Below is a post written by The MaterCard Foundation President & CEO Reeta Roy about the importance of youth entrepreneurship in Africa. The MasterCard Foundation has partnered with BRAC in Uganda to invest in adolescent girls, providing them access to safe spaces, social and livelihood skill-building resources, and microfinance so that they can be agents of change in Africa.
How do we promote bottom-up entrepreneurship in emerging economies? This is the central question that we will be discussing this week at the Legatum Convergence—an annual event held at MIT’s Legatum Centre for Development and Entrepreneurship.
Let us explore this question from a youth perspective: Young people represent the fastest growing demographic in Africa. Many are already economically active—some motivated by necessity to help their families. In Nairobi and Dakar, we are seeing young entrepreneurs demonstrate resourcefulness and inventiveness with a range of enterprises. With access to the right opportunities, skills, mentors, social networks, technology, and finance, they have enormous potential to be a driving force for economic growth and social progress.
Young entrepreneurs in Africa need the same basic tools as their counterparts in North America. But, access to financial services and markets, business connections, education and training, mentorship and support systems are often lacking. For example, financial institutions are averse to providing loans to youth-led businesses because these are seen as “risky”. And while the Silicon Valley ethos of “fail often and fail fast” is associated with learning and backed up with public and private support, this is not the case in many African countries.
As the discussion about entrepreneurship in Africa gains momentum, it is vital to ask how youth entrepreneurship can be developed as a potential pathway to spur job creation. For this to happen, we need to create a dynamic ecosystem of actors and resources that incubate businesses, facilitate access to capital and business development services, and provide assistance in the form of mentorship and peer-to-peer support. And we need to test models to understand what works and what doesn’t in various contexts.
Youth entrepreneurship is a powerful mechanism that taps into the creativity and drive of young people to bring about change, not just in their lives, but in their communities as well. It is an exciting area to explore as we stretch the boundaries of how young people in Africa can engage with their economies, on their own terms.
Click here to see the original blog post.
Friday, October 29, 2010
Thursday, October 28, 2010
Susan Davis talks to Rainmakers TV about BRAC
Susan Davis, President & CEO of BRAC USA, talks to Rainmakers TV about what she thinks of the best kept secret of a development success story:
Wednesday, October 27, 2010
Asia Society: Can the profit motive improve microlending?
On Monday night, The Asia Society in partnership with The Schwab Foundation and WAM-NY, hosted a debate between SKS Chairperson and Founder, Vikram Akula and Grameen Foundation President and CEO, Alex Counts. The debate, which was moderated by Niki Armacost, Co-Founder of Arc Finance, focused on whether the for-profit approach in microfinance is the best way to take microlending to scale. Ms. Armacost put forth the claim that "for-profit microfinance is the ideal model for alleviating poverty globally" and invited Mr. Akula and Mr. Counts to debate it. In addition, Ms. Armacost pointed out scalability and affordability of loans as critical considerations in the debate.
Mr. Akula defended the SKS Initial Public Offering (IPO) model by pointing out that the fundamental flaw of microfinance is the lack of scale, and the key constraint to scale is a lack of capital. He offered the statistic that 3 billion people globally live on less than $2 a day. The SKS IPO, has allowed the microfinance institution (MFI) to reach more than 120 million households in India.
Mr. Akula recalled a formative instance for both himself and SKS from his early days working in the field. Due to a lack of funds, Mr. Akula was forced to turn away a poor woman who had walked several miles without shoes to get a loan. She looked at him and asked "Am I not poor too? Do I not deserve a loan?" This encounter made Mr. Akula think about how to design microfinance in such a way that he would not have to turn away other eager borrowers. His solution for India is to tap into capital markets to provide scalability. Mr. Akula pointed out that in 1/3 of the amount of time it has taken Grameen Bank to reach 8 million clients, SKS has been able to reach 7.5 million clients, many of whom were provided loans after the IPO. He emphasized that SKS interest rates have been lowered since the IPO. He also recognized the continued importance of donor funds within the the development context but argued that if a market based solution to poverty alleviation exists, it should be used. According to Mr. Akula, this would allow donor funds to focus on areas for which the private sector does not have solutions such as AIDS, orphans and the ultra-poor. Mr. Akula closed by stating that in order to create long-term shareholder value, investors will do what is best for the customer, in this case the MFI clients.
Arguing against the motion put forth by Ms. Armacost, Mr. Counts emphasized that neither he nor Grameen Foundation are opposed to commercial approaches to poverty alleviation nor IPOs. He did however, point out some of the dangers surrounding for-profit microfinance and more specifically the SKS IPO. He criticized SKS's lack of social performance measures. According to Mr. Counts, SKS does not engage outside evaluation or use an index to measure social impact. Mr. Akula, however, offered a Randomized Control Trial study of SKS that was conducted by a third party.
Mr. Counts went on to discuss the potential threats of for-profit microfinance should there be no limitation on the private benefit of investors and senior management. According to Mr. Counts, organizations that are set up to maximize profit may stunt their poverty impact over time. He also pointed out the sociopolitical implications of microfinance. As microfinance occurs in a sociopolitical context, there might be political backlash to the for-profit movement if an MFI such as SKS is seen as exploiting the poor. Mr. Counts rejected Mr. Akula's dichotomy between donor funds and investor funds. He provided Grameen Bank as an example of an MFI that uses neither donor funds nor investor funds, and instead relies on savings.
The debate, though spirited, demonstrated a tremendous amount of mutual respect between these organizations and their leaders. Both gentlemen recognized that there is not necessarily a single solution within the microfinance space and that each context will create a unique model within the continuum of possibilities.
