I know! We can’t believe it either! Our Kiva Fellowships, as the 16th class, have come to an end.  So what’s in store for us once we return to our homes? Or perhaps, stay in the field for another fellowship?  Read on for the next chapter in the lives of some of the 16th Class of Kiva Fellows Alumni.

I am returning to San Francisco after working around Latin America for the past year. Apparently,  it’s time to go home and get ‘a real job’. I will be looking for work  in social enterprise or impact investing. I will miss the ‘tranquilo’ pace of life here in Nicaragua. Its not often you get the privilege of calculating an operational cost analysis from the comfort of a hammock. I will also miss catching my coworkers at AFODENIC singing along to Spanish versions of classics like ‘Dust in the Wind’ and ‘Total Eclipse of The Heart’ on Radio Amor. I am really glad I participated in the Kiva Fellows program. It was a  real good time.

Do: A Kiva Fellowship. It'll change your life. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

The sixteenth class of Kiva Fellows has all but left the field- but we’re by no means done talking about our experiences. We’ve collectively spent 422 weeks in the field (just over 8 years!) and worked an estimated 16,650 hours at Kiva field partners around the world.  Needless to say, we’ve got a lot of opinions about how to use this time wisely.

Now, we’re no experts in living or working abroad (though we sure do like it), but we have some nuggets of wisdom to offer up for those of you transitioning into a life abroad or beginning your next Kiva Fellowship. Stick by these tips, and you can’t go wrong. (And for more hints and tips, check out 33 Tips from Kiva Fellows (written November 2009) or 45 More Tips from Kiva Fellows in South America.) Enjoy!

Best Way to a Kiva Fellow’s Heart is through…

1. People love to share food in El Salvador. If you’re having lunch with someone or with co-workers, offer up some of what you have for them to try. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

2. Though most of the USA fast food places are here, don’t bother with them, Turkish food is wonderful. (Kim Strathearn, KF16 Turkey)

3. If you take a trip(s) during your fellowship, remember that in some cultures it’s customary to bring back (small) gifts to friends and coworkers from your travels! I found that a box of chocolates to share in the office of my MFI was always much appreciated and disappeared within hours. (Laurie Young, KF16 Indonesia)

They may not look good. They may not taste that good, either. But do it: eat the fried cow intestines.

4. Make sure you try the different casados(rice and black beans paired with some sort of salad, and meat). It’s delicious, affordable, and the closest thing to home-made. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

5. Try everything. Ok, yes, you could get sick, but worse, you could live the rest of your life without knowing what guinea pig, cow tongue, fermented maize, cow heart, llama, friend random thing with more random things in it, magical juice in a bag, etc., etc., tastes like. If these things don’t seem appealing, remember: even worse, you could miss out on a big chance to share in a local cultural experience that will stay stayed with you forever. (Mariela Cedeno, KF16 Bolivia)

6. Befriending office mates is easy as pie, especially if you bake one. Any baked treat will do the trick: cookies, cupcakes, 7-layer bars – anything tasty and homemade will suffice. Walk around and offer your treats during the afternoon coffee break. (Sandra Pina, KF16, Honduras)

How do you say…

7. No amount of “city” Spanish will prepare you for the linguistic richness and diversity of Spanish spoken in rural Costa Rica. That said, bring a notebook for ALL field visits, and let the loan officers be your best professors and guides. Even Costa Rican urbanites find themselves lost among the colloquialisms of Tico country Spanish. (Julie Kerr, KF16 Costa Rica)

8. Learning common words and phrases in an indigenous language is the quickest way to break the ice. Guaraní is Paraguay’s other official language and is spoken by the majority of the population. Purete means cool, haso means not cool, kaigue is lazy, nde ha’e kuña guapa means “You are a hard working woman!,” chevare’a means “I am hungry,” and amokose means “I want a drink!” (Alba Castillo, KF15 Paraguay)

9. Get rid of “uhm” in your vocabulary- it mean a female private part in Turkish. (Kim Strathearn, KF16, Turkey)

10. When a farmer says he brings his harvest to market using his “salchichón” (commonly known as “sausage”), blush not my friends, he means “horse”. (Julie Kerr, KF16 Costa Rica)

11. If you lose the thread of a conversation don’t just say ‘sí‘ or intermittently laugh. Get them to repeat things and when that get boring pick out a word or phrase that you Do know and make a comment or nonsequitor. They might be saying “fijate, las olas son bravas en la playa” and your response might be an unrelated, “¿Te gusta la playa?”  This gets the conversation back on your own terms. Think about how often you respond like this in English! (Jim Burke, KF16 Nicaragua)

12. Because they will ask: Kiva means “unity” or “agreement” in Swahili. (Kate Bennett, KF15 Ecuador & KF16)

What to Bring

Do: bring a tuperwear container. Sporks can also come in handy, for that mid-morning mountain climb.

13. My three smartest investments for my fellowships? A SteriPen, a tuperwear container, and a pocket knife with a corkscrew. (Kate Bennett, KF15 Ecuador & KF16 Peru)

14. Always carry a small, sturdy umbrella. It will get you through unexpected showers; as well as hot, sunny days. (Alba Castillo, KF16 Paraguay)

15. Rain is as plentiful is the air we breathe. Bring an umbrella if you prefer to shower before getting dressed. (Julie Kerr, KF16 Costa Rica)

16. Bug spray, bug spray and MORE bug spray!! For those of you who like more natural alternatives, anything with menthol or eucalyptus helps repel the mightiest of mammoth mosquitoes, sand flies, ticks and chiggers. Slather it on THICK! (Julie Kerr, KF16 Costa Rica)

17. Bring clothes or shoes that need to be fixed, mended, or altered. It is cheap and the work is top quality. The sasterías and zapateros are EVERYWHERE. (Jim Burke, KF16 Nicaragua)

There’s no place like home (in a new country!)

18. If you can, try to find accommodation near the central market building: there’s nothing like eating shrimp ceviche with avocado at 7 o’clock in the morning. Besides, this may be your only chance for the entire day to get your hands on food that’s neither triple-fried nor made out of pure pork fat. (Emmanuel von Arx, KF16 Ecuador)

19. If it’s possible, go with a homestay! Local food, local language, and a solid support group in-country are just a few of the obvious perks of living with a family. (Kate Bennett, KF15 Ecuador and KF16 Peru)

20. For Kiva Fellows in the former Soviet republics: If you’re looking for apartments in older Soviet buildings, check to make sure that the utilities actually work. Gas outages can be frequent (sometimes in the dead of winter), and running water tends to be spotty on higher floors. As a rule of thumb, try not to live above the fifth floor – after all, the elevator might also not work! (Chris Paci, KF16 Tajikistan & Azerbaijan)

Getting from point A to B

21. When moving around by taxi in Cuzco, do everything possible to seem local to get cheaper prices (there are lots of local gringos, so you can pull it off). How to go about it?

• Say hi to your taxista like this “Buenas, maestro.” Saying hola is touristy, saying chofer is touristy, and asking anything about anything is touristy. You don’t care. You are local.
• Tell him where you are going by saying “I will get off at such and such location”. If you are going to a restaurant, know its name, what street it is on, the nearest cross street, and a reference point nearby BEFORE you get in. Otherwise you won’t be able to pull off the “trabajo aquí.”(Miss any of those four, you are officially a tourist.) (Rob Gradoville, KF16 Peru)

If you're feeling the need for speed, do: hop on your loan officer's motorcycle.

22. If you’re taking the bus and you don’t know where you need to get off, just ask the bus diver. Costa Rica has the nicest bus drivers around! (Andrea Ramirez, KF16 Costa Rica & El Salvador)

23. Note the taxi number (on side of doors when you get in) can help you retrieve forgotten item. Also can help if the taxi driver sees you note the number, he might be less likely to take the long way. It is common for taxis to stop and ask other for directions if they don’t know the place your going. Always make sure they turn the meter on. In the tourist area, always flag down a moving taxi–the ones that are just waiting around are just waiting to rip you off. Beware of the money switcheroo (ie you give them a 50 lira note that is the same color as a 5 lira note and they do the switcheroo and try to convince you that you only gave them the 5. Females always sit in the back and not in the front. I have have some excellent taxi driver and some dinks as well. Rider beware (Kim Strathearn, KF16 Turkey)

Get to work!

24. If you have any freedom to do borrower visits, have no shame in visiting anyone who owns a panatería, heladería, or pisco vineyard. Peruvian hospitality and pride in their business translate to homemade treats for you. Microtenterprise never tasted so good. (Kate Bennett, KF15 Ecuador & KF16)

25. Make people laugh, even when it’s awkward. Visiting clients who are on a spectrum from extreme introvert, to slightly less extreme introvert, can be daunting, but like everything else in life, there is nothing better than a laugh. You’d be amazed how many times my laughing at people and saying “por favor, sonria porque se me va a romper la camera si sigue asi,” actually made them smile. Don’t rush, don’t pull out your pen and BV template, and don’t start dangerously pointing your camera right way. Chill out, smile, shake hands, take in the scenery, interact! (Mariela Cedeno, KF16 Bolivia)

Do: hang out with coworkers after work. Don't: let them win.

