Putting the Finance back into Microfinance

The problem with social impact programs that dip a toe in market techniques is its lack of definition and applicability to our modern financial structure. It is no wonder that the US and UK are the main centers of finance and the populations found in these are the target of fundraising. Mohammed Yunnis brought microcredit to the mainstream, but what he's developed on a wide scale in Bangladesh and India is a bit at odds with and somewhat difficult to frame for the ones holding the big bags of cash that can REALLY make a difference for the world's poor. 

Websites like Kiva have had an amazing impact on raising capital for MFIs (MicroFinance Institutions) by connecting the lender (us) to the entrepreneurs who just need a bit of access to capital. They absolutely have a niche in harnessing technology to allow the average person to directly impact poverty, it seems. But let's talk numbers - $100 Million in loans at $25 a loan, often recycled within 8 months. Since its inception 5 years ago if you average the total out evenly, there is never more than $20M at a time being supplied globally to entrepreneurs. It's an almost laughable amount compared to say, the S&P - which has a market cap of $10.9 Trillion as of yesterday.

I attended one of the most insightful and relevant conferences at NYU yesterday given by the Microfinance Club of New York. The topic was "The Missing Middle" which points out the gap we now find between properly invest-able larger companies and the increasing preponderance of microcredit. There is currently no vehicle for credit available to the small and medium sized businesses caught in between these two groups but still need funding. When you talk about developing countries, almost all companies too big for microcredit end up falling into this category. It was interesting to note how impossible it was to talk about this "missing middle" without referring to its smaller and larger counterparts in microcredit and corporations. Almost everything referring to SMEs (small and medium sized enterprises) was done with reference to anecdotes about microcredit or large, invest-able companies. If this SME group is so peripheral to the eye of investment, its problems will be very difficult to address.

I didn't realize how finance-related this talk was going to be. I'm also very glad, because most social impact conferences are notoriously anecdotal, and I think as audiences grow more sophisticated, there needs to be a decent amount of evidence, measurement and analysis to balance out the evangelism. But it was almost like being back at my old company and also reminded me of my short stint working for an Angel/VC network. Terms floated around: Debt vs equity, Collateral Debt, Lending against forward receipts, concessionary/commercial capital, asset classes.

Because I myself only have a vague notion of most of these terms, I figure I'd write a quick primer on investment vehicles. Entry is coming shortly and will be linked.
It was great to dig into the nuts and bolts of microcredit though. I think few people understand how banks and lending/finance firms and investing work in the capital markets, much less the informal markets with the notion of social impact thrown in to muddy up the waters. The panelists were absolutely amazing - made up of:

Margot Brandenburg - Associate Director of Rockefeller Foundation
Roger Frank - i3 Advisors
Sky Fernandez - South African Chamber of Commerce in America (SACCA)
Hans Dellien - Women's World Banking

One can not get a broader perspective from people who are clearly passionate about their work and knowledgeable of this sector. It was an inspiring and challenging evening all around.

Feminism and Science Fiction

The great thing about being 30 is that you watch your friends trickle into 2 distinct pools, neither one categorically better than the other. One set has been in the workforce for a while now, by all definitions successful at their work, and are going through the motions for their MBA or some sort of advanced degree in finance, econ, accounting, etc. The overarching Goal of which I assume to be stability, family and legacy. You know, the American Dream.

But the other group is interesting, intellectual pioneers often finding their niche in academia. They explore the most unheard of specializations. One such friend I found will be a panelist on the "feminism in comics" workshop in this year's Feminist Science Fiction conference: Wiscon

I have yet to understand the distinct value of feminism in the arena of science fiction, but I'm someone who, upon hearing an interesting bit of information, will continue to look through that lens for a while afterwards. Within the same week, noticed an article on the 75th anniversary of the Nancy Drew series, seeing The Craft and its not so hidden message of feminism manifesting early on a wiccan practice, and understanding finally why Lady Gaga is such a rebel. I'll write a completely separate entry on Lady Gaga at a later point, because she is actually the worthy comparison to a modern Madonna, PLUS some.

