Week 3

Technology and Communications Team
Log # 3
By Eric Suen

Productivity is the key to success. With the first loans given out in January, everyone in the GLOBE program is very happy. It gives us hope that the poverty in the world can be fought and the GLOBE program will continue to fight the poverty so long as the program is out there. I personally hope that there will be more loans given out this semester. Our goal every semester is to give out more loans and help fight poverty in the world.

To help the progress, every group has given their all. After four weeks of classes, the IT team has been able to come up with what we want to accomplish by the end of this semester. Everyone in the group has been contributing to keeping Facebook, Twitter, LinkedIn, the GLOBE website, and e-mails updated with the current events. We were asked our goals and here they are. The first goal is to create a sky drive which will allow all the students to have any files from the GLOBE course available and easy to access. This will most likely be done through Google documents or through the St. John's University’s server.

The next goal is to obtain a Flip video camera which will allow the IT team to record videos and take photos during events. These videos and photos will all be posted on all the GLOBE websites. This will be continued on through all the future IT teams. Another goal that is central to GLOBE program will be to give out additional loans by the end of this semester. This seems to be the main focus of every semester and will be the focus for upcoming future classes. The IT team will keep updates for when the loans are given out and keep the donors and alums updated on what has been happening.

From our first few loans given to Nigeria, we were given an article to read entitled “Microfinance in Nigeria and the prospects of introducing its Islamic version there in light of selected Muslim countries’ experience.” This article explores the different challenges that face the Microfinance institutions in Nigeria and possible solutions. One challenge that is stated in the article was outreach to the many that are in poverty. This seems to be the focus for every microfinance institutions and even for the GLOBE team.

Through use of IT and communications and marketing, we can overcome the challenge and allow the world to be able to fight poverty. Communication is key to getting the word out about what we’re doing and through IT and marketing, we will help to make aware everyone about the GLOBE program.
   
Marketing and Fundraising Team
Log # 3
By Nicole Pasciolla

I cannot believe we are almost at the half way point. My time in GLOBE is going by very fast and there is still so much the marketing team wants to do. This past week we have accomplished so much and every time we get together we become more organized and the goals become clear.

One of the main points we talked about this week is the upcoming GLOBE event that will be held in April. We have thought a lot about what the goal of the event will be, and it is decided that we are going to aim our efforts at the St. John’s community. In order for GLOBE to grow further, our own St. John’s community needs to understand who we are, and how much of a wonderful impact we can have in other countries. Plus, it is truly important to reach out to our students because St. John’s is such a diverse campus. We have students from all over the world that come from all difference cultures that have been exposed to what Microfinance is trying to fight. Many students can relate to our program so much, and I want them to become exposed to GLOBE and see how, even though they may be far away from their home and culture, that there are still great things they can do. I feel that St. John’s students will be very enthusiastic.

Students who have grown up in the United States can also greatly benefit. I feel that many of us are closed off to the real world. Even though there is inequality and poverty in the U.S. it does not compare to some of the other countries that microfinance reaches out to. Only being in the class for a short time, my eyes have already been opened to a world that I did not know about. The extreme poverty, abuses toward women, and the social norms that some societies have accepted all over the world is something that I never exposed myself to or took the time to learn about. Microfinance has changed that for me, and if we can reach out to St. John’s students, I hope it can do the same for them.  Being part of the marketing team, our goal is not just to raise money, but we want to educate people on what microfinance is and the great affect it has. Many business students have never even heard of microfinance, and this is what needs to change. St. John’s GLOBE can be a leader in this.

For GLOBE Day we are planning to have all mini events going on. There will be GLOBE products like shirts being sold, there will be an informational video playing, there will be informational booths, there will be mud cookies, facts on all the tables, and great decorations to attract students. We are still thinking on how we can make it better, but this is a great chance to educate and raise money.

Some other great strides this week is the outreach to other communities and high schools.  I have written up a preliminary letter to send to an all girls catholic high school in New Jersey that I feel would be perfect to reach out to. This is a great audience to reach out to because they strive for women empowerment. I would love to talk with them about microfinance because they could truly help GLOBE and raise awareness about microfinance. Also, the fundraising letters and the newsletter have been fine tuned and are almost ready to send out.

I truly love microfinance and I really want to get the word out about it. The more I read the more I learn and I cannot believe how naive I was toward certain things. If people were more informed about things, I feel there would be more active change. Just the mix of cultures I have been exposed to by reading is amazing. The wonderful part is that in many cultures microfinance has fit. Microfinance can fit into many different cultures because it respects the culture it is in. This is so special, and the more I read the more I want to know and the more I want to share.       

Finance and Risk Assessment Team
Log # 3

By Hadia Sheerazi                                   

This past week has been a blur of activity: emails have been flying back and forth, we’ve been doing research on the costs of computers and chemist shops in Nigeria, poring over our books, tweaking the loan application and trying to decide on our countries for the research paper.

