Archive for May, 2010
Should we be lending to men?
Recently, some interesting data was brought to my attention. Apparently women entrepreneurs are able to raise funds more quickly than men in the world of Kiva.
250 Years to Catch Up?!?
“Just look around, you can see all of our problems. It will take Africa at least 250 years to catch up to the West.”
Why is microfinance important in Azerbaijan?
Yelena Shuster, K11, Azerbaijan
Greetings from Azerbaijan!
It’s been almost two weeks since my arrival. Not surprisingly, my impressions are multifarious. I enjoy the good and blast the bad, all the while trying to understand this country and its contradictions. On the one side is the growing economy, with multiple natural resources, on the other are the many people who do not get to bask in Azerbaijan’s growing wealth. While expensive stores line the streets that lead to the beautiful boardwalk along the Caspian sea, where young chick Azerbaijanis eat ice cream as they stroll with friends, bleak Soviet-style apartment buildings emanating poverty and struggle are just a kilometer or two away.
The other day I met an ex-Peace Corps volunteer who noted that in the town where he worked in northern Azerbaijan, the cold winters were frequently spent without heating. The irony is that gas is one of Azerbaijan’s most prominent resources and it was being sold abroad rather then provided to Azerbaijan’s citizens for use during the cold winters!
I have learned not to judge the state of the common people based on the government or politics, or on how the elite of a country flaunt their wealth. The real people are those individuals whom you may never see on television or read about in the news. And this is what I love about volunteering with Kiva… I get to meet real people!
One of the biggest Kiva challenges in Azerbaijan is encouraging lenders to lend to borrowers here. Either because of preconceived notions about what poverty is or mere disinterest in the region, borrowers here have a lot of trouble getting Kiva funds.
So why should you lend to a borrower in Azerbaijan?
Because without credit these individuals cannot improve their lot in life. Opportunities here are limited by corruption and lack of credit. In a post-communist developing economy like Azerbaijan’s, self-sufficiency is important. By helping Azerbaijanis expand their businesses, lenders also create opportunities for whole communities! By supporting a farmer who wants to buy more seeds or fertilizer we are helping his neighbors buy local and inexpensive food! By supporting a female hair stylist we are helping the network of local women and improving their self-esteem! And think about the children! As a borrower’s business becomes more financially prudent, children of borrowers can pursue their own interests like music lessons, sports and university education instead of being limited by subsistence activities.
Here’s a picture of a Kiva borrower with his calf. Aftandil’s other cows were out grazing and enjoying themselves on the pasture not far from his home. Free range, hormone-free, local yogurt? I saw it with my own eyes. Plus, Aftandil provides the local stores with fresh yogurt. He says that neighbors love his dairy products so much that they sometimes come to his house to purchase them. He’s seeking a loan to buy another cow because he’d like to dedicate himself to his cows full time and quit his part-time job as a construction worker. His loan request will be online later this week, meanwhile check out one of the other borrowers (many of whose loans are expiring in a day or two).
Çox sağ olun!
(thank you)
Are Pictures Really Worth More Than a Thousand Words? –En español también
By Eva Nemirovsky, KF11 Kyrgyzstan
Sometimes. But, maybe not for Kyrgyz microfinance borrower using the Kiva platform. Poor Kyrgyz people make sure to look good for pictures, so good, in fact, that one may misleadingly think: “these people don’t need a loan!”
One issue that Kiva often discusses is why some loans are funded faster than others. There are some patterns worth noting, most significantly, that in Central Asia loans take a lot longer to fund. Some have argued this is due to the loan amounts being much greater, however, thus far at Mol Bulak Finance all the borrowers have been part of a group and therefore the loans have not differed too greatly from others on the Kiva website.
My hypothesis is that poverty in post-Soviet Union countries is not easily understood by outside nations. Kyrgyzstan gained its independence less than two decades ago; it is a young State that had almost no political history before Russia fully took over operations around 1920. Similar to Kazakhstan, Kyrgyzstan was a mostly nomadic culture throughout its entire history. The Soviet Union abruptly changed all this and unnaturally imposed its political, economic, and cultural norm onto the Kyrgyz territory.
Not everything was negative; the Soviet Union vastly improved Kyrgyzstan’s living conditions. For one, the USSR was famous for its superior education system and efforts were taken to make all Kyrgyz citizens literate. Fortunately, Kyrgyzstan continues educating its people until the ninth grade. This explains the striking 98.7% literacy rate in the nation today. If one compares this figure with the 39.3% literacy rate in Senegal (another Kiva site), one is automatically inclined to associate this with poverty. It is remarkable to realize that in per capita GDP, Kyrgyzstan rates 184th out of about 195 countries of the world. (Statistics from online CIA factbook)
With the collapse of the Soviet Union, Kyrgyzstan lost its vast market and the period effectively drained the country from much of its natural resources. Ultimately, Russia was centerfold and “if the strengthening of the centre required it, a policy of plunder in the borderlands would be proper and correct.” (Sources taken from Kyrgyz Republic by Stewart and Weldon).
