Technology and Communications
Team
Log #2
By Binh Nguyen
Last week was our second week with GLOBE and we have been asked to
come up with a topic for our research paper. Our IT group is facing
two difficult options for our research topic. Firstly, as the
Technology and Communications Team, we realized that communication
is a severe problem that is recognized by people working in
microfinance, particularly Dr. Muhammad Yunus, but the issue was
never solved thoroughly before. Secondly, it is crucial for MFIs to
make sure that the loans arrive in the hand of the poor fully,
which means MFIs actually have to come up with solutions to keep
the money out of reach of the corrupted authorities in developing
countries. In addition to working on the research paper, we started
to get familiar with GLOBE’s page on Facebook, Twitter, and GLOBE’s
email accounts. Moreover, we also came up with our IT Team’s Gmail
account which allows us to keep up to date with other groups’
work.
I found the chapters for this week’s readings, quite
interesting. The readings, on one hand, pretty much involve
identifying a target market, in other words, identifying who the
poor are and analyzing the impact of services on that market. On
the other hand, it points out that the effects of cultural,
religious, ethnic and political factors apparently define the
unserved and underserved group; and influence the types of service
needed by the target market. Undoubtedly, the importance of
identifying the target market (identifying who the poor are)
connects closely with an MFI’s long-term goals which are outreach
and sustainability. Indeed, these two goals are equal in
importance, and strongly depend on each other so that MFIs maintain
its objectives of servicing the financial needs of unserved or
underserved market. In the process of identifying the target
market, the author of Microfinance Handbook stated the central role
of focusing on female clients who obviously are the most unserved
and underserved group in every society. Taking Dr. Muhammad Yunus’s
story of Grameen Bank as an example, women in developing countries
like Bangladesh are mistreated by the society they live in for so
long that they never got a proper education, training and access to
borrowing before microfinance institutions like Grameen Bank
reached out to them: “Women face cultural barriers that often
restrict them to the home, making it difficult for them to access
financial services.” (Ledgerwood. 37). Seeing the successful result
of lending loans to women in Bangladesh that Grameen Bank has done,
the vital role of women in reducing poverty becomes clearer. And
Joanna Ledgerwood states in Microfinance Handbook that: “The
objective of many MFIs is to empower women by increasing their
economic position in society.” (Ledgerwood. 37)
Apart from being interesting, I also found out that the books are
useful in the way that the authors actually teach us how to
actually run a MFI efficiently and effectively, which will be also
very helpful for us when working on our tasks with GLOBE.
Marketing and Fundraising Team
Log #2
By Amanda Leys
Going into week two, the marketing team and I felt much more
organized and equipped. After meeting with last semester’s
marketing managers we were able to draw from their experiences,
both positive and negative, and come to some conclusions about the
direction we wanted to take. One of the most frustrating things
about GLOBE is when fellow St. John’s students have no idea what it
is! Keeping this in mind we tried to imagine an event that would
raise awareness about Globe both as a class and a cause. With the
venue and date pending- this was a little difficult. But we tried
to keep up momentum and explore some of our other marketing
tactics.
Firstly, the newsletter. I feel that this is one of the most
important aspects of marketing the program. Keeping our donors and
followers up to date is crucial to remaining relevant. Our
followers have to know that the loans are going out, and that we
are expanding. AJ took the reins on the writing. Next, after
speaking with last semester’s managers we discussed our options for
an item to sell. The bracelets and the t-shirts are the current
products. In promoting GLOBE as a cause, the bracelet is ideal
because it is wearable on an everyday basis- however it may not
always catch the eye and it doesn’t say anything more than the
program name. Bearing this in mind, we came up with the idea of
some sort of tote bag. This product would be usable, wearable, and
informational. It could have the logo, the name, and an explanatory
motto, “Students fighting poverty one loan at a time.” But
creating such a product will require design and preordering. We may
find that this is out of our price and time limits and then there
is the issue of ethical production.
