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The Benefits of PA2

4 December 2008

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. 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.

BRAC Southern Sudan

4 December 2008

The microfinance institution I have been working with, through Kiva, is called BRAC, Building Resources Across Communities. Since 1972, BRAC has been tackling the various dimensions of poverty through its holistic approach to poverty alleviation. BRAC has programs in economic and social development, health, education, and human rights and legal services. Operating in several countries all over the globe, BRAC is one of the world’s largest NGOs. 

Here in Sudan, BRAC has been instrumental in providing the country with the assistance it needs. BRAC has opened 25 primary schools, lent approximately 1.5 million US dollars to nearly 14,000 borrowers, and has educated countless people on how to maintain healthy lifestyles. BRAC Southern Sudan’s microfinance program is targeted towards returning war refugees, many of whom come back to Sudan with very close to nothing.   

BRAC Southern Sudan has been able to include nearly 150 Sudanese locals within its staff. The following interview is of Ohsio John, one of BRAC’s IT Specialists, who is linked to the world through Kiva. 

Candles and Converters

3 December 2008

After a few days, I felt mostly adjusted. I liked what was I doing and I had gotten used to fans only at night. I was sitting at Alide at 3pm at Friday when the electricity went out. The A/C stopped its whir, the computers had to be turned off to save battery. The water had already been off for 2 days.

We wandered outside. For the rest of the day, the young people of Alide talked in Fon, French, and faltering English. I showed them my photos, they made fun of me, they switched back to Fon to gossip to each other. When the electricity had not come back 3 hours later, Alain drove me home.

Using the light from our cell phones, Alain helped me light candles in the empty house, as Vivien was not home yet. When we had put on two candles, Alain turned to me to say good-bye. As I walked him out, I resisted the urge to ask if I could stay at his house. In the shadows, I could see the homeless people in the sandy alley, the women selling their wares with candles, unaffected by the outage. I locked the gate behind Alain, contemplating the slimness of the veil separating me from the street.

I double, triple locked the door to the house. I was shaking. Inside it was completely dark. I thought, this calls for some chocolate cookies and Audacity of Hope. The only problem was the candle did not yield enough light to see the book’s pages. I lay back, frustrated, trying to sleep, soaked in sweat. Something bumped the window. I pulled out my cell phone. No signal as usual. I would have cried, but it was much too hot. I mastered myself.

I would read outside! I threw open the doors, placed my candle on the stoop, opened Barack’s book. The tiniest wind blew, threatening to snuff it out. Not enough light to see; not enough wind to provide relief. Desperation forced me to my neighbor’s door, where I could see a light.

¨Bonsor,¨I said. “ Can I read on your stoop?”

“You can read inside,” she answered.

“Sarah,” I introduced myself.

“Honorine,” she said in return.

They must have their own generator, I thought, as she gestured me towards the couch and flicked the channel from Béninois to French without my requesting it. (As I write this later, the lights flick on and off for the second time tonight). Her three children stared at me. I think adults are too composed to stare, but if they had no inhibitions they would stare at me with the same intensity as their children.

“Salut,” (Hey) I said to them, trying to be casual.

“Bonsoir,” (Good evening) they answered, taught to be formal with strangers.

I sat on the couch for the next two hours pretending to read but smiling at the kids as the kids pretended to do their homework and stared at me. I was so happy to be there, out of the darkness. The second oldest girl was old enough not to be shy of me, too young to pretend that she was unsurprised by my presence. She brought the baby over, and I cooed at it and she played with it and I tried to talk to her, but she didn’t really understand me.

Presently Vivien (my homestay) came home. I made to go, but first walked to the back where Honorine was speaking with her sister.

“Merci,” (Thanks) I said. I really meant it. Maybe she understood how grateful I was, maybe she was just being polite, but I think we both knew how much of a stranger I was to the neighborhood.

“Come, come,” called Vivien. There was light in our apartment, and I wondered how long it had been there.

Most people reading this blog already agree that microfinance is a promising way to help people work their way out of poverty in a dignified manner. I agree, obviously, or I wouldn’t be here in Togo. It is heartwarming, and we should be inspired by it. But we should also be critical of it, to keep ourselves honest and to make sure it’s really having the effect we hope it is. In this post I will outline one of the biggest challenges facing the world of microfinance - becoming sustainable despite high administrative costs – and how Kiva and the Kiva Fellows contribute to a solution.

