Ya herd? Using Micro-Loans to Raise Goats and Climb out of Poverty

Much has been written about the benefits of micro-finance recently, especially since Bangaldeshi Muhammad Yunus and his Grameen Bank, won the Pulitzer Peace Prize in
2006. To briefly summarize, micro-finance is the provision of financial services to poor people in developing countries who lack access to the commercial banking system. For those unfamiliar with this world-changing concept, please allow me to explain in a personalized example.

David is a strong and intelligent 25 year-old Cape Verdean. He finished high school, but like most people on this small volcanic island of Fogo (“Fire”), there is limited opportunity for him to work or pursue his studies. Though he would like to start his own business, he does not have the capital needed to make the initial investment to get anything started. As a result, he picks up work with a small company that mines stone from the hard earth. But even this grueling work is infrequent, leaving David without a dependable means of income. He and his wife have started to build a house, but up to this point, they have not gotten beyond building a tiny room of concrete blocks; running water and electricity are still a dream away.

The nine inhabited islands of Cape Verde are small, barren and isolated. With very limited rainfall, few natural resources and little arable land, Cape Verde is experiencing hard times, especially during the current drought, which explains why there are more Cape Verdeans living abroad that on the islands themselves. It is a sad, but telling commentary on the depths of this drought to see such beautiful islands abandoned by nearly anyone that has the means to immigrate.

Unlike many of the islanders of Fogo, David does not have family members abroad that can send him money. He would like to earn a stable income and knows that he could earn a living by raising goats, as the goat milk provides an essential source of vitamins and the cheese can be sold to the local community. Once the goats mature and reproduce, the cheese production increases and the young goats can be sold off for a profit. There is land near David’s house that is perfect for grazing animals, but there is a problem: like many people in the developing world, David lacks the start-up capital needed to finance the initial investment. In order to buy 6 or 7 goats, he would need $900. For someone with David’s financial standing, taking out a traditional bank loan in Cape Verde (as is the case in most developing countries) is impossible, as the banks do not offer credit to the poor, many of which cannot provide the collateral required.

For millions, the only source of credit is the local pawnshop or a loan shark that charges exorbitant interest rates, sometimes as high as 1,000%! I have personally seen people in the favelas of Rio that have been threatened and beat up by these loan sharks when they fall behind on their payments. So this leaves David (and MILLIONS like him) in a precarious position, but thankfully micro-credit institutions have stepped in to address the needs of these local entrepreneurs by providing poor people with low-interest loans to start their own business and climb their way out of poverty.

While in Cape Verde , I discovered one such institution OMCV that is doing amazing work with micro-loans, as they were recommended to me by Peace Corps volunteers and local development workers. While visiting David on the slopes of the enormous volcano that towers over the islanders like a sleeping giant, I met Senora Isabel and her husband, who live next door. Three years ago, Isabel took out a $400 micro-loan with OMCV for the same purpose. With the profits from her cheese-making industry, she repaid the loan month-by-month, took out another $400 loan and then last year, due to her credit worthiness, was awarded a larger $800 loan. Today, she and her husband have a flock of 80 goats and a thriving cottage industry of making cheese! With the help of OMCV, they now sell their cheese ($2 a wheel) in bulk to large hotels on neighboring islands with more tourism and have expanded their cramped family shack into a more comfortable 3-bedroom home with a stove and electricity. They are now also raising chickens and can afford small luxuries like a radio, a bedspread and a set of dishes. As she happily recounted to me over a plate of delicious goat cheese, “When I first heard about micro-credit, I had no idea what it was!” She is proud to tell me how she repaid every penny of her loans on time and she and her husband are overjoyed to have found a means to work together to provide income for their family. As they told me, they are able to put some money into a small savings account that acts as an emergency fund, should the need arise.

Visiting David next door, I felt like I was glimpsing into the future. He has witnessed Isabel’s success and knows that micro-loans are the answer to his prayers. He is committed to applying his tireless work ethic to creating his own goat herd and cheese business and knows that by repaying his loans on time, he will be able to take out additional loans to further increase his success. Thanks to the donations of people like you, 100 Friends was able to finance David’s $900 micro-loan.

David, ecstatic upon hearing the news, pledged to dutifully look after his goats with the utmost attention, “as though they are my own babies,” he told me with a smile. This was especially touching to me as I have heard about the human-like qualities of goats: goats milk is said to be very similar to human breast milk, the bleats of many goats sound like crying babies and the eyes strongly resemble humans. Interestingly enough, goats were among the first animals domesticated by humans over 10,000 years ago in present-day Turkey and Iran; the domestication of goats allowed humans to move to more arid lowland regions, marking the transition to the modern era. As humans began to harness the stable food supply that goats provided, they were able to expand into new ecological areas and grow in communal size, which constitutes one of the most fundamental changes on human history. The worship of the half-goat Greek god Pan is further evidence of the goat’s influence on human history. Hopefully, the seven goats David purchases and raises with this micro-loan will allow he and his family to evolve to a more comfortable lifestyle, one free of hunger and hardship.