Moving on we also tackled a yet unused fundraising technique-
letters! Yvonne drafted a simple informational letter that could be
sent to potential donors. I am in the process of designing an
attractive email that could be sent out. The thought occurred to me
that if everyone in the class contributed 10 email addresses-
friends, family, coworkers, etc. we could add numerous contacts to
our database. If they forwarded it on, then our numbers would
grow even further. Having already created an email account on
Gmail we could add all the names to our contacts to easily update
the database. We should also work with IT on this to add email
contacts to the tcbglobe@stjohns.edu
account. In addition to these plans, we hope to create a “press
kit”- some sort of info packet or brochure that would be ready at a
moment’s notice to send out to anyone from donors to newspapers to
students.
Another task we deemed highly important was the creation of a
folder or binder that would keep track of the work we did as
marketing managers and could be passed on to future classes. We
felt that last semester’s team accomplished so much, however the
resources they created were somewhat scattered. Making the
transition between manager more efficient will allow for more to be
accomplished.
Again, the week ended with a full plate. I can’t help feeling
that we have a lot on our hands and even more on our minds. But I
mean this in the best way possible. We are so excited to gain
exposure and see our ideas come to fruition. I can’t wait to see
the results!
Finance and Risk Assessment
Team
Log #2
By Amanda Pasciolla
Despite still being early in the semester, a number of challenges
have not failed to arise and quickly present themselves.
Working in the informal sector is proving to be difficult,
especially when communication with those whom we are giving loans
to is virtually non-existent. Being that most of the loan
applicants are illiterate, obtaining the proper information about
the loan and its purpose is complicated, and a lack of basic
information is a huge obstacle in deciding whom to accept.
The criteria for how our team will choose is still being decided,
but it is clear to all of us that it cannot be based on emotion and
feeling alone. If this were the case, it would prove to be an
impossible decision to make because all their stories are so very
moving.
It is one thing to read books and articles regarding poverty and
the difficult challenges faced by many around the world; and
another to receive personal statements, written by the individuals
themselves, that directly ask for your help. A widow with six
children seeking to provide food and support for her family, men
and women whose goal is to be self-dependant, a woman with eight
children to look after and a husband who struggles to find
meaningful employment, and the many applicants who hope to send
their children to school. Choosing who to respond to is far
from easy; and again, a lack of basic information regarding the
purpose of the loan and business activity for which it will be used
is the biggest challenge.
The readings stress how a microfinance enterprise needs to first
decide whom they will target for loans, and what level of the poor
they wish to focus. In our situation, choice is not a factor
as we are sent applications at random from the Sisters of Charity
working in the field with these individuals. Additionally, it
is said that the level of business development is another
consideration when determining the type of business a loan program
wishes to provide financial services to. In trying to
determine the level of business development of our applicants, the
lack of information provided again proves to be a challenge.
However, based on what information we have been given, many of the
individuals appear to be stable survivors, those for whom
microenterprises help to provide a modest living, the goal being to
reduce poverty. However, some applications have been received
asking for money in order to grow an already existing business as
growth enterprises, while other applications can be categorized as
unstable survivors, coming from households that lack any stable
flow of income. Again, I knew it would not be easy
deciding what loans to accept, but it is proving to be more
difficult than I had previously imagined. I have been told by
those who have had to make the same choices that doubt will always
be a factor and faith and trust, not always reason and certainty,
will have to be relied upon. I can only hope, with
confidence, that we make the right decisions.
One of the major topics discussed in this week’s readings was
the impact analysis of microfinance, being able to determine if
intervention has had the desired outcome, in this case, has helped
that individual positively provide a better life for him or herself
and their family. I did not realize the many factors and
small details that all need to be considered when determining the
effects of microfinance. Furthermore, it will prove to be
very difficult for us to determine the effect our own loans have
made because of the lack of communication that exists. Those
in the field trying to examine the effects of loans directly have
trouble determining their impact. It is no doubt, that being
thousands of miles away from our loan applicants will be a
challenge when evaluating the success of the loan. However,
to learn of any effect our loan is having on the individual, no
matter how small the report back may be, would be extremely
gratifying.
