I didn't expect to be writing a post from Miami yet, but here I am! Fearing airport closure and other unpredictable factors in Honduras, my parents called me yesterday (Sunday) at about noon and asked that I head to the airport and return to Miami. Feeling safe at my home in Tegucigalpa and generally not too worried about the situation, like any good teenager should, I resisted my parents. I tried to convince them that I would be fine and all of this would pass and things would return to normal. But my pleas couldn't be heard over those of the international press who showed burning tires and tanks in the capital (I didn't see a single soldier on the street on my way to the airport). So now here I sit in Starbucks in Miami while the world scrutinizes over Honduras and mainstream news sources finally begin to run full stories on the topic.
Here's a video of my thoughts of the political situation and my time in Honduras:
I remain optimistic that the controversy will settle down and I will be allowed to return but even if I don't get the opportunity to go back, I can't complain about my time there, except for the rushed good-byes to my new friends.
I feel like I really learned about microfinance and how it can really help people. I also saw the ugly side of any finance company when people refuse to pay. But I realized that the huge majority of people who receive mircoloans use them to better their lives.
Right now, during all of these problems, the poor in Honduras (about 70% of the population) will be the most affected. In times like these, more than ever, these people need to continue to have access to microloans through agencies like Prisma and through the help of people around the world through Kiva. I hope that this blog and my experiences have helped you gain a more in-depth experience of microfinance and I thank you for reading.
And unless things change and I am allowed to return, so long.
Monday, June 29, 2009
Friday, June 26, 2009
Business Internship?
When I applied for this internship, I thought I would be learning about business, small entrepreneurs, and the microfinance industry. Little did I know it would turn out to be an education in Political Science! As I wrote those last two sentences, I actually ran upstairs to the terrace to look at the main street of the Miraflores neighborhood (where I live) because I heard lots of honking. Turns out "Mel's" (President Manuel Zelaya) supporters were driving down the street yelling and honking in favor of "Cuarta Urna" (translated "Fourth Voting Booth").
Tomorrow is the non-binding "vote" which asks citizens if they would like to see another item on the ballot in November's presidential election: the option to change the Constitution. I took video of what I saw.
On paper, this seems like a good thing...let's ask the people if they want to change their own Constitution. But most people will tell you that the president is trying to change the constitution to let himself serve again because the current constitution only allows for one 4-year term. The situation is strikingly similar to what his good friend, Hugo Chavez did a few years ago to allow himself to stay in power indefinitely.
That being said, the biggest controversy over the vote tomorrow that it is illegal. The legislature and the Supreme Court have said that the non-binding, referendum vote on whether to add a vote to change the Constitution to the ballot in November is against the law. I'm not totally clear on all of the constitutional issues, but I know that the Supreme Court ruled that the President cannot have the vote tomorrow. When the court stated that Zelaya could not have the vote, he ignored the ruling and asked the military to do their duty and distribute the ballots. When the armed forces chief refused to do something illegal, the President fired him. Then on Thursday, Mel himself led a few thousand people into armed forces headquarters where they removed the boxes of the ballots. Now Zelaya's supporters will set up and run the booths.
Yesterday, the military chief (Vasquez) was reinstated by the Supreme Court and there is speculation that there will be a coup tomorrow by the military. So far, the majority of the demonstrations have been by Zelaya's supporters and non-violent, which makes me feel safer. I haven't spoken to anyone who is going to vote tomorrow because they worry about violence and they use it as a form of protest its illegality. That means, assuming there is no coup, that the referendum will pass in a landslide and the president will use that to argue that the people want a constitutional change.
As for me, I've been inside most of the day and I don't plan on going out tomorrow. I'm not worried about my safety, but I am worried about the future of Honduras and their government, so we'll see what happens tomorrow.
