El Programa

So I've been putting some of my final work together for ICADS, and realize that I haven't been very specific about my work here in Matagalpa!

So here it goes..

Usura Cero was launched in mid-2008 by the Sandinista government in Managua as the first national microfinance program in Nicaragua. It had originally planned to reach out to 80,000 women in five years, but at the end of 2008, it had already granted loans to over 70,000 in all.

The loans have specific requirements..some of which are strictly followed, some aren't.

The idea is to only loan to women from urban barrios (neighborhoods)..a sharp contrast from other programs that largely target subsistence farmers and agricultural production as a whole. There are 16 regional offices--one for each departamento (state) in Nicaragua. The office here, in Matagalpa, currently manages 242 groups of women. Officially, these are called "grupos solidarios"..groups of 5-10 women that are meant to support each other through the duration of their individual loans.

In Matagalpa, 53 of the 242 groups are currently in debt. There is no money available for loans to new groups, so for now, the money is just being recycled for second/third loans.

The amount of each loan varies between 1,850 and 5,500 cordobas ($89-$265)..although the vast majority of women, in my experience, opt for the maximum loan of 5,500. There are four plans for repayment--3, 4, 6, or 8 months..and interest increases with time--1.27, 1.66, 2.45, and 3.24 percent respectively. This is much lower than what the private banks offer here, but contrary to public opinion, microfinance is not free in Nicaragua.

I've been tagging along to learn from the four different stages of these loans.

First, there is "capacitación"..the two training sessions required for each loan recipient prior to receiving her check (and one for each subsequent loan). They are interesting to take part in. Organized by an external institute, they focus on business strategies as a way for women to manage more money than they usually see in a month.

Second, there is distribution..a fun kind of celebration where the groups come together for their checks. Usually, this is accompanied by a speech from a government official, or something formal to contextualize the event.

Third, there are payments. Working in the office means getting to interact with women that come in to make weekly payments..always an interesting opportunity to see how the loan is progressing.

Fourth, and probably most importantly, I get to travel with the "Oficial de Crédito" on collection visits to the barrios (neighborhoods). This is the most life-changing part of working here..getting out to the barrios, and engaging with women who are surrounded by immense poverty.

My views on the program, and microfinance as a whole, are mixed..but it's something I won't comment on online. I will say that this has been an unreal experience--something I won't ever be able to forget. I can't wait to bring my experience back to Hampshire and try to make sense of all I've seen in these quick two months.

I will try and get to a computer next weekend for my final (!!) blog. After that, we will be traveling back to Costa Rica with little time to get online..finishing up with finals, presentations, etc..

But for now, thanks so much again for checking in! It's been fun writing here..has been a nice little weekly ritual. :)

Have a happy Thanksgiving!

La Playa

So, I know I didn't blog this weekend, and I can't pretend this is my photo, but I did have a solid excuse for not checking in ;)


Be back soon!

Fast Forward

So I just thought I'd link this article from the New York Times..it's all over the news here...

Thirty years later, and the U.S. is still imposing its will in Nicaragua.

Of course, it's part of a bigger picture..we've already seen this with Chavez in Venezuela, Evo in Bolivia, Correa in Ecuador. The U.S. is doing everything possible to break down the New Left movement in Latin America.


Is Nicaragua next? The ambassador's problems here might just find their way into U.S. headlines...!

Truth is Sad

In the 10 minutes it takes for me to write this blog entry, at least one child will come up to me and ask for a peso.

We all know what poverty is--see it on TV, read about it in the NY Times, but rarely engage with its intrinsic origins.

The truth is that the United States has had a profound and heinous influence in Nicaragua since the early 20th century.

That canal we now cruise through--in Panama--was originally meant to be here, in Nicaragua. You can see from the map below that Lake Nicaragua would've made the project a lot less expensive than the Panama Canal.



American troops invaded in 1909, and took control until 1933. This is when Sandino, a national hero here (the Ché of Nicaragua) led a revolution to overthrow the military.

The Americans "left," but also put Somoza in power..a puppet dictator meant to protect American interests. He reached an "agreement" with Sandino in 1933, and had him assassinated in 1934.

Somoza, and later his two sons, ruled the country for 45 years. It's unknown how many thousands of innocent citizens he killed, but there are still torture cells under his palace in Managua.

In 1939, FDR said,

Men are not prisoners of fate, but only prisoners of their own minds.

That same year:

Somoza may be a son of a bitch, but he's our son of a bitch.

After the Sandinistas overthrew the government in 1979, Nicaragua got its first taste of "freedom"..that is, until Ronald Reagan imposed a full trade embargo against the country, and started planting underwater mines in Nicaragua's Corinto harbour.

I can't define freedom, and I don't know when it arrived in Nicaragua.

But if we find it "self-evident" that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness,

There has never been a free Nicaragua.

So now this little boy is asking me for a peso. What do I tell him?

The truth is sad.

Plans

Hey all,

Not much happening at the moment! Enjoying my final days in the San José area..

I am finalizing plans to work with Usura Cero...a microfinance project started by the FSLN government in Nicaragua.

If all goes well, I´ll be studying the initiative in Granada, where very few loans are being returned to the bank. It will be a research project on the ideal conditions for microlending..Granada is a city with high levels of tourism, but revenue from that sector does not seem to be alleviating the extreme poverty in that area.

I´ll be sure to post soon with more details, but possibly after I arrive in Nicaragua.

Thanks so much for checking in!!
Matt

Quick Thoughts from Nicaragua

We all just returned from Nicaragua last night..it was one of the real highlights of my semester so far.

Managua, Matagalpa and Granada are all incredibly different cities. From climate to income to energy, it seemed like each city really had its distinct personality.

But culturally, the country is warm and welcoming..political ideologies were strong and visible. Daniel Ortega and the socialist party have assumed power again (as of Jan 2007)..there are new government projects, like schools and homes being built. But on the whole, Nicas I met didn´t seem to think that the Sandinistas could lift the nation out of poverty.

Living in Costa Rica sometimes makes you forget where you are. Things are generally comfortable here..I have a bed, running water, (sometimes) working showers, and three meals a day. In Nicaragua, many of these things are scarce. It is a true challenge to live, even for a few days, in Matagalpa. I find myself thinking constantly of the daily life conditions there--to lose electricity for a week, or water, or food.

It is a country with rich culture and history that I hope to dive further into soon..we are finalizing internship plans over the next week or so, and I can only hope to learn more from our neighbor to the north.