Hello, cool world!
18 September 2008
I’m the only fellow headed to Azerbaijan from Kiva Fellows 6, so I’m pretty excited to bring word of this fascinating region to those of you who make Kiva such a success. I’ll be visiting each of Kiva’s partner microfinance institutions in the region to assist them in any way I can, support Kiva, journal and train the MFIs on new software systems being put into place.
I’ve never been to the Caucasus. It’s largely a blank slate to me. What the Lonely Planet, my Azeri taxi driver last night and previous Kiva Fellows in the area, such as Jonathan Buser, say is that it’s a real crossroads: a blend of post-Soviet bureacracy, Shi’ite Islam, impoverished “internally displaced persons,” fabulously wealthy petrocapitalists living off the transport of oil and natural gas from east to west and the ex-pats who help that happen. I’ll be living in Baku (birthplace of chess grandmaster Garry Kasparov), the capital, for 6-10 weeks, and then moving on to my next destination for Kiva (Mongolia?) for the remainder of my 6-month fellowship.
I really hope to shed some light for people on this poorly understood region and its challenges for all of you. I’ll do my best.
–Mark Bulliet, KF6
Livestock Bazaar
9 May 2008
Families in rural Azerbaijan are heavily reliant on farm animals, often just a handful of sheep and a cow, for food and income. Microcredit loans allow enterprising individuals to scale up animal raising activities so that excess milk, cheese, wool, and offspring can be sold for a profit. But where does one go to buy a cow or a half dozen sheep? I learned that once a week as many as 4,000 farmers congregate with their animals to exchange ownership at the Livestock Bazaar. Kiva’s field partner, Aqroinvest arranged for me to meet a client and conduct an interview at the bazaar. With the help of another fellow we filmed our visit to the sprawling animal market.
As I wrap up my time as a Kiva Fellow with Norwegian Microcredit (Normicro) in Azerbaijan, I realized that I cannot adequately summarize in words the knowledge I’ve gained on microfinance and Azerbaijan, things and places I’ve seen, and people and entrepreneurs I’ve met. For to share about microfinance in Azerbaijan, one must place it in the context of the country’s historical and current political and economic situation. Besides, the previous Kiva Fellow in Azerbaijan had already written an excellent blog on this topic. (See: ‘The Role of Microfinance in Azerbaijan‘) Hence, I decided to put my thoughts into a video instead:
Baku is Burning
17 April 2008
The biggest holiday in Azerbaijan is Novruz. This spring event has its roots as a pre-Islam New Year celebration. It officially begins on the spring equinox but the celebration ramps up much earlier with large street bonfires every Tuesday for the month preceding Novruz. Each week represents a different element: earth, water, air, and fire. Much of the community comes out for the bonfires to socialize and listen to music. Tradition calls for fearless youth to jump across the bonfire regardless or how large it is. On one occasion I witnessed a boy run through a fire along a burning pole until he could leap the last 3 feet to the other side. I was coerced into making the leap over a much more manageable fire only to learn that once is not enough, three leaps is keeping with tradition. After four weeks of bonfires, and all the scrap wood has been burned, the Novruz holiday finally arrives with a full week of vacation for the entire country.
Novruz is also important for Azerbaijan’s small businesses. Many of the Kiva borrowers I visited were making business decisions based on their sales projections during the holiday. One client had pre-shorn three sheep with the hopes of selling them for butcher at a higher price during the holiday. All of the Kiva trading clients had stocked up on inventory for their shops. Some of the special items included small fireworks, nuts, and festive pots of wheat. This is a very enjoyable time to be in Azerbaijan.
English as a form of capital in Azerbaijan
31 March 2008
On Sunday, I had the privilege of spending time with an Azeri woman over lunch and walking around Baku. For the record, I am female. I met Ulviyya on a bus a few days ago when I saw her reading English vocabulary from a dictionary that was falling apart to pieces and started talking to her. We parted shortly after but before doing so, Ulviyya jumped on the opportunity to practice her spoken English. She took down my mobile number and invited me to lunch on Sunday.
Throughout the few hours we spent together, I was incredible impressed at how diligent Ulviyya was at asking for definitions of words she didn’t understand, taking notes, and referring to what’s left of her Azerbaijani-English dictionary to express words she struggled with. I felt more and more embarrassed at how little effort I am putting into learning Azeri in comparison to her!
After lunch, Ulviyya took me to a place in the city where there were vendors selling English instruction books. We selected a few but the availability of affordable books was very scarce. She had already read almost all books at the level below her current ability. Ulviyya tells me that she would like to improve her English so that she can be confident of applying for and getting a job as a geologist at BP, where the salary is much higher but fluency in English is mandatory.
