Posts filed under ‘Angkor Microfinance Kampuchea (AMK)’
Urban Poor: A Peek into a Microcosm of Cambodia
By Shirley Fong, KF12, Angkor Mikroheranhvatho Kampuchea, Cambodia
It’s one of those places you won’t find unless you go looking for it – the slums of Chak Angre Leo. Located in the outer khan (district) of Meanchey in Cambodia’s capital city, the slums are a stark contrast from the familiar communities and gated residences in central Phnom Penh.
Continue Reading 19 September 2010 at 00:01 Shirley 8 comments
Superhuman: The Profile of a Credit Officer
By Shirley Fong, KF12, Angkor Mikroheranhvatho Kampuchea, Cambodia
It’s a bird… it’s a plane… no, it’s an AMK credit officer!
Much like a superhero, credit officers are the understated motor that keeps the loan system running. Their continued daily gruel brings loaned monies to those who need it. After a day in the field, I am worn down to the fibers of my soul from the long hours of heat exhaustion, heavy rain (during Cambodia’s monsoon season), and navigating a loud, clunky motorcycle on unpaved roads mapless. But I realize I have no reason to complain – credit officers do this every day!
Basking in (Morning) Glory
By Shirley Fong, KF12, Angkor Mikroheranhvatho Kampuchea, Cambodia
I’ve made it through my first week here in Cambodia, and so far it has been amazing! I still get the occasional, “Why are you doing this?” question from curious friends and family back at home, and my answer to them is “Why not?”
Work It Out
What do you do when your client is delinquent because the business that they have been doing for years is no longer viable? Or their spouse was in a traffic accident and their expenses tripled?
Microfinance Will Not End Poverty, Microfinance Institutions Will
Inspired by Nicholas Kristof’s latest blog post: The Role of Microfinance
Microfinance is “the most visible innovation in anti-poverty policy in the last half century.” Because of this, many have put such high expectations on the effects of microfinance and the pace at which it can have an impact on ending poverty. Some have even called it the panacea for poverty.
Continue Reading 9 February 2010 at 17:19 Sanjaya P 22 comments
Using Microfinance to Combat Human Trafficking: Spotlight on Katie Davis (KF7)
by James Han, KF9 Cambodia (AMK)
We typically measure the impact of microfinance through financial measures. What interest rates are the microfinance institutions (MFIs) charging? Has the client’s business experienced increased profits? Has a population increased its household income? These are all valid questions and are at the center of measuring the effectiveness of microfinance.
But, I was recently inspired by the broader social impact that microfinance can have. While the “social bottom line” may not be as quantifiable as interest rates or household income, MFIs such as AMK are proving that an MFI with a strong social mission can have a truly profound impact on a local community.
My first impressions in Cambodia
by James Han, KF9 Cambodia (AMK)

AMK's new home office in Phnom Penh
Sus-Dai (Hello)! My name is James Han and I recently took a 3-month leave of absence from my management consulting career to work in Cambodia with Angkor Mikroheranhvatho Kampuchea (AMK), currently Kiva’s largest field partner. I’m thrilled to see first-hand how AMK operates as they are one of the most well-respected and efficiently operated MFIs in SE Asia (more to come on that topic in future blogs). I also have some big shoes to fill as past Kiva Fellows from AMK have either been hired full-time by AMK to start new initiatives (again, more to come later) or have now become famous in the Kiva world (e.g. Kieran Ball who created the Kiva video, “A Fistful of Dollars – The Story of a Kiva.org Loan”). No pressure!
My work plan over the next 10 weeks will be slightly different from the typical Kiva Fellow work plan I have been out in the Kompong Chhnang province of Cambodia for the past week, meeting with the local entrepreneurs and conducting Kiva Journal updates. I’ll continue to do this for the next 2-3 weeks and then spend the majority of my remaining time working on a couple special projects for AMK. Before my placement began, I was sent a list of two dozen projects I could potentially work on, ranging from researching the use of mobile phones in microfinance to new product development for special interest groups, such as victims of human trafficking. While it was hard to choose, I decided to stay in my consulting sweet-spot and will help AMK revise their incentive and salary compensation programs and will also devise a measurement system so AMK can compare performance between their various branches. I feel like a kid in a candy shop and will certainly do as much as I can with my limited time here! Be on the lookout for updates!
I’ll leave you with my first observations about life in Cambodia:
More than micro CREDIT to the CO’s
By design, Microfinance is not sustainable without the dedication of hundreds of thousands of Credit Officers (CO’s) working for Microfinance Institutions (MFI’s) around the world. The Kiva online person-to -person (P2P) lending platform only works because CO’s employed by the 95 Kiva Field Partners in 44 countries are out visiting clients, taking pictures and writing business profiles for our website in addition to their regular loan disbursements and repayment collections. My job as a Kiva Fellow at AMK in Cambodia also relies heavily on the CO’s who bring me out to the field so that I can interview Kiva entrepreneurs and create journal updates that get sent to Kiva Lenders around the world.

AMK Credit Officer (CO) ready to ride
Breaking up the Band
Over the last three months, four Kiva Fellows (Katie, Julie, Jeff and Drew) have been working and living in Phnom Penh, Cambodia. We are so lucky to have spent this time together in such a wonderful place. Alas, our time has come to an end but we have put together a video to share both our time at our individual MFI’s and our time together outside of work.
It is unusual for multiple Kiva Fellows to be located in the same city, but Phnom Penh is a unique place in the development world and the Cambodian Microfinance landscape is highly active – creating a phenomenal opportunity for us to share our experiences and learn from each other as we entrenched ourselves at our respective MFI field partners: HKL, AMK, Credit and MAXIMA.
While this is the end of our time together each of us will be moving on to new and exciting things. Julie will be attending law school in the fall (law school TBD ), Jeff will be begin studying for his MBA at MIT, Katie will be working with Microfinance in Cambodia in a new capacity, and Drew will be going to Kiva’s partner ASKI, in the Philippines.
We would like to thank all of our great coworkers, especially our Kiva Coordinators for all of their hard work and help. Also, a special thanks to all of the Kiva Lenders who make Kiva and all of our great experiences as fellows possible. We feel privileged to have been able to serve as Kiva Fellows in Cambodia and would love to see interest in Kiva and the Kiva Fellows program continue to grow. If you have enjoyed reading Kiva Stories from the Field please help spread the word and share the link with a friend!
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Facebook users – you can now follow Kiva Stories from the Field here!
Rice Accounting 101 in Rural Cambodia

Rice plants nearly ready for harvest
Sophisticated income statements and balance sheets are the standard tools used by global corporates to demonstrate their year-over-year growth and net change in assets and liabilities. I saw my fair share of SEC sanctioned 10K annual and 10Q quarterly financial reports while working in corporate banking in New York City, but from where I stand now as a Kiva Fellow in my third month in the field, these accounting instruments are of no use to Kiva entrepreneurs in rural Cambodia, many of whom cannot read or write.
When I interview Kiva borrowers in the agriculture sector (which fits the description for the majority of AMK’s clients in Cambodia), I try to get a sense of how their crops are doing and if they are satisfied with the most recent harvest. Some borrowers cultivate rice solely for personal consumption while others grow to sell. When entrepreneurs have multiple businesses (which many of them do), the decision to sell or keep the rice they grow is often a function of the success of their harvest. If a farmer lives near a good irrigation source they can harvest rice twice a year during both the rainy and the dry season, but otherwise rainy season is the only option since rice cultivation is heavily dependent on the weather.

My enthusiastic instructor
Most farmers I speak with can quickly tell me the market price they can get for one kilogram of rice: typically about 800 Riel (20 cents USD). When I ask borrowers how many kilograms of rice they recently harvested, however, I get a variety of answers, and seldom are they numerical. The general response trend is that year over year growth is described in terms of “better or worse.” While visiting Svay Village in the Kandal Province of Cambodia yesterday I encountered the most enduring and perhaps practical explanation yet of how one entrepreneur measures her yearly “profit.” Check out this video to see my rice accounting 101 tutorial:
Can a line drawn semi annually inside a giant bin marking the height of a rice harvest really provide accurate data? For a hardworking family living in the in Svay Village of rural Cambodia the answer is yes, accurate enough. If this seasons harvest exceeds last seasons harvest and last seasons harvest was enough to feed the family, then some of the excess yield can be sold to bring in additional income for the family.

It was a humbling but wonderful afternoon
Katie Davis is currently serving as a Kiva Fellow (KF7) at Angkor Microfinance Kampuchea (AMK) based in Phnom Penh, Cambodia.
Anatomy of “The Field” – Chacos & Cuddling Piglets
For many NGO’s and even corporate offices, “the field” refers to branch offices and client meetings held outside of company headquarters. “Going into the field” is a very commonly used phrase on the Kiva Fellows blog. This broad definition applies to the work of Kiva Fellows as well, but we get to say we are “off to the field” with extra pizazz because, well – we literally go to the fields.

Step into my office...
(You should not be expecting anything profound from this blog post…after all, cuddling piglets is in the title!)

