Posts by kristanhoff:
Esperanza in Reader’s Digest
May 24th, 2009The Dominican Republic micro-finance organization, Esperanza International, was recently featured in Reader’s Digest magazine. Here is the link to the article.
What happens when microfinance doesn’t go according to plan?
March 9th, 2009I have repeatedly wondered this question with respect to natural disaster since I have begun working in Santiago with Esperanza International and Kiva. What happens to microfinance bank members when natural disaster strikes?
In the case of the Dominican Republic, natural disaster comes often and in the form of tropical storm and hurricane activity. Since arriving two months ago I have come across the stories of two individuals, each effected by natural disaster.
Gladys, mother of three, lost everything to tropical storm Olga in December of 2007. Around midnight on a December evening the Tavera Dam collapsed on the Yaque River and allowed 1.6 million gallons of water a second to enter the surrounding communities. According to Gladys, hundreds were killed. She declared everyone was sleeping; it was unexpected.
Due to the failures of the government infrastructure, the Dominican government has built a housing development for those affected by the collapse of the dam. Gladys has now been living for nine months in this development and is beginning the process of re-establishing her nail salon with her first microfinance loan from Esperanza International. In additional to free housing, Gladys is also receiving 300 pesos a month for each child living at home, four gallons of gas a month for cooking purposes, and insurance. Despite the government’s efforts to aid this population it is clear it is a long road ahead.
Olga, mother of four children, has also suffered the effects of flooding and tropical storm activity. In February 2009 tropical storm activity passed through Santiago and relentless rains persisted for seven days. Flooding was inevitable.  Olga, as well as her neighbor and fellow member of her microfinance bank, lost their homes due to the flooding. In the case of Olga and her microfinance bank, unlike the story of Gladys there is no government assistance. Olga, on her third microfinance loan with Esperanza, is beginning the process of rebuilding.
Countless stories can be told of the effects of natural disaster amongst other cities in the Dominican Republic and throughout the world. A trend appears to be evident however; the poorest of communities, due to financial restrictions, live in those areas most prone to the sufferings of natural disasters. According to the UNDP 2004 Reducing Disaster Risk: A Challenge to Development report, “85 percent of the people exposed to earthquakes, tropical cyclones, floods and droughts live in countries having either medium or low human development”.  A cycle of disaster, recovery and disaster can often be seen that leads to the question of how microfinance organizations can best work in these communities. It is a question I hope to learn more about as I continue to interact with these two women.
Kiva Makes TIME’s Best Websites List
March 9th, 2009Kiva recently made TIME magazine’s list of “50 Best Websites of 2008″. As described:
You don’t have to give away money to support a good cause. At Kiva you can make a small loan instead. A unique peer-to-peer lending site that focuses on microloans, Kiva lets lenders pledge funds — from $25 and up — to entrepreneurs in developing countries. As of May 2008, that included a cattle breeder in Azerbaijan and a snack-kiosk owner in Indonesia. Kiva works with microlenders in recipients’ native countries and typically pays you back within a year.
Kiva is the world’s largest publis database of micro-enterprise profiles and earned a well deserved spot on TIME’s list.
Microfinance and the Obama Administration
February 6th, 2009As the Obama administration has taken over, I have begun to wonder what role microfinance initiatives will take amongst the new leadership. On January 13 current Secretary of State Hillary Rodham Clinton included statements on microfinance in her speech at the Senate Confirmation Hearing. Clinton declared:
Today more than two billion people worldwide live on less than $2 a day. They are facing rising food prices and widespread hunger. Calls for expanding civil and political rights in countries plagued by mass hunger and disease will fall on deaf ears unless democracy actually delivers material benefits that improve people’s lives while weeding out the corruption that too often stands in the way of progress.
Our foreign policy must reflect our deep commitment to the cause of making human rights a reality for millions of oppressed people around the world. Of particular concern to me is the plight of women and girls, who comprise the majority of the world’s unhealthy, unschooled, unfed, and unpaid. If half of the world’s population remains vulnerable to economic, political, legal, and social marginalization, our hope of advancing democracy and prosperity will remain in serious jeopardy. We still have a long way to go and the United States must remain an unambiguous and unequivocal voice in support of women’s rights in every country, every region, on every continent.
As a personal aside, I want to mention that President-elect Obama’s mother, Ann Dunham, was a pioneer in microfinance in Indonesia. In my own work on microfinance around the world – from Bangladesh to Chile to Vietnam to South Africa and many other countries — I’ve seen firsthand how small loans given to poor women to start small businesses can raise standards of living and transform local economies. President-elect Obama’s mother had planned to attend a microfinance forum at the Beijing women’s conference in 1995 that I participated in. Unfortunately, she was very ill and couldn’t travel and sadly passed away a few months later. But I think it’s fair to say that her work in international development, the care and concern she showed for women and for poor people around the world, mattered greatly to her son, and certainly has informed his views and his vision. We will be honored to carry on Ann Dunham’s work in the months and years ahead. (Hilary Clinton’s Statement at Senate Confirmation Hearing)
New Sec. State Hilary Clinton and former President Bill Clinton have long been involved in microfinance initiatives. Bill Clinton wrote about such topics in his book Giving and both have actively encouraged the work of the Grameen Bank and Kiva (which naturally I am quite excited about since I am currently helping with the work for Kiva).
Aside from the Clintons, Nancy Barry, a close advisor to President Obama, was formerly the President of the Women’s World Banking for several years and holds close relations to the Obama family, as she worked with Ann Dunham, President Obama’s mother.
President Obama himself has traveled Kenya and visited micro-finance locations within the country (BBC News: Obama Draws Crowds on Slum Tour).
President Obama’s leadership holds experience and dedication to the field of microfinance. The question is, what will become of it? Where will the cause rank amongst the presidential agenda? I recently joined “Microfinance for Obamaâ€, a part of President Obama and Vice-President Biden’s campaign page, with high expectations. I’m the fifth member (not quite what I expected).
