No really - I am 28

It's already the month of May. I have been spending my week days creating user guides and spent half of the time training the SACCO employees. Everyday the bank manager shakes my hands and tells me that they will benefit greatly from the training. I think the manager is ever so grateful after finding out that the training course for the bank software costs $300 USD a day. Of course the software license costs $2,000. It sorta reminded how SAP and Oracle works where they sell the software for cheap and make bulk of the profit by "consulting" for their clients.

Speaking of the banking software, I found out that my grant proposal was turned down as FSD deemed it too "infrastructural." I found it ironic that FSD was paying salesforce.com tens of thousands dollars to "automate" its system but $1,000 grant request for the microfinance institutions lacked a business case for automation.

Shrug. You win some and of course you lose some. It's definitely a shame.

On a more bright note, I was walking up to town with Scott and his host brother Patrick who is 17. Patrick was complaining that he needed to have a stable job so that he can find himself a nice girlfriend. I asked Patrick if there was a certain age when Ugandans should get married and he replied that there wasn't any specific age.

J: Hey, so how old do I look?
Patrick: Which one? This one? (pointing at me)
Scott: Yes, this one.
Patrick: Hmmm... 21 or 22?
J: Nope try again.
Patrick: Huh? No way. 24
J: Nope older..
Patrick: Oh my god. Uh uh. You can't be serious.
J: Oh I'm serious.
Patrick: 26?
J: Older
Patrick: That's crazy. 27.
J: I am 28.
Patrick: How many kids do you have?
J: Oh I have eight.
Patrick: Oh, ok.

Here it is more believable to say I have eight kids than that I am 28. 

Living in Uganda - Update

I haven't updated the blog in some time... There has been a number of reasons for this.

First, right now Uganda is in the middle of rainy / monsoon season. Every morning I wake up to the sound of cacophony of rain drops pounding against the tin roof of my house. Imagine having a two year old banging a spoon against a metal pot. You probably think that's cute. But multiply that sound by ten-fold. Yes, it's very, very loud.

Rain means two things. First the electricity has 50 / 50 chance of going out. I have never heard the official explanation but I suspect that the rain means power lines get cut here and there thanks to fallen trees. Thanks to that I often sit in the office without power and lights. In addition, when it rains people do not go outside and everyone waits for the rains to stop.

Also, I have been heads down writing a grant proposal for my organization, South Buganda Teachers' SACCO. When I had arrived here, the manager had asked me to train them on this microbanking software. The organization had apparently paid $2,750 USD to purchase 3 used computers and this software but last week I discovered that the copy was actually a trial copy that was downloaded from the internet. So I decided to apply for a grant to purchase an actual licensed copy. After a week I finally completed the 10 page grant proposal and submitted it an hour ago.

On a side note, today people are waiting to watch the second leg of the UEFA Championship game between Lyon and Bayern. A typical scene involves a crowd of 100 gathered around a 22 inch CRT TV and stay glued to the TV until the last whistle blows. I'm going to pass and sleep early tonight so I can watch the Barcelona / Inter game tomorrow.

"Kid with a Fanta"

We boarded the bus 7 PM in Kampala and arrived in Nairobi after 13 hours on the road. It would be an understatement to say that the ride was uncomfortable. The roads were generally marked with potholes that heaved everyone into the stratosphere everytime the bus ran over one. Every time the bus shook violently, we muttered or groaned in unison. I was just glad that the bus didn't break down in the middle of night - it is not uncommon for people to be stranded for hours in the middle of nowhere.

When we arrived, we headed over to our motel and unpacked our belongings and slept for few hours. We then met our friend Collin, a native of Nairobi, who was kind enough to show us around downtown Nairobi. We grabbed lunch and first headed to the Uhuru Park which like Central Park is located in the heart of downtown.

Because Nairobi has the largest population in East Africa (at 3M), there is a true skyline and the city is vibrant and bustling with life. One observation our group made was that people in general walked faster here than people in Kampala. The city has excellent infrastructure like pothole-free oads within the city limits. There are multi-laned roads and drivers that actually pay attention to stop lights!

During the day the city is generally safe as long as you don't do anything that attracts the attention of thieves. However at night, it can be very dangerous as the city is generally poorly lit in many parts and create an environment suitable for crime. In fact, Nairobi is sometimes called "Nairobbery." To be fair, the city has become safer but incidences of crime is still very high.