It is very difficult for Microfinance Institutions (MFIs) to target the poorest of the poor while maintaining some level of sustainability, or cost-effectiveness. There are many variables that affect the sustainability equation and make lending to the poor particularly difficult – increased risk, access to lending capital, regulatory environments, and administrative costs, to name a few. Administrative costs are arguably the biggest obstacle to the microfinance movement. The poorer a client is, the smaller their loan will be, and the smaller the potential interest revenue will be for the MFI. However, no matter what the size of the loan is, an MFI employee needs to spend a certain amount of time meeting the borrower, visiting their business, checking their legitimacy, and processing paperwork – and, as we all know, time is money. So, the smaller the loan, the smaller the profit margin for the MFI. Kind of obvious, but crucial to understanding the workings of an MFI (and crucial to understanding why microfinance interest rates often range from 15%-80%).

So, where does Kiva fit in? Through the generous contributions of its lenders, Kiva provides interest-free capital to partner MFIs, thus increasing their ability to target poor clients. In my opinion, and the opinion of many experts in the field, the eventual goal of MFIs should be to end any dependence on this type of subsidized funding by covering all costs with interest income, because only sustainable, independent MFIs can provide the poor with permanent access to financial services. However, as Kiva’s partners work toward this goal, the interest-free capital provided by Kiva lenders serves as a vital stepping-stone toward financial self-sufficiency.

Unfortunately, there is an additional administrative expense associated with the Kiva relationship. As you might imagine, it takes a good deal of time to gather all the necessary information for new business posts and journal updates, then to send the information to the Kiva site and report repayments. This process needs to be as streamlined as possible to maximize the MFI’s returns on their – and your – investment.

Enter the Kiva Fellow.

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A Kiva Fellow, entering. This could be any of us, in our natural habitat (on the back of a loan officer's moto).

When a Fellow arrives on the job, there are a few specific things he is supposed to accomplish during his 1 to 3 month stint at a partner MFI. These things are:

  1. Verify borrower data. The most basic and essential function of a Kiva Fellow is to ensure that an MFI and its borrowers exist, and that the loans posted on the Kiva site are accurate in every way.
  2. Write journal updates and new business descriptions. Kiva Fellows help with the general workload of managing the Kiva relationship.
  3. Blog and spread the word. Kiva Fellows are meeting lenders and getting their hands dirty, and are able to share a more visceral experience of what it means to be Kiva.
  4. Help with process improvements and templates. Though this step is often less visible, it is the only “sustainable” mark a Kiva Fellow can leave on an MFI, and ties directly into the cost-effectiveness equation.

At our week-long training at the Kiva headquarters in San Francisco, we become experts on the Kiva/partner process. Upon arrival in-country, we learn how our MFI carries out this process, and we look for opportunities to make things more efficient. Sometimes we might train loan officers on how to take better photos of their borrowers, thus improving the quality of new business posts and hopefully getting their loans funded faster. Or, we might see that the work is being split between 10 different field offices in an inefficient way, and help our MFI centralize the process. I’m currently trying to convince my MFI to implement a sort of mini-commission plan for journal updates per loan officer, since they’re having trouble meeting their deadlines right now (in my previous life, I was a compensation consultant). These are just examples of the types of changes a Fellow might try to implement at their MFI. It can be a frustrating process, and one that takes a lot of initiative, but in my opinion it represents a Kiva Fellow’s greatest opportunity to truly instigate progress.

Microfinance is more than just promising – it already has changed the lives of many poor people. But, there is still a great need for innovation to improve the efficiency of the sector and its ability to empower the poor, and I am humbled by the opportunity to contribute to that goal.

***

I apologize that this post has been quite dry – no heartwarming stories or funny anecdotes – but I think understanding this subject is crucial to understanding how Kiva, the MFIs, the Kiva Fellows, and YOU, the Kiva lenders, contribute to the success of small business owners in a sustainable way.

I’m going to get that word tattooed on my forehead.

In case anyone made it all the way through, here’s a funny anecdote and a picture to boot.