BRAC's approach to microfinance involves providing collateral free credit and savings services at the doorstep of our target population- the landless poor, marginal farmers and vulnerable small entrepreneurs. A distinctive aspect of BRAC is the Microfinance Plus approach by which we provide integrated services that work to strengthen the supply chains of the enterprises that our members invest in- giving them access to quality inputs and support in marketing their products. BRAC has over 6 million microfinance borrowers globally with a cumulative disbursement of over $5 billion. 98% of BRAC borrowers are women.
Click here to read more about BRAC's microfinance program.
Mr. Akula defended the SKS Initial Public Offering (IPO) model by pointing out that the fundamental flaw of microfinance is the lack of scale, and the key constraint to scale is a lack of capital. He offered the statistic that 3 billion people globally live on less than $2 a day. The SKS IPO, has allowed the microfinance institution (MFI) to reach more than 120 million households in India.
Mr. Akula recalled a formative instance for both himself and SKS from his early days working in the field. Due to a lack of funds, Mr. Akula was forced to turn away a poor woman who had walked several miles without shoes to get a loan. She looked at him and asked "Am I not poor too? Do I not deserve a loan?" This encounter made Mr. Akula think about how to design microfinance in such a way that he would not have to turn away other eager borrowers. His solution for India is to tap into capital markets to provide scalability. Mr. Akula pointed out that in 1/3 of the amount of time it has taken Grameen Bank to reach 8 million clients, SKS has been able to reach 7.5 million clients, many of whom were provided loans after the IPO. He emphasized that SKS interest rates have been lowered since the IPO. He also recognized the continued importance of donor funds within the the development context but argued that if a market based solution to poverty alleviation exists, it should be used. According to Mr. Akula, this would allow donor funds to focus on areas for which the private sector does not have solutions such as AIDS, orphans and the ultra-poor. Mr. Akula closed by stating that in order to create long-term shareholder value, investors will do what is best for the customer, in this case the MFI clients.
Arguing against the motion put forth by Ms. Armacost, Mr. Counts emphasized that neither he nor Grameen Foundation are opposed to commercial approaches to poverty alleviation nor IPOs. He did however, point out some of the dangers surrounding for-profit microfinance and more specifically the SKS IPO. He criticized SKS's lack of social performance measures. According to Mr. Counts, SKS does not engage outside evaluation or use an index to measure social impact. Mr. Akula, however, offered a Randomized Control Trial study of SKS that was conducted by a third party.
Mr. Counts went on to discuss the potential threats of for-profit microfinance should there be no limitation on the private benefit of investors and senior management. According to Mr. Counts, organizations that are set up to maximize profit may stunt their poverty impact over time. He also pointed out the sociopolitical implications of microfinance. As microfinance occurs in a sociopolitical context, there might be political backlash to the for-profit movement if an MFI such as SKS is seen as exploiting the poor. Mr. Counts rejected Mr. Akula's dichotomy between donor funds and investor funds. He provided Grameen Bank as an example of an MFI that uses neither donor funds nor investor funds, and instead relies on savings.
The debate, though spirited, demonstrated a tremendous amount of mutual respect between these organizations and their leaders. Both gentlemen recognized that there is not necessarily a single solution within the microfinance space and that each context will create a unique model within the continuum of possibilities.
BRAC's approach to microfinance involves providing collateral free credit and savings services at the doorstep of our target population- the landless poor, marginal farmers and vulnerable small entrepreneurs. A distinctive aspect of BRAC is the Microfinance Plus approach by which we provide integrated services that work to strengthen the supply chains of the enterprises that our members invest in- giving them access to quality inputs and support in marketing their products. BRAC has over 6 million microfinance borrowers globally with a cumulative disbursement of over $5 billion. 98% of BRAC borrowers are women.
Click here to read more about BRAC's microfinance program.
Monday, October 25, 2010
Microfinance beyond credit: the human side of borrowing and lending
The following article was written by Sofia Tillo for MediaGlobal. You can read the original article here.
Microfinance is nothing new, having brought access to financial services for the world’s poorest people for the past two decades. Particularly common are initiatives giving small private loans to people in least developed countries.
Often microfinance projects enable recipients to buy essential items to make a living, improving the livelihood and productivity for those who would otherwise not have been approved for credit. From tailors in Vietnam investing in a sewing machine, to farmers in Tanzania getting better quality seeds, microfinance initiatives are as diverse as the people that apply for its loans.
Despite its popularity, the concept is now turning an important corner with several microfinance organizations moving toward a more comprehensive and people-centric approach to lending and borrowing in the global south. The shift is long overdue. Since microfinance became a popular part of development programs in the 1990s, several specialists have repeatedly voiced concerns about its implementation.
“There is a growing fascination with the mechanics of microfinance, with the vehicle. There is less and less a concern with the passengers and their destination,” warned microfinance specialist Aminur Rahman, at the 2001 Wageningen conference on Livelihoods, Savings and Debt.
MediaGlobal interviewed Sir Fazle Hassan Abed, founder and chairperson of BRAC and recently appointed as a specialist in the eminent person’s group preparing the UN LDC Conference:
To this effect, BRAC has created a special working category of “ultra poor” families whose basic needs are supported with a view to eventually offering them microcredit and the skills to become financially secure and independent. Ideas of self-sufficiency, and dignity are at the core of this humanistic approach to microfinance and economic development.
“As far as I am concerned I look at the whole development issue from the point of view of poor people and their perspectives and how we can focus our attention on their concerns is what development is all about” Abed told MediaGlobal.
Aside from its role in poverty alleviation, microfinance has repeatedly been credited with the potential to empower people, particularly women, by improving their economic and social status. Despite the resources put into microfinance, studies have shown that projects have often failed to socially empower women, both within the family and in the public sphere.
