savings circles digital currencies

1. The Dharavi Dollars Project
Madeleine Dejean, Julia Vieira de Andrade Dias, Priya Ponnapula, & Andrey Pertsov

2. DHARAVI
● Population- Ranges from 300,000-1,000,000
● Per capita income- between USD 500 and USD 2000
● Traditional Industries- Pottery and Textiles
● Bulk of income generating industries are exports- Leather
and textiles. Revenue of Rs. 120 million
● Total annual revenue of all Dharavi- USD 500-600 million
● Disconnect between revenue and income per capita

3. RECYCLING IN DHARAVI
● Dharavi recycles 80% of Mumbai’s waste, around 10,000 metric tonnes a
day
● Over 120,000 rag pickers pore through garbage piles for recyclable
materials
● 15,000 single room factories dedicated to recycling
● Kilo of plastic waste sells for around 15 cents
● Waste pickers receive no formal recognition from the municipal government
and are also marginalized
● Only around 10% of commercial activity is legal
● Money generated from these activities does not go back in to the
community- one bathroom for around 1,500 residents, no public hospital,
around 12 municipal schools.

4. THE ISSUES
Most of the poor's income doesn't circulate within
the community;
Slum upgrading generates displacement;
Absence of local businesses and local economic
development;
Lack of investment and credit to local businesses
in communities

5. OBJECTIVES
1 2 3
4

6. METHODOLOGY
MICROCREDIT FOR PRODUCTION IN
NATIONAL CURRENCY
+ SAVINGS GROUP
+ GOVERNAMENTAL CASH
TRANSFER
+ TRAINING PROGRAMS
+ ENTREPRENEURSHIP FOMENT
MICROCREDIT FOR LOCAL CONSUMPTION IN SOCIAL
CURRENCY
+ LOWER PRICES IN LOCAL CURRENCY
+ BRANDING AND SENSE OF COMMUNITY
+ PARTNERSHIP WITH LOCAL FINANCIAL
INSTITUTIONS AND MOBILE MONEY APPS
+ TOOLS AS LOCAL DELIVERY SERVICES
CREATE DEMAND
FOR LOCAL
PRODUCTS
LOCAL
ECONOMY

7. The dictatorial regime forced
the relocation of slum
inhabitants to peripheral
areas, building a poverty belt
on the edge of the city during
the 1960s-1980s, spiking
segregation
BANCO PALMAS
BENCHMARK

8. THE BENCHMARK: BANCO PALMAS
CONJUNTO PALMEIRAS
SUSTAINABLE COMMUNITY
1
● OPEN WIFI
● WASTE MANAGEMENT COOPERATIVE
● SOLAR ENERGY COOPERATIVE
● LOCAL GOVERNANCE
● MOBILE MONEY
ENTREPRENEURS REACHED
5600
● 84% WOMEN
● 43% OF ENTREPRENEURS HAVE INCOME OF UP TO 290
USD
MILLION USD LOANED SINCE 2011
4.4
● 0.53 MILLION USD LOAN FROM BNDES
● 70% OF REPAYMENT
● SHOPPING MADE IN THE COMMUNITY INCREASED
FROM 20% IN 1997 TO 93% IN 2009
32 thousand residents
HDI | Human Development Index of 0.119
(Niger's HDI is 0.377 - 189th place)

9. THE BENCHMARK: BANCO PALMAS
CONJUNTO PALMEIRAS

10. ● GENERAL SUPPORT TO RECEIVE APPROVAL FOR
INITIATIVE
MUMBAI METROPOLITAN REGION
DEVELOPMENT AUTHORITY
PARTNERS
RESERVE BANK OF INDIA ● AUTHORIZE LOCAL CURRENCY
NATIONAL
REGIONAL
LOCAL
● WAIVE TRANSACTION FEES FOR TRANSFERS IN
LOCAL CURRENCY
● ALLOW LOCAL BUSINESS TO TRANSFER FROM
LOCAL TO NATIONAL CURRENCY
FINANCIAL INSTITUTIONS ● DESIGN LOCAL CURRENCY
MOBILE MONEY
MAHARASHTRA HOUSING AND AREA
DEVELOPMENT AUTHORITY
● INFRASTRUCTURE SUPPORT WITH RECEIVING
INVESTMENT SOURCES
LOCAL BUSINESSES
● OFFER DISCOUNTS FOR TRANSACTIONS IN LOCAL
CURRENCY

