Archive for March 13th, 2008
My First Repayment Day
Sometimes the end is the best beginning. And, by the end of my first repayment day, a group of four women marched past me, through the hallway and onto the red dirt path outside the house where they had just completed their repayments. As they passed, some were shaking their heads, others were raising their voices in frustration, but they were all unified by their goal – to make a visit on a member of their group who was absent from the repayment meeting and failed to make another repayment again. The rest of the group covered her payment for her. Now it was time to collect.
When I first learned about microfinance, I like so many before me had read about the Grameen Bank and group loans. For me, the concept of converting something as instinctive as peer pressure into social collateral was brilliant in its simplicity. But, I wanted to see it first hand. Well, thanks to Kiva and Sinapi Aba Trust I got my first chance this past week.
As I entered the courtyard with the loan officer, there were several groups huddled in different corners. Within each group, a leader was busy collecting payments from members. The loan officer was seated in a corner in front of a simple desk. On the desk was a stapler, a notebook , an office calculator and some space to collect large wads of cash and piles of coins. As the payment officer called the groups up, they assembled around him and he started his counting.
For most of the groups, this process went smooth. But, there were exceptions. There was a woman who was claiming she didn’t have enough to make this week’s repayment. She opened her purse and paid all she could. The loan officer looked at her with disappointment. The other members in her group – particularly an elderly member – said to her, “you should pay to avoid disgrace.” After some silence and some pleading, she reached into various pockets and like a magician pulling a rabbit out of a hat, soon found enough bills and change.
In another case, a member said she couldn’t pay this week as she was waiting for some customers to pay her. She pled her case, but as the members paid for her, she slowly moved to the outside of the group. She sat in a chair - her arms crossed, her eyes staring at the floor. I didn’t get a complete translation, but I sensed and felt her dejection.
But, nothing compared to those women who rallied their group and marched passed me with such determination. I could not stay around to find out if they convinced the defaulting member to pay. I can only say I wouldn’t have wanted to be in her shoes as the battalion marched towards me.
1 comment 13 March 2008
Busy Streets of Baku
Stepping out onto the streets of Azerbaijan’s capital city is a quick way to gain insight on the local economic situation. The streets of Baku, much like other large cities, are plagued with traffic and drivers who use their horns more than they obey any sort of traffic laws. The mixture of vehicles that fill the roads is telling of the wealth disparity. Public transport is accomplished by aging mini-buses called marshrutkas plying the streets in all directions. Larger city buses are mostly absent so these marshrutkas provide the most comprehensive city transport in Baku. Although bus stops do exist, they are rarely used so one can wave down a passing bus at any time. Boxy, Russian made Ladas are most prevalent passenger car because they are cheap, easy to fix, and will last for hundreds of thousands of miles. However, with their 13” wheels and a manual choke lever, Ladas have less style than your back yard lawnmower. The final component of Baku’s streets is luxury cars. In stark contrast to the rest of the 4-wheeled street machines, BMWs, Mercedes, Land Rovers, Hummers and other high value vehicles by anyone’s standards are surprisingly common, clearly the spoils of the rich Azerbaijan oil deposits. Although watching these mismatched cars interact can be amusing (until you need to cross the street) one of the most enjoyable things to do in Baku is walk through the walls of the old city. The cobblestone streets, thankfully too narrow for cars, quickly dampen the noise of the busy modern city leaving you to enjoy the ancient architectural beauty in peace. The winding maze of alleys helps to prolong the peaceful experience before you inevitably exit the gates and face the modern world again – wishing that car horns wore out as frequently as brake lights.
2 comments 13 March 2008
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