Field Equipment - Don't leave home without:
- Small Backpack
- Flip Video Camera
- Motorcycle Helmet
- Digital Camera
- Notebook & Pen
- Toilet Paper in Ziploc Bag (Might save your life!)
- Purell
- Water
- Sunscreen
- GPS device

Chaco tan/dirt lines - the Kiva Fellow tattoo
In Cambodia, most houses in “the field” are built on stilts to create a shady space underneath which the families go about their daily activities, often times sharing the space with their cows, pigs, and chickens who are also trying to escape the 100+ heat. Most of my interviews with Kiva entrepreneurs take place on a wooden bench in the “shade.”

Hangin' under the house
It is easy to romanticize “the field.” I’m not going to lie; I feel pretty bad-ass flying through the Cambodian countryside on a motorcycle with my Camelbak full of equipment. I believe strongly in the work that I am doing with Kiva and AMK, and the field is where all the action takes place. After spending 5 straight days in the field this week, however, I can assure there is a flip side to the romanticized version. The heat is excruciating, I sweat more than I thought is humanly possible, I get filthy dirty, riding on the back of a moto for more than 20 minutes on bumpy dirt roads leaves me more saddle sore than any horse could, and the local food, despite being delicious, can send me running for a toilet, if I am lucky enough to find one. “The Field” does not operate on a clock, and microfinance is a very social construct in Cambodia, particularly when it comes to village bank loans. This is my polite way of saying that there is a lot of “down time” in “the field,” so I am learning to check my notions of efficiency at the door each day. “The Field” is an amazing experience and well worth the uncomfortable side effects. Occasionally I see some amusing things and just happen to have a video camera in my hand. Here are a few random out-take clips from the field. Check out the spooning piglets – gotta love it!
Un Puñado de Dólares/Une Poignée de Dollars
Cette vidéo retrace le chemin d’un crédit de 25 dollars depuis Londres en Angleterre jusqu’au village de Preak Tomao au Cambodge. Kiva.org est un site web qui permet aux internautes de prêter de l’argent aux plus démunis dans les pays en voie de développement et grâce à ce prêt de se sortir eux même de la pauvreté.
Este video sigue el camino de un préstamo de $25, que va desde Londres hasta el pueblo de Preak Tamao en Camboya. Kiva.org es una página de Internet que permite a usuarios como tú y yo prestar dinero a gente necesitada en países en desarrollo, con el fin de ayudarlos a salir de la pobreza.
Continue Reading 5 March 2009 at 18:53 kieranball 6 comments
Kiva Fellows: News from Cambodia
Kiva Happy Hour in Phnom Penh
I once heard that Kentucky Fried Chicken conducted a market survey on their brand and found that the words “Kentucky”, “Fried”, and “Chicken” each had negative psychological associations. Hence the change to the more deliciously ambiguous “KFC”.
If this is true, then “Kiva Happy Hour” must surely invoke feelings of warmth and joyous goodwill in most people. Take one fuzzy “innovative-slash-fantastic” organisation, add cheap drinks and nice people, and, as we say in England, Bob’s your uncle… good times.
This is precisely what happened in the Foreign Correspondents Club in Phnom Penh on Thursday in the third week of February. Thanks to everyone who came and to Sanjaya Bagopunyasena for doing most of the organising.

A Fine Fellow

Teresa Dunbar (KF5), right, sells Kiva like a pro. Kiva borrower photos show in back.

All profits from the sale of Kiva shirts are being lent on Kiva to borrowers in Cambodia

Hollie the designer with Katie Davis, KF7

Kiva Fellows new and old (I mean old as in KF6, not age ok?)

Sophany and Sophanith of AMK

Talking about microfinance and enjoying it
Limited Edition Kiva T-shirts
Step aside Gucci… microfinance t-shirts are SO this season. Hitting the runways (mainly of airports in West Timor and Phnom Penh) are the brand new limited edition Kiva “Loner/Loaner” t-shirts. Designed by Hollie Harrington of London, and produced in Phnom Penh, Cambodia, these shirts will add a dash of microcredit chic to any outfit.

Are you a loner or a loaner? Or perhaps even a lender?
If you would like one of these t-shirts there are a few left over in the AMK office in Phnom Penh. Otherwise contact me and I can send you the design files so you can get them printed locally. But only if all profits are re-invested on Kiva!
Kiva Fellows struck by lightning
Kiva Fellows Ball, Briggs, and Dunbar looked Danger squarely in the eye and said “Not today, we’ve got Kiva work to do!” when their plane was struck twice by lightning en route to their new assignments. Thanks to the Flip cameras distributed by Kiva and in true Kiva Fellows tradition this near-death moment was, of course, captured on video. OK so I added sound effects.
Flip video cameras: So simple, even a racoon can use it
Successful applicants for the Kiva Fellows programme generally need to be a bit tech savvy to handle the equipment they will use in the field. But the new Flip video cameras that were issued to KF7 are reputedly simple enough that even monkeys can use them.
Upon hearing this, I reacted as any sensible person would. “Sure, but how about racoons?”.

"How do you paws this thing?"
Note to Kiva: No Flip video cameras were harmed in the making of this video.
The most exciting, BORING banking conference ever attended
Banking conferences in and of themselves are really boring. I attended my share of them as a corporate banking analyst in New York City. Keynote speakers, break-out sessions, networking events, and trade shows all packed into two days of conference center bliss. The Cambodia National Banking Conference held in Phnom Penh February 19-20th was no exception to this formula, however, it was by far the most exciting and significant BORING banking conference I have ever attended.
My name is Katie Davis and I am a new Kiva Fellow (KF7) working with AMK in Cambodia. At 26 years old I have a few year of business experience behind me, and this seemed like the perfect time in life to step away from the corporate world and do something off the beaten path. I am thrilled to be in Cambodia working in microfinance. I had to chuckle when at the end of my first week at AMK I found myself seated in a huge conference room full of people in black suits, awaiting the start of the first keynote address. This feels so familiar! Given the context, however, there was nothing ordinary about this particular banking conference. Here is why.

Pointing out my name on official attendee roster
The National Bank of Cambodia (NBC) was established as a regulatory organization in 1954 when Cambodia gained independence from French colonial rule. The NBC began printing its own national currency, the Riel, in order to terminate the monetary alliance with the Vietnamese and Laos currencies. The NBC created a few state-owned banks and a series of reforms in the 1960’s and early 1970’s liberalized the banking system and allowed for private banks to operate in Cambodia under the regulation and supervision of the NBC. The Khmer Rouge came into power in 1975 and on April 17th, the National Bank of Cambodia (NBC) was shut down. Cambodia’s banking system was destroyed and Riel banknotes were no longer used.
In the difficult economic times we face today, government and regulating bodies around the world are becoming increasingly involved in sovereign banking systems on both the private and public entity level. Given this trend, it is almost impossible for me to imagine how a nation would function without a currency and without a central bank during times of distress, but this was the state of affairs in Cambodia during the terrible 4 year reign of Pol Pot and the Khmer Rouge.
The Bank of Cambodia was re-established on October 10th, 1979 and the rebuilding began, which was no small task considering there was no currency reserve, no document trail, and limited human resources (many intellectuals and businessmen were killed, scattered, or remained in hiding in the years immediately following the nightmare that was the Khmer Rouge). The Cambodian banking system is still in its infancy, but great strides have been made in the last 25 years and the National Bank of Cambodia (NBC) has evolved into a legitimate regulating body once again recognized by the international financial community. There are currently 24 commercial banks, 5 private banks, and more than 26 registered Microfinance Institutions (MFI’s) operating in Cambodia.

Conference Room @ Naga Casino in Phnom Penh
Banking Cambodia: Modernization of the Banking & Microfinance Industry in Cambodia held at the Naga World Hotel in Phnom Penh February 19-20th, 2009 was Cambodia’s first ever national bank conference. It was an honor to attend as a representative of Angkor Mikroheranhvatho Kampuchea (AMK) and the Kiva Fellows Program. Microfinance is thriving in Cambodia and it is exciting to see that the member institutions of the Cambodia Microfinance Association have a seat at the table alongside the commercial and private banks. Microfinance is inherently part of Cambodian’s banking structure due to the large number of Khmer people who receive microcredit loans as opposed to loans from commercial banks.
Since this was only my second week in Cambodia, the conference provided an introduction to key industry players and also gave me some perspective on the overall economic landscape and the four primary drivers of Cambodia’s GDP: the garment industry, agriculture, construction, and tourism. That being said, there were also some drawback to the conference (which ironically was held at a casino) – shameless sales plugs by banking technology companies, and subtle references to the fact many things are negotiable for the right price in Cambodia when it comes to the government and business community trying to attract foreign investment.
I’m not going to lie, I had a difficult time staying alert and awake through all 35 presentations, and from the looks of it so did many of the other conference attendees. Cambodia has finally joined the rest of the world in hosting BORING banking conferences, which is actually quite EXCITING given the turbulent recent history and the role that microfinance has had in rebuilding the economic situation in this nation.