I am humbled upon realizing how hard Azerbaijanis at every level of society strive to better their lives. Some opt to borrow from microfinance organizations to expand their businesses while others increase their human capital by learning English.
Visiting clients in a small city in Azerbaijan
16 March 2008
Greetings! My name is Ai Li Ang and I live in Chicago, Illinois, in the USA. I was born and grew up in Malaysia and am ethnically Chinese (this detail will be relevant later on). I arrived in Azerbaijan as a Kiva Fellow to work with one of Kiva’s partners, Norwegian Microcredit (Normicro). This is the second time that Normicro is hosting a Kiva Fellow. Since the previous Fellow, Liz Vallette, departed in fall of 2007, Normicro has continued to experience tremendous growth in number of clients served and loan portfolio. In less than a year, Normicro has added 2 branch offices to the 5 it had last year, improving access to microloans for many low-income and internally-displaced persons in Azerbaijan.
Last week, I ventured outside the capital city of Baku (where Normicro’s head office is located) to visit a branch office (where loans are administered) for the first time. My goal was to interview clients who received loans from Kiva lenders, write journals, and upload the journals to Kiva.org. Getting to Khachmaz, a city north of Baku, was relatively easy for someone who doesn’t speak Azeri or Russian. Minibuses, known as “mashrutkas”, line up outside one of Baku’s main bus stations with clearly labeled signs of their destinations. As far I know, the mashrutkas don’t follow schedules, but depart as soon as each vehicle fills up. For most low-income Azeris, mashrutkas are the most reliable and affordable means of traveling to other cities. However, the 3 manat (approx. 3.60 USD) one way, 2.5 hour bumpy journey is not for the faint-hearted. Many times the driver would pass slow trucks in spite of on-coming vehicles, swerving back to his own lane only at the very last minute. Sometimes, when the driver overestimated his mashrutka’s horsepower on a passing attempt, he would resort to creating an additional middle lane.
During my 3 days at Normicro’s Khachmaz branch office, the two loan officers, Vagif and Nafira, were quite busy meeting with clients at the office. Yet, they took some time off in the afternoons to take me to see borrowers of Kiva loans. I also received translation help from a U.S. Peace Corps volunteer, Adam. Most of the clients we visited operated retail (e.g., clothes, groceries, shoes, furniture) business. Very quickly I got consistent replies that the loans were used to purchase inventory in bulk to get lower prices. This implies that the additional profit margin from lower cost of goods was more than sufficient to offset the 3% monthly interest rate charged by Normicro. Access to loans essentially accelerates the rate at which these entrepreneurs accumulate profit and grow their businesses. Many of them also expressed the desire to take larger loans so that they can make one-time infrastructure investments or buy inventory in even larger quantities.
In a small city such as Khachmaz, when two foreigners walk through the bazaar and talk to people, all buying and selling activities are paused because everyone gathers around to listen to our interviews! Each one of us also draws attention for different reasons: Vagif and Nafira, the loan officers, were constantly approached by current and potential clients with inquiries; Adam, a caucasian, was considered the rich investor who would provide the loan capital; I, on the other hand, was asked directly or indirectly what I was selling! (Chinese in Azerbaijan are typically seen selling toys and misc. items on sidewalks and on the streets.)
Busy Streets of Baku
13 March 2008
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.
Kiva Training in Baku!
13 August 2007
On Friday, with the help of the NorMicro staff, I held a “Kiva Training Session” for the employees of the Azerbaijani Kiva Field Partners. There were seventeen of us total, representing NorMicro, Komak, and AqroInvest. Bahman (NorMicro’s Director) suggested that I hold the training, while Tasaduf (NorMicro’s Human Resources Manager) worked really hard to get us a very nice briefing room in Baku’s fancy Caspian Business Plaza. For over three hours we discussed (in English and Azerbaijani, with translation by Tasaduf!) pertinent Field Partner topics, such as writing Kiva business descriptions, taking good client photos, how to post business profiles, and writing journal entries. The attendees had lots and lots of good questions and are obviously committed to further enhancing their Kiva efforts!