Today, Kyrgyzstan has little developed industry. After a seventy-year Soviet rule, innovation is not accessible, business enterprise is difficult. The people living below the poverty line (which account for 40 percent of the country), have a minute variety of jobs to choose from: mainly trading and farming. Working in agriculture is difficult mostly because, if they wish to stay afloat, farmers must learn multiple trades. For example, if a borrower buys a cow with her loan, she cannot dedicate all her time to the livestock because her income would be insufficient—I learned that to raise a cow and use it for mating or meat purposes takes about three years. This borrower also has to: have a daycare, grow potatoes, and be a taxi-driver.
Two weeks ago, the instant I arrived to visit a borrower in Balykchi, he started to negotiate fish prices with the microfinance institute’s driver. I was there to verify that his loan was being used to buy a calf, but I was obligated to wait ten minutes for him to conclude his deal with the driver. Since this borrower’s activities did not make enough money for his household, he had become a part-time fisher.
This form of poverty is something I never had to study in school. When I first saw the Kyrgyz Kiva loans my initial reaction was to think that these borrowers did not need microfinance, but now, having seen it face-to-face, I have learned otherwise.
Pictures can also be deceiving, especially in the former Soviet Union where the legacy of controlled life lives on. To take a picture, or merely to go out of the house, citizens dress up; the possibility of public scorn is just too great.
Eva Nemirovsky is a Kiva Fellow working with Mol Bulak Finance in Bishkek, Kyrgyzstan. Join the Kyrgyzstan lending team. There are borrowers from Kyrgyzstan with Mol Bulak Finance who you can help by contributing to a loan today, and many other entrepreneurs from around the world on the Kiva site.
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Las fotos realmente valen mil palabras?
Por Eva Nemirovsky, KF11 Kirguistán
A veces sí. Pero quizás no para los prestatarios Kirguiz de microfinanzas que usan la plataforma de Kiva. Los pobres de Kirguistán siempre se aseguran de salir bien en las fotos, tan bien, de hecho, que uno equivocadamente podría llegar a pensar: “esta gente no necesita un préstamo”!
Un tema que se discute bastante en Kiva es porque algunos prestatarios son financiados más rápido que otros. Hay algunos patrones interesantes, específicamente que los préstamos en Asia Central tardan mucho más en ser financiados. Algunos argumentan que esto es porque las cantidades de los préstamos son más altas, pero hasta ahora he visto que en Mol Bulak Finance los prestatarios forman parte de grupos y el total de los préstamos no excede la cantidad de otros préstamos ofrecidos en el sitio Kiva.
Mi hipótesis es que la pobreza en países post-soviéticos no es fácilmente comprendida por naciones extranjeras. Kirguistán se independizo hace menos de dos décadas; es un país nuevo que antes de 1920, no tuvo amplia historia política. Como Kazakstán, Kirguistán siempre fue de una cultura nómada. La Unión Soviética cambio todo este esquema y agresivamente impuso nuevas normas políticas, económicas, y culturales.
No todo fue negativo; la Unión Soviética mejoro la calidad de vida en Kirguistán. La imposición de su sistema superior de educación, es un buen ejemplo. Los rusos se esforzaron para que toda la gente en Kirguistan pudiera ser alfabetizada. Por suerte, hoy Kirguistan sigue ofreciendo educacion publica a sus ciudadanes hasta noveno grado. Esto explica el alfabetismo excelente del 98.7%. Si uno compara esta figura con el 39.3% de Senegal (otra ubicación de Kiva) automáticamente, uno lo conecta con pobreza. Aqui es importante notar que el Producto per Capita PPP en Kirguistan es clasificado como numero 184 de 195 paises! (Estadisticas del CIA Factbook en internet).
Con el colapso de la Union Sovietica, Kirguizstan perdio su mercado enorme y al mismo tiempo empezo a sentir los resultados negativos de los anos de ocupacion en sus recursos naturales. Al final, el territorio ruso era lo más importante en la época soviética, “si para fortalecer el centro se precisaba, la política del pillaje en las aéreas bordeando Rusia no sería problema y seria la acción correcta”. (Fuentes tomadas de Kyrgyz Republic por Stewart y Weldon).
