Cultural meeting

I (John) seem to remember Ryan's name today. Perhaps celebrating the small things offers some kindness and highlights another wonderful meeting.

Beteal showed us another group of excellent Amharic sayings in preparation for our departures in May and early June. I always feel a little pensive when approaching the launch of a new venture. Thankful I feel like the team shares similar values, and some patience to go with our kindness.

On the subject of kindness, I found out the book "There is no me without you" is available on iTunes audiobooks and purchased this. There goes another $26 dollars to a good cause, and I sure hope some of those nice people promising money to help offset expenses come through.

Well enough blogging for this amateur to the blogsphere.

With a smile,

-John

Preliminary Reports on Beneficiaries' Backgrounds

Today we received two reports from Jonathan and Sarah, volunteer researchers who conducted focus groups with approximately 100 beneficiaries (across 17 support groups) regarding their work experiences, skills, financial status, familial ties, and interest in entrepreneurship. In October 2007, Jonathan and Sarah spent two weeks gathering this information with the help of SIM AIDS Care and Treatment staff members.

When we review all 17 reports we will have a better sense of the range of skills and interests among beneficiaries, but these initial two reports indicate that there is tremendous variation; some beneficiaries are illiterate and have received virtually no formal education, while others have attained the equivalent of middle school or high school education. Some have been steadily employed prior to contracting HIV, while others have endured persistent job insecurity. In a follow-up conversation with Jonathan, however, he indicated that there was one constant – all beneficiaries expressed a strong desire to develop and participate in income generating opportunities. Jonathan noted that he was deeply touched by the beneficiaries’ overwhelming excitement about the possibility of micro enterprise, as well as their appreciation of his efforts to support their endeavors.

I also learned that two support groups are currently operating small businesses selling coffee to foreigners that come to volunteer with the Treatment Project or with other local NGOs. Jonathan noted that the groups have been successful but the customer base is inconsistent. He suggested that we work with these two groups to help them identify and access new markets.

Jonathan also provided some insight into some challenges we may face as we move forward and build upon the wonderful foundation he and Sarah have created:

- While many of the beneficiaries articulate strong interest in starting their own businesses, most do not seem to truly understand the level of commitment that is necessary for success and sustainability. Some individuals expressed the belief that being self-employed would provide greater flexibility (allowing them to manage family obligations and/or their illness). Jonathan found that others seemed to over-estimate their skills.

- Some of the beneficiaries have attempted to access funding for their business ideas, but almost all have been denied, in large part because of their HIV status.

- Jonathan noted that, at times, information could be “lost in translation" during the interview process. He advised us to be cognizant of cultural (and social class) differences in concepts of accounting, budgeting, and other financial transactions. He mentioned that sometimes the data didn’t “add up” in the ways he would have expected. He encouraged us to use Project staff as a resource.

- Nevertheless, the support groups seem to have a general understanding of the process and concept of saving. The support groups are encouraged (and possibly required) to form savings collectives. Most groups pay one to two birr into a communal account with regularity. This group account is used to cover medical expenses on weekends when the Treatment Project is closed (beneficiaries are later reimbursed) and it is also used for funeral expenses.

- Given beneficiaries’ excitement about small business creation it will be especially important that we clearly articulate our mission and explicitly define what we will and wont be able to provide. It will be essential that we manage expectations.

We look forward to receiving the rest of the reports and to continued conversations with Jonathan and Sarah. We are so appreciative for their very thorough research!

Mission, Values and Approach defined

Some good stuff here with collecting our philosophical approach. This always provides me with some sense of balance for some reason.

If your interested, see the footer section of our blog for more.

With warmth,

-JYE

Team Dinner with Elena Rue

We came together at Liz’s house for an evening of friendship and conversation about Ethiopia. We learned more about each other, and we gained insight into the challenges and rewards of working with the HIV/AIDS community in Ethiopia.

The group finally caught a glimpse of Liz’s and Jason’s never-ending fence project, and with a glasses of water all around (it is highly indulgent group!), we had an hour or so of chit-chat about where we grew up and went to school, what we’ve been reading (There is No Me without You), and our dietary preferences.

The highlight of the evening was undoubtedly Elena’s slideshow presentation. She shared incredibly touching photographs from her visits at Hope for Children’s group homes. With each child’s picture, she shared a story of the child’s family and his or her transition into the HFC program. Many of the tales were harrowing, but her descriptions of the children’s resilience were inspirational. The photographs captured fear and despair, but also hope and love.

I was particularly struck by the concept of the memory box. These boxes include mementos and keepsakes from the parents of soon-to-be orphaned children. HFC holds these boxes until the children feel ready to open them. I can’t begin to imagine the emotions contained within and around these boxes.

Over a delicious vegan dinner of sweet potato and bean burritos (put together by our stellar cook Nondini!), we talked further about day-to-day life in Addis Ababa and in Durham. As John observed it was an evening of “warmth” – and it left us feeling increasingly excited about and dedicated to the work the lies ahead.

Criticisms of Microlending...

As promised I have been reading some articles that are critical of microlending:
1. VIETNAM'S DECREE ON MICROFINANCE: A FLAWED ATTEMPT TO CREATE AN ENABLING LEGAL
ENVIRONMENT FOR MICROFINANCE- NAME: Elin M. King+

2. Bracken: The Myth Of Microfinance - Microcredit Is Not A Profitable Business Model - Nor Does It Aid Long-term Development, Argues Thomas Dichter.Thomas Dichter. The Banker (July 1, 2007)

3. Poverty Microcredit & Gandhi: lessons for donors, by: K.P Padmanabhan

4. THE UGLY SIDE OF MICRO-LENDING. By: Epstein, Keith and Smith, Geri
Business Week; 12/24/2007 Issue 4064, p38-44, 7p, 3bw

Below I have included my high level understanding of the criticism of Microlending. This is not meant to dampen our enthusiasm or change our plans we need to be aware as we move forward.

Main criticisms of microlending:
1. Financial Model doesn't work: Is not self-sustaining and requires significant donor support... why?
Borrowers have little to no collateral - their capital is the promise of their increased earnings-( which must outpace their interest rate in order to make sense for lender and borrower).
Borrowers income generating opportunities are no-growth in nature- (example weavers in India where there is little demand for the product)
High administrative costs which requires a high interest rate to cover these costs


2. Cultural Impacts:
A self-imposed institutional environment that may not be conducive to development
Leveraging social cpaital may be irresponsible: Borrowers have taken their lives rather than face bankruptcy.
See "Poverty Microlending and Gandhi" page 490.
False promises of globalization and reliance on non-domestic market for sustainability: BRAC is an example of a NGO that originally started their support of rural artisans and handicrafts for a global market, only to find that their true appeal came from within the Bangladeshi market.

My thoughts....
As usual I am critical of "quick fixes" and "development fads" which have in some cases lead to the continued dependancy of beneficiaries. However, I have to say that I don't think that microcredit is quite the disaster that these articles claim. Honestly I think that if we let the beneficiaries drive the small enterprises, and at the same time apply solid business principles to their plans we can help them find a growth industry where they can bring in enough revenue to make a profit and offset the interest. Let's just be aware and be cautious of the added strain and stress on the community we are trying to reach.

In addition I learned that after 2 months of retroviral treatment for HIV/AIDS many people can go back to work. This is important to note because if we can help them receive the drugs they need for 2-months they may be able to work on their businesses after regaining their health... just a thought.