Week 5

Accounting and Program Audit Team
Log # 5
By John Kenny

A class remains just a class when in your time outside the classroom you avoid any connection to the material. More and more, I find GLOBE and microfinance in general surfacing in discussion and conversation outside of school. These instances solidify GLOBE’s relevance in my life as more than just a typical educational experience. Just last weekend at a family gathering, I saw two of my uncles disobeying a rule they should have a learned a long time ago: don’t mix partying and politics. When two people from seemingly opposite ends of the political spectrum begin jovially discussing the role of government in the lives of Americans, the fun can often turn into a heated a debate. Therefore, I walked away before their tensions escalated, but not without asking myself this question: W.W.M.Y.D?

What would Muhammad Yunus do? Or in this case what would he say, regarding the welfare state in the United States that my uncles were debating. I don’t think anyone could ever doubt Yunus’s heartfelt consideration of the needs of the poor and hence his life-long work in microfinance. Nonetheless, the manner in which he believes most effectively assists the poor does not consist of “handouts.” Yunus writes, “In general, I am opposed to giveaways and handouts. They take away initiative and responsibility from people…Handouts encourage dependence rather than self-help and self-confidence.” He makes an assumption about human nature, in that people demonstrate more interest in attaining things for free than in “accomplish[ing] things on their own.” Taken in this context, Yunus could be perceived as opposing any expansion to a welfare state.

To be fair, Yunus does espouse the belief that some people start at a major disadvantage. One of the factors adding to such a disadvantage is the lack of access to credit and other institutionalized financial support. The people who most need these cannot receive them because of a lack of collateral, credit history, etc. We’ve learned much about the Grameen Bank, but to reflect back on my uncles’ discussion, where else in the United States can people access much needed credit? I learned a little bit more about this today when stepping into the offices of Project Enterprise.

My interview with Project Enterprise, a microfinance institution in each of the boroughs of New York City with the exception of Staten Island, proved the value of GLOBE in this stage in my life. The education offered by GLOBE proved applicable in the questioning involved in the interview process, and the student-managed aspect of the program proved to foster further discussion. The interview process made me realize how my interest in the field of microfinance originally sparked by GLOBE has evolved from curiosity to outright passion.

The increase in cohesion between the teams impresses me. There now exist open waves of communication, and GLOBE as a unit needs this responsiveness to operate effectively. I can personally attest to the benefits of this by commenting on the past week’s proceeding. Representatives from the marketing team and I met to work on clarifying the purchase of the promotional items. Without such communication, the accounting team could not keep an accurate, up-to-date record of the cash position of GLOBE’s funds.

My sentiments this week could not be more different than those I felt last week. Instead of worrying about several deadlines, an air of excitement fills me considering the up-and-coming events we have. The bake sale approaches at a quicker and quicker rate, and after attending the Bottoms Up event at Morgan Stanley two weeks ago, I’m keen to learn about more entrepreneurial ideas. The solar paneled backpack discussion should be a good one Tuesday night.

Finance and Risk Assessment Team
Log # 5
By Raias Anthony Khan

In a way, it worked out for the best that I would submit my Log after meeting today. The presentation of Voltaic was truly inspirational. So much in fact that it took me to a desirable frame of mind that focused on creativity in the direction of social good. I began to realize the impact that one would have if he or she would donate their creativity to a social cause in fullness. This would reflect the ultimate definition of Muhammad Yunus’ concept of a social business in today’s world.
I was so influenced by the presentation that I approached my team with a suggestion to change the direction of our social business plan proposal. I suggested a solar hat model or something of that nature. We laughed because it was almost a rip off of Voltaic’s potential product line.
I began to believe that when you are truly passionate about a certain field or product in an industry, it is the way that you portray and influence critics and potential buyers that truly builds your brand. I could feel the reassurance of the success of Votaic’s brand increase as questions being asked were paired with accurate and precise responses. It led me to think that if I could take the key ideas I would gain from GLOBE, MFCNY events and the presentation on Voltaic, it can truly give me the frame of mind and courage necessary to voice my creativity and passion for helping others. If I extract even a tiny ideal from GLOBE’s mission into my personal and professional life, I believe that I can succeed at anything I pursue. This is because of the secured and sustainable impact that GLOBE makes to the applicants, people and businesses we come into contact with. I am proud and honored to be in such a prestigious program and University that truly has a philanthropic mission to benefit the world and alleviate poverty.

Marketing and Fundraising Team
Log # 5
By Kemi Bamishe

Last week’s assigned reading was the seventh chapter of Joanna Ledgerwood’s Microfinance Handbook: An Institutional and Financial Perspective. This chapter concerned management information systems in a microfinance environment. Ledgerwood began the chapter by stressing the importance of management information systems. Management information systems help entities collect, organize, and distribute data throughout their organizations. Managers have to utilize data to make key decisions for the company or organization; and therefore it is crucial that the data, which is shared in the information system, is not only accurate, but also current.
Microfinance institutions can operate more effectively with management information systems. GLOBE managers, for example, do not disburse loans and collect repayment directly. Those tasks are carried out by our field partners, The Daughters of Charity, who have a presence in the countries in which the borrowers that we provide loans to live. Our borrowers are located in parts of the world where technology is scarce, which makes communication very difficult. So, there is some knowledge asymmetry. I think it is important for all parties, especially management, to be aware of the status of the institution’s loan portfolio at any given time. I believe the implementation of a management information system, which the field representatives have access to, can help alleviate some of this information asymmetry. A management information system can help organizations run more effectively by improving the frequency of communication (information is updated on a consistent basis by those given access). Managers can have a better idea of the status of loans in the institution’s portfolio and make better decisions for the present and going forward.

Technology and Communications Team
Log # 5
By Ruth Santana
                                                                    Evolving

To think that we started this class over a month ago with a very similar thought as the beginning of Martin Luther King’s famous speech “I have a dream”. I think we very much have matured our structures as teams and our efforts week by week, and in just 6 weeks, we are starting to see the managerial skills pull through and we are showing the University what we can do. We have dreams, but we are making them a reality.
This past week, my team has been working on ways to develop a new twist on our idea for making a GLOBE trailer. Visiting the YouTube website that GLOBE currently has, we have seen that previous classes have done great work with these and definitely will be hard to top, but I do confide in my teams’ creativity and talent. We have decided to use this trailer as promotional tool, and add to it as the semester continues to create a longer, more complete video that will be the movie. Now, creating a promotional tool means we need to promote it! I found the contact person for this task and we will be working to get the word out there about what we do, to get people to react and support our cause, and to reach those students that would like to be a part of this program next semester or in the future. We need to let people know and expand our reach for everyone to see.
I hope that these types of courses continue to exist and expand into other realms of classes such as theology, ethics, a specific country’s history classes, and many more business classes, for more and more students to have the opportunity to grow in many ways; with hands on experience like we do in GLOBE.

Discovery #5: “This little light of mine, I’m gonna let it shine”