Hoy, Kirguistán tiene poca industria desarrollada. Después 70 años de ser administrada por una política soviética, la innovación no es accesible, emprendimiento es difícil. Las personas que viven bajo la linea de pobreza (40% del país) tienen una variedad muy limitada de trabajos: mayoritariamente comercio y actividades agropecuarias. Trabajando en agricultura es difícil porque para sobrevivir los granjeros tienen que aprender múltiples comercios. Por ejemplo, si un prestatario compra una vaca con su préstamo, ella no puede decidirse todo su tiempo al animal porque su salario no sería suficiente—aprendí que criar una vaca para que tenga crias o para comer lleva tres años. Este prestatario también debe: proveer un servicio para cuidar niños, crecer papas, y ser taxista.
Hace dos semanas, cuando llegue a la casa de un prestatario en Balykchi, empezó a negociar precios de pescado con el chofer del instituto de microfinanza. Yo estaba visitando para verificar que el préstamo se estaba usando para comprar una vaca, pero fui obligada a esperar 10 minutos para que el prestatario y el chofer terminen su negociación. Este prestatario no ganaba lo suficiente con sus actividades agrícolas y fue obligado a hacerse un pescador part-time.
Este tipo de pobreza es algo que nunca estudie en la escuela. La primera vez que vi los prestatarios de Kirguistán en el sitio de Kiva pensé que los prestatarios no precisaban la microfinanza, pero ahora, después de haberlo visto con mis propios ojos, aprendí que no es así.
Las fotos pueden enganar. Especialmente en países post soviéticos donde el recuerdo de una vida bien controlada sigue viva. Para sacarse una foto, o simplemente para salir a la calle, los ciudadanos se visten bien; la posibilidad de ser mal vistos por el público es demasiado dañina.
Eva Nemirovsky es un Kiva Fellow trabajando con Mol Bulak Finance en Bishkek, Kirguistán. Únete al Kyrgyzstan lending team. Hay prestatarios de Kirguistán que están con Mol Bulak Finance a quienes tú puedes ayudar contribuyendo a un préstamo hoy.
Viet nam – ready to take opportunities
By Elena Kuehn, KF 11, Viet nam
Viet nam is a country bursting of energy, activity and a continuous striving of the people to improve their living standards and enable their children to lead a better life. To achieve this people are willing to work incredibly hard. That makes Vietnam a great place for microfinance activities. And not only are the people ready to take on hard work, there is also a financial growth that rewards the effort. In this atmosphere of growth microfinance provides poor families in this country with the means to participate in this growth.
I have started my Kiva Fellowship 3 weeks ago and have already visited 3 of the Kiva field partners and many Kiva borrowers. What impressed me most when talking to the people and discussing their living situation, the loan impact and their future hopes is the fact that they constantly point towards their children and grandchildren. When I ask how the loan has improved their lives, I hear stories about how they were able to send their children to school for longer and provide them with better means to be successful in life.
The Vietnamese family plan foresees only 2 children for each couple, people with more children face a fee that can be a great burden to poor families. So many people comply with this rule. This makes the focus, and, I imagine, also the pressure on the young generation even higher. But with providing their children with a good education a family in Vietnam actually has a very realistic chance to lift themselves from the very bottom of society into a middle class position.
Signs of hope in Rwanda
Signs of Hope in Rwanda
Claude Mansell, KF10, Rwanda
Sixteen years after the genocide it is time to reflect on where the country stands in its pursuit to stability and offering new perspectives to the population. Having been a Kiva Fellow in Rwanda for the last 4 months, I would love to share some personal observations with you.
My main observation is that there are signs of hope all over the country. Opposite the office of Vision Finance, Kiva’s first microfinance partner in Rwanda, is this tiny restaurant called Hope 2020. Its 20 square meter (200 square foot) space tends to be crowded with workers stopping for a simple meal or a tea before continuing their day.
"Hope 2020", Restaurant
I asked the young owner why he gave the place this name. His answer: “By then my son will be 18, and I hope he will then enter University, unlike me”. Education is hot in Rwanda. The first 9 years of education are paid for by the government; the first 6 school years are attended in village schools, after which the pupils go to a secondary school elsewhere in the country for at least three years. Their primary school grades determine to which secondary school they are admitted.
Much effort is put into increasing the number of pupils that go to university after their secondary school. In particular, technical studies are promoted.
