Introduction:
The objective of this thesis is to establish the parameters of a project, hereto after called bleuJericho, a non-profit corporation, and Spectrum Dynamics, a for profit corporation, and to quantify the objectives. bleuJericho and Spectrum Dynamics in their very essences are an experiment in economics; the controlled and nurtured expansion and investment of an impoverished community in an undeveloped country. It is the belief of the author that charitable donations, though well meaning, are misguided. If this same money could be properly invested and properly supervised, it would have the very real possibility of significantly reducing poverty in undeveloped countries. In addition, this experiment has a very real potential of setting a new precedent in the maximized utility of natural resources.
To bring about a different result from the neo-classical financial aid model requires an entirely new financial aid model to be developed. In this new model, the donor, or sponsor, is responsible for functioning as investor, planner, assessor, analyst, provider, teacher, mentor, consultant, mediator, contractor and visionist. Linked to this broader mindset resides the opportunity to apply forward thinking applications of renewable energy technologies and an increased utilization of natural resources. If these goals can be achieved, an economy can continue to expand indefinitely because resources are not depleted. Future generations will have equal or greater prospects and achieve “sustainable development”.
How Great is the Need?
There are over 7 billion people living on the earth today with that number increasing at a rate of over 15% annually. It is ironic that the countries that have the greatest need are the same countries with the highest birth rates. It is in these locations that just staying alive consumes their day. It is sad to think that in this age of high technology, information ubiquity, and unprecedented achievements, that there still remains individuals trapped in the stone age, unable to increase their standard of living, to say nothing of contributing to society or the global economy. Not because they don’t have a desire to improve their conditions, though some may in fact be content, but rather because they were simply dealt an unlucky hand. Because their days are completely consumed with mere existence, they have no time to produce a good or service, a basic requirement for economic expansion and a method to improve their standard of living. Keep in mind that these activities are completed 365 days a year, from adolescence to death. This existence is exacerbated by over population, which leads to unsanitary conditions and the lack of clean water, which in turn leads to poor health and an unchecked spread of disease. Overpopulation also promotes environmental degradation, usually in the form of clear cutting forests as villages expand. Unfortunately, not only does the timber in rain forests provide poor firewood, but without the eco-system to support it, the land quickly becomes useless, as the soil content by itself is not suitable for farming.
If by some method or other they are able to reduce the number of hours to complete their daily tasks, then they would be able to provide a good or service to be sold locally and thereby trade labor for an increased standard of living. To break this hold requires the application of either information, to find a better, less time consuming method to complete their daily tasks, or by the application of technology, in the form of machinery and/or equipment to, again, reduce the time required to complete the daily tasks. But who is willing to provide the education or equipment necessary to make this come about? True, there are organizations that have made a difference, but the effort is limited, typically solving an immediate problem of food or clean water, and requiring a constant flow of support funding.
How did Developed Countries get “Developed?”
Developed countries have progressed to where they are today through two, simultaneous revolutions: The Industrial Revolution and a lesser-known Economic Revolution. The Industrial Revolution made possible the work of many to be accomplished by the work of one. Restated, the time required to perform the tasks that consumed the day of each person just to stay alive were reduced through invention and mechanization. This then provided the possibility of creating a good or service others would pay for. This in turn would provide the opportunity to either re-invest so that still more work could be accomplished in even less time, or to simply purchase commodities that would improve their standard of living. A family of an impoverished nation has the curiously the same appearance as an early American Colonial family of the early 18th century. They have few tools and their day is consumed with the business of just staying alive. Then Mr. McCormick introduced his threshing machine and suddenly the family has the possibility of doing 4 days work in a single day.
But wait! Where can this family find sufficient money to purchase a thresher? He will either have to save for, say, 10 years in order to accumulate that much disposable income, or they would have to buy it on credit. They would then be able to pay back the loan in 4 years and as mentioned before, they could then reinvest in their farm or purchase commodities that increase their standard of living.