Here's one article on what's happening: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/27/AR2009062701962.html
Now I'll move back to the business part of my time here. On Thursday, I had the task of doing some Kiva Journals or follow-ups. I met with 5 or 6 people to ask about their businesses and how they've used the loans they received from Kiva. If you'd like to read a few, go to the slideshow on the left and click on the picture, you should be taken to a page where you can see all of the pictures from my time here. The first few pictures have links in the captions to where you can read the follow-ups I've written. When you open the link, the follow-ups are at the near the bottom of the page and are labeled "Journal Entry." Here is a video of a portion of an interview with Maura:
Thursday they closed the office early due to the political situation and on Friday we worked all day. I uploaded the journals to Kiva's site and after work went to eat at Ruby Tuesday's (which is much cooler here than the U.S.). Today we didn't work because of the political situation and we will hear word early Monday morning if the offices will be open.
Talk about an education!
Tomorrow is the non-binding "vote" which asks citizens if they would like to see another item on the ballot in November's presidential election: the option to change the Constitution. I took video of what I saw.
On paper, this seems like a good thing...let's ask the people if they want to change their own Constitution. But most people will tell you that the president is trying to change the constitution to let himself serve again because the current constitution only allows for one 4-year term. The situation is strikingly similar to what his good friend, Hugo Chavez did a few years ago to allow himself to stay in power indefinitely.
That being said, the biggest controversy over the vote tomorrow that it is illegal. The legislature and the Supreme Court have said that the non-binding, referendum vote on whether to add a vote to change the Constitution to the ballot in November is against the law. I'm not totally clear on all of the constitutional issues, but I know that the Supreme Court ruled that the President cannot have the vote tomorrow. When the court stated that Zelaya could not have the vote, he ignored the ruling and asked the military to do their duty and distribute the ballots. When the armed forces chief refused to do something illegal, the President fired him. Then on Thursday, Mel himself led a few thousand people into armed forces headquarters where they removed the boxes of the ballots. Now Zelaya's supporters will set up and run the booths.
Yesterday, the military chief (Vasquez) was reinstated by the Supreme Court and there is speculation that there will be a coup tomorrow by the military. So far, the majority of the demonstrations have been by Zelaya's supporters and non-violent, which makes me feel safer. I haven't spoken to anyone who is going to vote tomorrow because they worry about violence and they use it as a form of protest its illegality. That means, assuming there is no coup, that the referendum will pass in a landslide and the president will use that to argue that the people want a constitutional change.
As for me, I've been inside most of the day and I don't plan on going out tomorrow. I'm not worried about my safety, but I am worried about the future of Honduras and their government, so we'll see what happens tomorrow.
Here's one article on what's happening: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/27/AR2009062701962.html
Now I'll move back to the business part of my time here. On Thursday, I had the task of doing some Kiva Journals or follow-ups. I met with 5 or 6 people to ask about their businesses and how they've used the loans they received from Kiva. If you'd like to read a few, go to the slideshow on the left and click on the picture, you should be taken to a page where you can see all of the pictures from my time here. The first few pictures have links in the captions to where you can read the follow-ups I've written. When you open the link, the follow-ups are at the near the bottom of the page and are labeled "Journal Entry." Here is a video of a portion of an interview with Maura:
Thursday they closed the office early due to the political situation and on Friday we worked all day. I uploaded the journals to Kiva's site and after work went to eat at Ruby Tuesday's (which is much cooler here than the U.S.). Today we didn't work because of the political situation and we will hear word early Monday morning if the offices will be open.
Talk about an education!
Wednesday, June 24, 2009
Loan Recipient Profiles + Video with subtitles
Yesterday I had the opportunity to meet a few more people who have received a loan from Kiva/Prisma. The first people we visited were part of the group "New Hope." Gabriela, the group leader (who's just 20 years old!), sells tamales every day in front of the public hospital. Her mother helps her most days as she sells at least 50 tamales every day! In this picture you can see her mother and if you look closely inside the bin, some tamales wrapped in the traditional banana leaf.