Education is regarded and treated as the motor of economic development of the country. Currently, the economy is largely dependent on the productivity of the agriculture sector. In 2009 Rwanda’s GDP increased by 5%, mainly thanks to a 10% increase of that sector. It is, however, risky to put all eggs into the agricultural basket. Hence government’s effort to stimulate other sectors, such as the tourism industry and the ICT services sector. The digital highway is being built in an incredible speed, with thousands of workers digging the ditches for the new fiber-optic cables across the country.
Digging the digital highway near Byumba
One spin-off is new business opportunities for the growing number of telephone and for the the many electronics shops.
New Hope for electronics
Healthcare is also high on the agenda, with the life expectancy at birth rising spectacularly from 39 years in 2003 to 57 years in the tear 2010 (source CIA World Factbook). Rwandans can get government-subsidized healthcare insurance for $2. When insured, one gets 85% of costs covered, the remaining 15% to be paid by the individual. The system is designed centrally, but executed de-centrally by the regional healthcare centers, most of which are paid by government.
"Faith clinic", emerging market for health care services
Medical research for the main diseases (malaria, TBC, HIV) is mainly funded by foreign initiatives, such as by American Universities. Treatment for these diseases is free, in order to eliminate all barriers to the poor.
Improved education, higher productivity in agriculture, the emergence of profitable sectors, investments in the digital highway and the diminishment of dependency on imports are gradually increasing the standards of living. Entrepreneurs are quick to offer services to those who have made the step to the growing middle and upper classes.
Executive cleaner for the growing middle and upper classes
The price of these developments is that the current government does not like to see its efforts jeopardized by anyone. Hence, it is not open to criticism, and restricts the freedom of press. Although the many office supply shops have friendly names, what is put on paper is generally well controlled.
Friendly papershop
It is thanks to a clear vision and a very disciplined implementation of the plans that Rwanda is able to further develop the general health, level of education and economic situation of the population in a steady pace. Let’s celebrate at the happy end bar, after sixteen years of hard work.
Happy end bar
Goodbye Ica
I recently finished up in Ica, Peru and moved north to start my second fellowship in Barranquilla, Colombia. After I left, I combed through everything I grabbed over 12 weeks with my Kiva issue FlipCam to make a little going away video that I thought I’d share on the Fellows blog.
And Vietnam Continues…
My Kiva fellowship has officially ended. I returned to the US two weeks ago and still have plenty of processing to do. The only thing I am certain of is I have yet to understand what it all means down the road. In some ways it seems a dream had ended. But the vivid memories of specific moments that made it worthwhile spring me back into reality. I can’t thank you enough for all the support from friends, family, Kiva Friends, my MFI, and the greater community. Below is a clip of one of my last motorbike rides: returning to my apartment after visiting the Hanoi Hilton (Hoa Lo Prison). It was used to hold American troops prisoner during the war. It was quite an inter-cultural experience as I am a Vietnamese-French-American. Thank you Kiva community and keep doing what you do!
Alex is the first Kiva Fellow (KF9) working with TYM Fund in Hanoi, Vietnam.
Interested in becoming a Kiva fellow? Click here.
Join the Vietnam lending team here.
Micro-football Fever
Football fever is spreading fast in Lebanon as the World Cup approaches. The excitement and impact can be found among the country’s microenterprises. Two of Lebanon’s leading microfinance institutions and Kiva partners, Al Majmoua and Ameen s.a.l., caught a bit of football fever by playing a friendly match against one another.
Rwandan microfinance partner VFC goes mobile
Rwandan microfinance partner VFC goes mobile
Claude Mansell, KF10, Rwanda
Microfinance is rarely associated with high technology. Neither is Africa. Yet here is Rwandan Microfinance Institution Vision Finance Company about to launch its pilot in mobile payments, in two of its 9 branches.
In a partnership with World Vision and MTN, the leading phone company in Rwanda, Vision Finance Company (VFC) has started a 12 month project that will lead to 30% of its customers doing their monthly repayments via mobile phone. VFC will be the first microfinance institution (MFI) in Rwanda, a country that is making great progress in the application of ICT, to implement mobile payments in partnership with Triple Jump Advisory Services (a global capacity-building NGO for MFIs that operates under the umbrella of the Netherlands-based microfinance investment manager Triple Jump).
CEO of VFC, Shem Kakembo: “We are proud to be leading in this field, it gives us a competitive edge. It will greatly help our customers, and reduce our costs and business risks. Actually, it was Kiva who talked to us about the benefits of mobile payments and brought us in touch with Triple Jump”.
Significant benefits for the customers, for VFC, for the phone company and indirectly for Kiva and its lenders.
