Author Archive
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.
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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An Interest Rate Example
By Alex Duong, KF9, Vietnam
“That’s my philosophy. The key is to get up in that batter’s box and take a swing. And all you have to do is hit one single, a couple of doubles, and an occasional home run out of every 10 at-bats, and you’re going to be the best hitter or the best business leader around. You can’t play in the major leagues without having a lot of failures.
- John Donahoe, eBay CEO
Substitute “hitter” and “business leader” for microfinance institution and the quote is absolutely relevant. Microfinance is still in its infancy and far from perfect. So long as more players enter the batter’s box, exciting innovations will appear on the horizon. And interest rates are likely to come down assuming healthy competition takes place. Until that time, however, the following is one rationale for current interest rates from the perspective of interest rate spread (click “more” below).
Innovation – Found It!
After four months at ground zero, I hold certain things to be true. There will always be a tradeoff between quality and quantity. Also, sustainable aid does not include giving money away. Microfinance, which encompasses interest bearing loans, is currently a lead contender for sustainable development. Perhaps that is why it has peaked the interests of so many. And until most recently, I was concerned its current state was not sustainable. Why? Many MFIs are experiencing double digit percentage gains and hitting numbers that make any for-profit enterprise envious.
Parallels in Microfinance and Corporate America
By Alex Duong, KF9, Vietnam
A recent interview with John Hagel of my employer Deloitte sparked the idea for this blog entry (article here). According to Hagel, the US market is maturing to the point where solely focusing on product and process innovation have decreasing marginal returns. A good example is Microsoft Office or the iPod. At first, new products came out every 4-5 years. Now it seems the product line must be refreshed every 2-3 years. So what could serving the poor have in common with profit oriented businesses? It turns out there are plenty of parallels.
A few staff members of my MFI, TYM Fund
Consider Microfinance Ancillary Effects
By Alex Duong, KF9, Vietnam
Before continuing, please take time to read colleague Victoria Kabak’s post on Nicaragua. I’d like her courageous efforts to be recognized. And if you are out to make a loan today, rather than Vietnam, please consider funding someone in Nicaragua here, particularly a borrower with AFODENIC.
Victoria, I don’t have an answer either. Perhaps build a regression model? But that is probably skewed by my swimming in a quantitative pool these last few days with friends cash flow and NPV.
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Ok, on to this post about ancillary effects. A recent trend in microfinance (MF) has been to incorporate social performance indicators. The concept involves measuring poverty alleviation actually induced through loans and other MF efforts. Metrics or not, what I can tell you is that Madame Lien would put those statistics to shame. Check out her preschool students below.
The “Wiggle” and Other Observations
By Alex Duong, KF9, Vietnam
Vietnam has received consistent coverage on this blog since the Kiva Fellows 5th class (KF5). Often there are snippets or video discussing the dangerous, lawless traffic of the streets. And until now, there have been no solutions for navigating the madness. Below is video of what I’m coining as the ‘wiggle.’ Watch how this man avoids cars, pedestrians, and other motorbikes. Each little twist is a subtle yet intentional twist that finds the next opening. Click to read about this fellow’s thoughts on Vietnam culture.
Kiva Love Machine Leads to Visiting Samoa
By Alex Duong, KF9, Vietnam
I’m going to let you in on a secret: Kiva is one big hunk of love. Understanding the phrase ‘Kiva love machine’ sheds light on what motivates the work of Kiva fellows everyday. Why does Rebecca Corey rise at 5:30AM to catch the bus to work? Why does Thomas Gold risk driving in deathly traffic? Read on to learn about the bond that unites fellows.
The Intro
By Alex Duong, KF9, Vietnam
The CIA World Factbook provides the following details for Vietnam -
Population median age: 27.4
Percentage of population living in urban areas: 28%
Literacy rate: 90.3%
GPD growth rate: 6.2% in 2008, 8.5% in 2007
Unemployment rate: 4.7%
Leaving aside the recent inflation spike, Vietnam offers a young, competent, and dynamic environment that is ripe for putting microfinance to work.