Best of all, when the money is repaid back into the OMCV fund, it will then be lent out to another local entrepreneur, allowing ANOTHER family to pull themselves out of poverty and create a better life for themselves. This magical, yet simple formula of micro-credit is changing lives all over the world and thanks to your help, the wheels will keep turning.

Attacking Malaria by Saving Lives With $2 Bednets

Malaria kills over a million people a year, yes one million! Last month, I walked out of my hotel and saw my local friend Steven lying under a palm tree, wracked in sweat and shaking violently. I didn’t have to ask him what the problem was; it was obvious he was in the midst of a malaria attack. Watching someone in the throes of an attack is a gruesome experience. Fortunately for Steven, I was able to help, but millions of others are not so lucky. After the one-celled malaria plasmodia have entered the body through the probiscus of a female mosquito, they travel to the victim’s liver, where they burrow themselves into liver cells. Over the course of a week, these parasites eat and multiply until they burst out of the cells and enter the bloodstream. Soon, the victim is gripped by anxiety, as though the body knows its immune system has been attacked. A sever fever and violent shivering are the body’s attempts to increase body temperature, in an attempt to kill off the parasites with heat. A sudden onset of chills quickly morphs into an intense sensation of bitter cold, even more traumatic for Africans that have never felt a cold winter’s chill before. They shake so hard and are so cold they often beg to be covered or smothered. Those without anyone to care for them or wrap them in blankets or coats simply collapse onto the ground, where they lie in a half-conscious state of convulsion. Hours later, when these painful, rhythmic waves of cold and pain have passed, the victim enters a debilitating period of exhaustion and weakness. After the attack has ended, the person is wracked by sweat, fever, pain and nausea – sometimes for days on end. Children not strong enough to withstand this battle (especially those without access to water or medical care) often perish at this point. Malnourished people are especially vulnerable to the ravages of malaria, as the disease slowly wears them down to nothing.

Preventing Unwanted Pregnancy and Environmental Degradation in Senegal

http://www.youtube.com/watch?v=IK9dU_scooQ
“It’s so hard to feed all of these hungry bellies,” I am told by Adama, a Senegalese mother of seven. We hear about the problems posed by overpopulation, but often cannot comprehend how this issue effects people on an individual level. Coming face-to-face with a malnourished family of nine is heart-wrenching. Due to the absence of reproductive health clinics, a lack of low-cost contraceptives and high infant-mortality rates, parents here are giving birth to very large families (here in Senegal the average is about six). Large family sizes place unnecessary burden on the parents to provide food and the environment to provide firewood and water.

By 2050, world population is projected to reach nine billion, a 38% jump from today's 6.5 billion; most of this global explosion will be heavily concentrated in Latin America, Africa and South Asia. The threat is especially serious here in Africa, where the population is expected to surge from 900 million to almost two billion.

In the developing nations that have effectively promoted contraception, the key to success has been the empowerment of women. Mothers need to be educated to make informed decisions, as research proves that even a few years of education has a great impact on controlling fertility rates. In fact, hundreds of millions of couples around the world want – but do not have access to – family planning practices; it is estimated that one third of the population growth in the world is the result of incidental or unwanted pregnancies. Over the past few months in West Africa, I have witnessed these realities first-hand, so I mobilized my resources, found an incredible local partner organization and created a plan to tackle both issues simultaneously.

The first step was enlisting the help of Tostan (http://www.tostan.org), an amazingly-effective NGO (non-governmental organization) here in Senegal. What drew me to them, besides the accolades they have earned from the international community, is the success they have had in creating community-based development councils. As many know, too much of international development is conducted in a top-down manner, with planners in Western capitals deciding what people in the developing world need to improve their lives. This approach is fraught with peril, as cultural realities and local customs are often overlooked or ignored altogether, resulting in failed projects and a growing mistrust from the locals of the very organizations that were created to help them. Fortunately, Molly Melching, founder of Tostan (and native Chicagoan), recognized this fact and decided to base her development approach around the training and mobilization of Senegalese women to become pro-active agents of change in their communities. Each village adopted into Tostan’s network undergo a 30-month Community Empowerment Program (CEP) wherein local women undergo a rigorous training session to improve their reading skills and are then instilled with strategies for leadership, decision-making, income-generation, communication, budgeting, social mobilization, etc. Upon completion, each village’s Community Management Committee (CMC) meets to assess their community’s needs and then seeks an effective means to affect the positive change. After the creation of these CMC’s, local communities have mobilized to build latrines (drastically reducing the occurrence of infectious disease), dug wells (to improve water access and quality) and built local health clinics (to provide health care in regions that previously had no such access). Tostan has also facilitated the creation of a 1,500 village-wide Tostan’s Empowered Communities Network (ECN) which allows these small communities to work together, pass along lessons of success and share their knowledge and fresh ideas with each other. Utilizing this network to launch a project ensures that the innovative ideas will be effectively spread on a regional basis.