To understand the sources of benefits, let’s take a look at the current processes. Microfinance loans (which are around $1000 in size) are usually disbursed in cash to customers at one of the local branch offices of an MFI. Repayments plus payment of the interest are done on a monthly basis. In 60% of the cases, a customer has to go to the local branch office to make the monthly repayment and in the other 40% a credit officer goes to the customer to collect the cash.
Especially in the rural areas, travel time for customers and credit officers can be significant (one hour back and forth is no exception). At each branch, a cashier and an accountant deal with the physical cash and administration of the transactions. Currently, at VFC 60% of all repayments take place in the last 4 days of the month. This means that during those days much cash is in the hands of the credit officers and/or in the local branches.
View from VFC's branch in Byuma, Rwanda
Mobile payments will eliminate the monthly travel by customers and credit officers. At VFC one calculation of transportation costs (excluding the opportunity costs of a customer’s travel time) is Rfr 1000, or about $2 per month. This is about 8% of the interest charged to a customer. A mobile payment would cost only Rfr 200, or $0.40.
Focus group results show that customers respond enthusiastically to the new technology. Project Manager at VFC, Jean-Marie Musangwa: “Customers see the monthly travel time as a real burden. Also, they do not like to carry much cash with them each time. Credit officers will not only save travel time but also much time making reports on repayments. The time freed up by use of mobile payments can be used to reach more customers and provide better quality of service.”
Other benefits for VFC are a less time spent on repayments by cashiers and accountants at the branches. In addition, the risk of holding cash money will be reduced, which is an important element in avoiding theft and fraud.
For Kiva and its lenders, the benefits are an improved management of the repayments, and possibly an increase in the repayment rate. Ben Elberger, Kiva’s Regional Director on Anglophone Africa, said: “since 2007, we have been excited to see the propagation of mobile payments by our MFI’s. Thus far, in Africa, 4 of our MFI’s are engaged in pre-studies or projects implementing mobile payments. Long term, mobile payments have the potential to bring down costs for MFIs and thereby benefit clients”.
Investments will be carried by MTN, VFC and the Customers (who buy the phones)
Investments in the infrastructure, equipment and the implementation program will be shared by MTN and VFC. The mobile phones will be sold to the customers for $6 each. The phones can be used for the payments as well as for normal voice communication via the MTN network.
Once operational, the customers and VFC will both pay for the transaction costs.
The downside of the new technology must be properly managed
The main downside to mobile payments is the reduced number of interactions between the credit officer and the customer, specifically in the 40% of the cases in which credit officers went to collect the repayments on a monthly basis. These interactions strengthen the ties between VFC and its customers, and are believed to be beneficial for the repayment rate. Jean-Marie Musangwa on how VFC will ensure its customer intimacy once mobile payments have been introduced: “The follow-up with the customer will be maintained. We will make sure that our credit officers stay in touch with the customers, both for the social and economic reasons. However, we can be more selective in doing so.”
VFC is innovating in line with Rwanda’s technological vision
While VFC may be the first MFI in Rwanda to engage in mobile payments, it definitely will not be the last one. Rwanda is making a massive move to implement mobile technologies and is heavily investing in its internet infrastructure. Watch Rwanda catch up and leap-frog into the next decade!
Sweet Memories at Home and Abroad
The Rideau Canal in my hometown of Ottawa, Canada is the world’s largest skating rink. Each winter, the canal freezes into a winter wonderland, and I love skating along its 7.8 kilometres of ice. No skate would be complete without a taste of beavertail at the end. Despite what it’s name might imply, beavertails are actually a delightfully deep-fried pastry, covered in cinnamon and sugar. They are available at huts along the ice, and in my mind, beavertails are as much part of winter as skating, cold feet and hot chocolate.
That’s why it took me a moment to place the distinct beavertail scent while wandering the hot, congested and sandy streets of Dar Es Salaam…
Bringing the French flavour to Kiva in Ecuador/ Un petit goût de France pour Kiva en Equateur
I have just joined Cooperativa San Jose, a new partner of Kiva since January 2010, in the Andes mountains. My job will be to help them graduate from pilot phase to “adult” or active phase.
Kiva’s reputation has crossed the Ocean, there are indeed tons of Kiva fans across the Atlantic, not just in France…
Je serai votre relais terrain en Equateur de Mai à Aout. Je viens de rejoindre la Coopérative San José, un nouveau partenaire de Kiva depuis Janvier 2010, dans les montagnes andines. J’ai pour mission de les aider à passer de la phase pilote à la phase « adulte » ou « active ».