But wait! How can they secure a loan? This then is the introduction of the second revolution. Because they were savvy enough to move to the colonies and hearty enough to endure the hardships, they now own the land they farm and can use it for collateral to secure the loan to purchase the thresher. Now, fast forward. Reviewing some of the problems of modern undeveloped countries, we find that most rural and some urban families are squatters and have no rights to the land they live on. Further, the process to obtain clear title to the land is a miserable, time consuming, bureaucratic nightmare. The idea that individuals could and should be allowed to obtain, purchase, hold, and/or trade private property is an idea that grew out of the 18th century serfdom and fueled the coming economic revolution. The idea is not only utilitarian, but also imperative to modern economics.
The Future
The modern age would not exist, as we know it had these revolutions not happened simultaneously. If the industrial revolution had started without the economic support, it would have merely made money for the land owners and created a larger gap between the “haves” and the “have nots.” Although there have been some serious downturns in our economic history, largely due to some poor lending practices, our global economy has continued to expand with an increasing “standard of living.” But can the economy continue to expand indefinitely? Some critiques say it cannot, and with the present habits of under-utilization of natural resources, this is most likely true. Without belaboring the consequences of our current actions, there are better ways of utilizing our natural resources. Just as with economics, sustained growth can only occur if utilization can become cyclical rather than linear. This means that instead of digging up natural resources, transforming them, utilizing them once, and burying them, they must be used and reused.
There are those who believe that nature should be left untouched and economic growth is both a societal and natural environmental foe. These views taken to their extreme, advocate the elimination of the human race, due to his unquenchable desire to destroy the natural environment. Opposing this idea is the view that private property ownership is paramount and that as an owner he/she can do with their resources whatever they please. This view taken to its extreme encourages monopolistic exploitation of people and natural resources. With no restraint, this view has the power to destroy the planet. Most believe that if the environment is saved, then economic growth must be halted. Reversing the logic, if economic growth continues, the environment will cease to exist. At the present rate of growth, coupled with the present rate of consumption, the generation being born, now, will see the destruction of the earth and its inhabitants by the time they retire.
Today's common mindset is that we live in a throwaway society. Few people bother to recycle unless incentives or penalties are attached. The extraction and one time use of almost all natural resources has an increasingly adverse affect on the environment. There is a limited amount of abuse the environment can withstand and there is a finite amount of natural resources available to extract.
A Changing Mindset
How can an economy continue to expand and not defile the planet? By thinking out of the box, i.e. by stepping out of the patterns of “this is the way we’ve always done it” and into imaginative ideas. It simply is not recycling taken to a new level. For example, when a car has exceeded its useful life and scrapped, the types of resources that compose that vehicle must be separated back into their original resources – aluminum in one pile, steel in another, plastics in yet more piles. The amount of energy exerted to separate these resources exceeds the worth of the scrap, making it more economical to bury it. However, if forward thinking engineers design vehicles that the particular resources could be separated easily, then recycling would make economic sense. Instead of designing, say, a copier with 30 different plastics, design it with 4 so that at the end of it’s useful life it can be recycled economically, a process referred to as Green Engineering.
The primary focus of the engineering community should be “how can a resource be most utilized?” Forestry, for example, can have many uses. Clear cutting exemplifies how harvesting resources can and will destroy the planet. However, selective cutting, not only preserves the environment and habitats, but also reduces forest fire threats. Once cut, the timber is sent to a sawmill and cut into lumber. The by-products of sawdust and shavings can be used for livestock bedding, and once soiled, can be composted to enhance crop production. Some of the larger by-products can be ground up for pulpwood and sent to a paper mill, and the rest of the by-products burned in heat/power generation in a co-generation plant. The next step would be to find a chemical agent that will whiten or bleach paper pulp, can be used in another beneficial process after it has become a by-product from the paper mill, and becomes an environmental asset instead of a liability. What if this chemical agent was a by-product of yet another industry? Finding ways that products and by-products of different industries can be mutually beneficial and dovetail into one another is the essence of sustainable development.
Finding, utilizing, and developing renewable energy resources is of equally high priority. The refinement and transformation processes of natural resources places a high demand on energy production. There are many, many renewable energy resources and technologies that simply need to be invoked. Solar/thermal, solar/electric (photovoltaic), solar/thermal/electric, geothermal, wind, hydroelectric, wave/electric, tidal/electric, biomass, and many more. Bringing all these ideas together results in innovative energy production, delivering to innovative industry, who are using innovative ideas to improve efficiency.