11. Project Director
Fin/Admin Manager
Deputy Director
Business Manager
Business Liaisons
M&E and Comms Manager
STAFFING
Oversees business
mentorship & currency
adoption promotion
Coordinates with
government for
currency adoption
Year 1: One Manager
Year 2: Two Managers
Year 1: 30 Liaisons
Year 2: 60 Liaisons
Year 3: 80 liaisons

12. LOCAL FINANCIAL
INSTITUTIONS
STATE AND LOCAL
GOVERNMENT
LOCAL
COMMERCE
1. Comparative analysis with 100+ local
currencies in Brazil and the US;
2. Meet with Mumbai's key local government
agencies.
1. Assess government’s openness to developing a
local currency, and partnering on social
programs in Dharavi.
1. Comparative analysis using Banco Palmas
case in Brazil;
2. Quantitative analysis on long term impacts of
the project;
3. Meet with Dharavi's financial institutions.
1. Assess financial institutions’ openness to work
with a new currency (requiring infrastructure
investment - exclusive ATMs, software)
2. Assess mobile money systems’ ability and
willingness to process transfers in local currency.
1. Key informant interviews;
2. Focus group discussions with local
commerce; and local residents.
1. Understand where people are spending their
money and why, and what would attract them to
spend locally;
2. Understand local business willingness to
formalize; interest in local currency and
willingness to discount prices with use of local
currency
FEASIBILITY STUDY

13. BUDGET - $448,184
Line Item Year 1 Year 2 Year 3
Unit Cost QTY Subtotal Unit Cost QTY Subtotal Unit Cost QTY Subtotal
Rent $450.00 1 $450.00 $459.00 1 $459.00 $468.18 1 $468.18
Utilities $300.00 1 $300.00 $306 1 $306.00 $312 1 $312.12
Equipment
Computers $800.00 5 $4,000.00 $816 2 $1,632.00 $832.32 0 $0.00
Tablet $250.00 30 $7,500.00 $250.00 30 $7,500.00 $250.00 20 $5,000.00
Materials $250.00 1 $250.00 $255.00 2 $510.00 $255.00 2 $510.00
Events
Business Liaison Training 35 people $700.00 35 people $1020.00 25 people 1238.38
Trainings for Firms 330 ppl // 4 events $5,300.00 660 ppl // 4 events $9,752.00 880 ppl // 4 events 13,195.92
Salaries
Project Director $4,000.00 1 $4,000.00 $4,080.00 1 $4,080.00 $4,161.60 1 $4,161.60
Deputy Director $3,700.00 1 $3,700.00 $3,774.00 1 $3,774.00 $3,849.48 1 $3,849.48
Fin/Admin Manager $3,000 1 $3,000.00 $3,060.00 1 $3,060.00 $3,121.20 1 $3,121.20
M&E & Comms Man $3,000 1 $3,000.00 $3,060.00 1 $3,060.00 $3,121.20 1 $3,121.20
Business Manager $3,000.00 1 $3,000.00 $3,060.00 2 $6,120.00 $3,121.20 2 $6,242.40
Business Liaison $1,900.00 30 $57,000.00 $1,938.00 60 $116,280.00 $1,976.76 80 $158,140.80
Subtotal $92,200.00 $157,247.00 $198,737.04
TOTAL $448,184.04

14. Local economic growth:
Change in local GDP
Amount of money spent within the
partnered businesses increased
Local businesses in the formal
sector increased
# of partnerships with informal
businesses
Success rate of the
formalization programs
# of people using the new
currency to local purchases
# of commerces using
the new currency
M&E PLAN
OUTPUTS
OUTCOMES
IMPACT
# of new jobs created