Such cases highlight the difference between the broader concept of microfinance and that of microcredit. While the latter provides loans, responsible and comprehensive microfinance initiatives complement financial services with education campaigns, entrepreneurial training, and building of community organizations.
At BRAC, Abed remains concerned that without a comprehensive and socially responsible approach, the potential of microfinance will remain unfulfilled, “I think that the first thing about poverty is powerlessness and unless we empower people through conscencialization, education, and building an enabling environment, then poverty alleviation doesn’t happen, development doesn’t happen, human rights are not protected.”
The World Bank policy on microfinance states that, “There is mounting evidence to show that the availability of financial services for poor households – microfinance – can help achieve the Millenium Development Goals.” Yet without the appropriate support and preparation it seems unlikely that recipients will be able to put loans to sustainable entrepreneurial use, let alone achieve ambitious development goals.
Microfinance is nothing new, having brought access to financial services for the world’s poorest people for the past two decades. Particularly common are initiatives giving small private loans to people in least developed countries.
Often microfinance projects enable recipients to buy essential items to make a living, improving the livelihood and productivity for those who would otherwise not have been approved for credit. From tailors in Vietnam investing in a sewing machine, to farmers in Tanzania getting better quality seeds, microfinance initiatives are as diverse as the people that apply for its loans.
Despite its popularity, the concept is now turning an important corner with several microfinance organizations moving toward a more comprehensive and people-centric approach to lending and borrowing in the global south. The shift is long overdue. Since microfinance became a popular part of development programs in the 1990s, several specialists have repeatedly voiced concerns about its implementation.
“There is a growing fascination with the mechanics of microfinance, with the vehicle. There is less and less a concern with the passengers and their destination,” warned microfinance specialist Aminur Rahman, at the 2001 Wageningen conference on Livelihoods, Savings and Debt.
MediaGlobal interviewed Sir Fazle Hassan Abed, founder and chairperson of BRAC and recently appointed as a specialist in the eminent person’s group preparing the UN LDC Conference:
“We think that microfinance works with most poor people but there are extremely poor people for whom microfinance is not enough. So you need to graduate them into microfinance, provide help in terms of grants and social protection, send their children to school, provide health care, and then some of them, or actually most of them (if you help them), graduate out into a position where they can borrow money, pay it back, get into enterprise.”
To this effect, BRAC has created a special working category of “ultra poor” families whose basic needs are supported with a view to eventually offering them microcredit and the skills to become financially secure and independent. Ideas of self-sufficiency, and dignity are at the core of this humanistic approach to microfinance and economic development.
“As far as I am concerned I look at the whole development issue from the point of view of poor people and their perspectives and how we can focus our attention on their concerns is what development is all about” Abed told MediaGlobal.
Aside from its role in poverty alleviation, microfinance has repeatedly been credited with the potential to empower people, particularly women, by improving their economic and social status. Despite the resources put into microfinance, studies have shown that projects have often failed to socially empower women, both within the family and in the public sphere.
Such cases highlight the difference between the broader concept of microfinance and that of microcredit. While the latter provides loans, responsible and comprehensive microfinance initiatives complement financial services with education campaigns, entrepreneurial training, and building of community organizations.
At BRAC, Abed remains concerned that without a comprehensive and socially responsible approach, the potential of microfinance will remain unfulfilled, “I think that the first thing about poverty is powerlessness and unless we empower people through conscencialization, education, and building an enabling environment, then poverty alleviation doesn’t happen, development doesn’t happen, human rights are not protected.”
The World Bank policy on microfinance states that, “There is mounting evidence to show that the availability of financial services for poor households – microfinance – can help achieve the Millenium Development Goals.” Yet without the appropriate support and preparation it seems unlikely that recipients will be able to put loans to sustainable entrepreneurial use, let alone achieve ambitious development goals.
Friday, October 22, 2010
Pakistan floods deserve better media attention
This post was originally posted by Susan Davis in the Huffington Post blog.
Imagine if Hurricane Katrina struck all the states from Florida to Massachusetts and massive floods washed away homes and businesses, destroyed roads and bridges, and devastated the lives of tens of millions of Americans. How would we react in the immediate aftermath? How quickly would we respond to the urgent need to provide food, water and health care to the victims? How would the media respond? We know the answer. There would be wall-to-wall daily coverage with stories of devastation and emergency response, and a clarion call to Americans with direction on the most effective way to help those in need.
But the American media has paid little attention to a natural disaster of just that magnitude. The slow-moving floods in Pakistan have devastated over 20 million people -- the same number of Americans who live and work in the Florida to Massachusetts corridor. Why are so few newspapers and television networks paying attention to Pakistan when the need is so great?
Where are the stories about the resiliency and needs of the people of Pakistan? Although the flood waters have not completely receded, people have returned to find homes damaged or completely destroyed. Food is scarce. Water-borne diseases abound. Yet people are already rebuilding and attempting to resume their lives.
Where are the stories of hope and effective response? There are thousands of untold stories of recovery and rehabilitation efforts by individuals, community groups, and by government and non-government organizations.
Reporters need to point their cameras in a new direction, and put a sharp focus on recovery and rebuilding and how Americans can help the people of Pakistan. We need to show greater compassion and solidarity with the people of Pakistan at this critical time. The task for Pakistan is monumental; the recovery and rebuilding will take months and years. And they can't do it alone. We need effective reporting so Americans can make an informed, compassionate and effective response.