I went into the kitchen the other day and opened the freezer to look for a bottle of water. Instead, I found a wild animal, jumping out at my face! Well, it didn’t really jump, because it was frozen (since it was in the freezer). But it was a wild animal, and it was gross. I ran and got Abozu (see my previous post - Why I Can’t Give Abozu My Camera) to ask him what it was. “Un renard.” He said. I ran to my French-English dictionary (I was doing a lot of running – it’s not every day you get attacked by a mysterious frozen animal) and found that “renard” means “fox.” If you take a look at this picture, you’ll understand why I was a bit skeptical:

"Fox"

"Fox"

Hm…that doesn’t look like a fox.

The next night, as my homestay sisters were roasting the ENTIRE ANIMAL over the fire, I asked again what it was, and they explained that it was an “agouti.” I ran (again) for my dictionary, but “agouti” is apparently not important enough to be included in the 300,000 words in my dictionary. Thanks to Wikipedia, I found out the next day that an agouti (same word in English!) is a relative of the guinea pig, and sometimes called a “bush rat.” How delicious-sounding!

I ate it that night, and it wasn’t bad – kind of like a weird mix between beef and chicken, if you can imagine that. (But it wasn’t that good, either.)

At least I’ve managed to avoid trying dog meat so far. (Yes, I’ve been offered.)

*** maen

I am a Kiva Fellow, Class of KF6, serving three months in Lome, Togo, and three more in Dakar, Senegal. Please check out my current MFI, WAGES, and see all of their fundraising loans here!

Reservoir Microloans

2 December 2008

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.

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To see more AMK loans that are currently fundraising on Kiva, go here

No Ordinary Day

1 December 2008

Not long ago, I was trapped in a mind numbing corporate cubicle, devoid of spirit, trading my time for money. I fantasized about days like this. Well, not exactly.

Grace didn’t tell me we were going into the field today. I was wearing my best clothes - navy blue slacks, a pressed white shirt and shiny black loafers, prepared instead for a day in the office. Naturally I was excited to join her and seized the opportunity without hesitation. “Nkokonjeru,” Grace replied when I asked her where we were going, “it’s not far.” She didn’t intentionally mislead me. Besides, it sounded like a lovely rural village. That much at least was true.

Old Taxi Park

Old Taxi Park

Our saga began in Kampala’s old taxi park. The old taxi park is a chaotic, densely packed and altogether disorienting entanglement. I try to avoid it at all costs. That’s hard to do since all routes leading out of the city center originate at the taxi park and routes into the city terminate at the park. Even routine movement from say my guest house on Namirembe Hill on the southwestern perimeter of the city to my office in Kamwokya in the north central (about 6 km as the crow flies) requires a frustrating connection and a long delay through the taxi park, turning what should be a short commute into an hour-long journey that tests the limits of one’s patience and tolerance for discomfort. The Ugandan taxi system is not designed for the comfort and convenience of the passengers it serves.

The routine goes something like this: locate your taxi (white Toyota minivan, aka matatu) in a sea of thousands of identical others in a labyrinth of shouting barkers, hawkers and pedestrians. The taxi park is not ordered neatly into rows or equipped with clearly-marked signs or parking stalls, and there are no set schedules. With luck, you’ll eventually zero in on your van through a process of trial and error. Matatus, however, do not leave until they are full - a literal determinant not open to subjectivity: thirteen out of fourteen occupied seats is not full. If you arrive early, as Grace and I did on this unbearably hot day, you grab a seat, start sweating profusely and wait. And wait. And wait. We baked for nearly 40 minutes to medium-well until gleefully accepting our fourteenth victim. While this poor soul was lucky enough to avoid the long wait, he got the most uncomfortable seat - a fold-down jumper that he had to share with the conductor - all the way to Nkokonjeru. Either way, the taxi park exacts its price in misery.

Kampala’s notoriously bad traffic was especially awful this day. I craved movement, not for progress but for the breeze; instead, we roasted in agonizing stillness. We didn’t escape the grip of gridlock until Mukono, well outside the city limit, but freedom was fleeting. We immediately left the paved road (not to be confused with smooth) and joined a bone-jarring dirt road. Each time we hit a rut, or swerved to avoid one, I was bounced around painfully and frequently whacked my head. The van sounded like it was being ripped apart by the fissures, with deafening bangs. Seeking comfort on the “cushioned” seats was wasted energy. The driver, like most, was hard on the throttle and brakes, and the van’s suspension system was on strike. My legs grew fatigued from trying to brace myself - hard to do with my knees in my chest and unable to apply leverage.