26. Make sure to hang out with MFI staff outside of work. Don’t worry so much about about keeping it strictly ‘professional.’ I built trust, learned office hierarchy, gossip, and got a lot of technical questions answered after a few beers with loan officers. (Jim Burke, KF16 Nicaragua)

27. Fake it ’til you make it. You will be considered an expert in all things Kiva, even if you’re not. Embrace the challenge. You will have multiple resources at your disposal: use them. Learn along the way and don’t be afraid to tell your field partner, “Can I get back to you on that? I want to confirm with Kiva.” (Sandra Pina, KF16, Honduras)

28. Invest in your coworkers. From the service staff to the reception staff to the MIS, they not only help you with your job but they can be great friends and connectors to your life in a new country. (Jill Hall, KF16 Philippines)

29. They tell you this at training, but really, do it: spend your first week only asking questions. Lots and lots of questions (and start on your Loan Product Survey or Social Impact Assessment first- asking pointed questions while completing items on your workplan is a double whammy!). Being extremely informed about every aspect of your MFI will only make your work easier moving forward. (And teach you more about microfinance, which is the whole point of the Fellowship, right?) (Kate Bennett, KF15 Ecuador & KF16)

30. If it should take a day or two, it’ll take three or four. If it’s your Borrower Verification, it’ll take a month. (Kate Bennett, KF15 Ecuador & KF16)

31. Figure out how your MFI communicates. They are probably using chat or skype. Get your coworkers chat/skype info early on. Sometimes you can formulate better questions, get better responses and be less annoying chatting rather than visiting their office for every little thing. (Jim Burke, KF16 Nicaragua)

32. Email coworkers when you leave! – Even if they weren’t helpful with that one thing you were working on…they still care and want to hear from you when you’re gone. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

33. Participate! Don’t be shy (or obnoxious) and get involved with after work sports or after work drinks. This is your new community. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Gringo Pricing

34. Don’t be afraid to bargain for transportation and goods! In many developing countries, it’s expected of everyone. You’ll probably be quoted a much higher price at the start than you should be paying, and it’s not because the vendor’s trying to “cheat” you as a foreigner. It just makes economic sense – it would be foolish for the entrepreneur not to sell for as high a price as he/she can get. (Chris Paci, KF16 Tajikistan & Azerbaijan)

35. Never take the first price- haggling is expected. On the other side of the coin (jaja), though, don’t haggle some old woman trying to sell you a scarf in the Sunday market into oblivion- that extra dollar probably means an awful lot more than her than it does to you. Lay aside your hubris and indignation from time to time and accept the gringo tax. (Kate Bennett, KF15 Ecuador & KF16)

Safety

36. Should you ever attract negative attention from the police in the former Soviet world, an effective tactic is to pretend (or demonstrate) that you speak barely any Russian – enough to understand their questions, but not enough to maintain a conversation. As long as your documents are in order, they will likely decide you’re too awkward to be worth it and let you leave. Hurray! Oh, and always carry your passport and registration with you. Always always always always always. (Chris Paci, KF16 Tajikistan & Azerbaijan)

37. Remember, guys: It’s better to appear like a total sissy than to get robbed or killed. If you feel that you are getting into a dangerous situation or a dead-end street in a bad neighborhood, don’t hesitate: simply turn around and run! Don’t worry: nobody will ever know about this – your reputation as a fearless globetrotter stays alive, and so will you… (Emmanuel von Arx, KF16 Ecuador)

38. It’s natural to burn with curiosity about your host country. But if you’re not living in a democracy, be cautious about the sorts of political questions you ask, unless you know your conversational partners well. For instance, my first placement was in Khujand, Tajikistan, in a region surrounded on three sides by the hostile country of Uzbekistan, and the authorities were always wary of Uzbek spies. My current placement of Azerbaijan is a country that considers itself at war and has suffered terrorist attacks in the past, so as the police see it, there’s a lot to be suspicious about. Be hyper-aware of these sorts of issues. And if you feel tempted to criticize the political system there and/or extol the virtues of your own, stop and reconsider. It’s not why Kiva sent you there, and in the worst-case scenario, you might get both yourself and your conversational partners in genuine trouble. (Chris Paci, KF16 Tajikistan & Azerbaijan)

39. Never carry your credit card unless you are making a withdrawal. I prefer to carry large sums of money in my shoe rather than bringing my card out of hiding. (Jim Burke, KF16 Nicaragua)

40. Make and carry a photocopy of your passport. Carrying it around for real is a real bad idea, and having no record makes it hard to check into hostels/hotels. (Jim Burke, KF16 Nicaragua)

41. If you’re in a country with a heavy police presence, be careful what you photograph! Sometimes the most unexpected subjects – bridges, factories, metro stations, gorgeous government buildings – can be deemed security risks, and photographing them can attract negative attention from the police. (Chris Paci, KF16 Tajikistan & Azerbaijan)

Hugs and Handshakes

42. If you are an unmarried woman and living in a country where the locals aren’t used to seeing women wandering around alone and are often inquisitive of where you are going and why you aren’t married, bring and wear a fake wedding band. Also, make sure you figure out which hand is the hand that the locals wear it on! It’ll do wonders for (sometimes) avoiding uncomfortable conversations if you don’t want to have them. (Laurie Young, KF16 Indonesia)

43. Outside of San Salvador the people are pretty conservative. Men won’t shake a woman’s hand unless she extends her hand first. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

44. In Paraguay, you greet and say goodbye to friends with not one, but two kisses – one on each cheek. (Alba Castillo, KF16 Paraguay)

45. In Turkey, among friends the greeting is a kiss on both checks (Kim Strathearn, KF16 Turkey)

Living and Looking Local:

Do: try to dance like the locals. Don't: fool yourself into thinking you're really, really good at it.

46. Although Turkey is fairly well connected, don’t rely on google. (Kim Strathearn, KF16 Turkey)

47. If you want to look like a local, wear jeans. Even if it’s 100 degrees outside. Tourists are associated with shorts. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

48. One of the best ways to learn about a culture is to people watch– what are they doing and not doing in public. (Kim Strathearn, KF16 Turkey)

49. When in Rome…always pour some out for Pachamama. If you find yourself sitting around a big bucket of Chicha with nothing but a full gourd in hand, don’t be stingy, pour some out for Mother Earth, she’s thirsty too. (Mariela Cedeno, KF16 Bolivia)

50. Walk, walk everywhere, all the time. Yes you need to be at the office at 8 a.m. and you get up at 7:40, but maybe during your two hour lunch break and on weekends you can make sure to take the time to pace yourself. Remember to absorb everything around you: the sounds, the streets, the people, the street vendors, the conversations, the protests, the smells. For some reason, those were also my most peaceful times. (Mariela Cedeno, KF16 Bolivia)

51. Getting haircuts is cheap and always a great experience. Getting a straight razor shave sounds bad ass but is just bad and hurts a lot. (Jim Burke, KF16 Nicaragua)

52. Get into the rhythm of your location. If the locals take time to smell the roses or take a tea break –you should too. This is a great video (in English) on what a glass of tea means (Kim Strathearn, KF16 Turkey)

53. Sit in a park/plaza by yourself…someone will sit next to you. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

54. Be a guest (and a friend) – allow people in your host country to take you around…you don’t always have to pretend like you’re not a tourist…let’s be real, this is not your native country (if it is, still go on some trips!). (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

55. Get off the internet! Your friends at home really don’t need to hear from you every day (although your mother/father probably does). It’s way cooler to say, “I was out of internet range…” (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Mind your manners:

56. You are going to be thoroughly stared at. Get used to it, as it is not rude here. (Kim Strathearn, KF16 Turkey)

57. Don’t be offended when asked how much money you make, how much is your apartment, are you married, have kids, no to either question is followed by why not? Good way to deflect is nicely reply why do you want to know? Turks are very curious and have a different sense of what is private information. (Kim Strathearn, KF16 Turkey)

58. Turkish people are very hospitable and gracious to guests–learn what it means to be a good guest. (Kim Strathearn, KF16 Turkey)

59. Most people in the former Soviet republics love to be photographed! Once you do, though, they might surprise you by asking when they can expect to receive a printed copy of their photo. There are plenty of little shops here where you can get a picture printed, so always take down the person’s address and try to bring or mail them a copy. With an inexpensive little gesture like this, you can absolutely make someone’s day. (Chris Paci, KF16 Tajikistan & Azerbaijan)

60. Follow through on promises (or obligations)– go to dinner with coworker’s families, take a day trip with coworkers or friends, etc. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Kate Bennett (KF16) is thrilled to be working in Ica, Peru with Kiva Field Partner Caja Rural Señor de Luren. For more on Kate’s experiences with Caja Rural Señor de Luren or life in Peru or Ecuador, follow her work here.

I love double rainbows, too.

I love hot water.

I also love designated bus stops, and having lunch with co-workers..not at my desk.

I love the noise that the leaves of plantain trees make when the wind hits them.

I love having a garbage removal service..instead of having to burn the garbage to get rid of it.

I love the smile on a borrower´s face when they´re told their loan will be disbursed in a couple of days, or when I show them what their profile on Kiva.org looked like.

I love how the face of a borrower lights up when I ask about their business.

I love being trapped in a vehicle with a loan officer for hours, and learning why they took on the job in the first place – and why are they still at it.

I love talking to the head of a microfinance institution and poke at what the future looks like for their organization, what are their challenges, and trying to understand why things are the way they are.

It took me four months, probably 100 hrs on a bus, many dead bugs, and two countries to realize how much I love these and many other things.

In the process I´ve had to let go of many other things I also love. Little things like a dryer for my clothes, and big things like people and relationships.  I am shocked by how quickly these last few months have gone by.  More than anything, I am in owe of the people I´ve met and what I´ve leared from them. I am humbled and thankful for the experience I´ve had as a Kiva Fellow, and without a doubt this is the best thing I could have ever done. I know my work in El Salvador and Costa Rica is far from over, and that the relationships I´ve made in the region will last beyond my fellowship. I also thank you, the people who have supported the MFIs I´ve worked with (Fundacion Campo and Fundacion Mujer) by making loans to their clients on Kiva.

I love El Salvador!

..And the open skies in Costa Rica!

If there is anything that will always remain with me after this experience is the fact that we can all do something to help make the world a better place for those who have been less fortunate (and future generations).  I don´t mean it in a paternalistic way, but really thinking about how we can do a little something to bridge the gap between what government and capitalism have accomplished so far, and what still needs to be done. I believe in paying it forward with more than good intentions. You don´t need to leave your home and your loved ones to volunteer abroad to do so (although if you can, and you find the right fit for you, do it!). You can, from the comfort of your home, make a $25 loan to a microentrepreneur anywhere in the world through Kiva, or give a Kiva giftcard to someone you love for the holidays.  The impact of microloans and microfinance overall continues to be a controversial topic.  And although I´ve confirmed that microfinance is not the panacea for inequality and poverty, I´ve also confirmed it can be a very efficient tool when paired with other mechanisms. Particularly, when paired with people with the undying desire to innovate for a better future. A future when the little things are available and enjoyable for most of the world.