There is at least one possible solution. If given the opportunity, developing countries can become economic and environmental assets rather than liabilities. This is the premise of this thesis. The belief that developing countries can, not only become self sufficient, but that they can become a profitable, growing labor pool, and do so without expense to the environment. The common adage that states that if you give a person a fish, you feed him for a day, but if you teach him how to fish, he can feed himself and his family. Taken a step further, if he and his fellow villagers were taught how to fish commercially and provided the means to market their product in the global market, they can feed the world. The underlying economic theme then is to produce a product that is valuable to the developed world, which would them stimulate the village’s economy. If the economic success of a village is to match or exceed that of a developed country, their income cannot be based on what they can provide to their fellow impoverished countryman, but rather on the demand for their products by developed countries. To produce a product that has substantial value, there must be a link established between the developed countries and the rural village. Most multinational corporations are not willing to invest in the education, health, and living conditions of rural developing country villages to establish that link. There has to be another intermediate organization that can coordinate between the two.
Consider a multinational corporation, whose responsibility it is to coordinate manufacturing contracts with skilled labor communities in developing countries. Suppose this corporation is based in a developed country. It might contract with RCA to have circuit boards and microchips manufactured in Japan, shipped to a village, say Guatemala, Honduras, or another Latin American Country to be assembled, and upon their completion, the units could then be drop shipped to markets globally. The income earned is income that is not generated within that country and would have the effect on the local economy of a net export. The income would then be spent locally causing an increase in the local economy.
In summary, a non-governmental organization (NGO) analyzes a village and their potential to find the best product they can produce. The NGO then invests and directs the village into an organized force. The NGO then acts as the mediator to export their product to developed countries. The profits of the village are substantial enough to repay the investment the NGO made to initiate the project. Then the NGO can invest in yet another community. Now consider that all this is possible while functioning on renewable energy so that the village won’t be yet another contributor to global warming, and while designing, engineering, and utilizing natural resources far beyond what “developed” countries currently find acceptable. Not only would this group of people become economic assets, but they would also be able to do so without making the same environmental and economic mistakes that the developed world as endured.
The goals of this project are:
· To create a sustainable economy in a village in an undeveloped or third world country through the injection of both monetary and human investment.
· To ensure the expansion of such an economy is substantial enough to re-coop monetary investments so that another project can be created using the original capital and form a cyclical investment trend.
· To demonstrate that while maximizing the utilization of natural resources and renewable energy resources, a community can meet and exceed the standard of living of developed countries.
· To prove that optimal natural resource utilization can occur in an expanding economy.
· To prove that renewable energy and higher efficiency does not come at the cost of a lower standard of living.
· To prove that continuous or sustainable development is possible at a high standard of living.
Now that the premise of this project has been established, a method of measuring the success is required. Each category will be rated so that improvements will command an increase of points. Once each category is evaluated and a value assessed, all the values will be added so that 0 would be the worst possible score and as improvements are made, points increase. An assessment will be made prior to any injection of investment, so that a baseline can be established. Then, to measure the continuing success, additional assessments will be accomplished on the anniversary dates.
The categories to be evaluated are as follows:
1) Standard of Living
2) Health
3) Economics
4) Natural Resource Utilization
5) Energy Production
Standard of Living may best be defined in some economic terms, so this category is focused on the individual and/or family and an average assessed for the entire village. Economics, on the other hand, will refer to how the village functions as a whole. Energy Production has a prerequisite to be produced by renewable energy methods. The following is the explanation of the measurement of each category.
Point Rules
Standard of Living
1) Income compared to that country’s per capita GDP, where 0 is below, 1 is equal to, and 2 is above.
2) Disposable Income, where 0 is none, 1 is 5% to 10% of income, and 2 is greater than 10%
3) Housing, where 0 is a hut with dirt floors, beds on floor, no furniture, lanterns and candles for lighting; 1 is single room, floor built of local materials capable of being sanitized, limited furniture, at least one electric light fixture; and 2 is some inside plumbing, one electronic device for entertainment, multiple lighting fixtures, increase in material possessions, and bedding, chairs, and table.
