Country: Netherlands
Organization: Strohalm Foundation for Integrated Economics (Netherlands)
2) Sector of activity: Financial and other economic services
Livelihood
3) Description of your products or services: We offer a system for encouraging and facilitating cooperative/collective reconstruction activities, and a voucher currency for the effective distribution of aid. In our experiences, we sometimes witnessed a breakdown in social cohesion and willingness to work together as a group. We also witnessed that aid money was not being directed properly: aid and materials received were sometimes being sold on the black market. This can lead to corruption and misuse of funds. A voucher currency system can help reduce the negative impact of aid by channeling the aid properly. Just as we promote flows of money that support a strong community, this system promotes flows of money that support recovery. Therefore, the services that are needed are: 1) Community Cooperation Systems that encourage and facilitate collective action in a fair way. 2) Voucher Currencies backed by national currency (aid money), to more effectively control the distribution of materials and money to those affected, and to assist in the prioritization of activities that would more efficiently promote and thus speed up recovery.
4) Description of innovation: We have not yet seen the use of "Recovery Notes", vouchers backed by national currency to more effectively and fairly distribute aid. We have not seen the implementation of coordinated collective activity systems that would involve the community in participatorily (as a community and together with aid agencies) identifying priority tasks and mobilizing people to assist in the rapid completion of these tasks. Compare this with "Food for Work" systems, where "excess food" is sold or traded with others in order to earn money. Or, "Emergency Ration Systems" where people who don't need the items provided receive them anyway to sell or trade with others who do need them.
5) Description of the financial model: This program promotes the effective distribution of aid money and materials. Therefore primary funds are needed for printing secure top-quality voucher notes which can be printed in advance, or very quickly. Secondary sources of funds are needed for the implementation, management/training and monitoring of the system. The models presented are for recovery after the initial phases of the disaster have passed. Other economic models we use are self-sustainable and are in operation in some 35 third-world countries worldwide.
Client fees represent this approximate percentage of operational budget: 0%
6) Key operational partnership: We are not presently working in disaster areas. Our models are presently being applied in an economic development context, with small enterprise, agriculture, small-scale financial institution programs. We see a very useful possibility in implementing them in post-disaster contexts with partners. Our partnerships would be with aid agencies, local financial institutions, regional, local and community governments, and the community where the program is implemented. The major opportunities are: 1) Effective distribution of aid money and materials. 2) Increased social cohesion and collaboration in recovery activities. 3) More rapid recovery of livelihoods and necessary economic/enterprise structures.
7) State of implementation:
We are at the Mature stage. Our implementations are mature. However, for application in post-disaster recovery efforts, they are at the stage of presentation to aid agencies. We have one system operating in southern Thailand in a tsunami-affected area.
What institutions, communities, populations or geographic areas have benefited most from your product/service? Communities with a population of 5,000 or less. Enterprise Clusters (ie. port,shipping and fishermen) for a community. Regional, Local and Community-level financial institutions.
What specific partnerships do you need to be successful? We hope that aid agencies will review our websites and documentation, and seek further information and contacts with our experts.
8) Replication strategy or expectation:
What plan, if any, do you have for replicating your disaster strategy? What policy, legal or institutional constraints must be overcome for you to be successful?
Our systems presently operate in many countries, with a broad diversity of religions, cultures and environments. Most challenges we face would be political, as they are often in the best position to take advantage of crises and thus such a system may be seen as a threat to their power.
Which specific areas - and why - in your field would benefit most from investment by corporations, foundations, and other investors:
The solution we present is specifically intended to benefit the affected communities by the proper distribution of investment and aid from outside of the community, by more effectively matching external (aid) with internal (community social) resources
9) The organization: How does the initiative fit with your overall organization's strategic goals and priorities? How did the initiative start?
Our work is in general economic development. If the need arises, we could be called upon to provide experts to implement the systems described above in the affeted area.
9a) Is there a social entrepreneur behind this idea?
We are a network of many social innovators. The person who is making this proposal lives and works in SE Asia.
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10) On the mosaic diagram, which of these factors is the primary focus of your work?
- Factor: Poorly deployed external aid weakens communities
- Principle: Use local knowledge and priorities
- Other: We are also dealing with the breakdown of systems and inadequate infrastructures, with the primary focus being the poor deployment of external aid, and poor mobilization of internal capacity.
Contact Information:
Name: Stephen DeMeulenaere
Organization: Strohalm Foundation for Integrated Economics (Netherlands)
Mailing address: Oudegracht 42, 4511 AR Utrecht
Country: Netherlands
Email:
stephen@strohalm.nl
Website: www.appropriate economics.org, www.complementarycurrency.org, www.cctsunami.org
Organization's legal status: Non-Governmental Organization
Number of Employees: 75
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