Andrea was part of the awesome 16th class of Kiva Fellows working in El Salvador and Costa Rica. She is sad to leave Central America, and thankful to those who helped make her fellowship possible. Please support Kiva´s mission by making a loan on Kiva.org – it´s super easy!

Kiva Fellows in East Africa

This week, you have no fewer than 14 new articles to choose from on the Kiva fellows blog: Let the fellows take you along on borrower visits across the world. Learn how Kiva field partners expand the reach of microfinance in Rwanda, fill the microfinance donut hole in Sierra Leone and improve social performance in Uganda. Find out what poverty is like in urban Tajikistan and rural Burkina Faso. Get inspired by one of the creative ways to bring renewable energy to the developing world in the form of a soccer ball. And finally, watch a video of “Why We Kiva” to get a glimpse of why Kiva fellows jump at the opportunity to be thrown half way around the world to work with Kiva’s many local field partners.

Girlie’s Peanut Butter: Borrower Verification in the Philippines
Country: Philippines / Fellow: Jill Hall (KF16)
As Jill completes here borrower verifications, she meets the lady who makes peanut butter.

Going the Distance: Expanding the Reach of Microfinance in Rwanda
Country: Rwanda / Fellow: Whitney Webb (KF16)
Whitney takes a look at the creative ways Urwego Opportunity Bank uses to reach the far-flung areas of Rwanda.

The Donut Hole Conundrum + Mamoud’s Story
Country: Sierra Leone / Fellow: Tejal Desai (KF16)
Tejal learns about the small enterprise loan, a loan product that is targeted at people that are financially overqualified for microcredit but too poor to receive a bank loan.

In Sickness and in Health: An MFI’s commitment to its clients in times of need
Country: El Salvador / Fellow: Andrea Ramirez (KF16)
Andrea explains how Fundacion Campo came up with a plan to help residents in areas flooded by the recent rain falls in El Salvador.

Pride & Poverty: A Photo Essay of Kiva Borrowers in Georgia
Country: Georgia / Fellow: DJ Forza (KF16)
DJ shares impressions of her borrower visits in Georgia.

More Than a Simple Find/Replace Operation: Changing CREDIT to Kredit
Country: Cambodia / Fellow: Dave Weber (KF16)
Dave explores why CREDIT is undergoing a name and logo change.

Downsizing Development: How a Soccer Ball Could Change the World
Country: Kenya / Fellow: Lauren Barra (KF16)
Lauren comes across a soccer ball that might help bring renewable energy to the developing world.

Microfinance by Land or by Sea
Country: Peru / Fellow: Kate Bennett (KF16)
Kate spends a week at the beach, but instead of working on her tan, she visits borrowers with Kiva field partner Caja Rural Señor de Luren.

This Is Urban Poverty in Tajikistan
Country: Tajikistan / Fellow: Chris Paci (KF16)
Chris experiences first-hand what urban poverty is like in Tajikistan.

The Second Bottom Line and BRAC Uganda’s Gold
Country: Uganda / Fellow: Andrew Huelsenbeck (KF16)
Andrew takes a look at BRAC Uganda’s dedication to social performance.

Mysteries, Geoglyphs + too-good-to-be-true Kiva Borrowers
Country: Peru / Fellow: Kate Bennett (KF16)
Kate wonders if a full loan repayment on the first repayment date might be too good to be true.

La Réalité de L’Afrique
Country: Burkina Faso / Fellow: Alison Moomey (KF16)
Alison gets a wake-up call to the realities of life in rural Burkina Faso after spending a weekend in a village without electricity or running water.

Video Blog: “Why We Kiva” – Kiva Fellows Around the World
Country: Bolivia / Fellow: Mariela Cedeño (KF16)
Mariela gives you a glimpse of why Kiva fellows jump at the opportunity to be thrown half way around the world to work with Kiva’s many local field partners.

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Updates from the past month:
Green Loans, Dark Alleys + On-the-Ground Footage of it All
Kiva-style Microfinance, Reggaeton + a Journey though the Commercial Jungle
Loan Use, Agriculture Loans + Stuff Kiva Fellows Like
Starting Capital, Development Levels + Adventurous Borrower Visits
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
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Plus more pictures from the past week:

Philippines (by Jill Hall)

Rwanda (by Whitney Webb)

Sierra Leone (by Tejal Desai)

El Salvador (by Andrea Ramirez)

Georgia (by DJ Forza)

Kenya (by Lauren Barra)

Peru (by Kate Bennett)

Tajikistan (by Chris Paci)

Peru (by Kate Bennett)

Burkina Faso (by Allison Moomey)

Indonesia (by Laurie Young)

This week on the Kiva fellows blog, start your journey in Indonesia and read about some early lessons of a Kiva fellow. Then continue on to the Americas to take part in El Salvador’s independence day celebrations, find out how to start a business with 26 cents in Honduras, learn about the different levels of development of Bolivia and Sierra Leone, and finally go on an adventurous borrower visit in Nicaragua.

New City, New Field Partner: Getting to know VisionFund Indonesia (Part 2 of 2)
Country: Indonesia / Fellow: Laurie Young (KF16)
Laurie shares some of the lessons she has learned at Vision Fund Indonesia.

I love saying ‘cachiporras’
Country: El Salvador / Fellow: Andrea Ramirez (KF16)
Andrea shares some impressions of El Salvador’s independence day.

WWYD with 5 Lempiras?
Country: Honduras / Fellow: Sandra Pina (KF16)
Sandra demonstrates that with 5 lempiras (26 cents), it is possible to start a business.

Same Rung of the Ladder?
Country: Bolivia / Fellow: Eric Rindal (KF16)
Eric compares the level of development in the two countries he has visited as a Kiva fellow: Sierra Leone and Bolivia.

Borrower Verification–Part 1 (Locked Out)
Country: Nicaragua / Fellow: Jason Jones (KF16)
Jason shares one of his more adventurous borrower visits, when he found the client “home” but not in the general sense of the word.

Borrower Verification–Part II (Mom, I Don’t Feel So Well)
Country: Nicaragua / Fellow: Jason Jones (KF16)
Jason’s adventure continues, when he returns to the same borrower for a second visit, but this time his troubles already start on the bus.

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Updates from the past month:
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
Costs of Kiva, Donkey Shares + the Law of Diminishing Marginal Returns
Loan Sharks, Snapshots + “the Country with a Smile”
Motorcycles, Ramadan + A Dollar a Day
Working Animals, Green Microfinance + The Ends of the Earth
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Plus more pictures from the past week:

Indonesia (by Laurie Young)

El Salvador (by Andrea Ramirez)

Honduras (by Sandra Pina)

Bolivia (by Eric Rindal)

Nicaragua (by Jason Jones)

One of the awesome bands during the Independence Day Parade in San Miguel

Last Thursday, September 15th, we celebrated Independence day here in El Salvador. However, El Salvador was not alone in the celebrations as Mexico, Honduras and Nicaragua also had their own festivities on that very same day.  It was a colorful day, and I want to share a bit of the fun show that I got to enjoy here in San Miguel.

I woke up bright and early on the 15th to get ready for the celebration. In San Miguel the celebration involves a parade that lasts from about 8 am till 2 or 3 pm. The parade is put out by the many schools in town, which have their own band, beauty queen, and “cachiporras.” In prior years the cachiporras were the main attraction. They are young girls (usually high school age) dressed in colorful costumes with really reaaaaally short skirts, and a truncheon in hand. Now, they  have lengthened the skirts, or wear shorts instead. This year some schools opted for a less “traditional” approach, and their cachiporras used traditional Salvadorean costumes instead of the sexier ones. The cachiporras head the parade for each of their respective shcools, and perform a dance routine in front of the judges (including the city’s Mayor). On September 30th, the schools with the best cachiporras and the best bands get to perform at a show in the city’s soccer stadium.

Student playing the drum during the parade - hard work under that sun!

Cachiporras during the parade

Cachiporras in pretty costumes during the parade

Less traditional cachiporras wearing traditional Salvadorean costumes

Beauty queens - it was scorching hot!

Cachiporra in action!

I made it to the parade by 9 am with two friends who graciously agreed to come with me. San Miguel is an incredibly hot town, so soon after we got there we had to get hats that were sold on the street to help us cope with the sun. They were a sweet deal at $1 each!

For me, the main attraction were not the cachiporras, but the bands! As the day goes on, the bands/schools get better. So the longer you hang around, the better the show gets. These kids practice for months after school in order to learn their instrument for the parade. Although they are not taught to read music (only memorize their performance), they do such an awesome job under the scorching heat. I could only deal with the sun until about 1 pm, and even managed to get home with a pretty good tan!

In particular, I loved this one band that played the soundtrack for movies such as ‘Dirty Dancing’ and even the GaGa song ‘Just Dance.’ I tried to capture their talent on this clip.

Although no BBQ and no fireworks were part of the program, I had a blast on that day here in San Miguel. I am glad I was there to witness this important celebration, and got to share it with some great people.

Andrea Ramirez is a Kiva Fellow serving in El Salvador with Fundacion Campo, Kiva’s newest Field Partner in El Salvador. She loves saying ‘cachiporras’ almost as much as loves the festive spirit of El Salvador. To learn more about Fundacion Campo and their awesome clients, please visit their Partner page, join our newly created lending team, or make a loan to one of their clients on Kiva.