Worst still was the dust from two weeks without rain. Constant clouds of thick blowing dust left no choice but to close all the windows. Lacking fresh air, the temperature inside the van sweltered. Closing the windows proved futile as plumes of dirt billowed in through holes, cracks and unsealed windows. I could barely see the front seat of the van as we raced down the abusive road. The limit of my endurance was being teased and I urgently needed relief. So I slid my window open. Big mistake! The other passengers, all Ugandan, shot me an aggravated look in unison while shouting at me in Luganda. I interpreted their response to my (obviously stupid) action as objectionable, and complied by closing my window. Grace thanked me. I couldn’t even access the water I had the foresight to bring - it was like trying to take a swig on a tilt-a-whirl.

Nkokonjeru

Nkokonjeru

I was a physical mess and in wretched spirits when we finally arrived at Nkokonjeru. After being smashed incessantly against my cranium for two hours, my brain felt like one of the blended fruit smoothies a hawker tried to sell me upon debarkation. Dirt permeated everywhere - my eyes, nostrils, ears, teeth, hair, clothing and pretty much everywhere else, as I would find out later. My pressed white shirt was filthy brown and un-tucked and stuck to my reeking body. My blue slacks looked like some kind of hideous disco-era fashion. My shoes were no longer shiny or black. I was dehydrated from the unrelenting dry, dusty heat. In short, I was disgusting. “Not that far, huh Grace?”

But at least the torment had ended (for now). I was nearly euphoric to be out of the van, standing upright and breathing fresh air.

I’ve gotten used to being greeted as something of an enigma in remote rural villages, which of course, I am. I’m always welcomed as an honored guest; I’m usually chased by laughing school kids screaming “mazungu!”, and I’m frequently stared at cautiously and inquisitively by town elders, like I’m an unfamiliar predator. On this day, I was looked upon with horror, pity and comedy. One woman offered me a dirty rag to clean my face with. Another apologized - it’s the dry season, she reminded me. Several were laughing uncontrollably. I took no offense; I must have been quite a sight. They knew from a lifetime of experience what I had just endured. I think they were laughing with me, in empathy and camaraderie - a reminder that sometimes you just have to let go, accept the situation and enjoy the moment. Another powerful lesson learned in the field, of which I tried to heed.

When our meetings ended, Grace determined it was better for a soft, middle-aged mazungu (eg, me) to take a motorcycle taxi to Lugazi, seven miles away, where we could catch a taxi home on pavement and thus avoid reversing our hellish route. Grace got no opposition from me!

I had never been so happy to be on the back of a motorcycle. I enjoyed the smooth and comfortable ride, if even on dirt. Mainly, I treasured the freedom. A fine consolation, I thought, for the afternoon’s effort. The Mukono countryside is undeniably beautiful. The rolling hills to Lugazi wind through Elysium fields of sugarcane, tea and banana. The air was almost sweet and by now it had cooled comfortably. The fresh breeze was as rewarding and rejuvenating as a cool shower after hard labor. An ominous thought.

Without warning, the blue sky turned dark and we were overtaken by a tropical thunderstorm. Yes, the rain felt wonderful but the irony mounted. In the middle of nowhere, with no shelter to be found, I was helpless to resist. I reminded myself of the lesson the laughing ladies of Nkokonjeru taught me earlier, and I embraced the moment unconditionally and with laughter, in what could be one of life’s cherished moments. Certainly beats the heck out of an oppressive cubicle! We pressed on to Lugazi, where I arrived soaked to the bone and muddy. And, strangely, happy.

The return trip offered little respite. I was filthy, my clothes were saturated, and I was absolutely uncomfortable in the 3rd row of the battering matatu. When we passed the Kampala 15km sign, we came to a dead stop and sat motionless for over an hour. With daylight waning and no indication of impending movement (and a completely fatigued body and mind), I decided to complete my journey on a boda boda. Normally, I reserve bodas for rural backroads and short, relatively safe hops in the city. But this was not normal circumstances. I coveted hygiene and comfort, at any cost. Still, fifteen km on a boda was an unsettling acceptance.

