources

The pattern of international theft of natural resources taking place in The pattern of international theft of natural resources taking place in front of our eyes is constant the whole world over. Never has the world front of our eyes is constant the whole world over. Never has the world

witnessed economic crimes of such proportions. Never before have witnessed economic crimes of such proportions. Never before have colonialist principles been so parasitically and greedily exploited as they colonialist principles been so parasitically and greedily exploited as they

are today. Never before have so many people closed their eyes to it.are today. Never before have so many people closed their eyes to it.

Finite natural capital,Finite natural capital, mostly represented by mineral deposits, is of mostly represented by mineral deposits, is of national interest. Local populations have right to a fair part of the national interest. Local populations have right to a fair part of the

income from the sale of the mineral deposits. income from the sale of the mineral deposits.

Local populations have all rights to income from rLocal populations have all rights to income from renewable natural enewable natural capitalcapital..

Articles 119-126 of the Constitution of Venezuela, 1999, on the Articles 119-126 of the Constitution of Venezuela, 1999, on the rights of indigenous peoples. rights of indigenous peoples.

9. Financial leakage : corruption, 9. Financial leakage : corruption, export of funds, tax havensexport of funds, tax havens

If proceeds from corruption were invested locally, they would If proceeds from corruption were invested locally, they would probably lead to unequal distribution of wealth in a given area, but probably lead to unequal distribution of wealth in a given area, but

not necessarily to financial leakage from the area. not necessarily to financial leakage from the area.

They’re not. They’re not.

Foreign accounts in industrialised countries.Foreign accounts in industrialised countries. Expenditure on luxury items situated in foreign countries.Expenditure on luxury items situated in foreign countries. Importation of luxury items into the project area. Importation of luxury items into the project area. Banks and their investments.Banks and their investments.

10. Financial leakage : foreign aid10. Financial leakage : foreign aid

Lords of poverty (Graham Hancock)Lords of poverty (Graham Hancock)

Even money spent on “good” things Even money spent on “good” things reduces the amount of funds available for reduces the amount of funds available for

integrated development for the poor.integrated development for the poor.

• A new industry, often with profits.A new industry, often with profits.• Foreign aid, a wide definition.Foreign aid, a wide definition.• Where the money goes.Where the money goes.• Experts, experts everywhere.Experts, experts everywhere.• Vaccination campaigns.Vaccination campaigns.• ““Help”, foodHelp”, food ! !

11. Basics for a good quality of 11. Basics for a good quality of lifelife

““Poverty is a state in which one's perceived quality of life is lower thanPoverty is a state in which one's perceived quality of life is lower than is felt to be needed for survival and reproduction, or than is desired.”is felt to be needed for survival and reproduction, or than is desired.”

The following list is not intended to be complete.The following list is not intended to be complete.It describes what must be provided within the framework of anIt describes what must be provided within the framework of an

integrated development projectintegrated development project

Task of state, military, and police.Task of state, military, and police. Physical safety Physical safety

Tasks of an integrated development project.Tasks of an integrated development project.

Adequate shelter (drained, absence of smoke)Adequate shelter (drained, absence of smoke) Clean drinking waterClean drinking water (25 litres/day always) (25 litres/day always) Food, enough and varied. Food, enough and varied. Health and sanitation.Health and sanitation. Education for all.Education for all. Work for all.Work for all. Social security system for the weakest.Social security system for the weakest.

12. Physical safety12. Physical safety

• State protectionState protection• Concepts of valueConcepts of value• Cooperative, notional, Cooperative, notional,

social, cultural assetssocial, cultural assets• What’s worth stealing?What’s worth stealing?• Insurance aspects Insurance aspects

13. Shelter13. ShelterPackage for improving housing conditions is built Package for improving housing conditions is built

into the various services provided.into the various services provided.

• Hygiene educationHygiene education• Water supply (three sources)Water supply (three sources)• SanitationSanitation• DrainageDrainage• Waste collection and recyclingWaste collection and recycling• Cooking stoves – and biomass for themCooking stoves – and biomass for them• Aeration, elimination of smokeAeration, elimination of smoke• Cooperative purchasing groupsCooperative purchasing groups

14. Water14. Water• Water shortage and qualityWater shortage and quality• How much water do we really need?How much water do we really need?• Control water quantity by avoiding Control water quantity by avoiding

wastage and recycling grey water.wastage and recycling grey water.• Keep drinking water clean.Keep drinking water clean.• Back-up where solar pumps do not work.Back-up where solar pumps do not work.• (Fair) distribution of drinking water.(Fair) distribution of drinking water.• Fetching water.Fetching water.• Rainwater harvesting.Rainwater harvesting.• Maintenance of structures.Maintenance of structures.• Irrigation (usually excluded).Irrigation (usually excluded).• Hot water (cooperative purchasing groups)Hot water (cooperative purchasing groups)