In recent years the microfinance sector has been hit with harsh criticism about the real impact it has on improving the lives of the low-income clients it serves. If it is true that microfinance, including micro-credit, is not the panacea for poverty; it is also true that Microfinance Institutions (“MFIs”) don’t have an easy job. MFIs and their staff are, in my opinion, the true heroes. Their loan officers and administrative staff are those who are out there, day after day, meeting clients and trying to help them achieve their dreams – and yes, realizing dreams doesn’t come cheap. Although there are many great institutions providing more than microfinance services, I have yet to come across an operating model as unique as that of Fundacion Campo (“FC”). They do so many cool things, and this will be a bit of a long post.

Fundacion Campo's main office in San Miguel

FC was established during the 1994-1996 period, as part of a social reinsertion effort following the peace accords that ended El Salvador’s civil war. The operating model of FC is based on the relationships the institution has established with the communities through Community Development Associations (ADESCOs for their name in Spanish). The ADESCOs are associations regulated by their municipal code. They work with their Mayor on the development of the community. Within each ADESCO there is a Communal Credit Committee, made up of three people from the community. The members of this committee live and are part of the community, and are the first point of contact when someone from such community wants a loan. The members of the committee meet with the potential borrower to help him/her gather the necessary documentation, fill out the loan application, and provide an assessment of the person’s ability to pay and reputation within the community. Working through these committees means that people don’t have to spend money on transportation to fill out a loan application or get information, or miss a day’s work. They can simply go to a neighbor’s house and get the process started.  This structure doesn’t only help FC keep administrative costs down, but also gives FC access to information about the character of the borrower that otherwise they would not have access to. The members of the committee don’t get paid for what they do. When I ask them why they choose to devote so much time and effort to their roles, reviewing sometimes up to ten loans per week, they respond something like: “I do it because I am serving my community; I get to help people and I learn from them too.”

Once the committee has provided their assessment, FC’s loan officers get involved. There is a loan officer assigned to each ADESCO, and they are the ones who visit clients on a daily basis and develop a close relationship with the members of the communities that they serve. The committee meets with the loan officer, and based on the information provided by the committee, plus some other research and analysis done by the loan officer (some times that means meeting the client in person), the loan officer determines whether or not the credit should be recommended for approval. After that, the process is pretty similar to that of a bank – except that loans are usually disbursed within 3 days after the committee brings the application to the loan officer. Incredibly efficient!

One fascinating detail is that 2% of each loan disbursed to a client that came through the ADESCOs stays with the community. This helps the community invest in themselves, and the funds can be used for a variety of projects. One community installed street lights so that residents don’t have to walk to/from work or school in the dark.  Others provide incentives for residents to attend the ADESCO’s general assembly, where FC provides financial literacy programs and other educational content.  I met with the leader of a community last week who is hoping to build a little covered area for people to wait for the bus by the main road (so that people can have some shade during summer or shelter from the rain during winter).  In the past his community has also donated new computers to the school, and even helped people who have been fallen ill.  The entire community benefits from these funds, not just those who are clients of FC.

Me at Fundacion Campo's offices in San Miguel

But loans are just a portion of what FC does. Through their Community Development Unit (UNDESCO) they help communities carry out a wide variety of projects. Projects range from helping the communities with legal support to legalize a soccer field for their local school, to repairing small bridges so that kids can cross a river during the rainy season and get to school, to building classrooms, establishing a small health unit, clean water projects, training for farmers on best practices, or helping a community develop their infrastructure for tourism (which is pretty much non-existent in El Salvador). The list of projects is extensive. Furthermore, FC doesn’t make money from these value-added services it provides.

FC’s staff is entirely dedicated to the institution’s mission. Loan officers start their days bright and early at around 7 am, and sometimes they don’t make it back to the office until passed 7 pm. They travel to the most remote places by motorcycle. Many times they have to park the bike by the main road, and walk 20 or 30 minutes through a small forrest, a river, and a few hills before they can finally meet with their client to go over their loan or to simply pay them a friendly visit. I made the trip with a couple of loan officers, and it is no easy task. Plus, the vast majority of FC’s clients live in rural areas – by rural I mean the middle of nowhere; where the roads are barely roads, there is no street lighting, and buses don’t run.

Relationships at FC are based on trust. FC’s loan officers, admin staff and management team give it their all every day so that clients do the same for the institution. Because of this dynamic, FC has a really low default rate and their clients pay on time. Many cients have been coming back to get loans from FC for 15 years. Even though this is a business, it is about more than just money. It is about community, trust, and friendships.

Andrea is a Kiva Fellow (KF16) working with  Fundacion Campo in the Eastern region of El Salvador. Fundacion Campo is the newest Kiva Field Partner in that country. Andrea is loving her corn-based diet and the kindness of people in El Salvador. If you haven’t checked out Kiva.org yet, it’s never too late! Make a loan. Help change lives.

by John Gwillim, Colombia

Each Kiva borrower enjoys his or her own borrower profile page. We’ve all seen these pages: they acquaint us with the borrower’s story, plans for the future, country, and a photo in their business or home. Borrower profiles present us with a clear snapshot of the ebbs and flows of a borrower’s life. But how can we begin to flesh out what’s beyond the edges of the screen? On the Fellow’s blog, of course!

This week Kiva Fellows bring us a little closer to our borrowers. We try to walk in the shoes of those living under a dollar a day in Nicaragua. We learn about the power of accredited microfinance institutions for the average Ecuadorian. We get a glimpse (and a sample!) of traditional El Salvadorian fare. We marvel at brilliant images of borrowers in their element in Chile and Colombia. And finally we depart Latin America for Senegal, where a Latin phrase can teach us about entrepreneurs the world over: they can, because they think they can. And they do, just as soon as they have the capital to do it.

One Dollar Per Day, A Beginner’s Guide (Part 2)
Country: Nicaragua / Fellow: Jason Jones, KF15

This is the second post from Jason in a two-part series, which discusses the reality of living under a dollar a day in Managua, Nicaragua. Jason breaks down a few of the many challenges of living below the poverty line, including its impact on education, access to transportation and clothing oneself, and just what an average day of work might look like.

Top 10: My Favorite Borrower Photos from Chile and Colombia
Country: Chile and Colombia / Fellow: John Gwillim, KF14 & KF15

During his two fellowship placements with Kiva, John has met with hundreds of borrowers in Chile and Colombia. But as he finishes up his second placement, John shares his top ten favorite photographs from the field.

Loan Sharks, Microloans and the Highest Interest Rates Around (they aren’t on Kiva)
Country: Ecuador / Fellow: Kate Bennett, KF15 & KF16

On a routine borrower visit, Kate’s interview with Marcia reveals the harsh alternative to lending from groups like Kiva’s Field Partners. When accredited microfinance institutions are unable to reach borrowers (or the other way around), entrepreneurs must turn to loan sharks, high interest rates, and the very real dangers of illegal lending.

Possunt Quia Posse Videntur
Country: Senegal / Fellow: Tim Young, KF15

As Tim wraps up three months’ work in Senegal, he continues to be amazed by the innovation, enthusasim, and pertinacity of Kiva borrowers. They can because they think they can, they just need to capital to get there.

Everything is Sweeter in El Salvador
Country: El Salvador / Fellow: Andrea Ramirez, KF16

Andrea touches down in El Salvador to begin her fellowship with Kiva and introduces us to one of the most gratifying aspects of working in “the country with a smile”- the food!

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Updates from the past month:

Cooking Classes, Autarky + Social Performance
Motorcycles, Ramadan + A Dollar a Day
Working Animals, Green Microfinance + The Ends of the Earth
Poverty Assessments, Bush Taxis + Meeting “My” Borrower
Externalities, New Faces + Loans that Change Lives

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Plus more pictures (and videos!) from the past week:

by John Gwillim, Colombia

by John Gwillim, Chile

by John Gwillim, Colombia

by Tim Young, Senegal

Pastries in Usulutan, near one of the offices of Fundacion Campo

Not only are things sweeter and delicious, but there is no such a thing as “light” or “diet” versions of anything (as far as I can tell). The delectable corn products are also sooo good that I could transition into a corn-only-based diet rather quickly. Such diet would include:

Pupusas: Corn patties that usually come filled with cheese, or a combination of cheese and beans, or cheese and chicharron (crispy pork skin). They are usually served with ketchup, a black sauce and some picked cabbage and carrots on the side. Although these are not sweet, they are a must here in El Salvador.

Cheese and bean pupusas

Tamales de elote: these are corn tamales which are sweet, of course. And you can have the steamed, or even better, fried version of it. The chicken version are one of my favorite so far. They are usually served for breakfast along with black beans, sweet plantains, cheese, and maybe some scrambled eggs. Yum!

Corn tamales, sweet deliciousness for bfast!

Elotes locos: corn on the cobb with mayo, cheese, and  a misterious black sauce that no one has been able to tell me what’s made of…

Elote Loco, a popular snack in El Salvador

Riguas: Grilled corn meal. They are made similar to the Pupusas, but they are not stuffed. They are grilled on corn leaves and then you can add cheese on top when cooked.

Riguas, very similar to pupusas

Quesadilla (not to be confused with the Mexican version): these can be made out of rice or corn. They taste very similar to corn bread, but I’ve been told they also have cheese in them, hence the name.

Quesadillas, very similar to corn bread but with cheese

I tried this with horchata,  a drink made with dry morro seeds. The morro(also known as totumo in Colombia) is a fruit that has a hard shell, and grows attached to the trunk of the Morro tree. This shell is used as cups and/or bowls. Unlike the Mexican horchata (which is made with rice), the Salvadorian version is made with the dried Morro seeds. You take the seeds, grind them up, and mix them with milk and sometimes cinnamon or cocoa. Apparently the rest of the fruit is given to the cows – not so good for people. The horchata is very very sweet, and of course, high in calories. Ohh-so-delicious!