The second member of the group is Gabriela's father...Gabriel! He goes to out to fishing towns near the borders of El Salvador and Nicaragua on the Pacific Coast where he sells used American clothing to fishermen. He travels a few hours in bus with a huge sack full of old American high school t-shirts, Delta Airlines caps, and other used clothing from the good 'ol U.S. of A. With the loan he hopes to grow his business and one day buy a car so that he doesn't have to rely on the bus. Here Gabriel is showcasing his merchandise.
The third member of the group bakes and sells bread as well as small items like lollipops, potato chips, and chocolate covered bananas (which she graciously let us try). She also invests in Honduran soccer jerseys around this time of year when they will have a lot of big games. It's one of the smartest things she can do because every time the national team plays (especially against big rivals like the U.S.), the city shuts down. The only thing I can compare it to is the Super Bowl; businesses close early, supermarket workers can wear soccer jerseys instead of uniforms, and EVERYONE watches the game. Here she is in her home/business.
Finally, here are all three from the group together:
After meeting with them, I interviewed Maria Vasquez about the loan she received from Kiva for her door-to-door clothing business. You won't believe this view from her home!
Unfortunately, the government declared the area she lives in a "Danger Zone" because the neighborhood is built on the side of a mountain and could be wiped out by a landslide. But on a lighter note, she says the loan she received really helped her expand her business and now she has one daughter in the process of earning a college degree! In the future she hopes to go to Mexico (where she can buy clothes at a lower cost) and sell them here in Honduras.
Today I spent the day preparing the credit applications for Gabriela's group (each person has to have their own application) and working on follow-ups for Kiva. Not nearly as exciting as going out to visit people, but it's part of the process, too.
Just a few side notes...
I posted a few new videos that may show up on the left side of the page but if not, just go to youtube.com and type in "Scottshuff23" and all of the video's I've posted will come up.
If you've got some time on your hands, here is an 8 minute long video of Doña Catalina (who I wrote about a few days ago) showing her home and speaking with Dilcia, the loan officer. I've added subtitles of what I think they are saying but I could be wrong so please correct me if you notice any mistakes! Just click here!
And finally, here's a shorter video of a lady named Esperanza getting ready to have her photo taken for Kiva's site: http://www.youtube.com/watch?v=73PtpaZ7HAw
Hope this post finds you doing well!
 |
| From Honduras |
The second member of the group is Gabriela's father...Gabriel! He goes to out to fishing towns near the borders of El Salvador and Nicaragua on the Pacific Coast where he sells used American clothing to fishermen. He travels a few hours in bus with a huge sack full of old American high school t-shirts, Delta Airlines caps, and other used clothing from the good 'ol U.S. of A. With the loan he hopes to grow his business and one day buy a car so that he doesn't have to rely on the bus. Here Gabriel is showcasing his merchandise.
 |
| From Honduras |
 |
| From Honduras |
Finally, here are all three from the group together:
 |
| From Honduras |
After meeting with them, I interviewed Maria Vasquez about the loan she received from Kiva for her door-to-door clothing business. You won't believe this view from her home!
 |
| From Honduras |
Unfortunately, the government declared the area she lives in a "Danger Zone" because the neighborhood is built on the side of a mountain and could be wiped out by a landslide. But on a lighter note, she says the loan she received really helped her expand her business and now she has one daughter in the process of earning a college degree! In the future she hopes to go to Mexico (where she can buy clothes at a lower cost) and sell them here in Honduras.
Today I spent the day preparing the credit applications for Gabriela's group (each person has to have their own application) and working on follow-ups for Kiva. Not nearly as exciting as going out to visit people, but it's part of the process, too.
Just a few side notes...
I posted a few new videos that may show up on the left side of the page but if not, just go to youtube.com and type in "Scottshuff23" and all of the video's I've posted will come up.