And there were also some nuisances... many kids prowl in the streets looking for mzungus whom they accost for money. I consider myself compassionate but when it comes to handing out cash, I am strongly against it. Plus, my program coordinator shared that many kids live on the streets instead of going into an orphanage or foster homes because these kids make bank by begging.

We had a number of encounters with street kids but this particular one event sticks out in my mind. We were coming back to the hotel when a swarm of three kids each tagged along, their hands open and wide for donations. The kids usually put one hands in their mouth and say "Shilling for food." Usually, we try to coach them:

Example:

Kid #1: Jambo(hello)! Money please (sticks his hand out).
Me: Do you go to school? Son, if you go to school and learn, you can earn lots of money.
Kid #1: Please... money...
Me: I am giving this advice for free. This advice alone is priceless. You need to learn how to catch a fish instead of having them handed to you. Go to school. Be an inspiration like President Obama.
Kid #1: No...
Me: Trust me. Yes, you can!

But that day, one of the kids approached us clutching a Fanta in his hand. In Africa, soft drinks are relatively pricey and drinks aren't something that you would buy unless you had money. Our pauper offered his free hand out to us. Scott was incredulous...

Scott: Is that a Fanta?
Kid #2: Money please, sir.
Scott: No, no, no. If you can afford a Fanta, you can definitely afford a meal.
Kid #2: I need food.
Scott: Where did you the money to buy this soda? Did you steal it? That's a crime did you know?

The kid of course scrambled and darted away... So make sure you don't give cash to people - if they are truly hungry, offer them food.

But there are definitely advantages being in a city of this size - there were a number of restaurants serving great food. So we went to a place that served excellent pizza. Scott looks especially pleased in this picture.

 

"It's Over" the Sequel

I just remembered a sequel story to the “It’s Over” entry I had posted earlier.

Maurice, our waiter at Bananah Chick, is a young guy in late teens who loves the Arsenal football team. We trade jokes and banter around whenever I run into him. Fennie, Scott, and I had swung by one night to catch the Real Madrid game on TV and grab something to eat. Maurice greeted me by shouting “Jay! From China!” I of course told him he looked Kenyan.

As we started to order our food Maurice rattled off which items were “over” in an animated fashion. Every time we asked for something that was unavailable, he would slap his hand against his head and groan “My God, that’s out too.”

Fennie had asked for some scrambled eggs and Maurice responded by telling her that it was “finished”. Hearing this expression for the first time, we asked if “finished” meant “over.” He nodded head and rattled off an encounter he had with few Germans few months back...

These Germans wanted to order some sausages that were listed on the menu. Maurice told them that “sausages are finished” but Germans mistook it for sausages being ready to be served . After thirty minutes, the Germans were livid from waiting.
German: Where are the sausages?
Maurice: It’s finished.
German: I know it’s finished so where is it?
Maurice: Not here.
German: What? Are you telling me that you don’t have sausages?
Maurice: Oh my God, Yes. That’s why I said it’s finished.

We all thought this was pretty hilarious.

Water Harvesting Tank Part II - Q&As

After posting my last entry, I received a number of great questions. I think this is a reflection of my poor writing skills so let me make a second attempt to provide better details.

Q1: What's the point of creating this water tank if it'll be easily contaminated and breed mosquitoes? Isn't this just a "quick fix" that will later cause more problems?
A1: Because the completed water tanks are sealed by the heavy plastic, nothing will go in or out except through the wooden door / latch. (See the last picture from the previous posting). Contamination will only occur if users leave the door open and unattended for an extended period of time.

Q2: You are proposing that rain water is used for consumption. Rain water is not clean in most places. Won't that make people sick too?
A2: Other than rain, rural villagers only have distant, contaminated wells as an alternative source. These wells get contaminated because they are uncovered, pollution, other contaminants like animal / human feces enter the well. Also the government even advises those who have access to tap water to boil it before drinking.

On the other hand rain water is quite safe compared to the alternatives. Rain water is mostly used for washing, irrigation, and animals. In fact, rain water can be boiled and safely consumed afterwards. 

Q3: Are you trying to build a water tank for each household so that each family has close access to water?
A3: We have built water tanks for communities as well as individual households. If there is a cluster of houses in an area, we will build a tank for the community. If the family lives in a remote area, we will build one for the family.

