Author Archive
Transportation, Microfinance and the Environment
Transportation has been an integral part of my travels in South America. I have been in cars, vans, buses, scooters, motorcycles, trains, boats, planes, even a bus transported by a boat and of course I have walked.
Mini Carga desde 1 Boliviano (Mini-Recharge from 1 Boliviano)
Everywhere I go in Bolivia I see huge billboards that advertise “Mini Carga desde 1 Bs” (Mini recharge from 1 Boliviano) with a picture of a guy holding a 1 Boliviano coin and a cellphone.
Mini Carga desde 1 Boliviano (Mini-Recharge from 1 Boliviano)
Mini Carga desde 1 Boliviano
After having my Bolivian cellphone for only a day, I couldn’t for the life of me understand why companies were advertising such a small sum of money to recharge your pre-paid phone. Especially since a phone call of a few seconds would eat that 1 Boliviano before you could say “hola” (although text messages are much cheaper, around 20 Bolivian cents each depending on the company – Entel, Tigo or Viva). It seemed so inefficient. But then I talked to a friend who has lived in Bolivia longer than I have, after which I couldn’t help but think of the similarities between mini carga and microfinance.
So here’s the scoop…
Why you should support group loans on Kiva
I met some Dutch Kiva lenders during a trip to Isla del Sol, Lake Titicaca in Bolivia who don’t like to loan to groups on Kiva.
Both the MFIs I have worked with as a Kiva Fellow, Asociación Arariwa and Emprender offer both group and individual credit products, however, the majority of Arariwa’s clients and 40% of Emprender’s clients work within a banco communal (village bank). A banco communal basically acts like a mini financial institution. The MFI gives each member credit based on the amount they have requested and their ability to pay. Each member saves part of their loan and in some cases, can relend this money within the group and collect interest on this internal loan.
Here are some reasons why group loans work well in microfinance…
Falso! Parte Dos – How to Tell If Your Money is Fake in Bolivia
Since beginning to work in La Paz, Bolivia with microfinance institution and Kiva partner Emprender, one of the first things I wanted to learn was how to tell a fake Bolivian bill from a real one.
Every Emprender office has a caja (cashier) where clients get their loan disbursement and pay their loan payments. Each cashier has a sign that says “Every fake bill will be perforated” with a sample fake bill stuck on the window.
The institution is vigilant about fake bills. When a client pays their loan payment, their initials are marked on the bill and the cashier examines it to determine its authenticity. In the case it is deemed to be false, the bill is returned to its owner and the payment must be made again.
Here are some ways to tell the difference between real and fake bills in Bolivia from the cashier at the Emprender Pampahasi branch…
Cusco on My Mind
If you haven’t heard, there have been terrible floods in Cusco, Peru in the past week. Since we are in the thick of La Epoca de la Lluvia (the rainy season), rain is expected but the level of destruction seen in the area is unimaginable.
Tourism is the main industry in Cusco, and the damage produced by the rain does substantial damage on the Cusco economy. From the February 3rd warden message from the U.S. Embassy in Peru, I read that Machu Picchu is closed and the rail line between Ollantaytambo and Aguas Calientes is closed due to landslides until possibly March. I also read that tourists were stranded in Aguas Calientes (the town closest to Incan archeological site Machu Picchu) and that the conditions were excruciating. Luckily, helicopters eventually evacuated all the tourists from the town.
Unfortunately, my Kiva clients in Cusco don’t have that luxury.
Kiva Animal Kingdom
At microfinance institution Asociación Arariwa in Cusco, Peru, and now working with Emprender in La Paz, Bolivia, I have met a ton of animals. Being an animal lover and from New York where I rarely see live animals walking around (unless the occasional stray cat or rat or cockroach counts), seeing animals as part of my daily life is a pleasure.
Financial Education and Microfinance
By Sheethal Shobowale, KF9, Peru
Doris, one of the loan officers at Asociación Arariwa, has been working with clients in Urubamba and Cusco for 17 years.
I sat in on one of the monthly loan payment meetings of one of her communal banks, Aguas Buenas. All members paid their monthly payments on time, but two of the members asked permission beforehand not to attend. Because of their absence, Doris commented on the importance of attending the monthly meetings, saying “No vamos a lograr nada” (We won’t achieve anything this way). She even called one of the absent members on her cellphone to remind them of the importance of attending monthly meetings.
Attendance is importance especially since during each meeting, loan officers teach a short workshop on different topics such as financial literacy, business training, family well-being or health. In this meeting Doris taught a lesson on setting financial goals. Having done some financial literacy workshops for teenagers and some credit counseling for adults in my work with the Lower East Side Credit Union in New York, I was excited and honored to see Arariwa’s financial literacy training in action, especially by a loan officer as experienced as Doris.
Falso! A Musing on Fake Money in Peru
By Sheethal Shobowale, KF9, Peru
Counterfeit money is a very serious topic in Peru. There is so much false money floating around that it is extremely possible that at some point or another, you will try to buy some fruit from the woman selling fruit on the corner and she will return your bill or coin exclaiming, “falso!” (false!)