I made sure we had an internet connection and a projector so everyone could experience Kiva.org — some of the attendees have not yet worked with Kiva, while others do not have consistent internet access in their offices. During the presentation I surfed through the website, highlighting important points and answering questions about lenders and clients. (I even impressed them with the fact that almost 12% of all Kiva funds, thus far, have gone to Azerbaijani clients!) One thing I really focused in on was that Kiva lenders are individuals – I think it’s easy for the uninitiated loan officer to assume that Kiva is just some faceless American corporation throwing big money at international projects. I pulled up Hajibaba’s business profile and used Mrs. Diba’s Class as an example of Kiva’s lenders. The mental image of six-year-olds collecting pennies for Hajibaba really helps illustrate the Kiva spirit!!
To train the newbies and reinforce Kiva’s processes to the experienced loan officers, we used a “real” client as an example. We tested out the new Kiva Form created by Adam (Peace Corps Volunteer assigned to NorMicro) as a means of systematically improving information flow between loan officers and the individuals who post the Kiva listings. Next, we all worked together to develop a concise, but detailed business description. Finally, Behbud (NorMicro’s Beylagan Branch Kiva Coordinator) walked us through posting a profile – keep an eye out for Rafig’s profile!
The Kiva Training attendees:
The response to the training was very encouraging and I expect that the Azerbaijani Kiva listings will soon be even better! The training was a little bittersweet for me – I leave in just one week! Time has flown! I am sad to go, but I guess I do need to get back home and finish up my degree at some point 
I hope to post some links to pictures before I leave!
Lost in Azerbaijan
3 August 2007
OK, I’m not really lost, but I have been traveling like crazy the past two or so weeks and have not been able to keep up with journals or blogs! I apologize for the length of this, but I’ll try to recap:
14 – 16 July: I jumped on a mashrutka (a fancy name for a really old, unsafe, run-down mini-bus) and headed two hours north of Baku to NorMicro’s branch office in Khachmaz. I spent Saturday hanging out with Azerbaijani friends I have made on previous visits to Khachmaz this summer. On Sunday I went to the modest seaside resort town of Nabran, but unfortunately, the weather didn’t cooperate much and the water was really cold. On Monday I visited eight Kiva clients in Khachmaz with translation help from Adam, the U.S. Peace Corps Volunteer assigned to NorMicro in Khachmaz. We walked all over Khachmaz locating clients – at least I’m getting exercise to offset the amount of food I’ve been eating! I’ve been to Khachmaz often enough now that I know a lot of people there – it’s fun to spot clients I’ve visited on previous trips and see that things are still going well for them. While I was in Khachmaz, I spent my nights with two different host families. Azerbaijanis rank near the top of the list of the most hospitable people of the planet…but I do have to admit, all the attention and food and cousins and tea and wedding videos and more tea and photo albums does get a bit exhausting! I definitely did not have a chance to write-up any of my Kiva journals while I was the guest of those families!! (Photo: People and cows enjoying the beach at Nabran.)
17 July: I caught an early mashrutka to the small town of Devechi and met up with Adam and Nafira, a loan officer at NorMicro’s Khachmaz branch. We visited fourteen clients in the Devechi bazaar – nearly every vendor in the bazaar is a NorMicro client! Nafira is very efficient and is well-liked by her clients, so our visits went smoothly and quickly. After a late lunch of mutton kebabs, I returned to Baku.
19 – 20 July: The next morning I took yet another early mashrutka to the central Azerbaijani town of Agsu. In the two days I spent there, I visited twenty Kiva clients with the help of the branch manager, Namik, and his friendly staff. The talk of the town in Agsu that week was the municipality’s new mandate that all street-front shops conform to a specific architectural design. The idea is that Agsu will look much more appealing once all the ramshackle shops are torn down. The downside for shop owners is that the municipality is not helping out at all with the costs of remodeling. They are, however, providing the demolition free of charge. Khilgat’s rented shop had been torn down 2 days before my visit, and Terlan’s shop was scheduled for demolition later in the week. Despite the bad news, the clients were in relatively good humor and showed me the color blueprints for the approved Agsu storefronts, so kindly provided by the municipality. Following these two days of visits I experienced my most exciting taxi ride in Azerbaijan thus far (and that’s saying something…!) – me, two other women, and three children in the backseat of a Lada, with me holding onto a stranger’s baby. Many high-speed hairpin turns and two hours later, we arrived – safely – in Baku. (Photo: Me with NorMicro’s Agsu Branch staff)
21-21 July: Saturday was devoted to spending quality time with my host family – we visited three different aunts in Baku, and, of course, ate and drank tea with all of them. I finally got time Sunday to head to a coffee shop I had found recently that has free wi-fi – it’s geared towards upper crust Bakuvians and expats, so the food and drink prices keep me from hanging out too long! I did manage to get some work done, though!