After weaving in and out of opposing lanes of traffic, diverting onto sidewalks and popping wheelies for several km’s, the driver skidded into a petrol station and told me to give him money for fuel. I paid him the fare we agreed upon. He didn’t look to his right, the direction of oncoming traffic, when he pulled back out into the derby. The next thing I heard is the last thing you want to hear on the back of a bike: screeching car tires. How we avoided an inevitable collision, and worse, is a mystery. I think we jumped over a curb and slid into a power pole sustaining only minor scrapes and scratches.

Later that evening over a badly needed beer, I wondered if the effort and risk and suffering were really worth it, just to interview a couple of borrowing groups.

The answer is a resounding yes. I share this folly not just to humor and entertain you, but to illustrate a day in the life of a Kiva Coordinator, whose ordinary day is decidedly unordinary and who delivers extraordinary results.

Kiva Coordinators are a vital link that connects Kiva Lenders to Borrowers. They endure days like this one to bring Uganda’s rural poor into your living room and to put a face and personality on a funding request. Their work is exhausting, demanding intellectual and physical capacity. They travel near and far, and they work under tight deadlines and bear large responsibility. I found this one day in the field to be Blog-worthy; this is Grace and Gina’s everyday reality. After “scooping” stories in the field all day, it’s not atypical to find them writing up their interview notes well into the evening and on weekends so they can post them onto Kiva within deadline. Working hard for the poor.

Grace

Grace

Kiva Coordinators are unsung heroes. Grace (Pearl Microfinance) and Gina (BRAC Uganda) are talented, intelligent women - both attended top universities on scholarship. Their purpose, like most poverty workers I’ve met, drives them to excellence, regardless of the commitment and personal sacrifice asked of them. It would be a lot easier to stay seated at their desks. But ordinary wouldn’t suit Grace or Gina or any Kiva Coordinator. They thrive because they know that are a playing a unique role - there are less than a few dozen Kiva Coordinators in the world, and Grace and Gina represent two of them (the few, the proud). Kiva Coordinators hold a critical responsibility for attracting lenders by writing compelling borrower profiles, and retaining lenders by writing social and economic impact updates (eg, journals). Watching lenders on the Kiva website from all over the world react to “their” loan excites them, and witnessing first-hand how that loan transforms lives invigorates them further. Grace and Gina are changing the world, one long, hot trip over fiery, dusty, battering roads in afflictive matatus at a time. Their profit is pride and the dividends they receive far surpass the distress they withstand. I hope my slapstick tale helps bring them out of the shadows and into recognition. Ordinary people doing extraordinary things.

Gina

Gina

I commend BRAC Uganda and PEARL Microfinance for their vision and their commitment to Kiva. Kiva Coordinators are full-time salaried staff resources and, therefore, a long-term investment in their partnership with Kiva, and a further embodiment of their unwavering commitment to poverty alleviation.

It’s truly my great privilege and pleasure to work with Gina and Grace - two remarkable young ladies that I will miss when I return home.  I’m proud to call them colleagues.   Each one approaches her craft with professionalism, dedication and good cheer, and delivers the results expected by all stakeholders.  Their energy inspires me.  They are a reward of progress and I’m indebted.

It was a typical Sunday in Khujand. I slept late until 9am and wandered out for some breakfast and tea. I haven’t quite mastered the art of making instant coffee (ground coffee is non-existent) so I just don’t bother. I’ve had it in restaurants and with the right mix of crystals, sugar and water it’s not bad. A few minutes later the power clicked off. The daughter of the family I’m staying with said what I was pretty much thinking – “just another typical weekend in Tajikistan.”

There’s really not a lot to do here and even less with no electricity. I talked to her about movie theaters, shopping malls and golf. They definitely don’t have golf and apparently there’s a theater but “it doesn’t work” she said. The night before we had already discussed American shopping habits when the Russian news channel showed a clip of people bum rushing a Walmart somewhere in a non-descript American town. I was slightly embarrassed. With wide eyes they asked, “is it free?” because no other explanation could reasonably justify the frenzied swarm of humanity. It was difficult to explain Black Friday and why people with so much are so eager to acquire even more.

