Technology and Communications
Team
Log # 10
By Andrew Chan
Wow, I can’t believe this is it. This is the last log I will be
writing and I am sad that this semester is soon coming to an end. I
am so thankful that I was able to participate in the GLOBE program.
GLOBE has taught me that opportunities are a catalyst to progress
and improvements. Those living in poverty are often discriminated
against because they have little or no financial backing. As a
result, they are refused assistance and have to carry their own
burdens and struggles. In addition to academic enrichment, I feel
that I am more fulfilled as a person. Before taking this course, I
was engaged in social welfare but limited at the local level. I
felt that I wanted to contribute more and to make a larger scale
impact. GLOBE has helped me accomplish this. I was pleased to hear
that five applicants were approved for loans.
When I was making the video presentation for the GLOBE FAIR, I
reflected a lot upon the accomplishments that we made throughout
the semester. I feel that this video will be a great asset when
telling people what GLOBE is about, how microfinance operates, and
how it impacts society.
I am anxious to be updated with the progress of the loans and how
the entrepreneurs are making a positive transformation. Although
after this semester I will not be an active participant in the
GLOBE class, I will be more than happy to offer my assistance to
the new Fall 2010 GLOBE managers. I wish them the same success we
had this semester and many more. I hope our constructive feedback
will guide them in the right direction and that GLOBE can rise
higher on the awareness scale. Thank you for a wonderful semester
and life experience.
Marketing and Fundraising Team
Log # 10
By Yvonne Lee
With just a week until the GLOBE Microfinance Fair, we spent part
of class in Marillac Terrace finalizing the booths that we are
having for the event, finalizing decorations, and trying to gauge
the flow of traffic at the fair. I was really glad that the bake
sale was so successful and I hope that it has increased awareness
of the GLOBE fair on April 20th. I'm really excited for the event
but at the same time, really nervous about its success. As
long as people leave the fair with a better understanding of what
microfinance and GLOBE are, I believe we are working towards our
goal of raising awareness.
Seeing Dr. Sama's photos and videos from her trip to Kenya
reaffirmed my desire to go there. It would be such an amazing
experience to actually have direct contact with the field and see
the possible ways that our program can make an impact. Perhaps one
day in the near future, it will be possible to send GLOBE students
into the field. With the last few weeks of class approaching, I'm
really reluctant to leave the course. I think that there should be
a GLOBE Alumni Club that we can join to continue our work in the
program.
In the New York Times article “Many Borrowers of Microfinance Now
Find the Price Is Too High”, Neil MacFarquhar discusses how banks
and financial institutions now dominate the microfinance field,
drawn by the prospect of hefty profits from even the smallest of
loans. Some of them charge interest rates of 100% or more. Even
though Muhammad Yunus says interest rates should be 10 to 15% above
the cost of raising the money, this can be overly simplistic and
too low. Costs of doing business in Asia and the sheer size of the
Grameen Bank he founded allow for economies of scale that keep
costs down. Not all financial institutions can afford to charge
such low rates of interest. Most companies say that the highest
interest rates reflect the costs of reaching the poorest, most
inaccessible borrowers. It costs more to handle 10 loans of $100
than one loan of $1000.
I think that the debate about interest rates in microfinance is an
issue that is very difficult to resolve. Sometimes, the borrowers
do not even understand how they are being charged. This is due to
inexperience and lack of education. Hence, it still comes down to
having the appropriate infrastructure in place, especially in
schools. This enables borrowers to make intelligent decisions about
the details of a loan that they apply for.
As for lenders, I think one of the most effective ways of
regulating interest rates is to reduce transaction costs. Indeed,
it is every expensive to wire funds from one location to another. A
pronounced backlash against high interest rates will prompt lenders
to retreat from the poorest customers, and we would not want that
to happen.
Finance and Risk Assessment Team
Log # 10
By Hadia Sheerazi
To say that time is slipping by would be an understatement. I
cannot believe that the semester is almost over, yet I feel that we
have so much more to do! The GLOBE Fair is tomorrow, and I have
been talking about it non-stop for the past week or so to the point
where everyone I know has promised to come just to make me stop
talking about it! I’ve also been approached by a Campus Minister to
think about setting up a table during Peace Week to promote GLOBE
and I shall talk to Marketing about this idea tomorrow.