Former President Bill Clinton called for action and commitment for Pakistan at this year's annual meeting of the Clinton Global Initiative. The Pakistan Action Network is the result. BRAC, the world's largest development organization, is one of the members of that network and has been on the front line delivering emergency relief. BRAC Pakistan has delivered critical supplies of food, water, and basic health care to thousands of victims of the floods. While continuing that effort, BRAC is also responding with job programs to deliver essential home repairs, sanitation programs, and local infrastructure projects in the most devastated areas. With 1,000 staff, BRAC operates a large microfinance program throughout 94 branches in the country and a small health and education program.
Other CGI members are looking to join the Pakistan Action Network to advocate and help raise awareness of the need in Pakistan. Some want to apply the lessons learned in Haiti to Pakistan. If you are a CGI member, please join our next Pakistan Action Network Call.
Let's all advocate for better media coverage of what is really happening in Pakistan and what the people of Pakistan most need. And respond to Pakistanis as if they were the 20 million people from Florida to Massachusetts who needed your help. Please donate now.
Imagine if Hurricane Katrina struck all the states from Florida to Massachusetts and massive floods washed away homes and businesses, destroyed roads and bridges, and devastated the lives of tens of millions of Americans. How would we react in the immediate aftermath? How quickly would we respond to the urgent need to provide food, water and health care to the victims? How would the media respond? We know the answer. There would be wall-to-wall daily coverage with stories of devastation and emergency response, and a clarion call to Americans with direction on the most effective way to help those in need.
But the American media has paid little attention to a natural disaster of just that magnitude. The slow-moving floods in Pakistan have devastated over 20 million people -- the same number of Americans who live and work in the Florida to Massachusetts corridor. Why are so few newspapers and television networks paying attention to Pakistan when the need is so great?
Where are the stories about the resiliency and needs of the people of Pakistan? Although the flood waters have not completely receded, people have returned to find homes damaged or completely destroyed. Food is scarce. Water-borne diseases abound. Yet people are already rebuilding and attempting to resume their lives.
Where are the stories of hope and effective response? There are thousands of untold stories of recovery and rehabilitation efforts by individuals, community groups, and by government and non-government organizations.
Reporters need to point their cameras in a new direction, and put a sharp focus on recovery and rebuilding and how Americans can help the people of Pakistan. We need to show greater compassion and solidarity with the people of Pakistan at this critical time. The task for Pakistan is monumental; the recovery and rebuilding will take months and years. And they can't do it alone. We need effective reporting so Americans can make an informed, compassionate and effective response.
Former President Bill Clinton called for action and commitment for Pakistan at this year's annual meeting of the Clinton Global Initiative. The Pakistan Action Network is the result. BRAC, the world's largest development organization, is one of the members of that network and has been on the front line delivering emergency relief. BRAC Pakistan has delivered critical supplies of food, water, and basic health care to thousands of victims of the floods. While continuing that effort, BRAC is also responding with job programs to deliver essential home repairs, sanitation programs, and local infrastructure projects in the most devastated areas. With 1,000 staff, BRAC operates a large microfinance program throughout 94 branches in the country and a small health and education program.
Other CGI members are looking to join the Pakistan Action Network to advocate and help raise awareness of the need in Pakistan. Some want to apply the lessons learned in Haiti to Pakistan. If you are a CGI member, please join our next Pakistan Action Network Call.
Let's all advocate for better media coverage of what is really happening in Pakistan and what the people of Pakistan most need. And respond to Pakistanis as if they were the 20 million people from Florida to Massachusetts who needed your help. Please donate now.
Thursday, October 21, 2010
Door-to-door healthcare for expecting mothers and their families
Mary Naluwu is a BRAC Community Health Volunteer (CHV) in Kihombooza village, near Hoima town in western Uganda. As she walked with, Hellen Birungi, a BRAC Health Project Assistant (PA), carrying out their duty in the village, they found a pregnant woman at her home with high blood pressure and referred her for medical treatment. That day Naluwu and Hellen were providing ante-natal care to pregnant women in their homes.
As part of the ante-natal care package, PAs check the blood pressure of pregnant women do determine if they are likely to have a high risk pregnancy so they can be referred to a doctor for proper medical treatment.
The other roles of BRAC PAs include calculating the expected date of delivery for the pregnant mothers and educating them about nutrition, personal hygiene during pregnancy, safe delivery, baby care and immunization.
Naluwu, is one of the 1,880 BRAC CHVs in Uganda. As a CHV, Naluwu makes 200 home visits a month to educate the community about common diseases like malaria and diarrhea as well as providing remedies for symptoms like fevers and headaches. She mobilizes pregnant women for tetanus toxoid vaccination and immunization for their children. She refers seriously sick patients to health centres. She also sells some health products like sanitary pads, pampers, fortified foods for children, soap, toothpaste, iodized salt, etc.
“The people in this village are now happy because they get affordable and acceptable primary health care services at their doorsteps. I am inspired to work because people like my services very much. I am very popular in the village. They take whatever I tell them very seriously, saying ‘daktari agambye ...’ (the doctor has said ...),” Naluwu says.
As of August, the BRAC health programme in Uganda, working through 97 Project Assistants covering 94 branches in 42 districts in the country, had a total of 231 TB suspected cases referred, 16,906 treated for malaria and 11,732 for diarrhea.
A cumulative total of 13,589 and 1,052 mothers received ante-natal care and pre-natal care respectively. Again, a total of 14,144 pregnant mothers were referred for tetanus toxoid vaccines, 46,114 children were mobilzed for immunization and 5,023 condoms were distributed. In general, in August 2010 a total of 97,059 patients were referred by BRAC CHVs to health centres and 41,851 community health meetings were conducted.