If you've got some time on your hands, here is an 8 minute long video of Doña Catalina (who I wrote about a few days ago) showing her home and speaking with Dilcia, the loan officer. I've added subtitles of what I think they are saying but I could be wrong so please correct me if you notice any mistakes! Just click here!
And finally, here's a shorter video of a lady named Esperanza getting ready to have her photo taken for Kiva's site: http://www.youtube.com/watch?v=73PtpaZ7HAw
Hope this post finds you doing well!
Tuesday, June 23, 2009
Getting Down to Businesses
I finally feel like I am actually comfortable with the things I am learning at Prisma and the role of a loan officer. The people at the Pedregal office have been very patient with me, making sure I know every detail of their work.
After enduring on a four hour bus ride yesterday returning from La Esperanza, I went back to work this morning. After continuing the preparation of a few loan applications, I left with Dilcia to do a Kiva follow-up. We spoke with a lady who sells tortillas (unfortunately I left my notes at the office and I cannot remember her name) and has received a loan from Kiva donors administered by Prisma. She says the loan absolutely helped her grow her business and provide for her family. Unfortunately, she says business has been getting tougher there. She blames the fact that many people have lost their jobs and are now trying to do anything possible to get by.... and that includes selling tortillas. As I can apply from my economics class, the tortilla trade is perfect competition. No matter where you go, tortillas sell "2 for 1 Lempira (about $.05)" and there isn't much of a difference between a tortilla made by one person and a tortilla made by another. Also, anyone can enter the business, all someone needs is a fire and a metal plate to put on top of it and they can start their tortilla business. But as I said, right now the woman we visited said she thinks that more producers are hurting her sales.
After visiting with her, we moved to the ugly part of any finance company - collections. We had to visit a woman and threaten to take her refrigerator if she doesn't find a way to pay. It's really sad to have to go through that and it makes me wonder if microfinance is always a good thing. But after seeing numerous people who have been helped by small loans, I understand that sometimes people fall behind and there isn't much we can do about it. The bottom line is that there are more people benefiting from microcredit services than are losing their refrigerators to creditors.
Back in the office, we reviewed a credit report and saw another person with problems on a Citi credit card. Here there is very little regulation for credit card companies and unfortunately it seems like they may be taking advantage of people. I'll be trying to look into that in the rest of my time here.
I'll leave you with a picture of La Esperanza and I've added more pictures so just click on the Slideshow to the left to view them.
After enduring on a four hour bus ride yesterday returning from La Esperanza, I went back to work this morning. After continuing the preparation of a few loan applications, I left with Dilcia to do a Kiva follow-up. We spoke with a lady who sells tortillas (unfortunately I left my notes at the office and I cannot remember her name) and has received a loan from Kiva donors administered by Prisma. She says the loan absolutely helped her grow her business and provide for her family. Unfortunately, she says business has been getting tougher there. She blames the fact that many people have lost their jobs and are now trying to do anything possible to get by.... and that includes selling tortillas. As I can apply from my economics class, the tortilla trade is perfect competition. No matter where you go, tortillas sell "2 for 1 Lempira (about $.05)" and there isn't much of a difference between a tortilla made by one person and a tortilla made by another. Also, anyone can enter the business, all someone needs is a fire and a metal plate to put on top of it and they can start their tortilla business. But as I said, right now the woman we visited said she thinks that more producers are hurting her sales.
After visiting with her, we moved to the ugly part of any finance company - collections. We had to visit a woman and threaten to take her refrigerator if she doesn't find a way to pay. It's really sad to have to go through that and it makes me wonder if microfinance is always a good thing. But after seeing numerous people who have been helped by small loans, I understand that sometimes people fall behind and there isn't much we can do about it. The bottom line is that there are more people benefiting from microcredit services than are losing their refrigerators to creditors.
Back in the office, we reviewed a credit report and saw another person with problems on a Citi credit card. Here there is very little regulation for credit card companies and unfortunately it seems like they may be taking advantage of people. I'll be trying to look into that in the rest of my time here.