Q4: Who gets the first water tank? I'm guessing that there is a huge demand?
A4: REAP and our FSD team will give priority to households that have a large number of children (ex: 5+ kids) or a family with a single parent. Other factors like distance to the nearest source of water will be used as a criteria.

Q5: How long does it take to fill up the tank?
A5: Uganda has two periods of rainy season per given year. During the three months of heavy rain, rain will fall copiously and heavily for few hours, sometimes days at a time. Although exact time can't be given, there is abundant rain during this time to fill up the tank.

Q6: What's the lifespan of the tank? Can it be used year after year?
A6: With the straw mat on top to protect the plastic, water tank can last up to three years before upkeep is needed. So the water tanks can be used year after year. Only part that requires replacement is the plastic covering the tank. In the future, we may explore ways to extend the life of the plastic or replace it with another material altogether. 

Thanks again and please let me know if there are more questions.

Water Harvesting Tank Project

Continuing on from my last post, inhabitants who live in rural areas spend a bulk of their time securing a source of water even in a country like Uganda where rain can be plentiful. Some of the consequences are: loss of producitivity/income, illiteracy for children who often walk miles to retrieve water, and diseases from drinking contaminated water.

I had an opportunity to participate in building a water harvesting tank few weeks back. We visited a rural area about 35 KM from Masaka.

To build a tank, a hole is dug that's around 10x10 and this effort takes around 4 to 6 hours for two people.

Once the hole has been dug, few more materials are required.

• cement and bricks for the perimeter
• tarpauline for the pit
• plastic sheet for cover and seal water from contamination
• nails
• wooden planks for cover

Speaking of wooden planks, I was able to capture a photo of ladies from the village carving the trees for us here.

Next, we placed the tarpaulin inside the pit and used the planks and nails to fix the tarp in place. We also nailed a wooden box with a door so that water can be accessible and protected from contamination. Afterwards, planks were place in a grid pattern to create a frame for the plastic cover.

Next, we placed the plastic cover on top of the planks and began laying the bricks around the perimeter.

Once the bricks are in place, we use the cement to fill the gaps.

Once the perimeter has been cemented and filled, it's almost done... You can see that the thick plastic seals the water from the outside - doing so the contaminants won't pollute the reservoir. In this picture, he went inside to to clean.

Finally, we took a straw mat and overlaid it on top of the plastic for extra protection. Here is what the door looks like after our work was completed.

When the rains come, a drainage pipe (not shown) connected to the roof will be placed in the water tank; the rain will be "harvested" for later use.

 Altogether, this took a day (minus the time for digging the ditch) at a total cost of $200 USD.

 What does this mean for the family? This particular tank will supply a family of four for three months (coincidentally the length of dry season in Uganda). Meaning...

• No lost productivity
• No sickness
• No illiteracy

Our team is currently looking to build more tanks. Please let me know if you are interested in helping us out! (Email me at felixjpark@gmail.com)

REAP and Field Survey

I am going to digress a bit and talk about work that I have been involved in.

In Masaka town, there are a number of small NGOs that formed when big organizations operated here several years ago. Many of them operated here when there was a surging epidemic of AIDS/HIV. Although the rate of occurence still approaches around 60%, big organizations left Masaka as they realized progress would require a long term strategy vs. a quick fix.

One of the small organization left behind that still operates today is REAP - Renewed Efforts to Alleviate Poverty. REAP works together with my organization - FSD - to build water harvesting tanks and plant trees in areas that have been deforested for firewood. Here you can see their mission statement and program scope.

REAP promotes the idea of "Model Homestead." This is a concept that having a home equipped with an outhouse for sanitation, farm for income-generating activities, water tank for irrigation and drinking, etc. enable people to live in an economically and environmentally sustainable manner.

My fellow intern Fennie and I decided to go out in the field and see the work that REAP has been spearheading on a Saturday afternoon. First, we headed out to an area about 20 KMs west of Masaka. Molly from REAP took us to a farm that has worked with REAP previously and now raise pigs and harvests water. Here is a field planted with beans.

 We also saw banana trees planted all across the field. These trees grow well without much upkeep so people plant them wherever land is available.

We also saw some coffee plants that people also used to sell and supplement their income.