Friday, October 15, 2010
Update on BRAC Pakistan Flood Relief & Rehabilitation
Over 20 million people have been affected by the floods in Pakistan, 75% of whom are in the Sindh and Punjab provinces. The floods damaged or destroyed 1.9 million houses.
BRAC has a relief and rehabilitation program in place in the provinces of Sindh, Punjab, Baluchistan and Khyber Pakhtunkhwa in Pakistan. The flood waters have started to recede and the displaced population is returning to their homes and villages.
To date, BRAC’s flood relief and recovery effort have reached over 240,000 people in Pakistan through distribution of food, water, mosquito nets, and other relief supplies; treatment of patients at health camps; the construction and installation of pumps to restore water supply; and more.
BRAC recently established a mobile health clinic which has treated over 28,000 patients in diseases such as diarrhea, skin infections and fever.
BRAC has provided 81 new hand pumps in the areas of Peshawar and Noshera and is also refurbishing existing ones.
BRAC has begun implementing a “cash for work” program for the long term rehabilitation efforts. To date, 7,710 households in two villages have benefited from the program. As sufficient funding arrives, BRAC Pakistan plans to expand this program throughout the affected areas.
BRAC plans to continue the rehabilitation efforts including projects aimed at agriculture restoration, house and road reconstruction and livelihood creation, but we need the support of international organizations working in these areas. We are also looking to build partnerships to continue the work, implement new projects and benefit the maximum number of people.
BRAC has a relief and rehabilitation program in place in the provinces of Sindh, Punjab, Baluchistan and Khyber Pakhtunkhwa in Pakistan. The flood waters have started to recede and the displaced population is returning to their homes and villages.
To date, BRAC’s flood relief and recovery effort have reached over 240,000 people in Pakistan through distribution of food, water, mosquito nets, and other relief supplies; treatment of patients at health camps; the construction and installation of pumps to restore water supply; and more.
BRAC recently established a mobile health clinic which has treated over 28,000 patients in diseases such as diarrhea, skin infections and fever.
BRAC has provided 81 new hand pumps in the areas of Peshawar and Noshera and is also refurbishing existing ones.
BRAC has begun implementing a “cash for work” program for the long term rehabilitation efforts. To date, 7,710 households in two villages have benefited from the program. As sufficient funding arrives, BRAC Pakistan plans to expand this program throughout the affected areas.
BRAC plans to continue the rehabilitation efforts including projects aimed at agriculture restoration, house and road reconstruction and livelihood creation, but we need the support of international organizations working in these areas. We are also looking to build partnerships to continue the work, implement new projects and benefit the maximum number of people.
Thursday, October 14, 2010
Council on Foreign Relations: Evaluating Progress on the UN Millenium Goals
Last Monday, The Council on Foreign Relations hosted a panel of experts to discuss the Progress of the UN Millenium Development Goals (MDGs). Panelists included Mr. Robert C. Orr, Assistant Secretary General for Policy Planning at the United Nationas, Mr. Samuel A. Worthington, President & CEO of InterAction, and Mr. T. Charles Cooper, Vice President for Congressional and Public Affairs at Millenium Challenge Corporation. The panel was moderated by Gail D. Fosler, President of GailFosler Group LLC.
The attitude towards the progress on the UN MDGs was quite optimistic. Mr. Orr emphasized that the MDGs have served as an incredible mobilization tool as Governments, NGOs and international foundations organize their initiatives around achieving one or several of the MDGs. Mr. Cooper reaffirmed the power of the MDGs as a mobilization tool by citing the comprehensive U.S. Government policy that is focused around the MDGS. Similarly, Mr. Worthington recognized that development enterprise is mutli-sectorial and lauded the MDGs as a tool which makes it easier for development enterprise to think about the challenges ahead.
The panel agreed on the point that while a tremendous amount of progress has been made in achieving the MDGs, the progress, thus far, has been uneven. The example that was highlighted both at the UN Summit as well as the by the panel, is MDG 5 which sets out to improve maternal health. Many audience members were curious as to how to effectively tackle the issue of maternal health as well as to continue to make strides towards achieving the remaining seven MDGs. One of the greatest challenges that was cited is the ability to create a model that is both effective and adaptable for new geographies and cultures.
Mr. Orr offered BRAC as an example of an international organization that has succeeded in creating an exportable and dynamic model. The panel emphasized the creation of partnerships and on the ground coordination as integral components in achieving the MDGs. In addition, the panel emphasized the importance of impact evaluation in creating and modifying models that are implemented on the ground.
Mr. Orr offered BRAC as an example of an international organization that has succeeded in creating an exportable and dynamic model. The panel emphasized the creation of partnerships and on the ground coordination as integral components in achieving the MDGs. In addition, the panel emphasized the importance of impact evaluation in creating and modifying models that are implemented on the ground.
The concluding questions from the audience and remarks from the panel focused on what lies beyond the MDGs. The panel agreed that although we will most likely fall short of achieving the MDGs, the progress that is made in the next five years will provide a framework as to how to move forward beyond 2015. In the context of development, 2015 is the short-term goal which is why it is necessary to build a system of sustainability that will last beyond.
To watch a video of the event, please click here.
Friday, October 8, 2010
The MasterCard Foundation: Women Driving Change
Below is a post from Reeta Roy, President & CEO of the MasterCard Foundation. She is currently visiting BRAC's programs in Uganda along with other members of the MasterCard team. She wrote this after visiting one of BRAC's microfinance groups.
Today, we met with women who are members of a BRAC microfinance group in Bukalaza. This village is situated in a rural community about 1.5 hours drive north of Kampala. The women we came to know are creating change on multiple levels — in their own lives, in the lives of their families and in their communities.
