Kiva Stories from the Field

There are two themes to this: First, I´m coming home. And second, there are a lot of people who want to come with me!

I travel quite a lot, but it’s been a while since I’ve stayed in a foreign country for an extended period of time. All of a sudden, I’ve come to feel intensely proud and lucky to be an American. I was born into a country that gave me an opportunity to become anything that I’ve ever dreamed of. Sure, there are barriers, and it’s harder for some than for others, but I live in a country where most people have clean drinking in their home, where you don’t see children begging on the streets, and where if you try hard enough, you can find some sort of job that will allow you to put a decent roof over your head and feed you. I’m even lucky that I’m allowed to visit almost any country I please.

I’m amazed at the number of people who have jokingly asked me if I could take them home with me when I return. I have had more than a few offers to find me a good Honduran man to “import” back home. I’ve also met many people who have tried to cross the border by foot (often more than once), only to be caught and deported. I think the statistic here is that 1 in 4 families have a family member in the US. Many of the borrowers I interviewed have husbands, sons, and daughters who have immigrated, illegally or legally, to the US. One of the big education campaigns in Honduras is to encourage people to stay in their country, and help make it a better place. The belief here is that if one could only make it to the US, they would find this utopian society where all their problems would disappear and they would have a better life. For many people, their life does improve, but for others who are working illegally, it’s still a hard life in the US. I even know people here who don’t want to move, they just want to travel to the US on vacation, and they can’t get the visa.

Immigration is a controversial subject in the US, and I don’t know what the answer is. I only wish everyone else could have the economic opportunities that I have been given. There are a lot of countries that offer natural resources, rich cultures, and scenic beauty that just need a chance. Despite the downsides to Honduras, there’s another side to it that is equally impressive as the United States. So you can get a feel for just how beautiful and varied this country is, I’ve attached a few photos. It is abundant in natural resources – coffee, tropical fruits, shrimp, cocoa; tourism opportunities abound – the Bay Islands with its coral reefs, numerous national parks abundant with wildlife, the Mayan ruins of Copan; and most importantly – incredibly friendly and hospitable people who have welcomed me with open arms. I can’t say enough how much I am going to miss all the people I have met along the way that have been open and honest and willing to tell me their stories. Hopefully the next time I come to Honduras (and I will someday!) I will hear stories of change and progress.

Some of you out there may be wondering what a typical day is like “in the field.” Yesterday was one of those days. I spent the morning driving around with Mario Cruz, one of Prisma´s loan officers.

We zig zag around town, dodging traffic in a 1982 Toyota Corolla disguised as a taxi. Esau, the husband of one of the loan officers, is driving us around town as he usually does. I’m more than happy to take the front seat today, as like most cars here, there are no seat belts in the back. (Although I’m not sure how much a seat belt would help in an accident given that most of the cars I’ve been in here feel as safe as a tin can on wheels!)

Our first stop is to meet Luz Arel Castillo. She runs an auto repair shop. We pull into the shop and I see Luz, the lone female among her four male employees and those at the used car lot next door. I’m sure I look a little surprised to see a woman running an auto repair shop. I asked her how she learned the business. It´s a typical story. Her husband passed away two years ago and she had to take over the business to feed her family. After asking her a few more questions, I finish my interview, and we hop in the car to visit the three other women who are in her lending group.

About 30 minutes later, we arrive in the “Santa Isabel” neighborhood of Tegucigalpa. The last 10 minutes consist of driving on bumpy dirt roads, dodging potholes and rocks at a whopping speed of about 5 miles/hour. Glenda Yamith Duron and Hortencia Diaz Castejon are cousins who share a small house with their respective families. Glenda is married with three children. Hortencia is a single mother also with three children. Each family shares one bedroom amongst the four or five of them. As we sit in the living room, I peer back into the rest of the house. I see a dark room with a dirt floor. It is meant to be the kitchen, but like many families here, they “pay as they go” to build their home, and haven’t been able to afford the kitchen yet. Next door is Thelma Elizabeth Giron. She is also a single mother who lives with her two children. Her “house” consists of one room with two beds, a dresser, a small TV, a sink, and a hot plate. Two of these three women are the sole breadwinners for their family. They make a living by selling products from their home – shampoo, lotion, used clothing, etc. It’s quite incredible to believe that with a $275 loan, these women are able to feed three to four people each. Their income varies week by week depending on how much they can sell. My guess is that on average, they each net no more than $15 a week. Sometimes this job can be depressing. But at the same time, it can be inspiring to see so many people who won’t give up. In one form or another, so many people I meet face hardships and they continue to move forward.