Horchata

Morro tree with the morro fruit attached to the trunk

Although I’ve only been in El Salvador for 6 days, I have to say that the sweetest thing about this country are its people. Salvadoreans are incredibly warm and welcoming. They have taken me into their homes, shared their meals with me, and guided me through their streets from the minute I landed. I can’t wait to see what else El Salvador, also known as “the country with a smile,” has to offer.

Andrea Ramirez is part of KF16, working with Fundacion Campo in San Miguel, El Salvador.  Fundacion Campo is a new Kiva Field Partner, please be on the look out for the Fundacion’s partner page in the next few days. For those who would like to learn more about the work of Fundacion Campo while practicing their Spanish, you can watch their institutional video here.

The Ile de Gorée in Senegal (by Tim Young)

This week, the Kiva fellows invite you to accompany them across Africa and South and Central America: Take a walk in the streets of San Salvador. Improve your language skills by adding a few words in three of South Africa’s most widely spoken languages to your vocabulary. Look poverty in the face in Cameroon. Continue by learning more about the latest riots in Senegal. Find out how money helps to provide dignity in Ecuador. And finish by learning about the importance of family unity in El Salvador.

Walking the Streets
Country: El Salvador / Fellow: John Farmer (KF15)
Do you think that pick-pocketing and purse-snatching are the only dangers of walking the streets of San Salvador? John tells us about some of the less-known dangers.

Video Blog: The Many, Many, Many Languages of South Africa
Country: South Africa / Fellow: Daniel Jung (KF15)
Daniel teaches us a few words in three of the most widely spoken languages of South Africa, an ethically diverse country with no less than eleven official languages.

Faces of Poverty?
Country: Cameroon / Fellow: Faith Garlington (KF15)
Faith takes a look at poverty in Cameroon and discovers that the face of of poverty may look different from what we expect.

A Senegalese Spring?
Country: Senegal / Fellow: Tim Young (KF15)
Tim takes a critical look at the current wave of riots in Senegal, draws a parallel to the revolutionary movements that swept through its Islamic cousins north of the Sahara, and apparently gets his mother very worried.

Mud Walls to Mechanical Looms: Borrowers’ Stories
Country: Ecuador / Fellow: Megan Bond (KF15)
“Money is freedom and confidence and choice. And choice is dignity.” – Megan explores how this statement translates into Ecuadorian reality.

Prehistoric Drawings and Four Intertwined Client Visits
Country: El Salvador / Fellow: John Farmer (KF15)
John takes an intense trip through the rural mountains of eastern El Salvador, which makes him think about the importance of family unity.

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Updates from the past month:
Zulu Weddings, More Country-Specific Microfinance + Fighting Crime
Roads, Remittances + the “Little Paris” of Togo
New Partners, Country-Specific Microfinance + Stories of a Kiva Fellowship
Mosquito Nets, Rock Climbing + Clearing the Air
Instability, Trust + A New Home
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Plus more pictures from the past week:

El Salvador (by John Farmer)

Cameroon (by Faith Garlington)

Senegal (by Tim Young)

Ecuador (by Megan Bond)

El Salvador (by John Farmer)

An intense trip thought the rural mountains of eastern El Salvador made us think about the importance of family unity through the clay and string and flour that intertwine these 4 stories.

The importance of this image became more obvious as the day unfolded

The day began with a visit to a cave which has prehistoric drawings that date back thousands of years. Our attention was drawn to several of the figures which were of couples holding hands. We didn’t think much of it then, but that image stayed with us as the day unfolded.

This baker left a job in the US to be with his wife and child.

From there we went to interview a baker, a man who, through the labor of his hands and love for his family makes bread in the warmth of his oven. He told us that after working in the US, far away from his family, he decided it was more important to be with his wife and daughter than to just send them money. Using a loan from an MFI, two years ago he opened his own bakery.

This weaver of dreams has been making hammocks since she was 12

Our next client visit was to a young woman who weaves hammocks. She invited us in to her house: a tiny shack made of wood, bamboo, cane, and tin with a dirt floor and walls covered with newspaper. Inside was barely room for a bed, a finished hammock and one being made. She uses loans from PADECOMSM to buy materials to make hammocks, improve her house and pay off her small lot all by herself – in tears, she told us that she had recently become a single mother. Her six year-old son recently suffered a facial paralysis when his father left.

His mother says he was traumatized when his Dad left...

Nonetheless this weaver of dreams told us that her son wants to grow up to be a fireman; he plans to work hard to help her so she can have more time to relax. Fortunately, business is good. She sometimes she has so many orders for hammocks that she has to contract others. Though sad, she’s moving on.

They make comales as a family

She makes comales all by herself since her husband left

In yet another region, we met a couple who make comales (a large clay tray to cook on). They showed us the elaborate means of making them. Both were very proud of their craft, on which they have worked together day after day for decades. Their two children, both in their twenties, as well as cousins and in-laws all take part in the business. The procedure is interesting — we will write another blog entry about the manufacturing of comales.

Happiness is a new baby and family love!

Our last visit was to a woman, another artisan maker of comales, with eight children. She showed us her work and we met several of her children, the youngest of which is 5 months old. This woman shared with us that the father of all eight recently left her for another woman. Yet another story of a single mother that will now have to shape the lives of her children all alone, in much the same way that she shapes the clay.

The Spanish version follows:

Un intenso viaje por la parte oriental de El Salvador nos brindó el barro para recrear el tema de la pareja, los hijos, y las madejas de hilos de colores para entretejer estas cuatro historias.

A traditional Zulu hat (by Daniel Jung, South Africa)

Learn about the tradition of Zulu weddings in South Africa. Find out how Kiva’s partners adapt the concept of microfinance to fit their country-specific needs: from loans targeting borrowers affected by emigration in Ecuador, over a preference for group loans in El Salvador, to lending coupled with various training programs in Rwanda. Finish off your weekly reading by learning about crime-fighting Kivans in Nicaragua.

Zulu Weddings
Country: South Africa / Fellow: Daniel Jung (KF15)
Daniel tells us about Zulu weddings and explains how borrowers earn income by making mats, clothes, and jewelry required for the traditional ceremony.

Migration and Microloans
Country: Ecuador / Fellow: Kate Bennett (KF15)
Kate uses the example of “five dudes from New Jersey building a spa” to illustrate how Fundación Alternativa helps Ecuadorians stay in Ecuador by targeting borrowers affected by emigration.

Communal banks? Why not just an individual loan?
Country: El Salvador / Fellow: John Gwillim (KF15)
John is intrigued by Fondo Esperanza’s preference for group loans and does some research to find out more.

More Than Just Money
Country: Rwanda / Fellow: Carolyn Nold (KF15)
Carolyn shows us how Urwego Opportunity Bank empowers borrowers by providing training in household financial, business, and health management.

Fighting Crime…..Kiva Style
Country: Nicaragua / Fellow: Jason Jones (KF15)
Drawing from personal experience, Jason tells us about crime in Nicaragua and how Kiva lenders help fight it one loan at a time.

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Updates from the past month:
Roads, Remittances + the “Little Paris” of Togo
New Partners, Country-Specific Microfinance + Stories of a Kiva Fellowship
Mosquito Nets, Rock Climbing + Clearing the Air
Instability, Trust + A New Home
Unsung Heroes, Community Alliances + and Mission Statements Made Reality
~

Plus more pictures from the past week:

South Africa (by Daniel Jung)

Ecuador (by Kate Bennett)

El Salvador (by John Gwillim)

Rwanda (by Carolyn Nold)

Nicaragua (by Jason Jones)

Walking in San Salvador is the stuff nightmares are made of, but not for the reasons you might think.

You have probably heard about the dangers of walking the streets in big cities in Latin America: you’ll be pick-pocketed, purse-snatched, robbed at gunpoint, sequestered, murdered… Those are real threats, but I’d like to discuss a few others that don’t get as much headline space. Here is my list of Less-known Dangers of Walking the Streets of San Salvador.

Razorwire is everywhere, often at eyelevel...

1) Razorwire is everywhere, often at eyelevel. Frequently it is accompanied by electric wire.

When crossing the street, watch your step!

2) Many storm grates have been stolen and not replaced, leaving a 2-meter deep (or more!) hole at the edge of the road. This combined with a lack of streetlights make walking at night a real hazard. There are no indications of any sort that there’s a hole in the ground, other than the hole itself. Worse yet, recently there was a cylindrical hole about 1 meter (3 feet) wide and 10 meters (3 feet) deep at the side of a busy sidewalk. It was capped after a week.

The sidewalk I was on became a highway shoulder, which later became another lane...

3) Sidewalks are often not present. Recently I was walking on a sidewalk which disappeared and I found myself walking on the shoulder of a highway. This was scary because cars drive on the shoulder at high speeds. My situation became even more precarious when the shoulder turned into a lane!

Cars blocking the sidewalk

4) Cars parked on the sidewalk, blocking it and forcing the pedestrian to walk in the road. Motorists then get angry at the pedestrians and honk and come menacingly close to them.

Electric wires are everywhere, especially on pedestrian bridges. This bridge doesn't even have side rails, so you're free to fall into the road, but it was sort of closed to the public.

5) Electric wires on pedestrian bridges. I often have to duck to go under them or step over them. Wires are everywhere here, drooping and dangling.

6) Armed guards on the sidewalk. I tried to take pictures, but they always turn right when you’re about to aim at them. I’m not sure what the qualifications are to hold a loaded gun in the streets of San Salvador, but I can guess. And when the sidewalks are narrow and I have to pass right next to the end of a rifle, I get a little nervous…

7) Pedestrian Rights. There are none. If a car avoids you, the driver is doing you a favor. Where there are no pedestrian bridges, pedestrians often have to cross the street lane by lane, waiting in a few centimeters between streaming lines of vehicles. Remember the video game Frogger?

John Farmer is a Kiva Fellow at Apoyo Integral in San Salvador. He was hit by a car in San Salvador recently, which slightly damaged the bag of produce he was carrying. OK, he wasn’t hit, but the bag in his hand was. Really.