I did not realize that the impact of microfinance was in as much
debate as it is today. As explained in The Economics of
Microfinance, finding a control group in which to base studies
against is alone extremely challenging without even considering the
actually process of making such an evaluation. He explains
that results vary considerably, and that some studies have found
little profound evidence that microfinance makes a difference,
except to help diversify income streams. However, there are
so many factors to be considered when making such assessments that
it is not a surprise why different studies yield such varying
results. As explained, it is impossible to truly accurately
determine the impact when dealing with human beings because there
is so much to be considered, and the effect may be personal and
unobservable in many ways.
I was feeling uncertain and very much disappointed in finding
that such a strong skepticism exists around microfinance; however,
after reading Muhammad Yunus’s book, it is hard to not believe that
the effect microfinance is having in many cases is profound.
A study or numerical equation cannot measure the level of
confidence and self worth gained by a woman when she receives a
loan to support her family, after being told for years she is
worthless, nothing but a burden. The amazing story of
Amina and the extreme level of cruelty she had to face from members
of her own family, after returning home to find her own house had
collapsed on her daughter, is disgusting and proof that these women
need help. The fact the wealthy women cannot take out a loan
from a commercial bank without verification of their husband’s
approval in many countries is astounding. It is confirmation
that a poor woman, whose life has been reduced to begging, has no
hope without microfinance institutions, like Grameen, in receiving
a loan. Therefore, there is no doubt in my mind that the
impact microfinance is having and can have is endless.
Whether institutions are carrying out services efficiently and in
ways that work best for loaners can and should be debated; however,
the positive effects microfinance can have on these women’s lives
should never be underestimated.
It is clear that understanding the culture and social obstacles
of a certain community is key to providing a successful loan
program and evaluating its effects. When riding a
bicycle is considered inappropriate for a woman, meeting and
payment offices have to be of walking distance if the program is to
be successful. Similarly, the fact that Muhammad Yunus has
difficulty communicating with women because social law provides
they not be in the same room alone together, in addition to the
fear and skepticism that already surround loan programs, is a
testament to the many challenges faced by microlenders. It no
doubt puts into perspective how difficult our fight to provide
loans from St. John’s University to those around the world will be,
but in the words of James Grant, “It is doable!”
Accounting and Program Audit Team
Log #2
By Christina Demos
In order for the accounting team to continue to move forward we
need to push through a couple of setbacks we are facing. During our
last class the accounting team decided on the need to update our
databases and obtain a version of Quick Books Pro. Compared to the
Excel databases currently utilized, the use of Quick Books will
enable the team to work more efficiently and accurately. In
addition we are having issues with attempting to find ways to
locate where the funds are, at all times of the lending process.
This is a difficult process being that it is hard to stay in
contact with the daughters of charity, the banks and the
borrowers.
As an assignment for the week, the team came up with ways in
which to determine the successes of the loan program. Some of the
ideas that were suggested were to assess social and economic
factors of the borrowers before and after the loans are
distributed. The social and economic factors will be assessed with
a series of questions that request employment status, land and
property ownership, access to water/sewage connection and access to
healthcare. Through out the week the team also came up with an idea
for our term paper, “The emergence of Social Business in Today’s
Economy”. I believe that this topic is intrinsic to the course and
it is a strong value approach to the work the class is
performing.
In continuing to read the assigned books, I found that Muhammad
Yunus also had difficulties when starting the Grameen Bank. He had
experienced problems while trying to find borrowers. In order for
an individual to even become a prospective borrower they are
required to find four other willing borrowers and organize
themselves into a group. This was especially difficult for women
because they hardly had any rights or respect from village men.
Second Mr.Yunus had experienced difficulties in collecting the loan
repayments. Accounting for the daily repayments was troublesome
because of the methods of collecting. A popular village man, whom
volunteered to be a collector, did not have an accurate accounting
method to note which borrowers repaid and which of the borrowers he
didn’t collect from. As a result many of the borrowers opposed when
informed of their missed installments.
To conclude with my second log I would like to state that I am very
hopeful. Our minor difficulties are only temporary. I know that
through hard work we will achieve our goals. The success of the
class will reflect on the achievements of Muhammad Yunus and The
Grameen Bank.