Kiva Fellows attending Banking Cambodia: Drew (KF7), Jeff (KF7), Katie (KF7) Sanjaya (KF5), Teresa (KF5) Not pictured: Julie (KF7), Kieran (KF6), John (KF6)
A Fistful of Dollars, Behind the Scenes: Volunteer Editor Helps Kiva Entrepreneur Reach Her Goal
Like the windshield on a motor-taxi in Phnom Penh rush hour, transparency is vital to Kiva’s survival. To give interest-free loans, lenders deserve to know that every cent of their money is being distributed exactly as promised, whilst borrowers have the right not to be misrepresented.
An important aspect of this transparency, and one which Kiva takes very seriously, is the integrity of the data on its website. Allowing inaccurate data is the first step towards encouraging fraud on the site, which would have severe reputational consequences for Kiva.
A key data check is performed between the time the loan is posted by the MFI, and when it goes live on the website ready for funding. At this point every loan is reviewed by one of a team of over three-hundred online volunteers. These language gurus work from all over the world to translate loans posted in foreign languages and edit those posted in English by Kiva’s field partner microfinance institutions.
This is a crucial link in the chain of events, not only because it ensures that Kiva lenders can understand business postings and thus make informed choices, that lenders are represented with dignity and clarity, but also because it is the one time that every single loan is scrutinized. Editors can, and often do, flag issues ranging from missing information in the loan description, double-postings, loan amount discrepancies, inconsistencies or problems with the borrower picture, to potentially controversial loans, such as a loan for a cockfighting business.
The Editing and Translation volunteers range from a high school microfinance club, to returned Peace Corps volunteers who want to continue contributing to the country where they were stationed, to young mothers home with their children who want to reach out to make a difference, to retired English teachers and technical writers. They are located on six continents around the world.
In my last blog I posted a video which followed a loan from London to Cambodia (A Fistful Of Dollars: The Story Of A Kiva Loan). The client that featured in the video was the smiley and exceptionally accommodating Van Makara, whose loan was posted by field partner AMK and selected by Danielle Lieu and my other ex-colleagues in London to be the recipient of their $25.
When the loan was posted to the Kiva website by Sophanith at AMK, it landed in the work-queue of Lorne Warwick, a retired high school english teacher. He immediately got to work checking the loan posting and editing the English to make it easily comprehensible (perhaps he should have edited this introduction too). His edits can be seen below.
Lorne Warwick has edited over six hundred loans in the past four months alone. And while no-one will ever really understand the complex algorithms running within Danielle Lieu’s brain that made her pick Mrs Van Makara for her first Kiva loan, it’s certain that Lorne’s edits did a fantastic job of making the loan posting infinitely more readable (ideal for people who are sifting through Kiva loans in the office when they should really be working).

Lorne Warwick: An Editor and a Gentleman
Lorne, a keen blogger himself, kindly agreed to write about his involvement in Kiva and what goes into the editing process. This is what he wrote:
Entry by Lorne Warwick, Kiva Volunteer Editor
As the editor of the loan to Mrs. Van Makara, the subject of the excellent video, “A Fistful of Dollars: The Story of a Kiva.org Loan,” I have been asked to write briefly about my involvement with Kiva and what goes into the editing process.
A retired high school English teacher, my path to Kiva was largely serendipitous. In my first year of retirement, I purposely avoided making any commitments that would impose specific structure on my day, since structure was something that had defined my professional existence for 30 years. Content to take each day as it came, I busied myself with small home-improvement activities (never quite finding time for that major renovation needed in our basement!), an education research subcontract, and some sporadic writing.
My second year found me with a desire for a little more structure, so I began volunteering at a local food bank sorting and shelving donations. The very immediate results wrought by strictly physical effort were and still are quite gratifying. However, as time went on, I began to want to be of more service to others, never forgetting how fortunate I was to have been able to retire while still in my fifties, healthy and financially secure. The thought of paid work held no appeal. After becoming a lender with Kiva, one day I noticed a button on the site that said “Do More,” and to my delight found that the organization was seeking editors. The rest, as they say, is history, and I have now been editing loan descriptions for the past year, usually assigned two sets (with an average of 12-15 per set) each week by Kristy Harrison, one of Kiva’s volunteer coordinators living in England.
Perhaps the most powerful inducement for me in editing loan descriptions stems from my work as a teacher. I always had a special respect and admiration for those students who came to me, not to complain about their mark or try to wheedle a few extra points out of the old man, but rather were genuinely motivated to try to better their academic results. Essentially, they said, “I want to improve my work, and I want you to help me to reach that goal.”
Expressing such a desire meant I was at their service, and, in partnership, as long as they maintained that attitude and commitment, progress invariably ensued – progress not sudden and spectacular, but instead slow and steady. At the end of term, students would sometimes thank me for my help, but I would tell them that they had done all of the hard work – I had merely provided a framework and structure for their efforts.
This is precisely how I feel about Kiva, its mission, and my small role within the organization. The people seeking loans, already vetted and assessed by local Kiva financial partners, are the ones who bring the commitment, the motivation, and the goals to the deal – we are merely the conduit by which those goals can be achieved. Like the students I worked with for so many years, they have my deep respect and admiration, and I am happy to be of service to them.
Which brings me to the other aspect of Kiva that I find so immensely appealing: its model does much to renew the human spirit. I am convinced that the desire to help others exists in most of us, but this spirit of philanthropy needs regular cultivation. For example, many people have specific charities to which they regularly donate, and are quick to respond to pleas for money when natural and human disasters happen. However, these contributions are often made to large and seemingly faceless organizations tasked with dispersing the funds in a responsible and ethical manner. Our involvement in assisting the lives is thereby quite limited. The Kiva model, however, invites on-going participation in the lives of the borrowers, first as we select the region, the entrepreneurial activity and the borrower, and later as we can track the success of the loan through its repayment. The entire process is a steady reminder that we, as individuals, can indeed have a positive effect on the lives of our fellow human beings.
Kiva is an organization powered by a vision that is ideal for the times in which we live. While the events of the world and the actions of our leaders may frequently invite despair, Kiva is a vital reminder of the good that still exists, indeed thrives, in the heart of humanity. I feel privileged to be a small part of its efforts.
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Postscript
To view two more examples of loan edits, go to the following links
And to see a short video of live editing as it happens, check out the Cecilia Andoh loan live editing video
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If you or anyone you know would be interested in becoming part of the Volunteer Editing and Translation Team at Kiva, visit http://www.kiva.org/about/opportunities/ and follow the appropriate links.
A Fistful Of Dollars: The Story Of A Kiva.org Loan
I’ve lost count of the number of times I’ve explained the concept behind Kiva to family, friends, and people I’ve met along the way, but each time my explanation is slightly different.
This is because Kiva is really quite difficult to explain. It incorporates frightfully odd concepts such as microfinance, acronyms such as MFIs, faux acronyms (“what does K.I.V.A. stand for anyhow?”), frequently confused verbs “lend” and “borrow”, crossovers between banking and charity, international flows of money, interest and yet no interest, is it a tech start-up or is it a non-profit? It’s both Jim, but not as we know it.
I used to start with the basics: “Kiva is a website…”. But then I thought that makes it sound a bit, dare I say it, cheap, like hamsterdance.com is a website, so then I switched to “Kiva is a web-based non-profit organisation” which is the signal to most people to stop listening immediately and start planning an escape route to the bathroom.
I like to tailor the explanation depending on who the person is, how interested they seem, whether they know terminology such as microfinance or even the internet – in some Cambodian villages knowledge of the former outweighs knowledge of the latter whilst back home in England the opposite is true.
But when it comes down to it, does anyone really understand the Kiva process from start to finish? Well sure they do! But will we ever meet these mysterious people? Probably not.
So before I left my job at Credit Suisse in London, I decided it would be great to try and follow one loan through the system from start to finish, for the benefit of my colleagues who I coaxed into making a loan, and for myself, and for anyone else who is interested.
Three months later and my little project has reached fruition and dropped right off the tree in a sticky mess. An eleven minute video that I’ve effectively been married to for twelve weeks. It haunts my dreams. I’ve developed repetitive strain injury in my left arm from sitting at my laptop.
But I’m thoroughly glad I did it as I’ve discovered a new passion for making and editing videos to add to my long list of hobbies-to-take-up-and-then-drop-months-later. And I’m right-handed anyway.
I hope that you enjoy watching it as much as I enjoyed making it.
Note: To watch the video in full screen (recommended) please click on the four arrows in the bottom right-hand corner of the video
To see all of the AMK loans currently fundraising on Kiva.org please click here
Additional note: To link directly to the video please use the following URL: http://www.vimeo.com/2769845
It Costs $5000 To Marry Your Daughter?!?!
In Cambodia there is a popular song called Tov Dondung Kon Key by Khemarak Sereymon. The song is VERY catchy and we hear it EVERYWHERE. The best part of the song is the story. It’s about a guy who has this crush on a girl who he meets at the market. When he goes with his mother to meet the girl’s parents so that he can ask them to marry her, the girl’s family asks for $5000 as a dowry. Unfortunately, even if he sold his rice field and cows he would not have enough money, so he sings about his agony.
Here’s a question for you Kiva lenders, if he asked for a loan would you support him?
I used the song to make a video of our recent visit to Takeo Province:
This was my first overnight trip and it was amazing. We went into areas that were much more remote than I had ever been. On our second day, we had to walk a kilometer just to reach the Village Bank meeting. It’s also harvest time so we saw many farmers and farm workers harvesting the rice.