La notoriété de Kiva a traversé l’océan Atlantique…Il y a en réalité une myriade de fans de Kiva en Europe, et pas seulement en France…
Continue Reading 26 May 2010 at 15:27 thefrenchlily Leave a comment
Loan vs. Donation: The Importance of Semantics
As Kiva lenders, we play a powerful role. We are able to provide people access to capital that may not otherwise be available. Yet we must remember that no matter how philanthropic we may be, when it comes to Kiva we are lenders NOT donors.
Continue Reading 26 May 2010 at 04:24 alexisguild 7 comments
Sinapi Aba Trust (Ghana)
By Michelle Baker, KF11 Ghana
I am a Kiva Fellow working at Sinapi Aba Trust, which is located in Kumasi, Ghana in the heart of the Ashanti. Sinapi Aba Trust is an autonomous private non-for-profit organization established in 1994 with a mission to “serve as the Mustard Seed through which opportunities for enterprise development and income generation are given to the economically disadvantaged to transform their lives.”
When I was in the field, I had an opportunity to see how Sinapi Aba uses it mission to teach and inspire its staff and borrowers. Here is a list of guiding principles that is placed on branch office walls that I visited which serve as a reminder to branch staff of Sinapi Aba’s mission.
Since the photo is poor quality, I am rewriting what it says.
The client is the most important person in our premises.
He is not dependent on us, we are dependent on him.
He is not an interruption to our work; he is the purpose of it.
He is not an outsider on our business, he is part of it.
We are not doing him a favor by serving him; he is giving us a favor by giving us the opportunity to do so.
For its borrowers, Sinapi Aba has created a slogan which helps the borrowers connect with the Sinapi Aba staff, learn Sinapi Aba’s mission and reminds borrowers of their responsibilities. When a Sinapi Aba staff member enters a borrower meeting, this is the exchange that occurs:
The loan officer says “Sinapi”, and the borrowers respond, “Aba pa,” which means “Good seed.”
The loan officer says “Sinapi,” and the borrowers respond, “Nkoso,” which means “Progress.”
The loan officer says “Sinapi,” and the borrowers respond, “Yen pe sika sini,” which means “No part payment.”
The loan officer says “Sinapi,” and the borrowers respond, “No meeting, no cash,” meaning if you don’t attend group meetings, you do not get another loan.
The loan officer says, “Sinapi,” and the borrowers respond, “Wo ma no yie, wa gye,” which means “Regular payment attracts another loan.”
This exchange occurred each time I attended a borrower meeting. I thought it was an ingenious way to share important information to the borrowers.
Genocide Memorial Helps Unify a Microfinance Institute and a People
In 1994, over the course of 100 days, a mass killing of an estimated 800,000 people in Rwanda took place. After the genocide Rwandans have attempted reintegration of its people into society. Although memories of the genocide are still painful, Rwanda has chosen to memorialize many of the sites where killings took place. The Nyamata Genocide Memorial served to unite a microfinance institute, both as staff and as a Rwandan people.
Continue Reading 25 May 2010 at 00:53 austinharris 4 comments
Salam əleyküm from Azerbaijan
By Yelena Shuster, K11, Azerbaijan
Last week I arrived in Baku, the capital city of Azerbaijan to begin my three-month fellowship at Komak credit union. For me, Baku is a special place because like the country of my birth (Ukraine) it was one of the 15 republics that made up the former Soviet Union.
So you may wonder, where is Azerbaijan?click on the map below for details
Kiva Love for Loan Officers
By Michelle Baker, KF11 Ghana
I spent the entire past week out in the field training branches and meeting with Kiva borrowers, and it was the most inspiring thing I have experienced in a very long time.
The loan officers are some of the most amazing people who I have met. Without their hard work, I am certain that microfinancing would not be possible. The loan officers that I met start their days before 8:00 a.m. and end as late as 11:00 p.m. They do not spend their days in a comfortable air-conditioned office, but instead spend most of their time traveling from rural town to rural town meeting with current and potential borrowers. They do not have cars, but instead must wait on the side of the road for a tro-tro (a mini-van packed with people) or a shared taxi. In the town of Kumasi, where I currently live, you will come across 10 tro-tros and taxis every 5 minutes, but in the rural areas, you may have to wait anywhere between 15 minutes to 1 hour for a passing tro-tro or taxi. Did I mention that it extremely hot and humid in Ghana?
These loan officers are dressed up in slacks, a long Oxford shirt, a tie and polished shoes. They often meet in churches that have a ceiling fan which really only moves the hot air around, but doesn’t really offer any relief from the heat. In one of the rural towns outside Kade, two loan officers met with over 30 groups of borrowers. Each group had 5 to 10 individual borrowers. These two loan officers collected repayments, offered training sessions and listened to any grievances that the borrowers had. They do this all with a determination and kindness that I am not sure that most people would be able to have, including myself. I asked one of the loan officers what he likes about his job, and he told me that he feels like he is providing a service to a community of people who are less fortunate than himself and really need the help. It was nice that he did not treat his work just as part of his job, but that he actually felt inspired about the work he was doing.