Finally, it’s on to the “Honduras” neighborhood to visit Maria Isabel Obando. I’m pretty impressed to see paved streets and sidewalks, and rows of neatly constructed homes. Maria eagerly invites us in. She starts talking a mile a minute in Spanish, and I’m trying to keep up with all that she is saying, politely nodding my head as if I understand it all! She tells me how much she enjoys working with Prisma because the loan officers give her such personalized attention. (This is something I hear a lot from Prisma clients). As our conversation continues, Maria invites us to stay for lunch. Mario and I look at each other – hmmm….free food? Actually, one of the perks of my job is that most of the clients are so grateful for their loans, that if you try to buy something from them, they usually want to give it to you for free! Some of the foods I’ve tasted made by Kiva borrowers include coconut cookies, corn on the cob, tortillas, and homemade bread. Hey, it’s due diligence, right?

As we finish up our lunch, Maria tells us her neighbor is interested in a loan and she directs us to her business. We head down to the corner and find the potential client in her restaurant where she sells chicken and other local specialties. She wants a loan because she doesn’t have the capital to grow her business. Judging by all the customers she has, we can see that her meals are in demand. Mario walks her through the requirements for obtaining a loan, and promises to return in a few days. Finally, it’s back to the office. But we get stopped again. Another one of Mario’s clients waves us down as we drive by. She has a cousin who wants to apply for a loan for her piñata business. Hmmm…we might see some new Kiva clients soon!

I’ve been hanging out with the Prisma staff for almost three weeks now. The moment I stepped off the plane, they made me feel right at home. They’ve been eager to take me out in the field to meet borrowers, and educate me on the intricacies of microfinance in Honduras. It’s hard to believe it’s only been three weeks.

I am based out of the main office in the Loma Linda Sur neighborhood of Tegucigalpa. However, Kiva clients are spread throughout Prisma’s five offices so I am traveling between all of them. In addition to Loma Linda Sur, there’s the Pedregal office which services Comayagüela, Tegucigalpa’s neighboring sister city; the Danlí office about 1 1/2 hours east; the Choluteca office about two hours south; and the San Lorenzo office also two hours south but on the coast. Each branch has on average, two loan officers, who are out in the field every day meeting new clients or checking in with existing clients. So far I have had the pleasure of accompanying five of them to meet their respective Kiva clients. The work that these officers do is in my opinion, the most critical to increasing microfinance in developing countries.

Every client I meet tells me how much these small loans have helped him or her. Time and time again, I hear the same comment: that slowly but surely, these loans are changing their lives. Access to credit is empowering people to create economic opportunities in countries that for one reason or another, are unable to support their own.

As beneficial as it is, the one thing I’ve noticed is how hard it is to physically reach all those people who need loans. First, in big cities like Tegucigalpa, the traffic is horrendous and it could take 45 minutes to make it across town. That’s assuming one is traveling by car. Usually the loan officers will travel by motorcycle, bus, or foot (or a combination of) to reach clients because cars are too expensive to purchase and maintain. Second, whether it is an urban city or rural village, the roads in the poorer parts of town are usually in poor condition. In most of my trips around the city, I’ve been fortunate enough to get a ride in a taxi owned by one of the loan officer’s husbands. Even so, we usually have to get out of the car at some point and walk because the roads are too steep, poorly maintained, or haven’t even been built yet! It is physically demanding work – traveling all day, being out in the heat, and sometimes even having to watch out for would-be thieves.