With remarkably nice weather for this time of year – sunny and in the 50s most days – we decided to venture out to the bazaar. The daughter had to buy a present for her teacher so I was the guinea pig testing all of the

Looking for bargains in Isfara bazaar

Looking for bargains in Isfara bazaar

Chinese knock-off colognes. They had names like ‘Give N See’ or ‘Aqua di Go’ and sold for about 15 to 20 somoni (just over $5). My nostrils are still recovering. What struck me was the fact that, given the incomes here and the quality of goods, prices are extremely high. Most of it is Chinese-made and of even lesser quality than anything which makes it into the ‘everyday low price’ category in the US. Walmart looks like Nieman Marcus by comparison.

Most of Tajikistan is still very much a bazaar culture with everything from spices to shoes to stereos all selling within a short stroll. A kilogram of my favorite snack – peanuts covered in honey and rolled in sesame seeds – goes for 12 somoni ($3.50) A pair of jeans of no known provenance will easily run at least 60 somoni ($18) and goes up from there. Even cars are bought at the bazaar since there are no dealerships. A 2005 Chrysler 300 imported from New Jersey could be had for $25,000 which is almost twice the auction price in the US. The more reasonably priced cars are Lada or Opel but will still set you back a minimum of $3,000.

It’s great sport here to compare prices and I’ve had countless conversations about the cost of goods in the US versus Tajikistan. I have a newfound empathy for the campaigning politicians who get asked idiotic questions about the price of milk, eggs or bread. Until you’ve been asked, you don’t realize the challenge. Store brand or organic? How many liters in a gallon? By and large the reaction I get here is that things aren’t insanely more expensive in the US. The only cheap goods here are those produced locally and there aren’t many.

Car shopping at the bazaar

Car shopping at the bazaar

Part of the challenge in comparing prices is also the disparity in incomes. A one-way plane ticket to Dushanbe is about $60 which is wildly cheap by American standards. But talk to anyone here, and it’s a very rare trip. Adjusting for what’s called ‘purchasing power parity’ – an adjustment made to reflect exchange rates and the cost of local goods – Tajikistan’s per capita GDP was $1,356 for 2005. This ranks it 152nd out of 174 countries and on a par with Congo and Chad. A more amusing metric sometimes used is that of The Economist’s “Big Mac” index which compares the price of the McDonald’s burger from one country to the next. It would be more useful to this discussion if there was actually a McDonald’s in Tajikistan.

One of the looming challenges for Tajikistan – particularly given its nearly non-existent manufacturing sector and its cotton monoculture – is the difficulty in sourcing imports. Under the Soviet economy it was the beneficiary of imports produced elsewhere in the Union and often at subsidized prices. Now the training wheels are off and its economy is wobbling down the sidewalk. For a country bordering the world’s largest manufacturer of goods – China – you’d think Tajikistan would have access to a huge variety of its products. But that’s not the case at all.

With its landlocked location there are no ports of entry and the eastern mountain ranges peaking at over 7,000 meters make for hairpin roadways where passes are frequently snowed over during the winter. The international airport in Dushanbe boasts of a throughput of 200 passengers an hour and the national airline, Tajik Airlines, was at one point banned from entering the European Union on the basis of lax safety standards. Tensions are high with neighboring Uzbekistan and travel is severely restricted between the two nations. Bishkek in Kyrgyzstan is a major distribution point for Chinese goods but it’s a solid 24 hour round-trip by truck. Afghanistan is best known for sending opium – some 1.4 tons have been seized at the border this year alone – but it does supply some building materials to the south of the country. And Tajikistan is perhaps the only nation on earth where RC Cola is the market share leader presumably since Coca-Cola lacks a bottling facility.

It’s a bit surprising to walk through the bazaar of a 3rd world country and think to myself, “I could get better

Tashbubu spinning wool into yarn

Tashbubu spinning wool into yarn

quality at a better price in the US.” But for most manufactured goods, it’s true. Of course if you’re shopping for melons, bread, apricots or apples you’re absolutely in the right place. Wrapping up a melon and putting it under the tree just doesn’t seem right though. For the most part I’ve been checking out handcrafts which are unique to Tajikistan. Tashbubu, a Kiva client in the Kyrg enclave of Vorukh, makes amazing room-sized carpets from hand-spun wool priced at about 1,800 somoni ($500). In Istaravshan, craftsmen are well-known for handmade knives complete with ornate handles carved from sheep horns. These are the real treasures in Tajikistan and the lack of cheap imports does have one fortunate outcome; it keeps these people in business. Perhaps one day Tashbubu will find herself unable to compete with factory-made Chinese carpets, but for now her business is brisk.