A photo of a Kiva team members collecting journal updates from Kiva borrowers.
I also got to meet some Kiva borrowers, and attempted to converse with them in their native Twi language. Well I shared the three phrases that I know! Mma ache, which means good morning. Wo ho te sen, which means how are you? Me ho ye, which mean I’m good. They loved it!
A few photos of Kiva borrowers.
Finally, the loan officers and the borrowers wanted me to tell Kiva and all the Kiva borrowers that they were so thankful for providing loans and how these loans have helped the borrowers to care for their families. I think the loan officers also deserve praise because without them, Kiva and Kiva borrowers wouldn’t be able to reach these rural borrowers!
Microfinance and IDPs in Northern Uganda
By James Allman-Gulino, KF11 Uganda
A look into how microfinance and group borrowing can help internally displaced persons (IDPs) and others in post-conflict regions.
Continue Reading 24 May 2010 at 00:01 James Allman-Gulino 3 comments
Growing up in a Civil War
The children who lived to tell these stories, have now grown and can tell them with a laugh. These are the kind personal histories a Kiva Fellow can hear as one begins his work with PADECOMSM Credito, Kiva’s newest field partner in El Salvador. PADECOMSM’s strength has come from supporting areas most affected by the civil war.
On a good day, the baker’s children could sell their sweet bread to the army in the morning, and in the afternoon they would be selling the bread to the guerrillas. It was not unusual to ask the young bakers how things were on the other side. Both sides would pay for their bread – perhaps both knew that they might steal the bread once, but there would be no more bread afterward; or perhaps the fighters were ordinary men flung into wars they did not mean to fight. For the young bakers, terms with either side were friendly; both sides would sometimes borrow the bakers’ old truck to run certain errands.
On a bad day, the curfew would restrict all movement from one’s home. Business was impossible, entertainment was negligible. The days were never ending. On the really bad days, the army and the guerrilla would both have shoot outs in the village. No matter how many times it had happened in the past, – out of the blue or out of the dark night – it was sudden, unpredictable, and utterly terrifying. It had been happening for years, for how many more years would it go on? Each time pandemonium broke loose, a merciless stray bullet could hit a mother, a brother, or a friend in another part of town – and there would be no hospital to treat the wound.
In the eastern part of El Salvador, and especially in the state of Morazan, it is easy to find people who had to run for their lives as they are caught under gun fire between the army and the guerrillas. How to forget the running of a mother holding her three day old baby on one hand, and tightly gripping her three small children on other side, while making them desperately wave white flags?
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Carlos Pierre, KF11
Kiva Fellows – Where Are they now? (Well one of them at least).
By Mary Riedel, KF9/10
One day in the beginning of my fellowship at Maxima (one of Kiva’s Microfinance Partner’s in Cambodia), a former Kiva Fellow, Amy Killian, stopped by. She had returned to Cambodia on a payroll!
The staff was so happy to see Amy. There were hugs and laughs and stories retold; I was happy to be a witness. Most importantly the reunion gave me hope. I was so inspired that Amy made it back, and I was dying to know how she did it. For most Kiva Fellows I think the number one question from our MFI’s is, “When are you coming back!” Personally, the question is so hard to answer because the reality is that Asia is really far away. I know I’ll be back, I just don’t know when.
BRAC and a Sri Lankan Haiku
By Cheney Wells, KF11, Sri Lanka
In 1972, Fazle Hasan Abed founded BRAC (Bangladesh Rural Advancement Committee) to serve the needs of the people of the newly sovereign state of Bangladesh. Today BRAC is one of the largest development NGOs in the world, providing services that extend beyond micro-credit, to include health, education, social development, and human rights initiatives, to name a few. The power and efficiency of BRAC helped facilitate a quick response to the 2004 tsunami that devastated the small island of Sri Lanka; within four months of the tsunami, BRAC was operating in Sri Lanka.
Life and Death in Rongo, Kenya
By Steve Grey, KF11, Kenya
“One of the borrowers on this list, Helida Ochieng, passed away last month.”
Those words hit me like a punch in the stomach. I was in Kisumu on the shores of Lake Victoria to work with Kisumu Medical & Education Trust (K-MET), one of Kiva’s lending partners in Kenya.