Learning from Sarah
During the day, we got to know Sarah Namugenyi, the microfinance branch manager for the area as she accompanied us during our visits to clients and their homes. Sarah is a fresh university graduate who studied business, when she was recruited and trained by BRAC two years ago. She is 24 years old and has already demonstrated leadership and a maturity beyond her years. She currently supervises four credit officers. Her team serves 67 microfinance groups or about 1700 members.
Every day, a credit officer meets with three microfinance groups. In this rural area, the roads are unpaved and BRAC staff typically reach the villages on foot.
As we reviewed monthly goals and performance (a chart that tracks performance is posted prominently in each branch office), we noted that Sarah’s team had exceeded its targets in September.
What explains the results? Sarah smiled, “We don’t aim for the target, we have to aim higher.”
Bukalaza Women Grow Their Businesses
We listened intently as the women of this microfinance group began their meeting by reciting the ten principles of BRAC’s group membership. The principles range from keeping sizes of families small to helping others and showing up on time at weekly meetings.
As loan repayments were collected, we heard from each of the 21 women about how they were growing their businesses. Most of them were already on their third loans. Their stories reflected an innate savvy and creativity about how to diversify their businesses and income streams, while building assets in goats and cows as well as in land, houses and motorbikes.
Several of the women noted that their third loans were often smaller than the previous two. This is an indication of their success in generating profits from their current businesses and pragmatism about not assuming more debt than needed.
Edith, a maize farmer, told us that she used her first loan of 400,000 Ugandan Shillings (approximately US$200) to buy poultry. Her second loan of 500,000 Ugandan Shillings expanded the number of birds. With profits from her business and her third loan of 400,000 Ugandan Shillings, she bought a motorbike, which she rents out as a taxi.
Harriet used her first two loans to invest in feed for her poultry and to buy a cow. The cow has since produced two calves. Her third loan, only 100,000 Ugandan Shillings, was used to buy coffee beans. “My cow is producing milk that I sell. I don’t need a bigger loan right now.”
Aishah runs a small canteen and sells pineapples. Her first loan helped her “book” a garden that grows pineapples in order to guarantee a steady supply of product to sell. She is used profits generated by her previous two loans and a third loan to purchase a cow and a motorbike.
Others like Flavia, Madina and Khatijah – whether they were raising chickens, selling sugarcane or running a hair salon – explained they were using profits to buy land, build better homes or to expand their shops.
Nearly all of the women spoke about using their income to pay for school fees for their children and to feed their families.
We asked if anyone had opened savings accounts at nearby banks. A few had. However, they preferred to access loans from BRAC. “The interest rates of banks are still high and the repayment time is shorter.” This was a consistent observation.
The women also valued the livelihoods training and services that BRAC provided in the agriculture and livestock sectors. Theresa, an older lady and her face lined with many stories said, “I’ll stay with BRAC. I like the staff. They encourage us and treat us with respect. I feel more comfortable accessing a loan here.”
So, how else can BRAC better serve them? There was no shortage of suggestions: “How about a housing loan? My husband would like to join the group! Will you start a group for men?” Everyone wants BRAC to offer savings.
All of these suggestions are opportunities to explore as we look to forward to expanding our partnership in Uganda.
Wednesday, October 6, 2010
The MasterCard Foundation: President & CEO, Reeta Roy, visits BRAC Uganda
Below is a post from Reeta Roy, President & CEO of the MasterCard Foundation. She is currently visiting BRAC's programs in Uganda along with other members of the MasterCard team.
Kampala, Uganda
This week, Lois Juliber, Chairman of the Board of our foundation, and I are spending time in Uganda with our partner, BRAC.
Our partnership is scaling BRAC’s microfinance multiplied program across Uganda and is benefitting more than 1.8 million Ugandans.
We are talking and listening to the people who are served by this partnership. As BRAC and our foundation expand the program, we aim to enable even more people to improve their own lives with greater access to learning and earning opportunities.
During the week, I’ll be posting stories about our trip.
Empowering Young Women
Lois and I, along with Susan Davis, the President of BRAC USA, spent our afternoon at one of BRAC’s adolescent girls clubs in a poor urban community within the city called Mukalazi. The “club house” – a simple one-room structure with a tin roof – exuded with energy from more than 20 young people who welcomed us with song and dance.
This particular club has been meeting for nearly two years. As a result, the members, who range from 13 to 22 years of age, have covered all of the key “economic empowerment” modules of life skills, livelihood options, and basic financial literacy skills of saving and budgeting. Several have been introduced to microfinance.
“Why do you come here?” we asked the girls. They fired back, “To learn. To play netball. To read books. To get skills. To be with friends.”
What are you learning? “How to avoid an early pregnancy. How to save money. How to start a business.”
And, are you saving money? Several voices piped up – “Yes, weekly. In a tin cup or wooden box or under the carpet.”
When we asked if there was pressure from others – parents, boyfriends, siblings, friends – to borrow their savings, the answer was also yes. One young woman shared her standard response (and deterrent) to such requests: “Fine, but how much interest will you pay me?” This usually discouraged would-be borrowers.
Would you like to save the money in a bank? Zaina, the club mentor said, “Yes, at Equity Bank” (also a partner of The MasterCard Foundation).
Susan, Lois and I were also peppered with questions. Some were easy to answer – what are our hobbies and are there girls’ clubs in our home countries. One question – “do you have children?”– introduced alternative options for women. The three of us do not have children of our own. Rather, we spoke about the nieces and nephews, grandchildren and other young people in our lives. Our responses introduced ideas about choices and having family life without being mothers.
We also heard from Sandra, a soft-spoken twenty-two year old. She’s a single mother and was cradling Pretty, her three-month old infant girl.