There is no easy answer to the ‘right or wrong’ of globalization. Access to cheap goods is necessary but so is the maintenance of local industry. Tajikistan is still on the cusp and finding its equilibrium. On one street you’ll see men in traditional Tajik dress passing those in tailored suits. Donkey carts and SUVs rattle over the same potholed roadways. Milk is almost always organic and free range chickens are wandering the streets. It’s not exactly a shopper’s paradise, but it definitely has its appeal.

First Thoughts

29 November 2008

I am sitting quietly in the cool, green room of a family operated hostel called Dos Molinos in San Pedro Sula. Shortly I will leave for a long bus ride to Tegucigalpa where I meet up with Prisma staff who will show me to my new home.

As I prepare for Monday, when I want to hit the ground running, I find it hard to focus as my mind begins to wander all over the place (though maybe it’s just the vestiges of chloroquine induced dreams…)

My boyfriend prefers professional football to college. He likes brute force of it, and feels closer to the professional teams, which represent to him, his hometown in California more than any college team could. They are old friends, and a powerhouse of activity. Me- I can’t stand football, but the only games I’ve truly enjoyed are between college teams. These are players that still play for the love of the game, for the camaraderie, to make their coach proud, for Mom, Dad and maybe a girl in the stands. They play less for the money than they do for the love.

This is like me- I want to work for the love, and not for the money. This is why I’ve left my paid job for an unpaid Fellowship, left my apartment, friends and family and most of my worldly goods to move to Honduras. I’ve already met the kindest people, sobre todo, the folks here at the Dos Molinos. I find myself thinking, somewhat pedantically, what kind, wonderful people. I’m depressed by the next thought which is, “yeah, but they are only nice to me because I represent money”.

Is that true?

Worse, is my commitment to using microfinance not only to raise the standard of living, but facilitate global connections and understanding actually condemning the world to a game of professional football, where we loose that intangible human nature for a structured, monetary interaction? I love Kiva for its commitment to people, and for using technology to make the world a little smaller, but what do we lose in doing so? And how can I minimize the loss and maximize the benefit?

What can I do to make technology real in people’s lives, relationships both personally and financially prosperous, and us all a little happier?

I will explore these questions here in the coming months here. Join me.

Wednesday saves the week

29 November 2008

Wednesday morning was a blast. I had to get up at 5 and get ready to go into the field alone. It was my first time to go alone, but I had set up a meeting with some of the clients from one of the centers in town so I could do a few extra interviews. I had never been to the center, so when I reached the junction the center was at I had to start asking for directions. The first woman I asked was carrying a bucket of popoffs (fried dough balls) and was on her way to the market. She grabbed my hand (holding hands is very common here), and led me to the bottom of a hill. She spoke to a friend of hers who apparently agreed to show me up the next leg of the trip and placed my hand inside my new tour guide’s hand. We walked up the hill and reached the local water tap. Children were lined up with large buckets waiting to bring back water for their family to prepare for the day. There, I was given a new tour guide—a girl around 10 years old with what had to be 20 litres of water on her head. She didn’t spill a drop as we walked quickly to the center. In front of the center waited 10 eager and excited clients, all of whom rushed over to greet me.

After conducting my interviews, I came outside to find two of the members waiting for me. One was the center chief of this particular center. They were standing with the neighbours and called me over. The mama of the home was drying out her fried grasshoppers and when she saw me coming immediately yelled at one of the children to get a ‘big paper’ (plastic bag). She filled a fairly large bag with grasshoppers and I thanked her. We continued down the hill. We walked through some compounds (essentially like someone’s back yard), to get to the Emelda’s shop. On the way, one of the neighbours was cooking her grasshoppers still. She went to talk to Emelda and asked if I could watch them. Of course, I immediately pulled out my camera and started taking a video, letting a couple jump out. Abraham, the center chief, assured me that would have happened even if I was stirring them properly.