I feel really lucky to be in the company of some very experienced and dedicated loan officers. They are tireless in their efforts to meet new clients and build long-lasting relationships with their existing clients. These officers, and all the other loan officers out there should be commended. It’s because of them that microfinance has been able to reach as many people as it has to date. They are instrumental in reaching those clients who need loans most, helping them pull themselves out of poverty. So thank you all!

I arrived in Tegucigalpa, Honduras last Wednesday. Two of the staff members of Prisma Honduras, Orbelina and Lucy, were kind enough to brave the rush hour traffic and pick me up at the airport. You can read more about the staff members and the various Prisma offices on Dr. Kendall Mau’s informative blog: http://microfinancetravels.typepad.com.

My first impressions of Tegucigalpa were that I could be in any large suburban US city, albeit with a little Latin flare! In my first three days here, I visited two different malls, both packed with people shopping at many of the same stores you find in the US, went to Wal-Mart to get a phone, and had dinner at Ruby Tuesdays. And if you’re wondering, this was not all at my suggestion! Even the prices for goods and services in Tegucigalpa are not much different than at home. Where am I again? When you see all this, it’s hard to believe that Honduras is the second poorest country in Central America (according to the 2006 CIA World Fact Book). Furthermore, in 2006 the unemployment rate was estimated to be at an astonishing 27.9% compared to 4.8% in the US. How can this be, when everybody is shopping?

Living in a nice section of Tegucigalpa, it’s really easy to forget that there is another half (or more) that lives below the poverty line in Honduras. There is an extraordinarily unequal distribution of income between the rich and poor here. This week, I finally was able to get out and meet some of the Kiva borrowers in Prisma’s Danlí office, about 60 miles away from Tegucigalpa. Danlí is colonial town with a cowboy feel.  Cattle ranching, coffee production, and cigar production are the economic mainstays. Now I remember what I am here for! I spent most of my time with Manuel, one of Prisma’s loan officers, driving around to meet various borrowers at their homes and businesses. Manuel knows just about everyone in Danlí and the nearby town of El Paraiso. He remembers everyone’s name, their family situation, where they live, and how much they have borrowed without needing to bring his files. I could tell that Manuel’s clients have a lot of respect for him. Everyone welcomed us in their home with open arms. Furthermore, I am told that none of his clients have ever defaulted on a loan!

As I return back to my apartment in Tegucigalpa, I remind myself that there are many sides to this country: the one where I am living with all the creature comforts of home, and another one, where many people are working hard every day just to meet their basic daily needs.

Hi, I’m Daniela, and I’ll be working with Prisma Microfinance in Tegucigalpa, Honduras’ capital. I’m spending a few days on the island of Roatán before heading to Tegucigalpa. Roatán is the largest of three islands that make up the Islas de Bahía (Bay Islands) just north of the mainland in the Caribbean Sea. Although there’s some technical debate over the definition of the various reefs, together, the Bay Islands and nearby Belize reef systems make up the world’s second largest coral reef after Australia’s
Great Barrier Reef! Too bad I’m not a scuba diver…  

From what I’ve read, the Bay Islands and the north coast of Honduras are much different than the rest of the country. The islands have a mixed heritage of Africans, Caribs, Europeans, and mainlanders. There’s also a lot of foreign investors buying up ocean front property to develop into higher-end lodging. It’s easy to see what all the hype is about – white sand beaches, clear turquoise blue waters, coral reefs, and unbelievable amounts of sea life including dolphins, manta rays, and sea turtles. All this tourism provides a source of economy for the locals, providing a better standard of living than many of the people on the mainland. As a result, a fair number of mainlanders (as well as westerners) are immigrating to the islands in search of economic prosperity. Hopefully the island and the reef system will be able to handle the influx of residents, tourists, and development. I met another American today, who when I told him I was going to be working with Kiva, said, “I know Kiva. How can I get involved?” It seems that word is traveling fast about all the great things going on in microfinance!  

I’m expecting Tegucigalpa, in southern/central Honduras to be much different. As the nation’s capital, it has over 1.5 million residents compared to less than 80,000 in the Bay Islands, and at 3,000 feet above sea level it will help fight against any malaria risk! I’m looking forward to meeting the staff at Prisma in a few days.