I have to admit, I'm rather envious of those who feel at liberty to explore the world around us, taking delight in the shimmering niches one finds completely off-path. I've always straddled the two worlds I mentioned above - feeling best when I'm on the straight and narrow road but often bounding off with other friends to delight in complete intellectual and social freedom, unbounded by conventional mores and values or all the layers of expectation we accrue as adults.

However, I digress as usual. hopefully Ann will bring me a couple of books as I've requested and I can share with all of you what exactly "feminist science fiction" actually is!

Planned Parenthood, Healthcare Reform, and the actual end-user

This video just came out today on Facebook's Planned Parenthood page. Or is it Planned Parenthood's Facebook page - who does it actually belong to?? Regardless, it's a great piece of propaganda/PSA, but let's see what effects it really has for those lives it promises to enhance. Obama seemed to have his heart in the right place as well as a thoughtful trajectory, but I think it's fairly well known that the amount of regulation, oversight and plans for implementation are flimsy at best. Honestly, I think it takes a woman to get all the details in place... Hilary, where did you go?

I have to give credit to Planned Parenthood's earlier Facebook campaigns on GYT (Getting Yourself Tested). Their almost daily reminders seemed to have a measurable impact as hundreds of people all over the world re-posted and replied to the status message indicating that they too, got tested. Being something I'm due for as well, one particular post offering online appointments set me into motion too.

I haven't had health insurance since I left the private sector back in February 2009 to go work with UNICEF. I had all my doctor's appointments done before I left but I was hoping to become employed and insured again soon after I returned from Africa, but frightening enough - that never happened. I applied online for Blue Cross my last month in Bangui, but I got denied and didn't have the means to pay for a long and confusing discussion about why. I don't have any health issues except back problems I developed sitting at a desk in an office for 4 years, 9 hours a day. I've seen it before. My own mother has gotten denied for health insurance too because of a "pre-existing condition".

Being almost 9 months late on my annual appointment, I too was compelled by the ads to at least visit a Planned Parenthood to try and obtain low cost women's health care. What I found on the website is that the online presence is established, but the ability to select or make appointments was not truly functional. I received an email 2 days later asking me to call the main center, but advising me that they were completely booked until next month. I can't believe there is ONE Planned Parenthood in all of Manhattan! I don't know how they handle the volume of a borough of millions!

The next day I called, was on hold for a reasonable 10 minutes, and made an appointment to see an entitlement counselor and a practitioner for approximately 3 weeks later. I can't wait to see how this appointment goes and how much it will cost considering the new healthcare bill and all that it touts. I'm glad Planned Parenthood bombarded me with reminders to take care of my own health and my own needs. All this time I was waiting for some company or some law to do it for me - what a mistake. I'll let you know what happens at my appointment! Considering my last ob/gyn was in Beverly Hills, I expect this experience to be nothing short of chaos. But I'm prepared, and thankful that we even have low-cost options to begin with in America - funded in one way or another by the might of someone who cared about someone other than themselves.

The Tragedy of Child Brides

There aren't words to properly convey what a tragedy it is to be born in a country that is so beautiful and yet so backwards. And by backwards I mean without the means to protect yourself from violence, abuse and neglect. It seems surreal that this day in age, there are adolescent girls being sent off to "marry" men many times their age to face such intense physical and emotional vulnerability, and in some cases - certain death.

Yemini Child Bride Dies after Marriage

Human rights groups have tried to make the legal marriage age 17. One of the cases made by the Yemen courts is that families should have ultimate say as to when to allow their children to marry. Why aren't parents protecting their children more? The socially condoned system of enforced naivete, paucity of proper education/socialization and women simply not having the right to have a say in the matters of their own life and survival. Gender discrimination takes on many faces, both in the developed and undeveloped world.

In America, we see differences in salary for the same work as men, less frequency of promotion, and difficulty returning to work after giving birth. In developing countries, young girls are often not given the opportunity attend school because they are seen as more likely to raise families and less probably engaged in earning a living. Compared to male children, young girls are given less food, less formal education and a clear barrier to think and have a voice in what happens to them. When will we arrive at a place where all people, regardless of gender can have direct means of fulfilling their most basic needs.

Which is why stories like this remind me that the human spirit flickers bright everywhere, no matter how oppressive the society and circumstance:

Eight Year Old Saudi girl granted divorce from 47 year old Husband

Rage on, little girls, wherever you are!