♣ Decentralized budgeting process

"♣": Estrategias específicas empleadas por los estudios de caso para incrementar su nivel de auto-sustentabilidad.Pueden estar en inglés o español. Por favor usa el traductor del menú lateral 

"♣": Specific strategies used by the case studies to increase their degree of self-sustainability.They might be in English or in Spanish. Please use the side menu translator
  • The degree of ownership felt by the communities of these projects enhances their trust of the[This/the initiative] and their confidence to send their children to the Night Schools. The opportunity costs of school attendance and community involvement in the projects are compensated by this sense of ownership, which is also a result of a widely decentralized budgeting process. The communities are deeply involved with the program: they manage it, they contribute to it, and they benefit from it.
    • “Hub” o incubadora de ideas y proyectos. En el terreno actual, de una hectárea, se hospedan varios proyectos de producción de alimentos, educación, salud, deporte y cultura, todos los cuales deben ser negocios financieramente autosustentables. En lugar de una renta fija, cada proyecto paga a[Esta/la iniciativa] un porcentaje de sus ingresos que varía según el acuerdo establecido al inicio de la colaboración.
    • General Assembly takes place every two months among the partners. Attendance is not mandatory and the participation of representatives of the partners is accepted in cases where they cannot attend. At the end of these assemblies, demonstrative barter markets are mounted for people to learn to use the Tumin. Partners can prepare their participation in the Assembly through subgroup meetings as required. The Assembly, which has (as one of its objectives) the constant evaluation of the project, is made up of Commissions that are in charge of organizing various issues related to the[This/the initiative] Project. Thus, there are Commissions on Education (to teach children new economic values ​​such as solidarity), Communication (broadcasting the project), Distribution (which dispenses the Tumin), etc.

     

    • The Banking Trust Fund Scheme:
    • All financial resources obtained are deposited in the capital fund, the use of which is subject to control by a banking trust fund mechanism, which provides the project with credibility to encourage donations to contribute with those resources.

      Donors, foundations, governments, and international NGOs trying to support the so-called “developing countries” frequently face the same problem: corruption. Money frequently doesn’t arrive at its destination and stays in intermediary hands. It also happens that the money is distributed but the recipient organizations don’t have projects to offer, even if the money is there. With a Trust Fund, the money doesn’t have to go through the organization’s hands but rather goes through the Trust Fund’s hands which gives transparency to the money’s management, and certainty to both the organization and the donors.

      A Trust Fund is composed of 3 parts:

      1. The Trustee (the Bank) that is the one that generates the confidence (the trust), as it is the one that monitors how the money is being spent and ensures that it is used in the way and with the purpose agreed, by contract, between the beneficiaries and the donors.
      2. The Donors/Foundations that put money in the trust for a specific purpose.
      3. The Beneficiaries (the organization and/or local people).

       

      1, 2, and 3 elect an Executive Board (also called Technical Committee) that supervises/manages the Trust Fund on a daily basis and under the general supervision of the Trustee. It is formed by representatives from donors and beneficiaries.

      All rules applicable to the operation of the Trust are convened through a contract among 1, 2, and 3.

      All decisions (the designation of the Executing Board, the use of the money donated, etc.) are settled in that contract. All parts would like to advocate for their own interests but the ideal is to find a balance between them – respecting the beneficiary’s project objectives and the donor’s aims. The donors participate in the model because they accept it, which means that once they sign the contract they cannot make changes to it. That has to be clear in the original contract.

      The content of the contract is to establish that what is being settled is a Trust Fund, that is, a contract based on trust because there is someone (the bank) that looks after the contract’s compliance (e.g. “We agree to ensure that the obtained money will be dedicated to x and the bank will supervise that it is done that x way” ). When, during the implementation process, money has to be spent, the Executive Board decides how to use the money and the bank watches that the conditions are in line with what was agreed both on the contract and in the conditions to which the granting of the funds were subjected, that is, the original objective and destination of the funds.