My assignment was to do “borrower verification” – visit 10 randomly selected K-MET borrowers who have received Kiva loans and verify that the information posted on Kiva’s website is accurate (name, loan use, loan amount and term, etc.). But now what? I felt like I was on shaky ground. Was there a way to honor Helida’s memory and be sensitive to her family while also upholding Kiva’s value of transparency to its lenders?
Continue Reading 23 May 2010 at 11:19 stevensgrey 8 comments
Microfinance at the Margins
What have I learned about the nonprofit world? It’s complicated. Not the hard to solve kind but rather the kind that consumes a half-century before a dent is made.
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Kiva, Google Earth, and the Big Wide World
Ok so hear me out on this concept – I think it’s a good one.
In my eyes one of THE greatest things to come out of the last fifty years is the ability to travel. The ability to see, to experience, to understand different cultures, and get a taste of what it’s like to live in a country vastly different to your own.
So what about Google Earth?
A Youth Perspective on Poverty
Strong ties to local communities not only allow microfinance institutions to build enduring relationships with borrowers, but also to invest in socially-driven community projects. In many cases, the non-financial services an organization provides can be as valuable as the microcredit it offers. Kiva’s Lebanon partner, Al Majmoua, is an excellent example of how the resources and commitment of a microfinance institution can positively impact and empower an extremely important segment of the population—young people or “il shabab” in Arabic.
PADECOMSM & El Salvador’s Civil war
PADECOMSM Credito has its roots in an organization that filled the public service vacuum that was created during the civil war as the guerrilla uprising pushed out the government forces.
Continue Reading 20 May 2010 at 15:02 Carlos Pierre 3 comments
Let’s talk about …
Sex. Ok, reproductive health. Let’s talk about reproductive health in a language you don’t speak. Ok, conversational, but far from professional. And now the setting: a women’s health training for clients from the Kiva field partner Koperasi Mitra Usaha Kecil (MUK) in a village in Bali, Indonesia.
When I REALLY realized this, I couldn’t help but wear a huge happy grin before I started…
I had the chance to actively take part in this stage of empowerment of entrepreneurs at MUK. Now I want to share my thoughts during preparations for this delicate training.
Continue Reading 20 May 2010 at 00:21 Anna Antoni 3 comments
The secret to longevity
I noticed an elderly lady quickly climbing up a small hill. My first reaction was, what is she doing and why? I was rather surprised to see her climb this rather steep small hill at her age and her determination seemed unwavering. I few minutes later it became clear.
Tomorrow is Here: M-Kesho Offers Microloans and Interest via Mobile Phone
By Jeremy Gordon, KF11, Kenya
Yesterday marked big news for branchless banking in Kenya. Safaricom, the company behind the highly successful mobile-money platform M-Pesa, announced its launch of a new service called M-Kesho (kesho meaning tomorrow in Swahili) allowing anyone with a cell phone to begin earning interest on their savings and even to receive a loan.
One of the things that first drew me to opt for a placement here in Kenya was the exciting innovation happening through mobile applications, where Kenya is both a pilot and a hub—pushing limits, and proving viability in this part of the world. This new foray into mobile micro-savings and micro-credit is particularly exciting news to me, so I couldn’t help but head into the local Safaricom agent in hopes of setting up my own account. Unfortunately, once in town, the following became clear: 1) non-Kenyans cannot use M-Kesho, 2) no one (even Safaricom agent employees) knows all that much about it yet. Instead, I’ll share what I do know, and the role this technology may play in the road ahead for microfinance.
When the river runs dry
Once upon a time in Oaxaca, Mexico there was a fine river which flowed below Jicaltepec. Nowadays the fish are gone and the earth is dry. Young children are wide-eyed at their parents’ stories of playing and swimming in the river as children themselves.
It seems impossibly dry in the Costa Chica, a region on the south coast of Mexico a few hours east of Acapulco. Straddling the states of Guerrero and Oaxaca, the villages of the Costa Chica are far removed from the decadence of the famous resort town.
The hills are tinderbox- dry, and at night fires dance on distant ridgelines. People confidently tell me that the rains will come in May or June, but last year it didn’t rain until October and then only for one month. The town of Pinotepa Nacional has run out of water, and there are tensions over the licenses to truck in water for those who can afford to pay for it.
As the river has dried up so has the farming sector. Fields which were once farmed now lie fallow. Pedro, the manager of the Fundacion Realidad (FRAC) office in Pinotepa, tells me that many peasant farmers have left the region in search of opportunities in El Norte (the United States). With them has gone much of the knowledge of traditional farming in the area.
Continue Reading 19 May 2010 at 04:13 Sally Bolton 1 comment
