Technology and Communications
Team
Log # 7
By Eric Suen
“People may live in poverty and may not have formal education, but
they are nonetheless talented and highly entrepreneurial.
Microcredit invests in people so they can advance themselves and
the generations that will follow them.” This was quote from our
guest presenter last week; CJ, who gave the class a presentation on
microfinance in Kenya.
From CJ’s numerous stories, we obtained a better understanding of
microfinance and its function in helping to fight poverty. Her
stories included Jane, who was a prostitute because the only way
she knew how to make money was to sell her body in order to support
her three children. After obtaining a loan, Jane began to sew
jewelry and sold them for a profit. Another story, which I
personally enjoyed because it was heartfelt, was about a woman
named Joyce, who lost six of her sons and her husband to a tribal
war but is now very successful with her three restaurants. Although
she happened to lose all three of her restaurants, her persistence
to continue from scratch again questions the integrity of many
others. From losing everything, many would have given up after they
have lost everything, but Joyce on the other hand continues to
strive for success.
Finally, there were stories on criminals such as Bernard and John
and Wilson. Bernard and John were criminals out to kill a speaker,
but one day they decided to work together in creating boxes which
helped their community. Through microloans, John and Bernard are
owners of their own store and have smiles on their faces that were
genuine from all their hard work. Wilson was also not only a
criminal but, the most wanted criminal. After obtaining a
microloan, he now owns three stores.
Another thing that was interesting was the technology that the loan
officers had. They could bring up a person’s files just by using
their finger prints in a portable scanner. The technology seemed
far more advanced than technology used elsewhere. Also by utilizing
one cow, many opportunities for borrowers were created. The milk
from the cows was sold for profit and the manure was used for
bio-gas, which heated stoves and created electricity for homes. The
cows also provided opportunities for kids to get an education from
the profits created from selling the milk.
In the end, the final quote that stood out was from someone in
Kenya, “We live in poverty but we are not poor.” We refer to poor
people very often and do not understand the distinction between
being poor and being in poverty.
Marketing and Fundraising Team
Log # 7
By Nicole Pasciolla
I cannot write this week without talking about last class.
The presentation last class has impacted me, and is continually
pulling emotions out of me. Sister CJ, who made the
presentation, has had such an interesting life with her travel and
experiences in different cultures. She is an amazing woman
who had so many stories to share. I loved her presentation
because when she was sharing her experiences, I could feel the
passion and love she had for microfinance and the fight to end
poverty. She has befriended so many people, and being part of
the U.N. she has heard so many different opinions and
stories. One of the points that really stuck with me is when
she said that when sitting in on meetings in the U.N. there are so
many different opinions from each country. Each country is
out to get what is best for them. This only confirms my
opinion that the government cannot solve poverty, and with this
microfinance plays a very big role.
In sister CJ’s presentation a particular picture stunned me.
This was the picture of the people of Kibera. In GLOBE we
always talk about what we view as poverty, and what actual poverty
is all over the world, and this picture proves to me that I do not
have a realistic understanding of what extreme poverty
entails. Kibera took my breath away, and in such a way that I
feel ashamed that I did not know. One million people living
in one square mile is something that I cannot conceive. The
idea of a flying toilet, where the people of Kibera go to the
bathroom in a bag and throw it, is hard to understand for me.
Just thinking about the flying toilet, the amount of fifth, germs,
and smells that the people of Kibera live in must be close to
unbearable. This is why there is so much crime in slums like
Kibera. For them, there is no way out, nothing to look
forward to, and nothing to live for. I can understand that
crime is probably the only thing that gives existence to their
lives. This is a very sad reality, and it is hard to
understand for me living the way I do.
Hearing about Ingrid Munro exemplifies the belief that anything is
possible. For her to go into a slum of this proportion and
try to change it, and challenge people to save is something that
goes beyond any strength and passion I have ever felt. Munro
showed the power not only of the difference one individual can
make, but the power of microfinance. For Munro to challenge
people to save in a place where this is an unbelievable task is a
hard endeavor. I think of how we save in America. I
feel like in society today we think of change as something that is
annoying to carry, and a thing that we just want to get rid
of. I have seen people throw away change or drop change on
the floor and leave it, while people in Kibera work and save months
for the change we so easily discard. This shows me that
microfinance can be about the little change in our pockets.
If everyone took the spare quarter or dime in their pocket and put
it into microfinance, so many lives could be changed. It is
truly not about the amount, but the amount of hope something so
small can give to a person. Like Ingrid Munro says, “It does
not matter where you come from, but it is where you are
going.” This puts a whole new meaning on life. This
single statement alone sums up all the hope and excitement
microfinance can give. The simple question of “what do you
want to do” can make a difference. The option to have a
choice, the option to get a chance to change, and the option to get
a chance to live is what everyone deserves. I can imagine a
woman in Kibera just praying for someone to give her a chance; to
give her the opportunity to be someone. I want to help an
individual reach their potential, and through microfinance I feel I
can do this.
Finance and Risk Assessment Team
Log # 7
By Minela Feratovic
This week’s class was different. We finally had guest speakers
discuss their personal experiences with microfinance. Caroljean
Willie was one of the guest speakers. She works at the UN. Her
presentation was extremely interesting. We learned how Jamii Bora,
a provider of microfinance services, improved a community in
Africa. In this community resided two notorious killers. They were
given loans to improve their lives. These loans transformed them.