We also witnessed some interesting farming techniques that have increased the yield and produced better crop. Below you see an avocado plant that has been grafted to another plant. This enables the plant to produce the fruit faster. Also farmers use brown banana leaf to shield the sappling from the sun. And a water bottle is used to fill up and planted in the ground near the sappling. In time, the water slowly seeps through the clay-like soil and ends up "irrigating" the plant. Organizations like SEAP transfer such knowledge and better techniques to these subsistence farmers.

Next we visited a family that was raising pigs. These are the two boys from this home. When I took my cap off, they were absolutely amazed by my hair color.

In the back there were pig pens and the farmer spoke to us about challenges and past succeses.

And here I encountered my favorite pig "Babe." He was kind enough to smile for the camera.

We went and visited another house/farm probably 1 KM down the road. And I came across an amazing device:

This bicycle above was built from scratch by a seven year old. It's amazing. People just need the right tools and materials and they will help themselves.

Molly also took us to a hand washing station. Many households still lack running water so they take a jerry can and rig it up to a stick that can be pressed to pour water on your hands.

 Kids around the neighborhood saw us and followed us around. This girl kept staring us in awe...

Before we left the area, we then saw some examples of water tanks in rural Masaka. In the town, most building have water tanks that harvest rain water for general use like washing, etc. in addition to the running water that people pay to use. In rural areas, people don't have money to purchase these giant tanks. Instead they go to a contaminated well miles away to retrieve water. As a result, kids and women spend a good deal of time carrying 50 lb. cans of water just for irrigation or drinking...

Instead people dig open holes/wells to collect rain water. Those who can afford it may even place plastic on the bottom to keep water from leaking into the soil. But this breeds mosquitoes and further contaminates the water.

In another farm, we saw a covered water harvesting tank. This keeps the contaminants out... I'll cover the construction of these tanks in the next entry.

On the Road to Nairobi Episode III – Town of Busia, Kenyan border

Around midnight, the bus finally reached the border checkpoint. Everyone got off the bus and trudged along to the immigration office which was a building that was no bigger than 10x10.  Right outside, there were a swarm of money changers who cry out "Do you need dollar for visa?" or "I offer good rates."

A firm wave of the hand or a No usually did the trick.

After paying the visa fee to Kenya ($25) and receiving the visa, I went and used the restroom.

Coming out, I was accosted by a man who demanded that I pay 10 Kenyan Shillings which is roughly 8 cents. I fumbled for my coins and finding none so I handed him a 100 Kenyan Shilling bill and asked for change.

Then, he reached into his pocket and handed me 50 Kenyan Shillings while reciting "because you are my brother, I'll have small change for soda" with a crooked grin. I quickly snatched away the bill and handed him 10 Shillings from my friend.

Lesson #3: Be careful when you meet your new brothers and sisters.

On the Road to Nairobi Episode II – Midnight express to Nairobi

We decided on Akamba Co. for our transportation which operates typical coach bus that seats 44 people. We were unfortunately seated towards the back of the bus which meant that every bump would be amplified and send a shock wave through our bodies.

The entire night was spent in agony as the road to Nairobi was filled with cracks and potholes that made the roads look like a half completed jigsaw puzzle.

After 3 hours, we stopped for water and bathroom. I got off the bus and looked for a sign but instead saw a stream of people disappearing into bushes. I followed a man thinking he would lead the way but found him happily going about his business in a shaded area.

Lesson #2: When you gotta go, you gotta go.

On the Road to Nairobi Episode I – Shopping in Kampala

After three hours on a small 12 seater van that was meant to seat 8, we arrived in Kampala.

We needed to grab dinner and purchase some food before we boarded our night bus to Nairobi around 7 PM. The drive was scheduled to take 13 hours so having some snacks seemed like a good idea. In downtown Kampala, there is a shopping outlet area with a cluster of several stores. The largest of them is called Nakumatt store which resembles a miniature Wal-Mart. I am guessing that this store’s size would be roughly a quarter of a Walmart’s.

Once we had arrived at the store, I remembered that I needed calcium pills to supplement my diet. This is because a typical Ugandan meal consists of rice, matooke (mashed plantains), potatoes, sweet potatoes, beef or pork with sauce, cassava, and sometimes eggs.