Peruvian MFI Asociación Arariwa’s 25th Anniversary Celebration
By Sheethal Shobowale, KF9, Peru
I had the pleasure of attending Asociación Arariwa’s 25th anniversary celebrations. In true Peruvian form, the celebrating lasted two weeks with lots of fanfare – a parade, music, dancing, eating and of course, Cusqueña (Peruvian beer) and sweet Peruvian wine.
Halloween in Cusco
By Sheethal Shobowale, KF9, Peru
In Cusco, Peru, Halloween is celebrated in full force. It kinda feels like home (side note: home for me is Brooklyn, New York). Back in New York, I usually put some pumpkins on my stoop and make some curried pumpkin soup. This year, Cynthia McMurry (Kiva’s Field Support Specialist in South America) and I are going to carve a zapallo and make some soup. So it will feel like home!
Here are some photos from Halloween in Cusco -
I’ll add more over the weekend when I see people dressed up and out trick ‘o treatin’… Hopefully I’ll get to see some cute little kids dressed up like pumpkins.
Happy Halloween from Cusco, Peru!
Celebrate Halloween by lending to Kiva borrowers.
Sheethal Shobowale is currently serving as a Kiva Fellow in Cusco, Peru with Asociación Arariwa
“Nuestra Capital Semilla” (Our Seed Money)
By Sheethal Shobowale, KF9, Peru
My first loan disbursement outside of the Asociación Arariwa office took place in San Sebastian, an area of Cusco about 15 minutes away from the office.
This group meeting was my ideal picture of group microfinance. Banco Comunal de Maria Auxiliadora is a group of 11 low-income women from Cusco, engaged all all different types of businesses, from cosmetic and grocery sales to artesanía. They had failed to make their repayments on time in their last loan cycle but this time, Valentina, their loan officer was determined for them to succeed.
(more…)
We are all Kiva partners (Somos Todos Socios de Kiva)
By Sheethal Shobowale, KF9, Peru
Wordreference translates the Spanish word socio as member or partner.
Yesterday, on my first day as a Kiva Fellow at Asociación Arariwa, I got to see my first group loan disbursement. Raquel (the Kiva coordinator at Arariwa) described the borrowers as Nuestros Socios (our members). In a group loan at Arariwa, the borrowers are Socios del banco. A lender who joins the Kiva community can also be called a Socio de Kiva. I translate Kiva’s partner MFIs as Socios de Kiva (Kiva partners) and I describe myself as Socio de Kiva (Kiva Fellow). And one more: here’s a past blog post by another Kiva Fellow, Michelle, about Socios Dinámicos.
Of course we all have other names -
- Institución de Microfinanzas – Microfinance Institution: Asociación Arariwa
Institución de Microfinanzas - Microfinance Institution: Asociación Arariwa
- Prestamista – Lender: Kiva Lending Team Amigos de Asociación Arariwa
Prestamista - Lender: Kiva Lending Team Amigos de Asociación Arariwa
- Prestatario – borrower: Ayda from Asociación Arariwa, Cusco, Peru
Prestatario - borrower: Ayda from Asociación Arariwa, Cusco, Peru
- Voluntario – Volunteer: “Lethal” Sheethal Shobowale, Kiva Fellow, KF9, Peru
Voluntario - Volunteer: "Lethal" Sheethal Shobowale, Kiva Fellow, KF9, Peru
but I really like the idea that we are all socios (partners or members) of Kiva, of microfinance and in alleviating poverty. And going back to Kiva’s mission, Connecting People through Lending to Alleviate Poverty, being connected as socios seems to make sense to me.
Please consider becoming a Socio of Asociación Arariwa by lending to Arariwa borrowers and joining our Kiva lending team – Amigos/Amigas de Arariwa!
Sheethal Shobowale is currently serving as a Kiva Fellow with Asociación Arariwa in Cusco, Peru.
Be the Change…Mahatma Gandhi
Sheethal Shobowale, KF9, Peru“Be the change you wish to see in the world” -Mahatma Gandhi
That’s why I wanted to be a Kiva Fellow. In honor of Mahatma Gandhi’s birthday today (Oct 2nd), I am glad to say that my Kiva Fellow colleagues and I are living the change we wish to see by helping people much less fortunate than us.
Kiva Fellows Training
My name is Sheethal Shobowale. I am a New Yorker and the daughter of Indian immigrants. Through my recently founded company, Leap Work, I help non-profits with online communications – development, social media, audience research and analytics online. In my free time, I facilitate discussions about financial literacy for youth and conduct credit counseling for adults as well as coordinate my local block association. I also love rock climbing and cooking.
I am excited to work as a Kiva Fellow with Asociación Arariwa in Cusco, Peru starting next week. I look forward to sharing stories of positive change with you! You can also follow @LethalSheethal on Twitter to get (more) real-time updates from Cusco.
Please consider lending to Asociación Arariwa borrowers on Kiva or join Kiva Lending Team Amigos/as de Asociación Arariwa in your future loans.
Thanks for supporting Kiva!
Sheethal
Sheethal Shobowale is currently serving as a Kiva Fellow with Asociación Arariwa in Cusco, Peru.