15. Typical well-borehole15. Typical well-borehole

16. Typical water point16. Typical water point

17. Food security17. Food security• Enough food, with varied diet.Enough food, with varied diet.• Local consumption first for local needs.Local consumption first for local needs. • Household cultivation for variety.Household cultivation for variety.• Vertical gardens.Vertical gardens.• Eliminate mono-cultures.Eliminate mono-cultures.• Product storage facilities for local use.Product storage facilities for local use.• Fertilisers for gardens (eco-sanitation).Fertilisers for gardens (eco-sanitation).• Water for gardens (recycling).Water for gardens (recycling).• Use of local seeds.Use of local seeds.• Seed banks and nurseries.Seed banks and nurseries.

18. Health and sanitation.18. Health and sanitation.• Health – causes and cures.Health – causes and cures.• Hygiene education for women and in Hygiene education for women and in

schoolsschools• Varied and sufficient food supply.Varied and sufficient food supply.• Clean and sufficient water supply.Clean and sufficient water supply.• Sustainable dry composting toilet Sustainable dry composting toilet

systems.systems.• Complete recycling system.Complete recycling system.• Drainage.Drainage.• Insect control.Insect control.• Proper aeration of homes. Elimination of Proper aeration of homes. Elimination of

smoke.smoke.• Sport.Sport.• AIDS. Hygiene education, comfort, but not AIDS. Hygiene education, comfort, but not

cure.cure.

19. Complete waste recycling system19. Complete waste recycling system

20. Dry composting toilet20. Dry composting toilet

21. Education for all21. Education for all• What the project can do and what it cannot.What the project can do and what it cannot.• Use of local money systems.Use of local money systems.• Who builds the schools?Who builds the schools?• Where do the teachers come from?Where do the teachers come from?• Who pays for what?Who pays for what?• Tank level – primary schools (up to 200-250)Tank level – primary schools (up to 200-250)• Well level – secondary schools (up to 35-45)Well level – secondary schools (up to 35-45)• Trades and crafts school.Trades and crafts school.• Propedeuse and higher education.Propedeuse and higher education.• Girls and boys.Girls and boys.• Meeting the millennium development goals.Meeting the millennium development goals.• Women and evening classes.Women and evening classes.• Study rooms.Study rooms.

22. Work for all22. Work for all• Direct work for about 4000 adults, being:.Direct work for about 4000 adults, being:. 200 health club leaders; 200 health club leaders;

1000 tank commission members; 1000 tank commission members; 200 well commission members; 200 well commission members; 10 members of the central management group; 10 members of the central management group; 100 people involved with the registration of local money transactions; 100 people involved with the registration of local money transactions; 200 local money transaction assistants; 200 local money transaction assistants; 200 people responsible for local recycling activities at tank commission level; 200 people responsible for local recycling activities at tank commission level; 100 people responsible for recycling at well commission level; 100 people responsible for recycling at well commission level; 200 guards for structures at well-commission level; 200 guards for structures at well-commission level; 400 farmers growing bio-mass for mini-briquettes; 400 farmers growing bio-mass for mini-briquettes; 100 mini-briquettes manufacturers; 100 mini-briquettes manufacturers; 100 manufacturers of items made from gypsum composites, such as tanks, stoves, 100 manufacturers of items made from gypsum composites, such as tanks, stoves, sanitary ware; sanitary ware; 50 installation technicians; 50 installation technicians; 20 maintenance technicians; 20 maintenance technicians; 10 people responsible for water quality control. 10 people responsible for water quality control.

• Indirect work for everyone else for initiatives under:Indirect work for everyone else for initiatives under: The local money systemThe local money system The interest-free, cost-free micro-credit systemThe interest-free, cost-free micro-credit system

• The project does not attempt to foresee possible activities under the structures created.The project does not attempt to foresee possible activities under the structures created. They are as varied as the minds and the iniatative of the people in the project area.They are as varied as the minds and the iniatative of the people in the project area.

23. Social security system23. Social security system• Three level social security system :Three level social security system : Local money systemLocal money system Formal money systemFormal money system • Three levels:Three levels:

Tank commission levelTank commission level Well commission levelWell commission level Project levelProject level

• Who decides?Who decides?

• Who pays?Who pays?