Food is very carb heavy and lack protein - but most importantly calcium is missing in their regular diet. You will see many elderly Ugandans who suffer from osteoporosis and other bone – related ailments…

Going back to the Nakumatt story, I found some cupcakes, macademia nuts, and water. I also found a bottle of 30 calcium pills imported from US that cost 30,000 UGX which is $15 USD. Nearby store employee explained that taxes and transportation costs just made things very expensive. Worse, the pills only amounted to 30% of recommended daily dosage which meant I needed to take 3 a day. But I decided taking 1 a day should be sufficient so I grabbed two bottles.

After paying for the items and exiting the store, I ran into Scott, my fellow intern, who offered to give his extra calcium pills. So I decided to return one bottle and keep one just in case I needed some extra pills.

Here is where things got screwy. I went in and approached the employee at the Returns store counter

Me: Hi. I am looking to return this item that I purchased 5 minutes ago.
Employee: (Grimacing) What’s wrong with the item?
Me: Nothing. I just realized I don’t need two bottles and need just one.
Employee: (After some hesitation) Ok. We can refund this item. I’ll go ahead and issue a store credit.
Me: Actually, I’ll take cash since I don’t live in Kampala and it is very unlikely that I’ll need to spend 30,000 UGX…
Employee: That’s store policy. We can’t give your money back.
Me: No, on your receipt it only says that returns after 7 days are invalid. I don’t see any prints about store credits.
Employee: I can’t help you – talk to the manager over there.
After five minutes:

Returns Manager: May I help you?
Me: I need to return this item.
Returns Manager: What’s wrong with it?
Me: There is nothing wrong with it. I have too many pills and I just need one bottle.
Returns Manager: Did you open it?
Me: Does it look like it’s opened? (Already getting riled up) The plastic band is still attached.
Returns Manager: Ok… Let me issue a store…
Me: Nope I don’t need a store credit. I don’t live here. I don’t need to buy 30,000 worth of stuff from here.
Returns Manager: It’s policy.
Me: Policy only works if two parties agree upon a condition and both parties are aware of the condition. The whole credit only policy is news to me. I don’t see the policy announced anywhere and it’s not on the receipt.
Returns Manager: I understand but it’s policy.
Me: Nope, you are not understanding me. I have been told about this policy five minutes ago. Unacceptable.

At that point, another guy in green lumbers in and talks to the Returns Manager rapidly. I got really pissed and decided to repeat my story. I told him I won’t leave until I got my cash back. I emphasized my position with some nice language illustrating my frustration.

Green guy seemed to get irritated and walked over to a counter without a word and grabbed the money and handed to me.

Lesson #1: Don’t take things for granted or you will find unnecessary drama.

Africa-Middle East Summit and Exhibition - Nairobi, Kenya

I am currently in Nairobi, Kenya attending the Microfinance Summit. I will be providing updates and uploading pictures in few days. One observation I want to share is that all attendees are so enthusiastic and looking to share ideas.

And yes - heartfelt gratitude and thanks to all who have helped us to get here...

Thank You.

"It's Over"

In the town of Masaka which is located about 15 minutes away from my host family's house, there are exactly two places that you can get "mzungu" foods. One is called Ten Tables which serves the typical steak and potatoes affair with the higher price and another is called Bananah Chick that serves omelettes, french toast, and fries.

Most foreigners congregate at Bananah Chick because of its central location and cheaper prices. Often we as a group go around past seven to grab something quick to eat. As it happens, I went to grab something to eat.

Bananah Chick's menu is short and simple featuring misspelled words:

• Scrambled Eggs
• Spanish Omelettes (eggs + vegetables)
• French Toast
• Slice of bread with Jam or Butter
• Samosas (vegetable + beef)
• Courted (quartered) chips (potatoes)
• Fried Chips (potatoes)
• Fried Fish

Doesn't offer a plethora of choices but it's a nice diversion away from rice and carb-heavy diets. Often the conversation with the servers go like this:

Me: Can I get a menu?

Server: Here it is.

Me: Umm, can I get a French Toast with Fried Chip?
Server: Umm sorry but French Toast and Fried Chips are over.
Me: Oh, okay... let me get some samosas - do you have vegetable ones?
Server: Umm sorry but samosas are also over.
Me: Hmm, how about beef samosas?
Server: They are also over.
Me: Shoot then what's available?
Server: We have fried fish and scrambled eggs.
Me: Oh good. I'll get scrambled eggs.

five minutes later...