At Emelda’s shop, or ‘off license’ which is similar to a bar, she sells beer, wine, cold drinks, and some food items. She wanted me to ’snap her’ (take her photo there), but she had had to hide all of her drink items off the shelves yesterday when the tax collectors came by; she didn’t have enough to pay taxes this month and knew they wouldn’t be going to help her people anyway. So, she decided to hide her items and pretend she had been doing very poorly in business. Next we went to Abraham’s farm. Emelda helps Abraham on the farm as well. The farm was huge, he was growing cabbage, tomato, sugar cane, njama njama (leafy green vegetable), pepper (jalapenoish), fish (in a fish pond), you name it, he had it. They had created an irrigation system by digging ditches through their farm land starting at the top of the hill (the farm was all on a downward slope). The ditches crossed back and forth over the approximately 5 hectares of land, finally ending in the fish pond. It was pretty muddy and slippery, so it was suggested I leave my sandals at the top. As we were walking around, the sun was starting to get pretty hot; Emelda had an extra head scarf and tied it on my head to protect me. Abraham decided to cut down some sugar cane stalks so I could take them back to the office. He cut down about 6 or 7 huge sticks and tied them together with grasses. They were about 4 to 5 feet long; they came up to about my chin. We left the farm and made our way over to another friend of Abraham’s who also helped on the farm.

He explained to me that here in Cameroon, you should not try to do it on your own. Your business and life will fail. He says life is too hard here to try it alone, you need the support of others; even just to cover you when you have malaria or
typhoid, you need support. That’s why he likes being with GHAPE, they all support each other. All of them work together to make their lives better. Not a bad way to approach a problem. This other friend had three large pigs that had all just recently had piglets. There were quite a few of them all trying to jump out as soon as I looked in. I think they thought I was bringing them food or that the camera was food, because after a couple minutes they all became fairly disinterested in me. We walked up to the road so I could catch an okada (local term for motorbike here) back to the office. I still wasn’t wearing shoes (I know, could have caught all kinds of worms and bugs through my feet) and was wearing Emelda’s head scarf still (she said she would get it from the office later—it was too dusty to take an okada without it. I was now also carrying 7 or so long stalks of sugar cane over my shoulder and snacking on grasshoppers out of a big garbage bag; needless to say, I felt very Cameroonian. As I hopped on the bike and held the sugar cane with one hand, I rested my grasshoppers in my lap and pulled out my cell phone with the other hand to send out a few messages. It was only about half way through the ride home that I thought, “what am I doing? Hold on to the bike, put your grasshoppers and your cell phone away! What are you thinking?” Everyone was really happy to see me come back to the office with gifts of grasshoppers and sugar cane. They all went outside and began chopping off pieces of about one foot for each person. I was lucky enough to get my own stalk!

I have run out of time here, and have to get ready for Foumban this weekend. Foumban is about 4 hours outside of Bamenda and apparently has a huge cultural festival every two years. I will add some more blogs when I get back from that. However, I will say that this week, I successfully created the first GHAPE website! It was a bit over my head, but with a lot of trial and error it is up and running! Check it out and keep in mind there are still a lot of little details I’m still fixing up. www.ghape.org . I also added new photos to jenmcq.smugmug.com

In honor of the brilliant Tanzanian posts: http://fellowsblog.kiva.org/2008/10/10/you-know-you%E2%80%99re-in-tanzania-when%E2%80%A6vol-iii/

You know you’re in Bosnia when…

1. Any healthy foods must always be accompanied by sausage.

2. Your coworkers refer to annoying things as “liver” because “they cause the liver to feel pain.”

3. People mix their wine with coca cola.

4. The most popular musicians are over the age of 40, and are usually accompanied by accordions.

5. Pizzas are baked without tomato sauce, but you are welcome to squirt ketchup over the cheese, if you like.

6. Men wear identical black berets.

7. Graphic pornography is sold at convenience stands, next to the candy bars and gum.

8. You feel physical pain when you walk outside in the winter, as your brain contracts from the cold.

9. Cocktails cost $1.

10. US lotteries use 6 numbers. Bosnian lotteries use 19.

Also, here is a borrower update that I recently prepared on Daliborka and Nevenka Javanovic.

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