As many know, addressing population control is a touchy subject, as there are many religious overtones involved. Unfortunately, these taboos have prevented the dissemination of contraceptives as well as ideas that would seriously help control the population explosion many countries are saddled with.

In addition, millions of women are seriously injured or die during childbirth, a statistic particularly troubling here in sub-Saharan Africa, where one in sixteen mothers will die giving birth in their lifetime.

Fortunately, there is an innovative new approach that is proving to yield results: CycleBeads, which is a pregnancy prevention methods using the Standard Days Method. Basically, these beads, in the shape of a necklace, provide a tool for women to keep track of their menstrual cycle and avoid unprotected sex during their fertile 6-day period of the month. The United Nations Family Planning Association describes it as “a portable, durable, and renewable calendar, the ring contains 32 coloured beads that represent each day in a woman’s monthly reproductive cycle. For a woman with a regular menstrual cycle that falls between 26 and 32 days in length, CycleBeads can identify when she is most likely to conceive. During that time, she and her partner either abstain from sex or use another form of protection.” More effective than a diaphragm and nearly as effective as condoms, this tool was developed by the Institute of Reproductive Health at Georgetown University and has been distributed worldwide to address over-population.

What really excites me about the use of these beads (except for the fact that they glow-in-the-dark for those dark intimate moments) is the fact that there is no religious objection to their use here. Senegal is 95% Muslim, but everyone here, including the imams, have given their support. This is especially important, as birth control pills and contraceptive injections have (erroneously or not) been blamed for health complications among local women, but there is no mistrust towards the beads, as the women understand this is simply a way for them to become familiar with the natural cycle of their bodies. To see a video featuring Flea of the Red Hot Chili Peppers in Haiti demonstrating how these beads work: http://www.4real.com/tv/details.asp?pageid=12

After speaking with the regional directors of Tostan, 100 Friends has donated $500 for the purchase and distribution of 500 of these CycleBeads to be distributed to fifty women in ten separate villages. From there, the techniques will be passed along to even more communities through Tostan’s Empowered Communities Network (ECN).
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Another issue that demands action is global warming and deforestation. One of the most simple and effective means of dealing with these twin issues is improving the wood stoves that people in West Africa use to cook with. Open fires cause many burns and health problems: over 1.6 million people die every year from respiratory diseases caused by smoke from wood stoves. On an environmental scale, wood fires are very inefficient in terms of energy and the soot from these fires contributes greatly to global warming, as the black noxious particles in the smoke increase the atmospheric temperature. Coupled with overpopulation, the collection of firewood is stripping the local environment of its trees and resources, which leads to desertification and infertile soil which in turn makes these families’ situations even more precarious.
Fortunately, there is a very simple and cost-effective way to address these problems: the installation of more efficient woodstoves. Instead of cooking over an open fire, round one foot-tall shelters (shaped perfectly for the pots the families cook with) are easily built from local materials. By surrounding the flame to reduce heat loss and the effect of wind, these stoves become much more effective.

Working through Tostan, 100 Friends is providing $500 to fund a training session for ten villages. Two community leaders from each village will be given a 2-day training session to provide the instruction and materials needed to install these improved stoves in their communities. Each of these twenty leaders will then train ten other community leaders within Tostan’s Empowered Communities Network (ECN) to build and maintain the stoves.

So in less than a year, this $500 investment will have resulted in the construction of 200 of these improved woodstoves. Every family utilizing these new stoves will use 66% less firewood, from 6 to 2 logs a day. They will also save about 2 hours in meal preparation due to the greater heat efficiency generated by the improved stoves. To put that into context, if each family uses 4 less logs per day, multiplied by 200 stoves, and 365 days, that equals 292,000 logs of wood saved per year! This will ease the deforestation threatening these villages´ survival. As for the time saved with these more heat-efficient stoves, 200 families x 2 hours per day x 365 work days is an extra 146,000 extra hours of time that can be devoted to farming or other income-generating activities, and that´s not even counting the time saved from foraging for firewood , an activity that is especially time-consuming in this part of the world.

It is amazing to see just how easy it is to stretch $1,000 into such a far-reaching initiative to tackle the issues of overpopulation, deforestation and global warming all at once. Your contributions are making the difference in these peoples’ lives, so keep the donations coming!