Server: I'm sorry but the scrambled eggs are now over.
Me: Is there anything left?
Server: We only have slice of bread with butter and not with jam.
Me: Fine I'll take that.

Although, this sounds fictional, the conversation above takes place every time. Service here is like a box of chocolates - you'll never know what you'll get until you ask.

Living in Uganda

For once, here’s more of what I have experienced here in Uganda.

Living in Uganda
After I had landed in Kampala, my volunteer group had a chance to visit Makerere University which was a boda ride away from the city center. Makerere University was established in 1922 and is the oldest university in the Eastern Africa. We toured the campus and met friends of my staff/guide who were attending there…

Few days later, we drove from Kampala to Masaka where I am residing now. About half way through our 3 hour drive, we reached the Equator – Masaka is located about half a degree south of the Equator.

As seen in the picture below, there were three funnels – each located in the northern and southern side of the equtor as well as one on the Equator. We poured water and saw that water spun counterclockwise on the southern side and clockwise on the northern side…

The town of Masaka is a small town seen here – you can run into cows, storks, goats, etc while trotting around the area. You will also run into lots of schools housing tons of kids who call out “mzungu” every time you pass by.

And often times you see on the walls of schools there are slogans like this:

This is unfortunately due to the high rate of HIV / AIDS so it’s not uncommon to see ads that talk about “breaking the sexual network and living a healthy happy life.”

Here is my organization – FSD - which is located in the town.

My local FSD staff – Sarah – working hard here.

Here is where I live with my host family – awesome house that would be even better if it had a running water and in door bathroom….

Security in Uganda

In general, Uganda is very safe and crime consists of theft and pick pocketing. However recommendation is that you don’t travel late at night – here you will find street lights do not exist. Popular Nokia phones have an LED light built in…

On the third day here, we were negotiating a ride on a boda when my guide had his bag pack unzipped – he chased after him and tackled him to the ground… at which point the crowd came out to administer mob justice. Here due to a lack of strong rule of law, people become vigilantes and act accordingly. Often the thieves who get caught will be severely beaten, and some die. Our thief fortunately weaseled his way out and disappeared.

Microfinance and Its Challenges

I thought I would take a little bit of time to go over concepts related to the field of microfinance.

What is Microfinance?

Microfinance is a global initiative to provide financial services to low-income clients who lack access to basic banking and related services. Microfinance institutions target the poor and near-poor families by granting very small loans to borrowers, taking little or no collateral. Some common microfinance practices are:

• providing group lending and liability
• establishing mandatory savings requirements
• increasing loan sizes once existing loans are repaid fully and on time and implicitly guaranteeing access to new loans

In summary, microfinance movement aims to provide the poor, including those who lack credit history, with permanent access to financial services ranging from credit and savings to insurance and transfers.

Difference between Microcredit and Microfinance?
Microcredit describes small loans made to borrowers (often unsalaried) with little or no collateral.
Microfinance is a term that includes microcredit, savings, insurance, and other financial products.

Who are these borrowers?
Typical borrowers are poor and often lack a dependable sources of income. As a result, they have no credit or assets that can be used to gain access to banking systems. These individuals are usually self-employeed and work and live at their homes.

Also they generate income through operating small shops, street vending, crafts store in urban areas. For those who are out in the rural areas, most live by farming.

What are the benefits of Microfinance?
Access to credit helps the poor to allocate capital for dry times when access to essentials like food, clothing, shelter, even water is lost. In addition, when emergencies take place, credit can enable the borrower to manage events like sickness or natural disasters. Finally I have witnessed firsthand that women are empowered and gain rights like ability to manage finances that were once denied.

Why are the microfinance interests rates not lower?
This is due to the fact that the total cost associated with making small loans are much higher than large loans. The time it takes to complete 100 small loans versus 100 large loans may be the same except the profits are much smaller for small loans. Also, loans are considered higher risk since borrowers frequently lack credit history. The distribution of funds may be difficult if the borrowers live in rural or remote areas. I have also taken bodas out to rural villages that may only be accessible by walking or bodas.