The book is a call to action for corporations and businesses to view the poor as potential consumers instead of as passive recipients of charity, and proposes that the entry of goods and services designed for these markets can benefit local communities. Markets in the developing world are different from those in the developed world; access to information is limited, future income is uncertain, and decisions are based on shorter time frames. The common assumptions that people in these markets don´t want new technology, care about brand recognition, or have discretionary income to spend on goods and services are not true – goods need to be designed with these dynamics in mind.

In the outskirts of Mumbai, a shampoo manufacturer realized that low-income people used shampoo, but weren’t able to commit enough money at one time to buy a bottle that would last several weeks. Individual-use packets, however, became a top seller in local stores. In South America, consumers in isolated areas didn´t trust the new products of a large household goods company, but they did trust the local franchisees that created businesses to distribute them to local communities.

In no way is the example of the benefits of sustainable business in developing areas more clear than in pre-paid cell phones. By eliminating the contract-based model of cell-phone service used in developed countries and adopting a pay-as-you-go philosophy, mobile phone providers offer useful and accessible products to the poor, able to charge their phones at any time with the spare change in their pockets.

There is also a place for local entrepreneurs in this process. As markets expand, financial access become more available, and local people find greater opportunity to use their knowledge and talents. Hair salons open with new services incorporating affordable shampoo, cleaning services increase their margins with more affordable supplies, and cell phone recharging stations open on every corner. New technology creates demand for media and information, and as local entrepreneurs take advantage of these changes the growth of local economies accelerates.

Prahalad´s ideas about the beneficial relationship between big and local businesses may not prove true in every situation, but his work serves as a reminder of the different dynamics at play in developing markets, and the opportunity for innovation that exists for local entrepreneurs operating within them.

Brandon Vaughan (KF12) is getting a degree in pupusas and queso fresco with a minor in El Salvadoran slang with PADECOMSMCrédito. Loan to a PADECOMSM client or join our lending team – we’re posting more and more loans every day.

El Salvador’s modern history stems from its Civil War, officially fought between 1980 and 1992. Waged within the context of the Cold War, the conflict pit an established national army, backed by the Reagan administration, against a leftist guerilla force known as the FMLN. The guerillas were based in the rugged and remote mountains of northeastern El Salvador, in a region known as Morazán.

Due to its agricultural roots and rough terrain, Morazán was the poorest county in El Salvador, and the constant federal assaults on the region devastated its infrastructure. The stronger and better-equipped army forces struggled to deal with the ragged and often disorganized guerillas on their home turf, and as their frustration mounted civilians in Morazán became associated with the revolutionary forces. In the early 1980s, the government adopted a policy to quitarle el agua al pez (take the water from the fish), methodically destroying the towns of Morazán and forcing an exodus of refugees to Honduras and Nicaragua. Included in this offensive was the 1981 massacre of civilians in the town of Mozote, an incident forcefully denied by both Salvadoran and American government for years to come.

As the fighting slowed in the late 1980s and army forces left the region, European aid workers from refugee camps across the border gathered with seventeen community leaders in Morazán to rebuild their communities. Morazán had no public services – no schools, no hospitals, and in many areas no roads. Their organization came to be known as PADECOMSM, a Spanish acronym for the Fund for Community Development in Morazán and San Miguel.

For the last twenty years, PADECOMSM has been working to support the return of families and communities displaced by the Salvadoran Civil War through development projects. Their microfinance arm, PADECOMSMCrédito, started with three clients, a typewriter, and one employee, and today has grown to a portfolio of more than $3 million and almost 3,000 loans. The organization continues to grow, and its talented and dedicated staff of forty is working to expand services to more isolated areas within the region.

By providing their clients with access to capital, PADECOMSMCrédito enables them to start businesses and organizations that provide needed services to the people of Morazán. As the local economies within the region continue to grow and prosper, infrastructure improves, and new opportunities emerge for economic advancement.

Making a loan to a PADECOMSM client supports more than a single entrepreneur; it supports an entire community.

The monument in El Mozote, remembering those killed in the massacre

Brandon Vaughan (KF12) is learning and living the history of El Salvador every day as a Kiva Fellow with PADECOMSMCrédito en Departamento Morazán. Loan to a PADECOMSM client or join our lending team – we’re posting more and more loans every day.

Natural disasters take on a whole other meaning when living in a developing country.  As we have witnessed with the recent catastrophes in Haiti and Chile, the poorest people are often the most effected and what little they have is often lost.  When 80% of your population lives below the poverty line, as is the case in Haiti, the aftermath can be crippling.  While the initial press coverage is intense and people’s willingness to provide aid is plentiful, too often these countries and their people are forgotten as the excitement and newness of the catastrophe wears off.  For developing countries a natural disaster can set them back years and take a long time to recover.

As a Kiva Fellow in Honduras I have heard countless stories about the devastation of Hurricane Mitch over the past week as we have been drenched by Tropical Storm Agatha.  Many people here say that Honduras is just getting back to where it was before Mitch.  Every large storm that comes through Honduras brings back memories of Hurricane Mitch.  People recount stories of Hurricane Mitch in striking detail and recount the destruction and grudgingly slow recovery.  They show me how the neighborhood where I live was under 10 feet of water.  It is as if Mitch happened yesterday.  Mitch was 12 years ago.

Cleaning up flooding last week at FAMA OPDF. Juticalpa, Olancho, Honduras

Tropical Storm Agatha is the first tropical storm of the 2010 Hurricane season and while relatively weak, it is a disturbing reminder of how catastrophic even the weak storms can be for a developing country.  Juticalpa, where I live, luckily avoided the brunt of the storm and was relatively unscathed.  Even so, the streets turned to rivers, my MFI flooded, the rivers neared flood level and bridges collapsed.  Other parts of Honduras were not as lucky as they were inundated with flooding and mudslides, causing death and destruction.  On Sunday, May 30th, the Honduran government declared a national emergency.  While the storm has now past and the skies are blue, Agatha has left a wake of destruction and at least 150 people dead throughout Honduras, El Salvador and Guatemala.  The press coverage may stop but the need for aid will remain.  Tropical Storm Agatha Slideshow

53% of people live below the poverty line in Honduras and many lose their livelihood in natural disasters such as Tropical Storm Agatha.  Help those in need by clicking here to loan Kiva entrepreneurs in Central America.

Matt Raimondi is currently serving as a Kiva Fellow at FAMA OPDF in Juticalpa, Olancho, Honduras.  FAMA OPDF is a pilot Field Partner and recently posted their first Kiva loans.  Click here to support FAMA OPDF by making a loan to one of our entrepreneurs.

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?

Click here to support PADECOMSM’s borrowers!!

Carlos Pierre, KF11

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.

During the twelve year civil war (1980-1992), the guerrilla’s first successful campaign was defeating the army in the state of Morazan, in the eastern part of the country. Morazan was and remains one of the poorest states in El Salvador.  The Salvadorian governments response, supported by USD7 billion from the US during the conflict, was savage. As the war raged on and off for the subsequent eleven years, there were no public institution in Morazan, for simply there was no government. There were no schools, no teachers, no hospitals, no doctors.

Within this chaos, in 1988, with the support of European aid workers and funds, seventeen community leaders of the towns near the guerrilla hotbed of Perquin, formed the Fund for the Development of the Communities of Morazan and San Miguel (PADECOMSM, its Spanish acronym). PADECOMSM main goal was to assist in the reconstruction of their homeland.

Near Perquin

In the beginning, PADECOMSM distributed medicines from the Red Cross, and also focused on increasing agricultural yields by providing farmers with fertilizer, and financing for their crops. Unsurprisingly, PADECOMSM credit program was initially very basic – their information technology consisted of notebooks and old typewriters. PADECOMSM had no technical or management training, but they did have a clear goal to develop their communities.

Having been born during chaos and a government vacuum, it was not until two years after the peace accords were signed, in 1994, that PADECOMSM finally constituted itself as a formal legal entity. In 2007, PADECOMSM created a subsidiary focused solely in microfinance called PADECOMSM Credito.

It has now expanded to five locations and a staff of 33 people. Their information technology has come so far that it is completely web-based and gives them up-to-date portfolio information. It has increased its efficiency and portfolio, yet true to its original mission, it continues to provide small size loans (as small as USD60), focuses on women, rural areas and marginalized urban areas.

It is easy to forget the essential role that field partners, like PADECOMSM Credito, have in Kiva’s mission. But without them, it is unlikely that any of us would be able to give our support to the entrepreneurs of this war torn region.

On Friday May 21^st, 2010 you should be able to find PADECOMSM Credito’s field partner page and start find borrowers whom you can support.

Carlos is a Kiva Fellow working with PADECOMSM Credito in El Salvador.

Turns out it isn’t that simple.

A recent New York Times article as well as other news like a recent initial public offering have stirred an old debate. Essentially that limited borrower options, comparatively high interest rates, low default rates and an estimated total asset base of over $20 billion may be fertile ground for excessive profits. An important concern.

So how do we figure out what is an “appropriate” rate of return? Or, in other words, what is a reasonable interest rate?

It’s a tough question but I think we can get some insight from a recent exploitation of sorts.

There are various factors that led to the recent financial crisis but most theories explaining the severity can be boiled down to inappropriate measures of risk and return. Put simply, some investment risks were made incorrectly, some were made irresponsibly, and some were blatantly done with the intension to see failure for the sake of greater returns. The result essentially shut down capital markets and crippled industry leading institutions.

The situation is personally difficult to understand. How is it that an industry based on the allocation of funds for the development of ideas and innovations has done exactly the opposite?

Could something similar happen in microfinance?

Maybe.

Beside the fact that microfinance has a philanthropic connotation and Gordon Gekko personifies current thoughts on the broader finance industry, the differences between the two are limited. One industry just pulled the rug out from underneath retirement accounts, hard earned savings and longstanding businesses and the other is hoping to empower the poor… yet the two have very similar foundations. Hmmm?

So why are gains, growth and returns in microfinance different?