4) Clothing, where 0 is no more than 3 changes of clothes per person, 1 is a week’s worth of clothing per person, and 2 is more than a week’s worth and 1 special occasion item.
5) Cleanliness, where 0 represents no bathing or hygiene, 1 represents occasional bathing, and 2 represents unlimited bathing and well-informed hygiene.
Health
1) Vaccines, where 0 is none, 1 is limited availability, and 2 is 85% complete inoculation.
2) Curtailment of contagious diseases, where 0 is unchecked, 1 is checked through education, vaccines, and other medication, but still prevalent, and 2 represents 85% disease free.
3) Availability of Doctors/Nurses/Dentists, where 0 is none, 1 is regional, and 2 is resident.
4) Availability of a Clinic, where 0 is none, 1 represents a single exam room with limited facilities, and 2 multiple exam rooms and a radiographic facility.
5) Potable Water, where 0 represents contaminated river water, 1 is filtered but not completely sterile, 2 represents abundant sterile water for all residents.
Economics
Product Production: If the village produces a product by the individuals then 1 point is given, corporately 2 points are given, and if no products are produced, then 0 points are given.
Product Sales: If a product is sold (distance), then (points):
Distance Points
Locally (intra-village) 1
Regionally (inter-village) 2
Nationally 3
Internationally 4
Globally 5
Volume of Sales: Using the per capita GDP (Purchasing Power Parity or PPP method) of the country where the project is initiated and:
When gross sales equals per capita GDP raised to 1.1, then 1 point is given. When gross sales equals per capita GDP raised to 1.2, then 2 points are given. When gross sales equals per capita GDP raised to 1.3, then 3 points are given. When gross sales equals per capita GDP raised to 1.4, then 4 points are given.
(The approximate results of this method require the doubling of gross sales for each additional point.)
Natural Resources Utilization
So as not to conflict with point rules described in the economics category, where there is a single product being sold, then points will be assigned through Product Sales of Economics. If there are multiple products being sold, economics will issue points to the product with the greater distance and natural resources will assign points on other products. When referring to products in economic terms, products are commonly referred to as goods and services. The intangible product of services is labor and will be considered a renewable virgin resource herein.
Gathered Renewable Virgin Resources: If the natural resource is managed, then 1 point is given. If a resource is transformed by the villagers, but not cultivated or gathered by them, then 1 point is given. If a resource is gathered and transformed in the village, then 2 points are given. If a natural resource is sold abroad with village transformation then use the point’s assignment of Product Sales. If not transformed in the village, then use the points assignment of Product Sales, minus 1 point. If by-products are generated during the transformation of any natural resource, then used to produce another good, then 3 points are given.
Gathered Non-renewable Virgin Resources: If the natural resource is sold abroad without village transformation, then 0 points are given for local and regional and use the points assignment of Product Sales, minus 2 points. If it is combined with a renewable virgin resource or a non-virgin resource in its transformation in the village and is sold abroad, then use the points assignment of Product Sales, minus 1 point.
Gathered Non-virgin Resources: If a gathered resource can be utilized by a village transformation, then 1 point is given. If a gathered resource can be used solely or combined with another to produce a good, then 2 points are given.
Received Non-virgin Resources: If a received resource can be utilized by a village transformation, then 1 point is given. If a received resource can be used solely or combined with another to produce a good, then 2 points are given.
Energy Production
Many natural resources can be transformed into fuel for transportation and/or used to generated electricity. If the end product is the result of a transformation of a natural resource grown or otherwise gathered for the specific purpose of energy, then Energy Production will assign points. If either electricity or transportation fuel is sold, then use Product Sales to assign points. Direct electrical generation from a renewable energy source refers to the use of photovoltaic (PV) panels (or solar panels), solar/thermal/electrical conversion, wind turbines, or hydro-turbines.
Electrical Power Generation: If electricity can be generated directly by a renewable resource with a fossil fuel backup, then 1 point is given. If multiple forms of direct electrical generation are utilized, then 2 points are given.
