Accounting, Program Audits and Enterprise
Development
Log # 4
By : Dana Yang
Last week during class time, we had a class trip to the Morgan
Stanley office in the city. Morgan Stanley and Microfinance Club of
New York hosted an event called Bottom-Up Entrepreneurship
for Democracy and Development. The event consisted of two
main speakers – Iqbal Quadir and Firas Ahmad. Professor Quadir had
the idea of bringing technology to the poor and he worked with Mr.
Ahmad to start an energy company called Emergence BioEnergy (EBI).
EBI takes advantage of animals, such as cows, to produce energy in
developing country, Bangladesh. It was a very informative
presentation and discussion. I was intrigued by the idea that an
animal would be able to produce electricity. Although, it is very
costly and complicated, it’s a very efficient way to get Bangladesh
connected. Professor Quadir stated, “People need to stay connected
in order to improve and stay efficient."
For today, we will be presenting our achievements and goals so
far in the semester. It feels like I walked into the first class
just yesterday. This semester is zooming by and it seems like we
don’t have time to do anything. Our team plan is to meet up more
often and get work done. We are trying to juggle two different
projects at the same time and we want to do the best in both. I
really wish we had more time for this class. Three hours a week for
GLOBE is not enough!
Even though, I am trying to pay attention to the accounting team
goals and assignments, I can’t wait for the managers this semester
to issue our first loan. I’m very excited for that. I’ve read all
our borrowers’ stories and they all amaze me. I want to hear a new
story and change someone’s life before this semester ends.
Finance and Risk Assessment
Log # 4
By: Brett Gardner
I really enjoyed the presentation Tuesday night at Morgan
Stanley. I particularly enjoyed the presentation regarding
Grameenphone. The process of improving productivity to increase
standard of living is one I wholeheartedly agree with and find
fascinating. I recently read a book, “Running Money: Hedge Fund
Honchos, Monster Markets, and My Hunt for the Big Score” that
discusses a comparable concept. The book discussed Eli Whitney and
the Cotton Engine, and how it increased productivity. Moore’s Law,
where the productivity of a transistor doubles each year while the
price falls 25%, was applicable in the Industrial Revolution,
despite the fact it wasn’t formed until later. Products improved,
cost fell, and people become inefficient. This occurred in the
Industrial Revolution, and has occurred in past years with the
development of technologies. And this is what Grameenphone has been
profiting from.
The fact that this was brought up when Grameenphone was
discussed was fascinating to me. While Grameenphone, which I
discovered was a publicly traded company, is a for-profit
enterprise, it is providing a tremendous social service to the
people of Bangladesh. Telecommunications allows these people to
increase productivity and enhance their lives. While I haven’t done
a thorough analysis of the company (such as what prices they
charge, how they treat clients, etc.), I admire the initiative the
company has taken. Despite current losses, it seems to have been
successful. I can admire such risk-taking that also benefits many
underprivileged people.
Companies that increase productivity for the inhabitants of a
country will be successful. There’s always a demand for products
and services that vastly increase productivity. Look at the United
States and why a company like Microsoft has succeeded. It’s
spreadsheets and document services have allowed us to be more
efficient workers, and its operating system has allowed computer
users everywhere to use computers efficiently. Because of this, the
company has flourished. Grameenphone, despite a different service,
has experienced success on a (much smaller) scale.
Telecommunications, of course, become subject to commoditization
and excessive regulation over time, but Grameenphone has achieved
financial (and social) success.
I also thought that it was interesting how one of the speakers
spoke of how donations to governments of impoverished countries are
detrimental to the development of these countries. This challenges
conventional wisdom and is a fascinating statement. Many people
think that donations in and of themselves are beneficial, but many
times people don’t think through the second derivative effects of
such acts.
Marketing and Fund Raising
Log # 4
By: Nakita Austin
As a member of the Marketing Team, I am so pleased to announce
that we finally have our Promotional Item all figured out. For a
moment, I was quite scared that we would not live up to the legacy
of previous GLOBE classes to come up with an innovative and
aesthetically pleasing promotional item that people will want to
buy, but I think we’ve hit the mark on this one. We have decided on
GLOBE mini back massagers that will be sold to “EASE THE TENSION ON
POVERTY.” We thought about our promotional item for a long time
because we knew that we wanted to be different from the other
classes and come up with an item that we wouldn’t see on campus at
an event or sold at our bookstore. We want to bring something new
to the table every year, and we hope that this item makes a great
profit this semester and in the future!
Last week, I was so fortunate to attend the Microfinance Event
held at Morgan Stanley. My classmates and I were really excited
beforehand because we would be able to dress up, go out into the
city, and have a different kind of class to continue with our
efforts to help eradicate poverty. You can easily get into a
routine for classes but this break was definitely an insightful and
engaging one and really helped bring us back to the meaning of who
we are and what we are doing as fortunate and passionate people in
the first world who want to help those in poverty. What was most
interesting to me was the topic of the nature of progress. There
are so many factors we have to consider when creating loan
guidelines, giving them out, selecting borrowers and countries and
everyone understands that. What is so great is that the more we
expand as a Microfinance community, the more we can research and
understand exactly what is needed, where, and how it can be
implemented.
As a member of the Microfinance Club of New York, I now realize
how many opportunities I will have in order to share my passion for
Microfinance and spread the name of GLOBE around at various
companies and to people who all share the same interests. I looked
around the room and saw that these were professionals, students,
parents, teachers, every day people who stayed out late to try and
figure out how they too could help. I found all of the speakers
intriguing and motivational as I jotted down notes on ways I too
could help even outside of class. These types of experiences, tied
in with our in class and on campus promotional efforts really
enhance my experience here at St. John’s. I could not even imagine
a course this insightful into a world that University Students
traditionally do not have access to.
Technology and Communications
Log # 4
By: Bao Nguyen
Last week, all members of our class went to the event
about Microfinance in Manhattan. It’s such a great experience to
walk into Morgan Stanley headquarters. Dr. Iqbal Quadir opened up
the meeting with a presentation, which was about the idea of
empowering the poor by technology. He gave us a sample of a
microfinance business in which he was involved with. He talked
about the Grameenphone and the Village Phone Program.
Basically, the idea is to give women in distant areas loans, and
then, they were trained to operate the phones and to charge others
to use them at a profit. In my opinion, this is such a great idea.
It’s not only lifting people from poverty but also giving them and
others a way to access banking services or other Microfinance
Services (MFs). As a member of IT Team, I would say this is a
fabulous plan without a doubt. Indeed, the model has proven to be
successful in many countries. I remember when he said, “One person
uses our cell phone; it is not a big number. But imagine one
million, one billion people use our cell phone, it would give us a
big number.”
Firas Ahmad then followed his presentation. He developed a
small-scale energy product to be operated by entrepreneurs in rural
areas. Honestly, this is not the first time I heard about the idea
of biogas. I have actually seen some people who have done quite
well in my country with this process. However, without the
technology and knowledge as Mr. Firas Ahmad has, they can’t make it
become a prosperous business idea. The idea to apply biogas into
business in order to produce electricity for running equipments in
remote areas is brilliant.
After attending the event, as a member of IT team, I can say
technology plays an important role in microfinance.