The Dharavi Dollars Project aims to launch a local currency in Dharavi, Mumbai to keep money circulating within the local economy. Currently, most residents' incomes do not stay in the community. The project would introduce a local currency for local production and consumption, partnering with local businesses, financial institutions, and the government. A feasibility study would assess stakeholder openness and a pilot program would be modeled after Banco Palmas' social currency in Brazil. The goal is to strengthen the local economy, formalize informal businesses, and increase investment in communities.

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