Electrical Power Storage: If there is a single form of electrical storage, then 1 point is given. If there are multiple forms of electrical storage with one form providing not less than 25% of total capacity, then 2 points are given.
Transportation Energy: If the end product was grown and transformed else where, but sold by the village, 1 point is given. If the end product is grown or otherwise produced specifically for transportation by the villagers, then 2 points are given. If the end product is transformed by the villagers, but not grown by them, then 2 points are given. If the end product is grown and transformed by the villagers, then 3 points is given. If the end product is produced utilizing a gathered non-virgin resource, a received resource, or a by-product of a transformation, then 3 points are given.
Now that we have discussed the ideas and quantification of this project, let us now focus on the process making this project a reality. Without being specific about the startup location, the following may only be a generalization.
It is necessary to capture the “big picture” of a prospective location since this project is so vast and encompassing. The factors of success are not only dependent on the needs of the villagers, the resources at hand, and the ability and capital to transform them, but also many external factors of influence that may be local or even as far reaching as global. Careful analysis must therefore be conducted considering factors to include, but limited to, property ownership, distance and density of infrastructure (to include economics, utilities, transportation, and governing and enforcement agencies), resources, both natural and man-made, and virgin and non-virgin, and most importantly the needs of the populous, both rural and urban.
Analysis
The success of this project could be severally hampered if land ownership becomes an issue. To this end, it is paramount that ownership is established and that the governing and enforcement agencies are able and willing to protect ownership rights. Depending on the laws of the particular country (that may prevent foreigners from owning property), the property would be purchased, the process to be purchased would be initiated, or a long-term lease established with a citizen of the country.
Another aspect of property is its proximity to a large city and the regional infrastructure. The ideal location would be close enough to a metropolitan area so that products can be sold and resources can be obtained without incurring extensive transportation or transmission costs. Additional considerations might include the influence of the metropolitan area on the water supply, the possibility of greater demand of village resources than anticipated (a mini migration to the village once established, due to high standards of living), and what para-military organization may reside in the area, requiring assistance from government agencies (located in larger cities) to keep them at bay.
Many infrastructure questions need to be analyzed regarding their distance, density, capacity, purity and quality, and interactivity. These questions can be posed toward the electrical grid, water supply, waterways, roadways, telecommunications, public transportation, transportation and industrial fuel supplies, ports, and even airports. The quantity, quality, cost, and availability of shipping entities on land, sea, and air transportation, as well as construction resources, to include ready-mix, lumber, steel, masonry, plumbing, electrical, heavy equipment, and others, should be analyzed for their ability to support the project at a steady pace and if expansion exceeds expectations. As with all these resources being analyzed, if that resource does not exist, or incapable of supporting the project at the level of expansion experienced, then this may be a resource that the village could provide to further its own economic position.
An economic analysis of local and regional consumer products is needed to determine what commodities should be produced by the village in the early stages of the project to realize more immediate returns. These could be simply garden grown produce, dairy products, meats, breads, or other food products, or they could be services like seamstress, shoe repair, barber, electrical/electronic repair, etc. Further analysis is then conducted to determine long range, national and global products the village can produce. Resources of all types should be assessed for their value, either as a raw product, a transformed product, or as part of some other multi-resources product. This would apply to all the afore mentioned types of resources. A list of what can be produced from these resources is then drawn up and collated with what skills the villagers may endow and what the local infrastructure can support.
Finally, one of the most significant mistakes of well organized, well meaning agencies is not knowing the needs of the people they are investing in. It would seem, then, that a significant amount of time should be spent analyzing and identifying the needs, prioritizing the needs, determining solutions for both short and long run results, initiating those solutions, and analyzing the effects of those solution for their mitigation of the need.
Ultimately, none of ideas, directions, or analysis conclusions can be static, or “cut in stone”. If nothing else, this project must be able to react to an ever changing environment and the ever changing needs of the people, so as to be dynamic and constantly seeking out better methods and more efficient ways of accomplishing a task.
Launch
The purpose of having both a non-profit and for-profit organization working together is to utilize the advantages of both. Finding investors willing to risk their assets on such an unproven theory to initiate this project may be challenging at best. At the other end of the project, finding a significant company of a developed nation to sign a labor contract with a non-profit organization may also be difficult at best. Therefore, it only seems logical to find grants and other sources of charitable funding to launch this project and to establish it before making the leap to global marketing.