Do savings services also help people?
Microfinance as mentioned above includes savings as one of its offerings. Without savings, the poor will hide cash in mattresses or holes or purchase jewelry or valuables that can be sold later. Two huge drawbacks exist - the goods substituted for cash are illiquid and stockpiled goods (including cash) are at risk of theft, depreciation, or accidents. Savings services offer reliability and convenience.

Challenges

I am beginning to discover that there are still many lessons left to be learned and obstacles to overcome.

Here is a list (non comprehensive of course) of challenges that practictioners of microfinance face today.

• Some institutions seek to gain profits through confiscation and selling of collateral when the loans become deliquent.
• Many organizations lack tools and know-how to assess viability of potential loans
• Borrowers pay kickbacks to loan officers for expediting and approving loans.
• Organizations approve loans without providing resources or technical expertise to the borrowers.
• Individuals are unaware of the terms and conditions of the loans because they are semi-literate or the loan officers fail to share information. Access to information is asymmetric. This means people often take out loans without understanding the short and long term implications.
• Borrowers often live in remote areas so that they need to travel far to make payments or savings. Especially in Ugandan towns, farmers simply do not save because they may spend up to 50% of their intended savings on transportation.
• In many markets, there are multiple microfinance organizations that compete for the same borrowers. As a result of this market concentration, the borrowers take out multiple loans, often to service existing loans. This diminishes incentives to pay and weaken the risk-mitigating effects of small loans.
• Due to the explosive growth of microfinance institutions, staff and employees were often added to the organization without providing extensive training. As a result, many systems and controls in these microfinance organizations no longer function properly as safeguards to abuses and malpractices. Here's a quote from the field,"Any organization that grows beyond its supervisory capacity can end up facing high defaults."
• Many smaller institutions solely rely on paper work and processes are manual. Without automation, manual entry decreases efficiency and severely hinder efforts to improve accurate reporting and transparency.

In conclusion, if you are willing and able, microfinance is a field that will offer plenty of challenges and problems to solve... Next blog will cover the potential solutions.

Kampala - Capital of Uganda / Methods of Transportation

Kampala is the capital of Uganda with a population around one million. This city has all the amenities that you would expect in a bustling city - from fast internet cafes to different restaurants that serve Chinese, Thai, and of course Southern Fried Chicken.

One interesting topic is methods of transportation. The locals as well as mzungus (foreigners) travel by these three options:

• Boda bodas – Small mopeds or motorcycles that can be found in almost every street corner. Bodas are considered most dangerous since the drivers have utter disregard for traffic laws and incoming traffic. Drivers often are self taught and have no insurance / license to operate the vehicle. It is true that the bodas weave in and out of traffic jams but they will get you to your destination the fastest. The name boda boda comes from the fact that many years back, bicycles ferried passengers between borders of countries because the distance (no man’s land) between the borders were kilometers apart. These drivers called out “Boda Boda” (border border) to potential passengers – now the bicycles have been replaced by scooters.

• Matatus (taxis) – Matatus are small mini buses that officially carry 14 passengers (though frequently the driver will try to squeeze as many as possible), and travel along the same routes. The buses are about the size of Honda Odyssey vans and are usually white with a blue stripe around them. There is always a driver and a conductor who will hang out of the side window calling for passengers or calling out the destinations. While safer than bodas, matatus are still somewhat dangerous as drivers also speed and often drive recklessly.
• Special Hires (also called taxis) – White sedans that lack meters or markings. These are like taxis in the US and you can also book one by phone if you happen to know a drivers phone number. They drive around town and will call out to potential customers. These are probably the safest method of transportation but will generally cost the most.

Interestingly enough, most cars here in Uganda are Japanese. 90% of cars are Toyotas and rest are Nissans or Datsuns.

Foundation for Sustainable Development

Currently, I am working with an organization called Foundation for Sustainable Development (FSD).

FSD is a non-profit organization based in San Francisco that supports the work of local Non Governmental Organizations (NGO) in the developing world through volunteer placements and grant making projects. FSD places volunteers from the US with internships in Asia, Africa, and South America. Volunteers work with local NGOs to implement a project during the internship with technical support from FSD staff.

Programs offered are:

• microfinance
• health
• environment
• youth and education
• women's empowerment
• community development
• human rights

For my internship, I will be focusing in the area of microfinance and working with a local organization called South Buganda Teachers SACCO (savings and credit co-operative).

http://fsdinternational.org/