Two reasons:
1) The microfinance industry’s unique qualification of character.
1a) Interest rates in microfinance are skewed towards covering fixed costs while interest rates in traditional finance are skewed towards covering default risk.

Borrower’s character: One of the cornerstones of the microfinance industry is the high overall industry repayment rate. It’s impressive, and it’s based on character. Unlike lending based on the questionable attributes of a credit score, corruptible debt rating agencies or easily manipulated quantitative analysis, microfinance institutions usually vet clients based on extensive personal interaction. This ends up being a much better qualifier of character. It is also very expensive (see often referenced prior blog posts). If the qualification process is completed properly microfinance institutions will have high interest rates and maintain high repayment rates, avoid economic bubbles (maintain integrity of loans), and continue effective social returns.

MFI employee interviewing a borrower in Cameroon

But only if it’s done properly…

MFI’s character: Unlike traditional financial institutions intended to maximize shareholder’s equity, a microfinance organization’s character is based on its ability to maximize a borrower’s opportunity to improve his or her quality of life. It’s important to note that this may not mean reaching a rock bottom interest rate. Much has been made of what may seem like exorbitant interest rates but the argument ignores two important factors. (1) The services that an MFI provides in addition to a loan. Services such as healthcare coverage, life insurance, basic education and counseling among many others. Microentrepreneurs who work with MFIs with high interest rates aren’t always doing so out of ignorance or a lack of options – some borrowers choose to do so, which leads to the second oversight. (2) Borrowers must eventually determine what is in their best interest – more so than regulators. The most important tools we can provide to borrowers are more lending options and an understanding of how they should be evaluated. Education and options will encourage competition and ensure the institutions that most effectively provide solutions gain market share. (Instead of asking, “why are interest rates so high?” we should eventually be asking, “who can do it better?”)

So an MFI’s character may necessitate high interest rates but that still doesn’t explain how to avoid excessive finance charges. To ensure MFIs are acting in the best interest of their clients they must be held accountable…

Social Investor’s character: I’d venture to say that a social investor’s character is presently as important as a borrower’s in the future of microfinance. While I don’t want to deter future contributions, I believe making a social investment without properly monitoring the social return is similar to investing in a corporation without much concern for your financial returns or the value of your investment.  At best you aren’t seeing the true impact of your investment and at worst you may actually be perpetuating the problem. I personally believe that the development of this industry will be based on the fact that a microfinance loan is not the same as a donation and we should act as such. In the same way that a financial investor looks for the best mix of risk and return, a social investor should ensure funds are attributed to the MFIs that are maximizing impact at limited financing rates, i.e. effective social returns. Doing so should keep MFIs accountable until we see sufficient competition within the market.

A microentrepreneur in El Salvador standing next to the fridge she purchased with the profits from her loan

How can we understand and monitor social returns?
Mass social investing organizations like Kiva are in a unique position to provide transparency and help us understand the quantification of each stakeholder’s character. Initiatives such as the new platform to monitor social returns is one example. If you haven’t heard about the important development you can read about it here. Another example is the extensive qualification process to become a Kiva Field Partner. These measures will be very important in helping us validate effectiveness, social returns and interest rate practices.

There are also various other organizations that are working towards evaluating social impact such as, Microfinance Information Exchange, Inc. (MIX), Consultative Group to Assist the Poor (CGAP) , & Microrate among many others.

In the long run, I expect the industry to see more educated borrowers and more lending options .  With more players in the market we should also see more innovations, efficiencies, and competition.  In the same way that small businesses build an economy, the entry of new lending institutions should naturally regulate interest rates, maximize social returns, and determine reasonable financial gains. It should also prevent an MFI from becoming too big to fail. But until we reach that level of maturity the integrity of the industry will be based on each stakeholder’s character. Kiva and several other organizations are working towards developing transparency to avoid the inappropriate investments that occurred in the broader finance industry’s collapse but, in the end, it will be each stakeholder’s character that ensures the industry is on the right path, seeing the most effective social returns, and educating others to do the same.

Dennis A. Espinoza is a Kiva Fellow working with Apoyo Integral in El Salvador.

Imagine you are a mother or a father to both a son and a daughter.
If you only had enough money to send one of your two children to school, which one would you send?

This question was asked to potential microfinance borrowers at a training session led by GHAPE, a microfinance institution (MFI) and Kiva Field Partner based in Bamenda, Cameroon.

The most common answer among the group of 30+ prospective borrowers was my son but I also heard my daughter, the oldest, none and a few others.

The “right” answer was the smarter of the two children.

Although this is a very real situation for many Kiva borrowers, the scenario isn’t as much a practical exercise as a way to emphasize gender equality. You may have other thoughts on how to resolve the matter but evaluating each child’s talents and overall potential is an attempt to explain that two individuals of the opposite sex should be viewed objectively and equally. The lesson focuses in on GHAPE’s goal of encouraging fair treatment of women. The organization conducts this exercise with all new borrowers in order to establish a basis for relationships within a lending group as well as the overall GHAPE community.

It’s been a few months since I sat through GHAPE’s training session and first heard the exercise but the goal of empowering women came to mind as I was sitting in a recent meeting here in El Salvador working with Kiva field partner, Apoyo Integral. As I met with the four people who currently have the most influence on Kiva’s strategic impact on the alleviation of poverty in El Salvador, I realized I was the only male in the room. As I sat there and quickly reflected on my four months as a Kiva Fellow I realized that most of my co-workers have been women.

GHAPE, founded by a woman who overcame numerous social, economic and cultural barriers, is currently led by a female field coordinator and a female office manager. Apoyo Integral’s coordinator for all Kiva related tasks manages all of her professional responsibilities while enrolled in college courses and commuting a total of three hours the six days a week that Integral’s offices are open. Similarly driven women fill three levels of management above her. Beyond my co-workers, I would estimate that 70 to 80 percent of my client interviews have been with female microentreprenuers.

My direct involvement has only been with two MFIs worldwide and thus very limited but microfinance is recognized as an industry generally inclined towards the empowerment of women. The financial limitations and cultural mores of countries with developing economies have resulted in limited income generating opportunities for women and thus the industry’s emphasis on self-employment. The focus has its share of controversy. Sociologists question the external influence on a local culture and the effects on the role of a man and a woman in the home as well as in local society. From a similar perspective, I’ve sat in borrower training sessions interrupted by men protesting that women should defer all financial decisions to their husbands or fathers.

While I recognize the need to respect a local culture and customs, studies have shown that microfinance is having a significant impact on the advancement of entire families living in poverty by focusing efforts on women. Sitting in the homes of these borrowers and talking to women about their businesses, progress, financial independence, and economic potential, I’ve had an opportunity to see unique advancement firsthand. It has also become obvious, after having worked out of the offices of two separate MFIs, that the impact of the microfinance industry on the progress of women worldwide isn’t limited to those in poverty. The professional opportunities for women within an industry generally focused on the needs of daughters, mothers and grandmothers is inspiring and another step forward in the advancement of gender equality around the world.

So today, International Women’s Day, I would like to specifically thank all of the women within this industry who have paved a path for me to be here today. I look forward to a day when gender equality is universally recognized and discrimination of any type is no longer an issue but until then a simple note in appreciation of anyone who has overcome the prejudice and abuse that can be encountered when working through gender, socioeconomic and cultural barriers, to advance the field of microfinance to what it is today.

• “Women constitute around 60–80 percent of the export manufacturing workforce in the developing world, a sector the World Bank expects to shrink significantly during the economic crisis” (UNIFAM)

• “the result of the financial shock is estimated to be between 200,000 and 400,000 additional infant deaths per year on average in the 2009 to 2015 period– or a total of 1.4 million to 2.8 million more infant deaths, if the crisis persists. Negative shocks are more harmful to girls than to boys: one or more unit fall in GDP increases average infant mortality of 7.4 deaths for 1,000 births for girls compared to 1.5 deaths for 1,000 births for boys.” (World Bank)

• Percentage of Kiva loans made to women entrepreneurs: 82.35% (Kiva.org)

Join Kiva Field Partner, Women for Women International, today in celebrating International Women’s Day with a global event as featured on the Kiva blog.

Dennis A. Espinoza is a Kiva Fellow working with Apoyo Integral in El Salvador.
Lend to a Kiva borrower in partnership with GHAPE, Apoyo Integral, or one of the many field partners supported by Kiva.

Over the past year, I have learned valuable lessons about life, gotten to know myself better, greatly enriched my understanding of microfinance, observed the workings of the informal economy in Latin America, been touched by many clients’ stories and experiences, and been proud to represent Kiva at four different MFIs in three South American countries.

Some of my favorite moments, though, have absolutely nothing to do with microfinance. They’re little cultural quirks, lifestyle adaptations, or just silly everyday things that make me smile, remember that I am not from here, and cherish the experience that much more.

Some of my favorites:

Best heckle: Anyone who’s as white as me and who has tried to run in public in Latin America knows what it’s like to be heckled. You usually get whistles, catcalls, and hear things like, “Faster!” “Run!” and “ONE two three ONE two three.” After a while you learn not to pay too much attention and to instead focus your energy on watching out for dogs and traffic.

Out running in Trujillo at 7am one morning, a driver stuck his head out the window and yelled “Yuquitas peladas!” (“Little peeled yuccas!”), a metaphorical reference to the whiteness of my legs. By far the most creative heckle ever, plus I’m impressed that he was able to think of it so quickly (especially that early in the morning) and stick his head out of the car window while driving and avoiding traffic mishaps. Kudos.

Best street foods: Grilled plantain with cheese (Ecuador), giant corn on the cob with cheese (Cusco), hand-churned muyuchi ice cream (Ayacucho), cow-heart kabobs (Bolivia/Peru).