23 July: I have had so much success in visiting clients with Nafira that I returned to her region to visit six more Kiva clients that live in a small village outside Devechi. Adam and Vagif, another loan officer, helped us out. I was eager to visit agricultural businesses after so much time visiting retail and trading businesses. It was a very, very, very warm afternoon, but the clients were friendly and the visits were rewarding.
24 July: ACDI|VOCA and AMFA class on success stories and business descriptions.
25 July: After reviewing the materials from the business descriptions class, Bahman, the director of NorMicro suggested that I prepare formal Kiva training for his staff. I spent most of the day developing a training plan and trying to locate a venue to hold the training in. My plan is get a projector and an internet connection and walk the staff through everything – understanding how Kiva works, posting business descriptions, journals, etc. I think that seeing the website and understanding who the lenders are will be highly beneficial, especially for those loan officers and branch managers who rarely use the internet and may not yet fully understand the person-to-person connection that Kiva fosters. I expect that this training will enhance the Kiva listings coming from Azerbaijan! Hopefully, we will conduct the training next week…I’ll post an update!
26 – 27 July: I spent two days visiting Kiva clients in the industrial town of Sumgayit. As we pulled into Sumgayit, thick black smoke was billowing out of some sort of plant and was hovering over the town. This town was once the center of the Soviet chemical industry and held the dubious distinction of being one of the world’s most polluted cities. The demise of the Soviet Union resulted in bankrupt factories (but cleaner air), unemployment, plus an influx of internally displaced persons (IDPs) from the Azerbaijani-Armenian conflict. I visited eighteen clients here with help from NorMicro staff members Tasaduf, Ahmed, Bahram, and Board Member, Adalat. (Photo: Sumgayit’s Martyr’s Monument on the Caspian Sea.)
29 July – 1 August (already!?): I spent several days in the southern Azerbaijani town of Beylagan. With the help of NorMicro branch staff members Behbud, Eldaniz, and Arif, and U.S. Peace Corps Volunteer, Carlo, I visited sixteen Kiva clients. I also managed to get some kind of food poisoning that made me fully appreciate the plumbing and toilet situation I have in my place back in Houston! Nonetheless, the client visits went well and I have fully recovered.
2 August: The staff of AqroInvest, another Kiva Field Partner in Azerbaijan, invited me to spend the day traveling to their branch offices in the towns of Imishli, Saatli, Sabirabad, and Bilasuvar. We visited three different IDP villages – I’ll try to post a separate blog about these villages…
3 August: Finally back in the NorMicro head office in Baku – internet access!!
Thanks for reading this far!! I leave Azerbaijan in two weeks, after having spent three months here. I’m starting to get sad. 
But now I gotta get busy finishing up journals!
Training in Azerbaijan!
25 July 2007
Yesterday in Baku, sixteen Azerbaijanis from seven MFIs filled a small conference room for a class on writing business descriptions and success stories. They were craving training, not only on these critical elements of promoting their organizations, but also on writing in the English language. Among the attendees, employees from Kiva’s three Azerbaijani field partners were present: Murad and Jeyhun from NorMicro, Ulviyya from Komak, and Tamilla from AqroInvest.
The class was organized by Paul at ACDI|VOCA through the Azerbaijan Micro-Finance Association (AMFA) after he detected a high demand from the Azerbaijani MFIs for such training. Paul spent about an hour teaching methods for writing success stories. He touched on basics like length, structure, and formatting. The importance of considering the audience that will read the story was stressed. He also spent time discussing the importance of well-composed photos – a topic that was well-received by the attendees.
I spent about an hour discussing the elements of a quality (interesting!) business description. I tried to impress upon the attendees that they have the opportunity through these business descriptions to educate international lenders about Azerbaijan, the local industries, and living conditions for the entrepreneurs. I used actual Kiva examples and the attendees rewrote the business descriptions using a Kiva-based format I provided. Paul had a projector set-up to his computer, so we were able to project Kiva.org on the wall and click through listings to reinforce the importance of quality business descriptions. Hopefully, having a pre-made template and seeing some English-language examples will aid these MFIs in bulking up their business descriptions.
As the class was wrapping up, Paul mentioned a follow-on class covering English-language emails and PowerPoint training – everyone received those topics enthusiastically. They were also interested in a class on photo composition and photo editing (cropping, straightening, brightening). Additionally, a couple of the Kiva partners here have asked me to help them create systems for more efficient posting and one partner is interested in learning how to post videos! Looks like I’ll be teaching a couple more classes! I’m really hoping that the training and interest will be translated into high quality Azerbaijani postings that more accurately represent the great entrepreneurs here!