The best moment of the trip was when Kieran asked one of the borrowers what they would do if they couldn’t get a loan from AMK. We then asked the same question to the other clients we met. Many of them said they would turn to private lenders who charged 10-20% interest a month (compared to the 3% a month AMK charges). Cambodia has 18 microfinance institutions, but AMK goes into the most remote areas where other MFIs don’t go because of the costs involved to service these borrowers. For many borrowers, if AMK didn’t go out there they would either turn to loan sharks or they would not borrow the money necessary to improve their lives. AMK chooses to serve these clients because of their mission:
“To help large numbers of poor in Cambodia to improve their livelihood options through the sustainable delivery of appropriate and viable microfinance services”
If you think AMK is doing great things you should definetely check out their loans that are currently fundraising on Kiva. Also if you think AMK is awesome as much as Kieran and I do, you should join the AMK Fan Club!
The Benefits of PA2
As many of you Kiva lenders have noticed, Kiva recently upgraded the administration system that Field Partners use to post businesses and report repayments. The partner administration system, aka PA2, is where Field Partners post businesses onto Kiva and report on the status of each loan. This was a major redesign of the site and it has brought a bunch of great new features that benefit both lenders and Field Partners. For those of you who haven’t been reading all of my posts (shame on you!) I am a fellow at AMK and HKL, and I’ve also been working closely with the other two Cambodian MFIs, CREDIT and Maxima, to help them with the transition to PA2. Having been a fellow in a PA1 world and now getting to see PA2 for awhile firsthand, I wanted to give you lenders some perspective of PA2 from the field!
- Now, Field Partners, aka Microfinance Institutions (MFIs), report the exact repayment schedule for each Kiva loan – Previously it was just assumed that loans were on a monthly schedule. In the new system, MFIs can report the exact dates of when a loan payment is expected. This lets MFIs post loans on all types of schedules such as end-of-term, weekly, bi-weekly, etc. If the MFI wanted to set a schedule in which the borrower pays back the loan only on the days when Saturn and Uranus are in alignment, this can now be done on Kiva! Unfortunately, none of the members of the Astrological Microfinance Association have joined Kiva yet…
- MFIs now report the exact status of each loan every month – Every month each MFI uploads a list of the total principal paid for each Kiva loan. This is great for Kiva and Kiva lenders because it can help them get a better sense of what exactly is happening on the ground and identify any loans and/or MFIs that are having a hard time paying back loans. Even though you’re thousands of miles away, you’ll actually know how the borrower is handling the repayment process. If a borrower makes on time payments or an early payment, then you know everything is okay. If a borrower misses a payment, then you know that they might be having problems. The change has been great for MFIs as well. For example, at AMK we do a mix of monthly loans and end-of-term loans. We use to report the status our end-of-term loans manually, but that was a lot of work which took a lot of time. I made a Microsoft Access application for AMK called the Kiva Loan Tracker which can report the exact status of all the Kiva loans onto a CSV file. In PA2 we can just upload that CSV file and our work is all done in just a few minutes! Sweet.
- MFIs Repay Kiva Lenders When the Borrower Makes a Repayment - The MFI repays Kiva when the borrower makes a payment. This helps MFIs because now they do not have to repay Kiva lenders on a different schedule than the loan terms. This is important because it prevents creating liquidity/cash flow issues for MFIs, which is a serious problem for many of the smaller MFIs. This is also great for Kiva lenders because if a loan receives an early payment then the Kiva lender gets repaid early also. This happens quite often at AMK, especially with many of the end-of-term loans. I’ve noticed many AMK loans being repaid months early.
- The Actual Disbursement Date is Posted – In PA1, the MFI would post a disbursement date on Kiva, which was more of an acknowledgment that the loan has been disbursed and that its status will be reported to Kiva. In PA2 the actual date that the loan was disbursed is reported to Kiva. Many MFIs post loans on Kiva that have already been disbursed. They do this because for them it is the only way to incorporate Kiva into their operations. Many MFIs front the money for these loans, hoping that they will get funded on Kiva. At AMK a loan description is written by the client officer when a client applies for a loan and then the picture is taken at the loan disbursement by the Area Manager. This information is then sent to the head office in Phnom Penh by taxi. This prevents AMK staff from having do to an extra visit to the client, which would be a waste of resources. The last thing Kiva wants to do is to be a burden on the MFI, which could inadvertently increase interest rates.
- Google Gears – The Kiva engineers incorporated google gears into PA2. This is EXTREMELY helpful for MFIs, because many of them have VERY unreliable internet connections. When I arrived in Cambodia, the internet at my MFI was down for almost a week. This was a very painful experience if I was posting a business, because if the internet went out in the middle of a business posting, we would have to start all over once the internet came back on. In PA2, if the internet goes out, a draft is stored which you can then return to at a later time. As I’m writing this, the internet just went out and Chan Ry, the HKL Kiva coordinator, was in the middle of posting a business. Now he doesn’t have to start that post from scratch! Hurrah! Google Gears also stores part of PA2 on the computer of the MFI which lets the site load quicker. If you guys can remember the days of dial-up modems, then you’ll know how slowly webpages load at some of the MFIs (that’s if they load…)
- We Can See Your Comments – PA2 has a page where we can see all the comments from lenders. This is helpful because it makes it easier for Field Partners to respond to your comments.
- Separate Server – Occasionally Kiva lenders get really excited and bombard the Kiva website looking for loans that they can lend to. Once in a while, this causes the Kiva webservers to crash. In the past, when this would happen MFIs wouldn’t be able to post new loans. Now PA2 is stored on a separate server, so if Oprah decides to share her love for Kiva on national television again, MFIs can keep on posting.
- Increased Transparency – I’ve been helping all four Cambodian MFIs make the switch to PA2 and I’ve realized that PA2 has created a much greater sense of transparency. The four Cambodian MFIs are not committing any fraud. I can state this for a fact because each MFI gave me access to their data. The more real information Field Partners send Kiva, the easier it will become for Kiva to spot any signs of trouble or fraud. In PA2, Field Partners also report the exact account number for each loan, so when Kiva does an audit of a Field Partner it will be easier to spot any signs of trouble. My Loan Tracker makes sure that information is accurate by taking the exact data from their Management Information System, so when a business is posted the names and account numbers are exactly the same on Kiva as they are in the MIS of the MFI. In the past we had hard times finding information on some Kiva loans, because the names were translated slightly differently.
Some Kiva lenders have been asking Kiva why MFIs cannot send repayments on a weekly basis, so that they could get their repayments quicker. One lender even compared the new system to sports announcers from the 1930s who called away games on the radio using tickertape. The truth is microfinance, at least in Cambodia, works at a pace similar to tickertape. Here at AMK, the central office receives data from the branches at the end of the month. At HKL, the branches send data to the main office every two months. The reason is that these MFIs do not currently have the necessary infrastructure to receive real time data. At HKL the data is put on a CD and sent to the main office by taxi. Real-time Kiva updates would be great but it is not feasible (at least not yet). Kiva and the MFIs are the doing the best they can given the circumstances. Until the network infrastructures of these MFIs is improved (which will hopefully happen in the coming years) there will always be a lag between the date of transaction and when it is reported to the lender. But as the infrastructures of the countries that Field Partners operate in improves, Kiva can start asking for more information quicker.
Because this new system is requiring MFIs to report information quicker than they normally do for Kiva and for their own operations, PA2 could become a burden for some MFIs. The last thing Kiva wants to do is hurt the efficiency of the operations of any of its Field Partners. This is why Kiva gives MFIs a 15-day grace period for when they upload the status of each loan at the end of each month. I’m currently working at two Field Partners, AMK and HKL (I just started at HKL). AMK has a network that allows me to connect to the servers at each of the branches and download the data for each loan. My Loan Tracker works very well there. At HKL they don’t have a network like that. We’re working around that by getting branches and sub-branches to send their data through Windows Messenger. Getting the data from the sub-branches with unstable internet connections has proved rather difficult and for those we may have to rely on receiving the data by CD, which can take weeks. This must be even harder for MFIs where the internet is worse.
PA2 has come a long way in the last few months. I’ve been testing it out since August and PA2 is much more stable now that it was a few months ago. The Kiva engineers should really be commended for their hard work in getting this up and running. Though there are still a few bugs, I’m sure the Kiva exterminators engineers will get rid of them in no time. Also, once MFIs get use to the new posting process many of the errors in the payment schedules will disappear.
If you still need some more info on PA2 you can read all about it here, here, and here.
Reservoir Microloans
In my first week at Kiva’s rising-star field partner, AMK Cambodia, I was lucky enough to go on a two-day trip to the Kampong Cham province with the aim of meeting some Kiva clients and taking some photos for the AMK marketing department.
Over the 36 hours I took around 1500 photos – partly because Cambodians are super photogenic, and partly because 95% of my photos look as though Sambo the Phnom Penh elephant took them (he lacks opposable thumbs). With his eyes shut.
I made this short video of a loan being disbursed to the Sreymom Suong Group. They were pleased to become Kiva clients for the first time, even if it did mean having to pose for a photo or two. It’s not quite Tarantino, but it’s certainly in a similar ballpark.
Below are some of my favourite photos from the trip, if you like them you can go to this flickr slideshow to see the rest.