Now they have homes they love and they are helping the youth in
their community. Furthermore, they are no longer feared. One of the
most important things she said pointed out was, “People have to
participate in their own development.” She is absolutely right.
Giving out money will not solve problems. People have to learn how
they are capable of leading themselves out of poverty. She also
mentioned how group work allows people to develop. The second
speaker was Sister Ann Moyalan. She worked in a Muslim community in
India. While she was there she helped educate woman who in return
educated the rest of their community. The stories from both
speakers were truly inspiring.
Once the guest speakers completed their presentations, my team went
over some ideas we had in mind. One important idea was expanding
our partnerships. Ms. Willie emphasized the importance of having
partners in the field who constantly communicate with the loan
providers. We feel like we are not getting enough information from
the Daughters of Charity. It is vital that we are frequently
updated to build up the operations of GLOBE. Our next action
step is to research possible partners we can work with. These
partners can help us overcome communication problems and they can
assist us in diversifying our loan portfolio.
This week one of the assigned readings was a chapter in The
Economics of Microfinance. The reading discusses subsidies. Many
microfinance institutions take advantage of subsidies. There are
only a few that are financially sustainable. Grameen Bank takes
makes use of subsidies. Between 1985 and 1996, the bank reported
profits of about $1.5 million. The author points out that it took
out $16.4 million in direct subsidies between those years. In
reality the bank did not make a profit. The author tries to
answer whether or not subsidies yield social benefits. Studies show
that subsidies do lead to benefits and these benefits outweigh the
costs. However, there is a push for microfinance institutions to
transform from depending on subsidies to becoming financially
sustainable.
In Chapter 11 of Banker to the Poor, Muhammad Yunus discusses the
hardship Grameen Bank dealt with in the 1990s. A cyclone hit
Bangladesh in the early part of the decade. The borrowers lost
everything. They quickly overcame the difficulties caused by the
cyclone. They started new businesses or rebuilt their businesses.
Once again they were on the path toward on-time repayment. Grameen
was growing in the middle of the decade. It lent out it
one-billionth dollar in loans in 1996. The MFI was extremely
successful. Grameen expanded to further the economic development of
Bangladesh.
Chapter 12 of the book details the enterprises and companies
started by Grameen Bank. Yunus took over the fisheries project from
the government. The government’s poor management led to the failure
of the project. When taken over by Grameen, the poor participated
in the development of the project. In the end it turned out to be a
huge success. Another success story is Grameen Phone. This
initiative increased cellular phone usage in Bangladesh. This
project also paved way for expanding internet service across
Bangladesh. My synopsis of the readings is that small steps can
make a huge impact. Each project can lead to another project that
advances economic development.
Accounting and Program Audit Team
Log # 7
By Mark Braithwaite
This past week we finally had guest speakers come talk to us.
I had written in previous logs that I was anxious to hear from
guest speakers. I knew it would be good but, I never
imagined that it would be so inspirational. I honestly can’t
find the words to express the impact that Sr. Caroljean Willie and
Sr. Ann Moyalan had on me. It was so amazing to see how
they’ve made huge changes in impoverished societies. The best
part is that for these societies, it wasn’t all about the
loans. It was the mindset of these people. One of the
questions I asked in class is how often do they run into
troublemakers, people who may try to rob recipients of the loans or
in the case of Sr. Ann’s community, people who may try to stop the
women from becoming empowered and educated. And surprisingly,
they don’t run into those issues. Here in America we’re
cultured to be so individualistic. We’re always thinking
about getting ourselves ahead, having a huge career, and amounted
some amount of material wealth (some more than others). Sr.
Caroljean and Sr. Ann Moyalan helped me appreciate that these
people don’t think like that. The people in these countries
are looking to bring their communities out of poverty, not just
themselves. The peer mentality is just amazing. That’s
why I thought Sr. Caroljean’s comment about calling them poor was
so interesting.
The people don’t want to be called poor because by doing so, we put
them below us. They’re rich in culture, history, values, and
community. They live in poverty because they don’t have a lot
of money, but they are by no means poor. That statement
really gave me food for thought. The innovations that
these people came up with to substitute for the commodities we have
were just amazing. For example, using the feces from cows to
produce bio gas to fuel stoves that allow them to cook easily,
saving the kids the trip of having to go find firewood was
mind-blowing. I’ve been through over 15 years of schooling
and I had no idea you could do something like that. Now the
kids can use that time going to school and getting an
education. One thing that Sr. Caroljean helped us see was
that the number one concern for the parents she’s helped was making
sure their kids could go to school. Those parents understand
that education plays a big role in eradicating poverty.
I was also amazed at how Sr. Ann was able to fight such strong
cultural norms without disrespecting or violating those
cultures. She’s a Christian but she deals with Muslims in
India. The Muslim culture doesn’t encourage the education and
empowerment of women. In fact, they are strongly opposed to
it. The work she has done has helped to educate many women,
saving them from abuse and the poverty that comes with living in
dirty slums. She’s been able to win the trust of their
husbands so that her work can be done without significant
interference. Again, it’s because these people want their
communities to do better, not just individuals.