Preparation for the launch of the project is two pronged. All the equipment will be sent utilizing 40’ containers or conex’s. One container in the U.S. is secured and fitted out as a portable workshop with equipment, supplies, workbenches, and hoists, and is completely power autonomous. Providing power will be a PV array that can be shipped inside and erected on top upon arrival with a diesel generator as a backup. Power storage and conversion will be provided through battery bank, inverters, and other necessary charge controlling devices. Another container will be fitted as a living space for the deployment team. A dolly for these containers in the US would facilitate their mobility. These containers will be designed and fitted with the intent of being location independent. This portion of the project could be carried out long before a location has been identified or analyzed.
Once a location has been identified, one of the members of the team will remain in that location in preparation for the team’s arrival. He will secure a dolly and semi for the movement of the containers while continuing to analyze and identify possible goods and/or services that could be provided to the local communities as commodities to be sold. One of the points to be identified is the most common means of transportation. For example, if the location is an island, then the transportation would most likely be by sea or by air. If the location is significantly land bound, then trucks would be the means of transport, depending on the road conditions, or rail service might be more economical, considering loads, distances, elevation, and available resources. When the containers arrive, his job will be to get them through customs and spot them at the village.
When the team arrives, their first priority is to deal with sanitation and hygiene conditions. This means clean, potable water is a high priority. The water may come from a drilled well, filter from a nearby river or stream, or desalinated from seawater. The water will be electrically pumped and initially will be a communal water supply. Located nearby is the second project, the construction of a shower/restroom facility. This facility will have a concrete floor, divided by gender, two commodes, three sinks, and two showers per side. The drain lines will be divided in two types: Grey water and sewer water. Grey water will be stored and used to irrigate plant life, which may or may not already be planted. Sewage will flow into a digester that will produce methane gas through the anaerobic cycle. This gas will later be used for cooking and heating.
Since smoke inhalation due to cooking with dung and other materials, and fumes emitted by kerosene lanterns are major contributors to respiratory diseases, the curtailment of these factors are the next priority. Lighting can be enhanced with single household solar powered lighting systems. To solve the cooking issue, the next structure will be built. This will be a building that eventually will become the clinic, but initially will house several functions, including a one exam room, a power storage and conversion room, a kitchen and dinning area, learning center, communications center, logistical storage location, and the site of a fuel production/processing facility. This facility will have its own power system. The concrete to build these projects may be purchased locally, but is the location is remote enough that whatever dry ingredients needed have be shipped to that location, then methods of shipping using palletized containers and conexes will be used. For this reason, a forklift would also be needed, and a loading ramp constructed.
The following priority is to grow a crop. The crop will include soybeans, for producing primarily bio-diesel, but other products as well, grains for livestock feed, and other vegetables. These will all be grown in such quantities that they can be sold locally and regionally. Livestock, to include cattle and poultry, are procured, either locally or shipped, to produce milk, butter, cheese, eggs, and fresh meat. To protect the animals and to provide storage for feeds, a barn with concrete floors and sufficient space for food processing is built. A grain storage bin and pens will also be needed.
During the previous developments, other infrastructure will be constructed to include a radio, television, and meteorological tower, other power generating and storage devices, and roads, rails, docks or whatever transportation assistance is needed. The goal in this initial phase regarding production and sales is aimed toward local and regional consumers, i.e. the sale of food stuffs like eggs, milk, poultry, meat, grains, vegetables, and the sale of technology, like solar home kits and their maintenance, battery recharge service, medical assistance and such.
Expansion
Once this initial phase is completed, a very good understanding of the needs, talents, and capacities of the village and villagers will have become apparent. Based on these factors and the resources available, a product that most fits these factors and can be produced on a large scale will be chosen and production pursued. An analysis of power generating capability would then be completed and equipment erected based on the conclusions of the analysis. A facility capable of supporting production will then be built. If there is an attraction with a corresponding migration to the village, a lodging facility may also need to be constructed.