“I was raised by a single mother and told that my father died when I was an infant. There were six siblings and my mother struggled to feed us by selling charcoal. When I was 18, I started going out with a man. One day he forced himself on me. It was my first time and I didn’t even know I was pregnant until three months later. That man has since denied my child and left the area. Early in my pregnancy, I heard about this club. I come here to be with friends, get knowledge and learn how to earn a living.” Sandra has accessed her first loan and is running a small restaurant.
And, what does she advise the other girls? “I tell them my story. I tell them to be patient and to look for small jobs where they can earn their own money.”
Like Sandra, several of the older girls are already earning a living – selling clothes, charcoal, candy or food. Some said they would love to earn and save enough to go to school.
Four other older girls are also first-time borrowers from the youth microfinance group formed by BRAC. Alice, an enterprising 20 year old, used her first $100 loan to start her “boutique” – a little stall by the unpaved road in the area where she sells denim skirts, tee-shirts and blouses. As we stood in her shop, she was quick to share that she has many customers and told us how she prices each piece to earn a small profit. And, yes, she is repaying her loan on time.
It was a full day of stories to digest. We said our goodbyes and thanked the girls for providing us a glimpse into their lives. We left with more questions about how we and others working in this field can continue to broaden economic opportunities for young women to learn, earn, and save money in order to improve their lives.
Kampala, Uganda
This week, Lois Juliber, Chairman of the Board of our foundation, and I are spending time in Uganda with our partner, BRAC.
Our partnership is scaling BRAC’s microfinance multiplied program across Uganda and is benefitting more than 1.8 million Ugandans.
We are talking and listening to the people who are served by this partnership. As BRAC and our foundation expand the program, we aim to enable even more people to improve their own lives with greater access to learning and earning opportunities.
During the week, I’ll be posting stories about our trip.
Empowering Young Women
Lois and I, along with Susan Davis, the President of BRAC USA, spent our afternoon at one of BRAC’s adolescent girls clubs in a poor urban community within the city called Mukalazi. The “club house” – a simple one-room structure with a tin roof – exuded with energy from more than 20 young people who welcomed us with song and dance.
This particular club has been meeting for nearly two years. As a result, the members, who range from 13 to 22 years of age, have covered all of the key “economic empowerment” modules of life skills, livelihood options, and basic financial literacy skills of saving and budgeting. Several have been introduced to microfinance.
“Why do you come here?” we asked the girls. They fired back, “To learn. To play netball. To read books. To get skills. To be with friends.”
What are you learning? “How to avoid an early pregnancy. How to save money. How to start a business.”
And, are you saving money? Several voices piped up – “Yes, weekly. In a tin cup or wooden box or under the carpet.”
When we asked if there was pressure from others – parents, boyfriends, siblings, friends – to borrow their savings, the answer was also yes. One young woman shared her standard response (and deterrent) to such requests: “Fine, but how much interest will you pay me?” This usually discouraged would-be borrowers.
Would you like to save the money in a bank? Zaina, the club mentor said, “Yes, at Equity Bank” (also a partner of The MasterCard Foundation).
Susan, Lois and I were also peppered with questions. Some were easy to answer – what are our hobbies and are there girls’ clubs in our home countries. One question – “do you have children?”– introduced alternative options for women. The three of us do not have children of our own. Rather, we spoke about the nieces and nephews, grandchildren and other young people in our lives. Our responses introduced ideas about choices and having family life without being mothers.
We also heard from Sandra, a soft-spoken twenty-two year old. She’s a single mother and was cradling Pretty, her three-month old infant girl.
“I was raised by a single mother and told that my father died when I was an infant. There were six siblings and my mother struggled to feed us by selling charcoal. When I was 18, I started going out with a man. One day he forced himself on me. It was my first time and I didn’t even know I was pregnant until three months later. That man has since denied my child and left the area. Early in my pregnancy, I heard about this club. I come here to be with friends, get knowledge and learn how to earn a living.” Sandra has accessed her first loan and is running a small restaurant.
And, what does she advise the other girls? “I tell them my story. I tell them to be patient and to look for small jobs where they can earn their own money.”
Like Sandra, several of the older girls are already earning a living – selling clothes, charcoal, candy or food. Some said they would love to earn and save enough to go to school.
Four other older girls are also first-time borrowers from the youth microfinance group formed by BRAC. Alice, an enterprising 20 year old, used her first $100 loan to start her “boutique” – a little stall by the unpaved road in the area where she sells denim skirts, tee-shirts and blouses. As we stood in her shop, she was quick to share that she has many customers and told us how she prices each piece to earn a small profit. And, yes, she is repaying her loan on time.
It was a full day of stories to digest. We said our goodbyes and thanked the girls for providing us a glimpse into their lives. We left with more questions about how we and others working in this field can continue to broaden economic opportunities for young women to learn, earn, and save money in order to improve their lives.
Tuesday, October 5, 2010
BRAC mourns the loss of Aminul Alam, Executive Director of BRAC International
Aminul Alam during the early days of BRACThis weekend, BRAC suffered a tragic loss. The Executive Director of BRAC International, Md. Aminul Alam, died in a hospital in Bangladesh. Amin bhai, as he was affectionately known throughout the BRAC family (bhai means brother in Bengali), touched the lives of thousands of BRAC staff and millions of women and their families.
The impact Amin bhai has made on BRAC and on the world is unmistakable and evidenced by the comments that have been made about his work and his life:
"Amin is not loved by slackers, but people respect his ability to work beyond endurance. He is the most entrepreneurial man, an exceptional person with an exceptional commitment to rural development. BRAC would not be what it is without him."