To see more AMK loans that are currently fundraising on Kiva, go here
Using GPS to Map Out Borrowers
In my last post, I talked about visiting a client with Phanith, the AMK Kiva coordinator. The client officer (a.k.a. loan officer) was not available to take us, so we relied on a hand written map that got us lost many, many times. We had to ask almost every villager we saw, before we finally got to the client.
Getting lost in a village got my mind thinking about how nice it would be if we had an actual map with the locations of clients and how to get to them. So I spoke to Paul, the CEO of AMK, about how we could give GPS devices to our client officers. This would let us track them as they go to each village bank and client, creating one massive map of Cambodia with the locations of every AMK client. The benefits of such a map include:
- Client officers and other branch staff are often rotated to other branches as a fraud preventive measure. When a staff member arrives at their new branch, they could use the map to help them locate clients, instead of having to rely on other staff members at the new branch.
- Staff from the auditing department could easily locate clients, allowing them to do spot checks on loan amounts and loan payments to help reduce fraud.
- The research department could use the map data to keep better track of clients to further assess AMK’s social impact.
- Organizations that are partnering with AMK to provide highly beneficial services to AMK clients, for example the water filter company IDE, can use the map to find clients instead of having to rely on AMK staff members to direct them.
- Kiva Fellows could use the map to easily find Kiva clients and report back to lenders on their status.
Paul liked the idea and asked me to try it out. I got a GPS device and took it with me on my last village visit with Phanith and Kieran. In case you haven’t already checked it out, Kieran made an awesome video of our journey out there. I also made a video of the trip using Google Earth and the data from the GPS device. We were going to figure out how to sync these two videos together, but instead we made separate videos and set them to the same music
If you think AMK is doing great things you should definetely check out their loans that are currently fundraising on Kiva. Also if you think AMK is awesome as much as Kieran and I do, you should join the AMK Fan Club!
Asking Kiva Entrepreneurs Questions From Lenders
Last Wednesday Phanith, the AMK Kiva coordiantor, and I were very eager to head out into the field the next day to ask two Kiva entrepreneurs, the Siphat Yang Village Bank and the Chon Erm Village Bank Group, questions that I had gathered from lenders. Unfortunately, when we called the loan officer she told us that she got the dates mixed up, and that she had visited those clients the week before for repayments. Phanith and I knew that we couln’t let you Kiva lenders down, so we weren’t going to let this stop us! We decided to try to find the villagers ourselves… easier said then done.
We went to the Kandal branch office the next day. An area manager agreed to show us the entrance to the village on his way to a disbursement at another village. He drew us a little map and dropped us off at the entrance. Phanith and I hopped onto a moto and headed into the village, only to get lost very quickly.
We started asking villagers for directions, but most of them had no idea where these clients lived and tehy mistakingly sent us off in the wrong direction. Finally we found a villager who knew these clients, HURRAY! He hopped on our moto and took us straight to them. Unfortunately, he took us down a road that was in horrible shape. Phanith tried to navigate the large puddles, but then we got stuck in one. Our moto started to lean to the left. Our navigator was smart enough to jump off, but Phanith and I were still on the moto. My leg was holding the weight of the moto and the two stranded passengers. After a minute, my leg gave way and down we went into the puddle. My butt went straight into the puddle. We decided to walk the rest of the way and we eventually reached the house of Siphat Yang.
Here are the answers to the questions asked by Kiva lenders:
Mary Larkin asked:
“Where do the business people get the goods in the first place? Are the goods sent in by mail? Do the business people have to travel to a larger city to buy the goods?”
Siphat Yang gets her goods from Phnom Penh, the capital of Cambodia, which is about a 45 minute drive on moto from her village. She buys her clothes from Olympic and Chbar Ampil markets.
Yusuke from Japan asked:
“How much does their per day income increase because of loans so far? and why?”
Before Siphat took out a loan she was making about $1.75 a day. Now she makes $2-$2.50. She said that the loan allowed her to buy more clothes to sell. It also allowed her to sells her clothes to factory workers on credit. The workers would then pay her back when they receive their monthly pay.
Yusuke also asked:
“How do they cooperate with each other in the village after getting the loan?”
According to Siphat, whenever a group member cannot make a payment, the other group members must cover the difference. The group member who wasn’t able to make a payment is expected to pay back the other group members when he/she can.
We weren’t able to find Mrs. Chon Erm, so instead we posed our questions to Ms. Taing Im Sum who is another member of Mrs. Chon Erm’s group.
Dan Landrum asked:
“Is it at all a hardship to pay back or does the benefit of the loan truly make for increased profits, so it is easy to make the payments as the plantation grows?”
Ms. Taing Im Sum and Mr. Som Yang, another villager who is a farmer, agreed that the loan terms offered by AMK are very reasonable. They pay 2.8% interest monthly, which according to them is the lowest interest rate available. Mr. Som Yang stated that if AMK didn’t offer loans at interest rates this low, then they would not be able to borrow any money. He also joked that he wouldn’t mind if the interest rate was even lower.
Dan also asked:
“Would it be useful for Mrs. Chon Erm’s group to receive some exchange or training in the various aspects of their business, farming, marketing, etc.?”
According to Mr. Som Yang, an organization called IPM has come to his village to train farmers. They showed the farmers new fertilizer techniques and to limit the amount of chemicals used as fertilizers and pesticides. Before he received the training from IPM, he was able to grow one ton of food per hectare. Now he is able to grow four tons on his hectare of land.
Finally Dan asked:
“Is there anything else we might do to help them prosper?”
I didn’t ask this question to the villagers directly, but I told Ms. Taing Im Sum and the other villagers who gathered around about Kiva. I explained that thanks to Kiva, AMK is able to keep interest rates low. (In the picture below you can see them checking out their Kiva business description and photo). So Dan, one of the best things you can do is to keep loaning on Kiva and supporting other organizations that are not only do good, but also to make a sustainable change.