Now more than ever, I realize the enormous responsibility that has been bestowed upon us – we have to decide the fate of the hopeful borrowers who have sent us applications for loans.  As I read and re-read their applications, and deliberate (both internally and over emails with my group) I wonder if I’m making the right decisions.  I am moved by their stories and I am enthused by the opportunity to literally make a difference, and yet I have a responsibility to the GLOBE managers, our fund, and the university to make the right decision.  As I try to piece together the stories of these two candidates, I find myself trying to imagine their circumstances.  I know that I must not allow emotion to guide my decision making, but how can I not think of their circumstances, of their frustration at being unable to make ends meet, or their disappointment at not being able to find adequate employment?  Risk is a part of the endeavor we’re undertaking.  Calculated risk, however, will allow us to make wise decisions.

We’re trying to change the loan application slightly, so that we can gather more information about our borrowers, their communities and their lives.  We have too many unanswered questions, and too many queries.  Yet I worry that the application might be too long. It’s hard to decide what the line between “not enough” and “too much” is, especially given our technological and communicational limitations.  I’m hoping that the cell phone or calling card ideas get approved so that we have some way of communicating with the Daughters.  I’ve been racking my brains for other options but I should probably wait to hear what the Steering Committee decides.

On that note, we’ve also been trying to list factors that will help us evaluate the impact of microfinance on these individuals and their families’ lives.  It’s hard to gauge the impact, and as Armendariz points out in Chapter 8 of The Economics of Microfinance, “we have to ask whether these changes would have happened without microfinance,” (Armendariz 200).  This is even more important as we need this data as proof that microfinance is the most effective way (if not the ONLY way) to pull people out of poverty.  We face several critics, skeptics and theorists who doubt the value of microfinance, and we need all the proof we can get to prove them wrong.

I especially liked Chapter 19 of Bornstein’s How to Change the World.  I could relate to the example of the provision of ORS (oral rehydration salts) to prevent children from dying from diarrhea (249).   As I read this chapter I recalled the countless commercials I had seen on television, having grown up in a third world country where disease was a foe the poor battled daily.  It’s tragic that so many people live lives of deprivation and despair – why should they have to go without, when there is enough to go around?

Yunus, as always, is providing me the most food for thought and the best advice.  In last week’s class, I suggested that we consider giving some sort of reward or bonus to the borrowers for repaying their loans on time. Yunus writes about the difficulty poor people face when it comes to parting with large sums of money, and how that can be alleviated by making them return the loans a little bit at a time.  I think the idea of a bonus or gift of some sort might be a useful incentive (as humans we can’t help but respond to such offers!).  I just hope that the idea gets a nod from the steering committee.

I think what I love the most about this class is how I’m finally able to actually DO something, and each day I find myself coming up with newer and more creative ideas on how to make GLOBE more effective.  I always wondered what kind of executive or decision-maker I’d be, I wondered if I’d be able to rise to the occasion and come up with solutions to problems.  I’m so glad that I have a chance to see that I can do it. My dream to make a difference is not just an intangible idea, it’s slowly but surely becoming a part of tangible reality.


Accounting and Program Audit Team
Log # 3
By Mae Hassanien

Culture, a major influential issue that has arisen in the world of microfinance, was the topic of this weeks lecture. The differences in the traditions and values of a country’s culture are always obstacles when trying to present new ideas. In one country, it may be considered disrespectful to shake the hand of a new acquaintance while in another it is an honorary gesture. Spreading the idea of microfinance also faces the issue of culture.

Muhammad Yunus discusses the issues of culture differences he faces when trying to establish loans to potential borrowers. The main problem he comes across is the concept of purdah which “refers to a range of practices that uphold the Koranic injunction to guard women’s modesty and purity.” This was a major interference in the works of Muhammad Yunus because he was unable to interact directly with the women to allow them to feel at ease with the concept of microloans. The only approach Yunus could take to getting the borrowers to hear his ideas was to have on of his female students work as a middle man and run back and forth between Yunus and the women of the village. This was a disadvantage because sometimes words would get lost in translations and ideas wouldn’t be fully transferred. Not only were the woman of the village hesitant about speaking to Yunus, but even his female employees faced troubles explaining their job to their family and sometimes were forced to quit. It is truly astonishing how different of a technique Yunus has to use based on his target population. Had Yunus wanted to speak to women in another country, such as America, he would not face any of the troubles he went through in the Islamic villages of Bangladesh.

Other cultural issues can have an effect on the terms of a loan and the manner to which the loan is given. For example, a country in which a borrower’s reputation is known and considered extremely important giving group loans may be the most effective approach because the borrower will be less likely to default in fear of tarnishing his/her image. Also some communities may be used to working in groups and may functions better that way, while others will succeed with a single handed approach. Overall the issue of culture is one that plays a massive role in the idea of microfinance whether it be helpful or hurtful.