- Sir Fazle Hasan Abed, as quoted in Freedom from Want by Ian Smillie
"Amin-bhai was at the heart and helm of BRAC for all but its first three years. He will be profoundly missed in immeasurable ways. But he has left a rich legacy to BRAC: of programs firmly in place around the world, of staff and members inspired by his pragmatic vision, and of practical solutions to many of the world's seemingly intractable problems.
"We will miss you Amin-bhai but your legacy will live on."
- Marty Chen
"He was a man of dedication. He always wanted to give his best and the result is today's BRAC."
- Zahir Ahmed
"The global development community and millions of poor would remember Amin bhai with deep respect. His hard work, commitment and devotion have made significant contribution to change millions of lives lived under extreme poverty."
- Zia Hyder
"I once asked Abed bhai if BRAC were a verb, what would it be? Without hestitation he quickly replied: action. If BRAC equals Action, then Amin bhai personified BRAC-in-action."
- Susan Davis
"For the last twenty four years I have worked under your guidance. You were my mentor, philosopher and guide. You have given your best of services to BRAC. So long BRAC as will exist, your name will bloom in the history of BRAC. You have sacrificed your life for the benevolence of the poor people of the world and you have no end. You will survive in the hearts of the poor. Noble deeds never die and your great works will never fade away from this world."
- Faridhur Rahman
You can read more and submit your own notes of condolence on our website and on our facebook page.
Friday, October 1, 2010
The MasterCard Foundation: Learning Outside the Classroom
Below is a post from Crystal Chen of The MasterCard Foundation, one of BRAC's partners. She's currently visiting BRAC's programs in Uganda along with other members of the MasterCard team. She wrote this after visiting one of the girls clubs in our Empowerment and Livelihoods for Adolescents (ELA) Program.
Kampala, Uganda.
Kampala, Uganda.
We spent the afternoon with a group of girls in one of the Empowerment and Livelihoods for Adolescents (ELA) club that BRAC operates in Uganda. The ELA club provides safe spaces where girls can meet, and combines mentoring with life skills, livelihoods and financial literacy training. A few of the girls we met were shy about talking to the group but there were also several girls who were very keen to chat – about the businesses they are running using their microfinance loans, their favourite activities at the clubs, and what they do outside the club. There was a strong feeling of unity between them as they talked about each other’s lives and shared experiences.
I was amazed at their maturity and understanding of running a business despite not being in school: Stella sells shoes with her loan. She explained how she prices the shoes to make profits, and told me how she saves and reinvests the profits into her business.
Many of them spoke about music and drama as their favourite activities at the club: the girls welcomed us with a wonderful song and dance number. One of the older girls, Elisabeth, tried to teach me their dance – sadly, I’m still miles away from their skills!
Many of them are unable to attend school, but they all have high ambitions and visions for their careers, their education, their businesses and their lives. There were smiles all around the room as they shared their stories with us. And although they were pleased we had visited, the pleasure was mostly ours.
Center for Communication for Sustainable Social Change honors BRAC
The Center for Communication for Sustainable Social Change at the University of Massachusetts in Amherst is is presenting its annual award to BRAC and Ms. Sheepa Hafiza, BRAC's Director of Gender, Justice & Diversity and Advocacy.
The award aims to honor outstanding contributions by individuals or organizations to the theory and practice of communication for sustainable social change, said the center's director Jan Servaes of the Communication Department.
The award, he added, also recognizes Ms. Hafiza's longstanding involvement in the field of communication for social change and her leadership in training on gender, justice and diversity projects, as well as advocacy projects, that have contributed to sustainable social change.
Inter-governmental organizations, non-governmental organizations, international, regional and national academic and professional communication associations, international media networks and communication and social change consortia are encouraged to submit nominations for this annual award.
This year's selection committee consisted of:
Servaes called the process "challenging" due to this number and the quality of the nominees. In selecting the 2010 award winner, the CSSC jury has considered both theoretical and practical innovation and commitment to sustainable social change, and notable achievements in applied communication practice.
Click here to read more about the award and CSSC.
The award aims to honor outstanding contributions by individuals or organizations to the theory and practice of communication for sustainable social change, said the center's director Jan Servaes of the Communication Department.
The award, he added, also recognizes Ms. Hafiza's longstanding involvement in the field of communication for social change and her leadership in training on gender, justice and diversity projects, as well as advocacy projects, that have contributed to sustainable social change.
Inter-governmental organizations, non-governmental organizations, international, regional and national academic and professional communication associations, international media networks and communication and social change consortia are encouraged to submit nominations for this annual award.
This year's selection committee consisted of:
- Prof. Claude-Yves Charron, vice-chancellor of the Universite de Quebec a Montreal (Canada), secretary-general of ORBICOM, the UNESCO Network of Chairs in Communication, and senior fellow of CSSC;
- Professor emeritus Royal Colle of Cornell University, Ithaca NY, and senior fellow of CSSC;
- Professor Jarice Hanson of the Communication Department and board member of CSSC;
- Tom Hogan of Macquarie University, Sydney (Australia) and senior fellow of CSSC;
- Neill McKee, Associate Director, Center for Global Health Communication and Marketing, of the Academy for Educational Development (AED) in Washington DC, and fFellow of CSSC;
- Ms. Emily Polk, doctoral student in the Department of Communication and junior fellow of CSSC; and
- Susan Seigel, Associate Director of CSSC and secretary of the selection committee.
Servaes called the process "challenging" due to this number and the quality of the nominees. In selecting the 2010 award winner, the CSSC jury has considered both theoretical and practical innovation and commitment to sustainable social change, and notable achievements in applied communication practice.
Click here to read more about the award and CSSC.
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