I'll leave you with a picture of La Esperanza and I've added more pictures so just click on the Slideshow to the left to view them.
 |
| From Honduras |
Saturday, June 20, 2009
La Esperanza and Intibuca
Here I sit in an internet cafe in La Esperanza/Intibuca (the two towns are right next to each other). I'd forgotten how much I love internet cafes! Since I have internet in the house where I'm living in Tegus, I miss out on the "ambiance" of cafes with computers. Anyway, last night I came here with Hugo (a Honduran college student who rents a room upstairs in the house I'm living in) because his semester just ended and his family lives here. The bus ride was about four hours and not too painful. It was really interesting to see the change in senery from higher altitude in Tegus to lower altitude in Comayagua and then back up again to get to La Esperanza. It was raining most of the time and got pretty foggy for a portion of the trek through the mountains. It reminded me of when Allison (my sister) and I travelled to the Amazon in Ecuador. Times like that you really have to trust the bus driver! Hugo has been very hospitable and his family is really nice! Here's a picture of me and him on the way to the internet cafe.
Work at Prisma the last few days has been really cool. On Thursday, we went out to an area of Tegus called Policarpo to do interviews with a group of women who will be put on Kiva. Their names are Esperanza, Doris, and Claudia. Esperanza sells food from her home (tacos, fried bananas, etc.), Doris sells fruit next door to Esperanza, and Claudia has a "pulperia" or a small market. They decided to name their group "Women in Victory." The women that Prisma works with play a big role in their homes and are always proud to be receiving loans and growing their businesses.
I learned a ton on Thurdsay. At one point, Dilcia (the loan officer) interviewed one of the group members while I filled out all of the information necessary for the application of another member. The most difficult part was helping Claudia with her "evaluacion", more easily described as the cost at which she buys everything and the cost at which she sells it. Fortunately Dilcia came toward the end of the interview to help me out. As for now, Dilcia has all of the photos we took but hopefully I will be able to post them soon.
On Friday (yesterday), we prepared the presentations of the loan applications so that they can be reviewed by the credit committee. We put a lot of the information into spreadsheets and typed out short descriptions of each of the women in the group. There was also discussion of how much we should ask from the credit committee. In the end, in total, the women will be asking for 19,000 Lempiras, or about $1,000.
And on a final note, Happy Father´s Day Dad! Even though father´s day isn't until tomorrow, I probably won't be near a computer so thanks Dad for all of the support you've given me and continue to give me! (Especially on this blog!)
 |
| From Honduras |
Work at Prisma the last few days has been really cool. On Thursday, we went out to an area of Tegus called Policarpo to do interviews with a group of women who will be put on Kiva. Their names are Esperanza, Doris, and Claudia. Esperanza sells food from her home (tacos, fried bananas, etc.), Doris sells fruit next door to Esperanza, and Claudia has a "pulperia" or a small market. They decided to name their group "Women in Victory." The women that Prisma works with play a big role in their homes and are always proud to be receiving loans and growing their businesses.
I learned a ton on Thurdsay. At one point, Dilcia (the loan officer) interviewed one of the group members while I filled out all of the information necessary for the application of another member. The most difficult part was helping Claudia with her "evaluacion", more easily described as the cost at which she buys everything and the cost at which she sells it. Fortunately Dilcia came toward the end of the interview to help me out. As for now, Dilcia has all of the photos we took but hopefully I will be able to post them soon.
On Friday (yesterday), we prepared the presentations of the loan applications so that they can be reviewed by the credit committee. We put a lot of the information into spreadsheets and typed out short descriptions of each of the women in the group. There was also discussion of how much we should ask from the credit committee. In the end, in total, the women will be asking for 19,000 Lempiras, or about $1,000.
And on a final note, Happy Father´s Day Dad! Even though father´s day isn't until tomorrow, I probably won't be near a computer so thanks Dad for all of the support you've given me and continue to give me! (Especially on this blog!)
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