Ms. Taing Im Sum looks for herself in the photo of her group loan. (She's in the second row, third from the right)
Despite all the difficulty in getting out into the field, this was a lot of fun. I hope you guys enjoyed reading this! For those of you who were wondering, I have washed those pants three times with all types of detergents and bleach, but the stain is still there. Any suggestions?
To see a list of all the AMK loans that are currently fundraising on Kiva, click here.
If there aren’t any AMK loans on Kiva, you should check out the AMK Fan Club instead!!
EDIT: I forgot to mention that I had the pleasure of meeting Yusuke a few weeks ago. Yusuke was in Cambodia to promote Kiva in Japan through the Kiva Japan Project.
Have you ever wanted to ask a Kiva entrepreneur a specific question?
Well now is your chance!!!
I will be visiting the Siphat Yang Village Bank and the Chon Erm Village Bank Group this Thursday. If you want me to ask the members of the village bank a question, send me an email with your question: sanjaya.punyasena AT fellows.kiva.org
This is the first time I’m trying this, so I might run into some problems. I want to apologize in advance if I am unable to ask your question.
If you could send me your questions before October 15th, that would be great!
Also, if you haven’t voted for Kiva on the American Express Members Project, do so now!!! You only have 10 hours left and Kiva needs 400 more votes to reach second place!!
Interview with Paul Luchtenburg, CEO of AMK
I hope you guys enjoyed the interview. To see a list of all the AMK loans that are currently fundraising on Kiva, click here.
If there aren’t any AMK loans on Kiva, you should check out the AMK Fan Club instead!
Targeting the Poorest of the Poor
In Cambodia, AMK has the lowest average loan balance per borrower. According to MIXMarket, AMK’s average balance at the end of 2007 was $86 per borrower. To put that in perspective the second lowest was AMRET at $164, which is nearly 90% higher. HKL, Credit MFI, and Maxima (the other three Cambodian MFIs working with Kiva) have an average loan balance of $603, $564, and $514 respectively. Currently, 93.4% of AMK’s loans are below $300 and their average loan balance is now $114. AMK chooses to keep their average loan balance low. They limit individual loans to $500 and they limit the amount an individual can take out as part of a group loan to $150. The reason they do this is because of their mission statement:
“To help large numbers of poor in Cambodia to improve their livelihood options through the sustainable delivery of appropriate and viable microfinance services”
In my last blog post I mentioned how most MFIs were trying to increase their average loan balances to improve their efficiency. AMK, on the other hand, has created a business model that relies more on lending to as many clients as they can. This allows them to use their capital to reach the poorest villagers in Cambodia. The data shows that this business model is working. In 2007, their loan portfolio started at $5 million dollars and grew to over $10 million. From this they made a net income of $823,222 and their return on assets was 9%, which is beyond incredible considering the average loan size. Also, I should mention that AMK is currently owned by Concern Worldwide and Concern Worldwide UK. They have returned all of the profits to AMK as retained earnings, so all the money earned by AMK is reinvested back into the business.
AMK, just like every financial institution in the world right now, is having a hard time getting additional capital because of the credit crunch. Because of this, they are hoping to raise the percentage of their loan portfolio that comes from Kiva. Right now it is about 2.6%. For awhile AMK had limited the number of group loans they were posting because it was too difficult to keep track of them so they could report payments to Kiva. Group loans are usually a mix of monthly-installment loans, end-of-term loans, and credit line loans, so each group loan would have to have payments manually reported after each clients payments were tracked. This was a shame because the group loans are AMK’s best way of reaching the poorest villagers in Cambodia. Group loans can now easily be tracked with the new loan tracker I created for AMK, so they are now going to increase the number of group loans they post on Kiva. You can find them by looking at the loans with the smallest loan size per entrepreneur that are currently fundraising on Kiva.
If you really love what AMK is doing in Cambodia you should join the AMK Fan Club, a Kiva Lending Group which is part of the new Kiva that is about to be rolled out very soon. If you can’t wait leave your e-mail address as a comment and I’ll invite you to the group!
An Excel-lent Time in Cambodia
For the past few weeks I have been doing a lot of data entry. Panith, the AMK Kiva coordinator, and I have been going through all the Kiva business descriptions so that we could enter their account numbers into an excel worksheet. This will allow us to easily track payments of all the Kiva loans. (AMK just got out of pilot stage with Kiva, so they’re still incorporating it into their business.) If I had been doing this for another job I probably would have been bored out of my mind, but going through all the data for three of AMK’s provinces turned out to be quite interesting. It gave me a chance to do a very, very basic analysis of the impact of microfinance by looking at the loan histories of many clients. Many clients have paid off one, two, or even three loans, taking out a higher balance each time. Some clients started out with loans as low as 10,000 KHR (less than $2.50). I was actually very surprised to see the number of loans that were less than $10. Through village banks and group loans, AMK has allowed their “poorest-of-the-poor” clients to build up their credit history so that they can eventually take out larger individual loans.
Since I’m on the topic of numbers, I should share this wonderful story with you guys. While I was out in Kandal province for a Kiva-specific training, I heard an interesting story about interest rates. AMRET is the largest MFI organization in Cambodia. They offer loans at a 4% monthly-rate. AMK started offering loans in one of the villages that AMRET operates in. AMK offered loans at a 3%-monthly interest rate, so AMRET had to lower its interest rate in that village. 1% may seem very small, but over the year that adds up to 12%. If you’re a client who can only take out 10,000 KHR, that interest rate difference is huge. If microfinance institutions are going to really make an impact in fighting poverty, they need to lower their interest rates by improving their efficiency. Kiva is helping MFIs improve their efficiency by offering 0% loans, versus the 12% loans that other institutions offer MFIs. Paul Luchtenberg, the CEO of AMK, believes Kiva will truly help AMK achieve its social mission. He just hopes that Kiva funds will account for a larger percentage of AMK’s total portfolio (right now it accounts for less than 3%).
Click here to see all the loans from AMK that are currently fundraising on Kiva.
I’m sorry because I haven’t gone out into the field in the past week, so I don’t have any pictures of microfinance in action. I did stop by Angkor Wat this weekend so enjoy these pictures of Ta Prohm Temple:
The Nuts and Bolts
Part of the reason I signed up for the Kiva Fellowship was to see how microfinance actually works on the ground. You can read all the books on microfinance, but that couldn’t make up for never seeing it in action with your own eyes. After getting an understanding of AMK’s operations from their nice air-conditioned central office (where I just finished making them an Excel macro to keep better track of their Kiva loans), I knew I had to see the loan officer in action to really understand the pros and cons of microfinance.
Saphanith, Elena and I stopped by Au Village, the home of two Kiva entrepreneurs, Mrs. Kim Eng and Mrs. Eak Maong. Both entrepreneurs received their loans recently (which is why my journal updates on them are rather meek). We went to their village bank meeting. Here’s a quote from AMK’s website that describes the village bank:
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AMK’s flagship product is the solidarity group loan product, which offers flexible repayment terms where clients can borrow and repay at any point during the cycle. AMK’s end-of-term repayment product is delivered to members through a solidarity group lending methodology. These village solidarity groups are called Village Banks (VBs) and constitute the group loan delivery mechanism; they are in effect a “Village Association” or “Village-level client group”. The potential clients self-select themselves into solidarity groups of 4 to 6 members and these, in turn, are organized into VBs of 4 to 12 groups (or 20 to 60 clients). Being part of a self-selected solidarity group entails that three to five other villagers trust the loan applicant to let him/her join their solidarity group. All loans are guaranteed by the respective group members and appraised and approved by AMK’s Credit Officer (CO) and the Village Bank President (VBP) before the disbursements take place in the presence of the group members and AMK’s Area/Branch Manager. |
As I mentioned in my last post, each village bank has a president who is elected by the villagers and facilitates the functions of the village bank. When we showed up at Au Village, Ly Chandara, the loan officer was busy collecting payments from many of the villagers. Most of the loans were end of term loans, so the loan officer was collecting mainly interest payments. Nevertheless this took a lot of time. All the clients did not come at the exact time, after they came he had to calculate how much was paid and how much interest they owed. Once they paid up, the loan officer had to do a lot of counting because they mainly gave him small bills 100, 500 and 1000 riels (worth 2.5 cents, 12.5 cents and 25 cents respectively).
The village bank meeting was very close to Mrs. Kim Eng’s little shop, so we stopped by for a visit. We saw all the goods that she was able to buy with her loan. She told us about her husband’s death. He had gone to Angkor Wat, and when he came back he became really sick. She thinks that he probably died of food poisoning. She was pregnant at the time of his death, which was ten years ago. Despite all of this she is able to support her family and I wish her the best of luck!
We then went to Mrs. Eak Maong’s residence. She showed us the new pigs that she bought with a Kiva loan and a gigantic pig that she was getting ready to sell. Her pig breeding business has been doing very well, and she hopes to increase her profits with the pigs she bought using her Kiva loan!
Before we left, Saphanith and Elena also got lessons from another Au Village bank member on how to make Num Thnot cake. Num Thnot cake is made out of palm fruit and plam sugar. It is wrapped in banana leaves and then steamed. The first step is to make a box out of a strip of banana leaf and a toothpick. This is what Elena and Saphanith tried to learn.
I don’t want to rush to make any conclusions, good or bad, about microfinance based on my two visits into the field, but hopefully after spending some more time (and learning some Khmer!) I will get a better sense of what microfinance, AMK, and Kiva are accomplishing and what they could improve upon. In the meantime, here’s another animal picture for KivaFriends members.
Click here to see all the loans from AMK that are currently fundraising on Kiva.
Chicks and Dirt Roads
On Friday, Sophanith, Elena and I went to visit the Thea Chhin group, to do a journal on the group leader, Thea Chhin. The journey to Sala Khom Village was quite long. We left AMK‘s central office in Phnom Penh early in the morning and the drive to the branch office in Kampong Chhnang took about an hour. There we were greeted by the branch manager and we switched from our car to a pickup truck that was able to handle the village roads. As soon as our truck started driving on dirt roads, I was reminded of a road trip I took during college with my friends to Havasupai Canyon in Arizona. To get to the canyon we had to take a dirt road that was labeled “primitive road.” There was no such sign in Sala Khom Village.
After another hour of driving, we arrived at the house of the village bank president where we were informed the village bank was meeting a few hours later. The VB president is elected by the other village bank borrowers. They organize village bank meetings and handle problems that villagers have with repayments or interest rates. While we were waiting I took some pictures of chicks (the animal type!) for KivaFriends members to enjoy.