Pati, a Kiva client in Cochabamba, grills up some cow-heart kabobs

Luzmila, a Kiva client in Ayacucho, dishes out some hand-churned ice cream

Best market find: “Peanut paste” in Ecuador, which is supposed to be used to cook cow’s stomach. When I told the woman I buy it from that I add salt and eat it on bread with jelly, she looked at me like I was nuts. Crazy gringos.

Best healthy eating tip: A loan officer in Santa Cruz, Bolivia once invited me to a glass of caldo de caña (sugar-cane juice), a thick, murky brown liquid that is sickeningly sweet, like drinking a glass of maple syrup. He says, “It’s all natural, don’t worry. They don’t add any sugar to it.”

I’m waiting for this to take off as the next fad diet in the States.

Best religious insight: A conversation I had with a loan officer:
Her: What religion are you?
Me: Oh, I’m not religious.
Her: Why not?
Me: Well, I just have a hard time believing that just one of the world’s religions has all the right answers and all of the others are wrong.
Her: Yes, but if you think about it, the one thing they have in common is that they all lead you to Jesus Christ.

Best financial advice: Hoard change (thanks, Dan Kahn). You’re only as rich as the amount of change in your pockets.

Most humbling idiomatic realization: I will never be done learning Spanish. Every time I think I’ve got it down, I change locations and chalas become sandalias become become zapatillas, or lapicero becomes bolígrafo becomes pluma becomes esfero, or caña becomes chaque becomes resaca becomes chuchaque. And aguacate and palta keep switching back and forth.Where on my resume should I indicate that I know four different words for pen?

Second most humbling idiomatic realization: After two months in Ecuador, I still don’t know how to ask for the kind of bananas I want without pointing. I don’t understand the difference between a platano, a banano, a guineo, a maduro and an orito. If anyone has pictures with labels it’d be greatly appreciated.

Those look like oritos hanging back there, but I wouldn't put money on it

Best way to ask for directions: Most anywhere I want to walk to is immediately deemed too far away and/or too dangerous for a lolita like me to go on foot. In order to avoid answers like “Walk to the corner, hail a cab and tell the cab driver that’s where you want to go,” I’ve learned to strategically rephrase my requests for directions. Instead of asking, “How can I walk to this place?” I ask “How might Antonio Banderas ride a scooter to this place?”

Best way to tell Ecuadorians apart geographically: One day at the beach with the local branch manager, he pointed out that it’s easy to distinguish locals from people from Quito who are in town on vacation. I looked around and wasn’t so sure I could tell, so we started guessing with passers-by. He nodded to one middle-aged man, lounging in the back of his pickup truck with a tank top pulled up to his chest, exposing his sizeable beer belly, which he rubbed fondly.

“What about that guy?” said Fernando.
The gentleman in question looked pretty tan. “Mmmm… local?” I guessed.
He laughed. “A local would NEVER do that, Cynthia.”
“What? I’ve seen tons of guys from the coast strutting around showing off their guts,” I responded, confused.
“Yes,” he said, “but never in Lycra.”

Land of Lycra: Quito at dawn. Why was I awake at dawn? My neighbors have roosters.

Cynthia McMurry is a fourth-time Kiva fellow working with brand new Kiva field partner Fundación Espoir in Cuenca, Ecuador. Previously she worked with Fundación AgroCapital in Bolivia and FINCA Peru and Asociación Arariwa in Peru.

To search for currently fundraising loans from Fundación Espoir on Kiva, click here. No currently fundraising clients? Please check back soon! In the meantime, you can join Espoir’s Kiva Lending Team here.

The leftist candidate Mauricio Funes won El Salvador’s presidential election last night, ending 20 years of rule by the rightist ARENA government. Funes’ party the FMLN had developed out of a Marxist inspired guerilla movement that opposed ARENA’s government during the country’s gruesome civil war in the 1980’s. While FMLN supporters took to the streets last night, riding into the capital on beat-up pickup trucks packed with red-shirted youth, waving FMLN flags to celebrate their first presidential victory, there was a more somber mood in ARENA headquarters and in reports from the international press. Though ARENA has spent years crafting a free-market economy, with a stabilized banking system, a free trade agreement with the United States and courting multinational investors El Salvador still remains one of Central America’s poorest economic performers. Over half of Salvadorans live in poverty, without access to consistent food, medicine, work and often quality education. 20% of El Salvador’s GDP is comprised of remittance payments from family members working (illegally) in the United States. More than just a statistic, though, remittances have had overwhelming effects on the social political and economic realities of El Salvador including microfinance. Often small entrepreneurs can only afford to cover their monthly interest payments with support from the money transfers from family living abroad. Especially now, during tough economic times in the United States remittance payments have been slowing causing wide-spread loan defaults and instability in the MFI industry in El Salvador.

Last night I stood in the streets of San Salvador sharing in the excitement of Salvadorans at a possible new direction for their tiny country. Some old enough to clearly remember the bloody civil war of the 80’s but many victims of an ongoing struggle against hunger, lack of work and no hope for change. Their songs and dancing where encouraging, but didn’t distract me enough from noticing the hundreds of vendors that had taken to the streets hoping to sell party t-shirts, sausages and light-up head-wear to celebrants. After all, there’s work to be done and many mouths to be fed in El Salvador. Good luck, Funes.

Entrepreneurs take to the streets to sell Funes "gear" while the masses celebrate.

But then, yesterday on a visit to an organic farming coop in the mountains outside of San Salvador, El Salvador I had an out of cell phone service experience: I was reminded about the nitty grity work of community growing from the ground up, but more importantly how exciting and rewarding it can be. Donning her sweat-stained Che Guevara hat, Mercedes the local community organizer in the Salvadoran pueblito, enthusiastically shuttled us from one “shared work” project to another. With a $1k microloan in cash directly group of university students, the community had developed a good old-fashioned, plastic piping, brick tank, and muddy ditches water system to supply their organic crops of corn, tomatoes, onions, squash, oranges, cilantro, carrots, tilapia fish and countless other plants I wish I could understand in Spanish. Her crowning achievement since increasing total food production by three fold from last year are her Cuban designed, homemade water pumps (She pointed out several times that they were designed in Cuba). These two pumps, which each cost about $50 in parts, are made from used metal piping and a fire extinguisher tank, use no electricity or gasoline, and are able to pump river water about 50 vertical meters up the side of a mountain to supply acres of farm land with necessary irrigation. Can your iPhone do that? Needless to say, I was quite impressed by the ingenuity and persistence of the organic farming cooperative that has worked patiently for years on this agricultural project and are now hoping to reinvest their microcredit fund into personal vegetable gardens in each family’s home. With little more than sweat and some used parts from a hardware store the community has been able to drastically improve the economic and emotional quality of life in their community. Next time I visit I’ve planned to propose my new partnership with the organic farming cooperative: cubanwaterpumps.com

Posted in Apoyo Integral, El Salvador, KF7 (Kiva Fellows 7th Class) Tagged: Agriculture, Cooperative, iPhone, Micro credit, Micro loan, Waterpump ]]> http://fellowsblog.kiva.org/2009/02/10/iphone-water-pump/feed/ 3 Sam img_06061 img_1735 http://fellowsblog.kiva.org/2009/01/21/mi-casa-tu-casa-a-kiva-fellow-at-the-apoyo-integral-field-partner-in-el-salvador/ http://fellowsblog.kiva.org/2009/01/21/mi-casa-tu-casa-a-kiva-fellow-at-the-apoyo-integral-field-partner-in-el-salvador/#comments Wed, 21 Jan 2009 16:55:49 +0000 Samuel Baker http://fellowsblog.kiva.org/?p=2781 ]]>

My name is Sam Baker, and for the next several months I will be working with Kiva’s field partner Apoyo Integral in El Salvador. Having only been in-country for about a week and recently finished with an orientation of Integral’s microfinancial services, I thought I would take the time to highlight an especially unique feature of Apoyo Integral’s loan offerings in El Salvador: technical assistance in home building. Kiva community feedback coupled with longer fundraising times for home improvement and construction projects on the site suggests a slight hesitation among Kiva lenders considering a loan for the sake of home improvement. Having said this, it is not unreasonable to ask for example how a home improvement directly affects an entrepreneurs income, ability to pay off the loan and more importantly; provide a more secure and sustainable future for their families. Fortunately I had the opportunity to explore this question during my visit with Apoyo Integral’s sister project the Salvadoran Foundation for Integral Support’s housing technical assistance program: Tu Proyecto (Your Project). Tagging along for a day of work withTu Proyecto’s civil engineers, I watched how they offered their FREE engineering expertise to four of Apoyo Integral’s home improvement microcredit clients. Clients are advised on everything from cement mixing formulas, structural design, layout, ventilation, lighting as well as water and electricity issues. (In one case a technical assistance engineer was perceptive enough to recommend that a client might move a window to another wall closer to where he planned to place the kitchen table, thereby allowing his school aged children better light to study by during the day!) In addition to learning about a truly useful and uncommon service to homeowners in El Salvador, I also was also presented some data with which to respond to the “housing hesitation” issue: 3 out of 4 visits to Apoyo Lenders happened to be living and working under the same roof. The first lender was a photographer who was intending on building an addition to his house. The Tu Proyecto engineers advised him of a better way to secure his roof from the weather as they feared rain water might soon leak into his house, effectively destroying all the digital photography equipment he uses for his livelihood. The second lender was a farmer who needed to weatherproof his house to store grain, and the third was a carpenter who was building a larger home and considering how he could incorporate his workshop into the design.

Though these are only several examples from many, I believe it is interesting to illustrate how important a home can be for small Salvadoran businesses and indeed small entrepreneurs around the world. Not to mention all the benefits of health, safety, and personal dignity that come with owning a decent home. In short, here is Apoyo Integral’s value proposition to Kiva users who invest in their housing loans: Apoyo Integral uses the discounted capital received from Kiva to pay the Tu Proyecto engineers to do free construction evaluations for their clients. This means that in addition to clients being filtered for their financial ability to repay a loan, home owners receive professional engineering advice to ensure an effective investment in a family’s future!