I am especially proud that our team came together last week and
approved a whole batch of new loans from Kenya. It was heartening
to read some of their stories, and I was personally moved by Mary
Wanjiru’s story, her determination and her spirit. It was
incredible to see how unanimous our votes were for all the
borrowers and how excited we were about being the catalysts for
change in a far off country in East Africa. We are especially
happy about having Sr. Deborah Mallott on board with us (her
picture with the computer is an added plus!) and we are excited
about this new partnership.
This week has been pretty hectic with emails flying about, the
Marketing Team gearing up to wow everyone with their great ideas
and energy about the GLOBE Fair. I too cannot wait for the
event tomorrow and am prophesying that it will be a huge
success. I have also been issuing invitations for the annual
presentations to all the faculty, administrators, and deans I
know. The more publicity we receive the better!
I’ve been re-reading some of the older chapters in Yunus’ book
because they remind me of the beginning of this semester, and
winter break, when I was all excited about this new project and all
charged up with energy. I think sometimes it’s important to
step back and reflect so that we can move forward with a clearer
vision. It is almost time to hand over the torch to the next
group, and I want to be able to do so with certainty that we did
our best this semester. I realize that Dr. Sama’s visit to
Kenya fulfilled the main reason behind the trip – to find more
borrowers, make new connections, and spread the word about
GLOBE.
I heard the debate team’s coach talk about judging a debate
competition about the merits of microfinance the other day, and I
got into a debate with him about the merits of microloans and
microcredit. It frustrates me that we have so many skeptics
in a world that desperately needs a way to pull millions out of
poverty. As humans we are the first to rush to stores to buy
the latest anti-aging cream, or try the newest shampoos or
perfumes, we believe commercials as though they were the Gospel,
yet we doubt the most powerful truths that we see everywhere.
Microfinance works – Bangladesh is proof of that. Microfinance
works – ACCION, Project Enterprise, Jamii Bora and BRAC are proof
of that.
I am glad that I have decided to take time off before law school to
construct a better vision of my plans for the future. I know
that microfinance is the key – it is up to me and the rest of my
peers to go out and spread the word. To be leaders in our fields
and contribute to this project of social justice the world
over. I could write on and on about microfinance, GLOBE, this
experience and my own personal growth, but I cannot think of a
better way to end than by quoting Robert Frost:
“But I have promises to keep, and miles to go before I sleep, and
miles to go before I sleep.”
Thank you Dr. Sama, for an incredible semester and the opportunity
of a lifetime. To the GLOBE Class of 2010 – it has been an
honor, a privilege and a joy to work with you, learn with you, and
learn from you. May God bless you all in all your future
endeavors!
Accounting and Program Audit Team
Log # 10
By Patrick Cassidy
What an exciting day it’s been today, GLOBE has really made a
strong presence on campus and I’m glad to say that I think the word
is getting out about our mission and current contributions to the
St. John’s Community and our borrowers. The fair was a
swimming success, with the knowledge and awareness we were able to
spread, and the amount of people who seemed genuinely interested in
our cause. Whether people donated $1, $5, or came for the
free giveaways, every individual that we were able to bring into
Marillac Terrace gained some information about GLOBE. I’m
extremely impressed by the way our class was able to come together
and execute the major event of the semester. Marketing has
truly done a marvelous job this semester, going above and beyond
their necessary duties and making an enormous impact on the future
of GLOBE.
I’m sad to say that this is my final log of the semester and I
can’t believe it! We’ve surpassed considerable obstacles this
semester and time truly flew by for this course. I can understand
how difficult it is to make substantial progress with new GLOBE
Managers coming in and out each semester. However, I think
that we’ve tacked on another notch in the GLOBE timetable and moved
the program to a new level with an unlimited future. The
knowledge gained and the opportunity for me to step aside from a
finance mindset and think like a social business entrepreneur,
created a whole different take on my thought process.
The next step in the GLOBE process is to finish our group paper and
prepare for our presentation next week. I said it before and
I’ll say it again, it’s incredible how fast this semester
passed. Preparing for commencement in three weeks and
preparing to begin my life as a full time financier on Wall Street
is an exciting opportunity. I’m incredibly fortunate to have
participated in GLOBE and taken on a whole new light on the world
of finance. Million dollar bonus’ on Wall Street would do
wonders for entrepreneurs in impoverished nations. GLOBE has
taught me this and I’m glad to say that my participation in this
program has increased my awareness about poverty and increased my
knowledge through all of our readings. It’s a well designed
course that will have a lasting impression on every GLOBE Manager
who passes through the ranks.