As the clients started to trickle in, eventually Thea Chhin arrived. She is currently pregnant and is expecting a child in September. Sophanith interviewed her using a questionnaire form Elena developed with him. Hopefully this questionnaire will be used by loan officers as they interview clients for future journals. (At AMK we are still working on integrating Kiva’s needs into their business structure). I took a picture of her and she smiled! Adam, an Australian volunteer for AMK who does a lot of graphic design work for them, has been taking pictures of Cambodians but has had a hard time getting them to smile. When Cambodians pose for pictures they usually have a serious face (like in the business description).
I wasn’t able to get a picture of her with her business, because she was busy at the village bank meeting. On my next visit to a village I’ll try to get pictures of clients next to their businesses.
This is the journal update I wrote on Thea Chhin which describes how the loan has changed her life:
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With the loan that she borrowed, Mrs. Thea Chhin was able to buy more vegetables to resell and her husband was able to buy more parts for his motorcycle business. This increased their profits which has improved the living conditions of her family. She has also bought some kitchen equipment. Her three children are doing well; two are working at the same jobs that they had, while the other is still in school. Mrs. Chinn is currently saving some of her money because she is expecting another child in September. The rest of the group is also doing well. Another member has bought fruits from Poy Peth and vegetables from Phnom Penh to sell at the local market. This is an end-of-term loan, so Mrs. Chinn has not made any payments on the principal, but next month she will have to repay the loan in full. She has made every monthly interest payment on time, as has the rest of the group. Just so you know AMK’s default rate is virtually zero. The few loans that are not repaid (less than 0.1%) are mostly those that are written off due to the death of the entrepreneur. |
Click here to see all the loans from AMK that are currently fundraising on Kiva.
Welcome to Phnom Penh!
After a wonderful 25-hour journey from New York, I finally made it to Cambodia! My first order of business was to get my visa at the airport, but that turned out to be a breeze. I filled out a visa application and it was passed along a line of 8 Cambodian officials who were seated in a row behind a counter. After 15 minutes and $25 I had my 30-day business visa (which I have to extend soon). When I left the airport I had to make the very difficult decision between a $9 taxi ride or a $7 tuk-tuk ride. The guy selling tuk-tuk rides made a compelling argument, that he had the cheaper ride, but with all my baggage I decided to splurge on the taxi. The drive into Phnom Penh reminded me a lot of my parent’s home country, Sri Lanka. Just like in Sri Lanka, the roads are shared by wheel-barrows, trucks, and everything in between. The only difference is that Cambodians drive 25 mph slower (which is a ver y good thing!). In Sri Lanka I had to get use to buses accelerating to 65mph, swerving around tractors and tuk-tuks, and then braking hard when we came to a traffic jam.This lead to many accidents on the road, a few which I have taken part in
I was suppose to meet Paujo,an American who works at AMK, outside my apartment. I was taking over Paujo’s place while he’s visiting the states until September. When I got to the street where his apartment is located, I was a bit early so I stopped at a sports bar which is located around the corner. I used the wi-fi at the bar to reach Paujo. After three Tiger beers and a lengthy discussion with the Australian who runs the bar about the sports bar business in Cambodia, Paujo arrived. I grabbed lunch with him, his girlfriend and Elena (the current AMK-Kiva fellow). After my first delicious Cambodian meal, I was ready to pass out. Unfortunately the power was out when I got back to my place, so for a while I was roasting in my bed without a fan. Eventually the power came back on and I fell into a deep sleep. I woke up at 9 PM to fireworks. I quickly ran to the window to make sure taht it in fact was fireworks and not gunfire or bombs (with elections around the corner you never know what can happen!) I later learned that the National Museum, which I live next to, has fireworks on occasion. I managed to go back to sleep, only to wake up again at 2 in the morning, damn jet-lag. I tried to go back to sleep but I couldn’t, so I watched a movie on my laptop to kill time. When the sun rose I got dressed and headed out to AMK.
I arrived at the office before most of the staff had come in, but eventually I met Sophanith, the AMK Kiva coordinator. He introduced me to the entire staff, which was about 30 people, in 5 minutes, so I forgot most of their names really quickly. As a former teacher, I learned that it helps to learn names if you see them on paper, so I got to learn the senior staff’s name by looking at AMK’s financial report which has their names listed. Sophanith has been writing most of the business descriptions for AMK, and according to Elena (the other AMK fellow) his English has improved a lot since she’s been there. He is a hilarious guy, and in the future I should devote an entire post to him so taht you guys can get to know him. The staff at AMK is really, really friendly. AMK is new to Kiva, but they have a well established business. I read in their annual report that they became a profitable business in less than a year. What also makes them stand out from other MFIs is their dedication to social performance. The board of directors has created two standing committees, the audit committee and the social performance committee. These two committees allow AMK to balance their social mission with their financial self-sufficiency. Elena and I will talk more about their social performance and research work in our posts to come!
One thing which I’m going to have to get use to (not that I should be complaining) is our two-hour lunches. The workday here is from 7:30am-5pm with lunch from 12pm-2pm. During my first lunch, I ate my meal quickly like I usually do and I was walking quickly back to work. Elena had to slow me down, but we still got back an hour early. However, today I made good use of my lunch break. At 12pm, I noticed the All-Star game was in the 12th inning, so I hopped on a moto and went to that sports bar near my house. I managed to catch the the last 3 innings of the game. It was great! (Once I get to learn some Khmer, I promise I will be having more Cambodian experiences!)
This is a becoming a long post, but before I sign off a quick note about AMK’s delinquency rate: Kiva recently took off AMK’s delinquency rate on their profile page. The reason behind this was many of the loans that AMK had posted on Kiva were end of term loans, which means that they get repaid at the end of the loan instead of monthly payments. Kiva didn’t have a way to designate end of term loans, so when monthly payments were not coming in AMK’s delinquency rate went up. Their actual default rate is less than 0.1%. AMK has now switched all of the loans they post on Kiva so that they can avoid this problem in the future. You guys should check out some of the loans that are posted by AMK on Kiva.
Also, I haven’t taken my camera out yet, but I will be going out onto the field on Friday! So hopefully I’ll get some pictures up for you guys to enjoy!
My Credit Card, KFC, the Meaning of Haste, Not the Meaning of Haste, and Dietary WMD.
In the United States, to have one’s credit card account put “on hold” would be grounds for getting slightly upset, peeved even. Fortunately, I am here in Cambodia, and when my dad emailed me to tell me that he received a letter from my credit card company saying that my account had been put on hold due to unusual activity, I did not flinch or get terribly nervous. One, this is because you really can’t use a credit card here unless you’re along the riverfront, the tourist mecca, and thus a place I avoid. Two, this is because I assumed that the unusual activity was the actual absence of activity on my account, and this in fact made me slightly cheerful.
Nonetheless, knowing that should an emergency arise I would need it to get a ticket out of here, I hopped on the phone and called my credit card company. After taking time (stupidly) to learn that all the push-button options were not going give me the service I needed, I proceeded to peck at the zero key until the calm-toned computer lady finally realized that I wasn’t smart enough to be dealt with in her organized way. Thus, she transferred me to “hold” until someone picked up the phone. I sat for a few minutes listening to Kenny G and Tina Turner, contemplating whether or not the music sufficiently justified hanging up. But, just as Tina went into her last chorus of “I’ve Got the Power,” while at the same time I was picturing a 60-something year old woman in a leather miniskirt dancing about a strobe-light-ridden stage and singing, a fine man introducing himself as Earl picked up the phone and started asking me to verify who I was.
After that was done, Earl asked what my problem was. I told him that my account had been “temporarily put on hold” due to this “unusual activity.” He then asked me if I had been in California recently. I told him yes, that I was in San Francisco to attend the Kiva Training seminar thingy. At this point I became concerned that this short trip to California would cause them to suspend my account, but then I remembered that I didn’t use my credit card while I was there. At the same time, he asked me if I went to any KFCs, to which I said no, I hadn’t frequented any Kentucky Fried Chickens during my stay. Thus, we determined that it was someone with my credit card # who in fact had. By now I was amazed at our age’s computer advancements, that Visa and Kentucky Fried Chicken can determine whether or not someone trying to pay for their 16-piece grease bucket and 2-liter bottle of corn syrup is actually paying with their own fixed 8.9% APR money, or mine, in this case.
As the conversation wound down, Earl told me to destroy my credit card, that it was of no use, which I realized when I was trying to buy skype credit with it in an effort to call my credit card company, hoping that being in Cambodia would throw the system off just enough to let me spend $10.00, and thus put some activity on my account and preemptively end what I had thought was the unusual [in]activity. Regardless, for some reason, I can’t bring myself to destroy the card. It’s worthless to me, and to anyone who steals it, but there’s something about having it that is a comfort. This, mind you, is disturbing, as if I now seem to have a psychological aversion to parting with a worthless plastic piece of junk that says Visa.
But I digress. Work here in Cambodia has been good. I spent Monday and Tuesday in Kandal Province, which surrounds Phnom Penh. I was observing Angkor Microfinance Kampuchea’s (AMK) loan disbursement and repayment procedures. While these observations were going on, I had my Cambodian Kiva counterparts practice getting information for business profiles and journals, which they did quite well.
Now, while the work itself went smoothly, with no problems arising, my driving experiences, whether going into the field or getting to the office, have been noteworthy (at least nominally). I awoke Monday morning and began casually getting out of bed and getting ready. I visited with my friend Ratha, but as I looked at my watch I noticed that the time was 7:23am. The office opens at 7:30, and we were to leave for the field at that time. Being someone who is always early wherever he goes, I had timed the ride to my office: eight minutes. I would be one minute late, and would somehow miss the trip out into the field that was arranged especially for me. When pressed for time, I should add, my thought processes lack the rationality that I’m accustomed to approaching most of life’s situations with. Thus, I panicked, ran to Thy (the fastest-driving moto-taxi man I know), and, not being able to resist the theatrical moment that I was presented with, hopped on the back of his moto and declared: “Fly Thy, show me the meaning of haste.” He looked at me confusedly, and so I clarified: “I need to be to work in five minutes.” That he understood clearly. He smiled, started his engine, and blasted up Street 310. We made it in four minutes, and that was probably the most fun I’ve ever had on a moto. Thankfully traffic was non-existent and so my trip was not suicidal (Thy would have made it in four minutes regardless of the traffic), and I now inwardly refer to Thy as Shadowfax, for his magical abilities of getting me to work in half the time allowed me to check my email and go to the bathroom before we departed.
On Tuesday I made it to work even earlier, and this time taking the full eight minutes to get there. We left the AMK office at about 8:00 and drove out into the field. I should note here that the pretty rice-paddy scenery in the provinces makes for a generally enjoyable driving experience, but only for about ten minutes, after which time one realizes that banging against the side of the vehicle every time you hit a big bump is going to leave bruises up and down your left (or right) side. This was not an issue on Monday, since most of the time there were only three of us in the back of one of AMK’s early- to mid-1990s Land Cruisers. It was comfy, air-conditioned, and there was enough space between me and the wall of the truck to allow me to bounce about with impunity. Tuesday presented a different scenario. One of my colleagues, Paujo, a nice bloke from Maine who I share an office with right now, wanted to go out into the field to see the same processes that I was. Thus, as he rode into work at about 8:00am on Tuesday, I called over to him and told him that we were heading out and that if he wanted to join us he could. He ran up to the office, dropped his stuff off, made sure there wasn’t anything pressing that demanded his attention, and came out.
In the meantime, I was casually leaning against one of the Land Cruisers, ready for another pleasant ride out into the field. Suddenly, however, a small Toyota Tacoma pickup truck pulled up and Pok Thy, the regional manager responsible for Kandal and also my guide, hopped in the front seat. I looked in the back seat (and at least it boasted an extended cabin), and grimaced. Four of us—Sophanith, Sophany, Paujo and I—would occupy that four-and-a-half foot space for the rest of the day. Paujo and I had backpacks precariously arranged on our laps or on the floor, which meant either blocking the air conditioning or having no foot room. I opted for the latter, and remained awkwardly positioned but reasonably cool, despite wearing dress clothes like everyone else. We arranged ourselves efficiently (like sardines, i.e.), and I waited for the driver to come shut my door. I was going to shut it myself, but when I tried I incidentally elbowed myself just beneath the ribs with the full weight of the door, which drove home the point that I should not have done that. Thus, it was up to our driver to close my door for me, and while I sat trying to look calm, I was in fact quite worried that much of me was still hanging out of the truck. He shut the door with enough oomph that everything previously hanging out was now smushed up inside. He chuckled. I made an involuntary grunt-like sound.
And thus we drove. When we hit the dirt roads, and the bumps that came every five seconds, my left shoulder banged against the corner of the door and the frame of the truck, while my head bounced back and forth between that same corner and the headrest (the corner won). Additionally, halfway into the journey, I began to notice a numbness coming over my right side from the waist down. Then I realized that I had committed the cardinal sin of long drives: I was sitting (read: bouncing up and down) on my wallet, worthless credit card and all. This too would leave a bruise, though I couldn’t feel it at the time.
Trying to take my mind off this sensation, or lack thereof, I asked Paujo what he figured the life of the suspension on these vehicles was. He said he didn’t know, and instead remarked rhetorically that he wondered what the suspension of his own rear end was, though his choice of words was slightly less kosher. The day continued on in this way, and when it was finally over, I asked Sopanith: how do you say “I’m tired” in Khmer. He told me, and I now have a new phrase, which this week has seen wide usage among those of us going into the field.
I took Wednesday off, needing to go to the bank to open an account, which was an ordeal in itself. The first time I went to the bank they told me I needed a letter from my employer saying that I actually worked in Cambodia and was not some useless lemming merely seeking to make a deposit. Thus, the next time I went into work I pulled up AMK’s letterhead and typed one sentence saying that I work here. Paul, my boss and AMK’s CEO, signed it and had me go get it stamped. In Cambodia, I should add, things with stamps and other official-looking “insignia” seem to be highly valued. On a side note, I should say that this largely constitutes a joke, as the first time I was here I found myself signing my name on fifty certificates of completion for a workshop that I and several friends put together. I could have signed “Santa Claus” or “Mr. Bojangles” with the same effect.
Anyway, when I was at the bank on Wednesday, they asked me if AMK was closed? I said no, and then they asked why I wasn’t at work. I told them: “because I needed to come here to open an account.” To this they replied: “why didn’t you come when AMK was closed.” AMK is closed on the weekend, and, coincidentally, so is the bank. Somehow this point wasn’t getting through, but fortunately some lady kept hearing “AMK” being mentioned, and so she walked over. I looked up, and saw one of my colleagues, who then verified that I am not a useless lemming seeking merely to make a deposit. For example, she too was there instead of at AMK. This is perhaps the first and only time that I will ever be grateful for windows between offices. Hers is right next to mine, and in this case that lack of privacy allowed me to open a bank account.
Thursday I was supposed to go back out into the field, but AMK did not have a vehicle available, and while I was slightly disappointed, my body was glad it had another day’s rest in a nice air-conditioned office. That night I went out with a friend who I met here and a few of her Cambodian friends, as well as some folks she met while traveling. We grabbed dinner and drinks, but as I had a splitting headache I didn’t drink anything and decided to call it a night fairly early. I hopped a moto and set off for home. The next thing I knew, however, I was in the Boeng Kak area at around 11:30 at night. At night, this area becomes a bit seedy, as evidenced by the many strung-out people drinking in dive bars and the drug dealers dangling bags of weed in front of your face as you drive by. This it seems actually takes some skill, since they never obstruct the moto-driver’s field of vision, but manage to slip the bag of drugs between him and his passenger. They know who to market to, evidently. Nonetheless, I found myself saying repeatedly, in Khmer, “no thank you” (why I thanked them I’m not quite sure…instinct, perhaps). Fortunately, I somehow got across the point that, as a wholesome lad, I don’t frequent the prostitute- and drug-ridden sections of town, and instead live in a nice quiet neighborhood, which I eventually got to.
Friday turned out to be a casual day, but a big one since AMK’s Kiva profile is done and I now have access to do things of consequence (hopefully good consequence, mind you). Being very tired though, I was also very ready for Friday to be over, and at 5:30, after a ten-hour day with a working lunch, it was. I shut down my computer, packed it up, and walked out of the office and into the heat of a fine Cambodian evening. I hopped a moto for home, and off we went for the casual drive home. As we proceeded towards my house, however, I noticed that my moto driver didn’t turn right onto Street 310 like most drivers do. Considering the fact that the opportunity to cross from one side of the street to the other in heavy traffic never presented itself, I didn’t blame him. There were other ways to get back anyway, and so he kept driving until he was able to get across the street. By this point, however, I began to notice that the sputter of his moto grew into a loud cough, and, on an unpaved side street about a mile from my place, the engine quit. He jumped up and down on the starter, trying to get some life into the tiny scooter, while I likewise bounced up and down on the seat. Tragically, his efforts were in vain, and I aggravated the bruise on my posterior.
Knowing that my ride was over, I began to dismount so I could start to walk, but he just looked at me and motioned for me to stay seated. He then sat back down, and with his left leg began pulling us along, determined to get me where I was going (despite the fact that he no longer knew where he was going). So there I sat, wearing sunglasses, slacks, a button-down shirt, dress shoes, and a helmet, moving at about half a mile per hour down a dirt road on the back of a moto while the driver pulled us both along with his left leg. This was not “the meaning of haste,” and rather an omniscient being’s way of getting back at me for defying the odds and making it to work on time on Monday.
As we creeped along, and as I sat thinking about how it would be faster for me to walk, and calorically more conservative for him to let me, I began to notice that everyone was out on in the road or on their balconies looking at us (well, probably me). Now, I hadn’t been at all comfortable with the situation at hand, letting some old guy drag me about a dirt road in Phnom Penh, but now that I was being stared at with confused-to-angry looks, I decided that it was definitely the time to get off. I went to stand up, but the guy grabbed my arm and sat me back down, and so I seemed stuck on the back of this guys moto. I felt, very simply, like a jackass. Then suddenly an idea came over me, I could help him out, and so between his left leg and my right leg, we pressed on in our slow journey. After about ten minutes we hit what could legitimately be classified as a road, and so I gave him a buck, begrudgingly took what change he had, and we parted ways. Two minutes later I was on the back of another moto, this one with enough gas, though the driver also didn’t know where he was going, and so after another ten minutes of trying to convince him that I did, I finally arrived home and had a beer.
In other news, and I have no idea what caused this, I have had immense cravings for fast food, not KFC, mind you, but burgers and fries, and Coca Cola as well. I don’t eat this stuff in the US, and I stopped drinking soda years ago, but for some reason I now have deep cravings for it. Thus, three days last week I went over to Lucky Seven (fast food chain) and got a sandwich, fries and a coke. Additionally, on Monday, when lunchtime came, we all piled into the comfy Land Cruiser and drove to a restaurant in Kandal. It boasted “fine Khmer and Thai cuisine in a relaxing and comfortable environment.” The terms relaxing and comfortable are of course strictly relative, as the floor was covered with tissues that previous diners and we used to wipe dust and dirt off our seats, and I spent most of the hour batting flies away from my Coke, which I drank warm because I did not trust the source of the ice. I ordered fried rice, which is a generally safe dish since everything is cooked, but I was slightly dismayed that it came served on a bed of lettuce and freshly cut tomatoes. Hepatitis A aside, I was starving and assume that I’ve been immunized for this, so hopefully I have antibodies. Fortunately, nearly two weeks later and I can say that nothing happened except the fact that I filled my stomach with some very tasty food. My days of dietary WMD are over, and my daily meals have returned to normal: lots of rice, fruit, stir-fried vegetables, and some good meat, pork in particular. Life is never dull here. Life is good.
Much love to you all,
Mark
p.s. The wicked French lady came back earlier than I expected. She never paid Thou, saying that her guidebook (three years old, mind you) said that Visa extentions only cost $35, and thus Thou was ripping her off by charging $40. Thou managed to get back at her, incidentally, for when she requested a ticket to Ho Chi Minh “Ville,” Thou’s sister accidentally booked her a ticket to Sihanoukville instead. We laughed heartily as we sat picturing the wicked French lady sitting properly and confidently on the bus bound for the south shores of Cambodia instead of Vietnam.

























