Her Hips Do Lie

Local hero Shakira ain't got nothin' compared to this salsa dancin' queen of Barranquilla...BAM!

Trevor, on the other hand, might have her beat...

San Pablo Housing Project

I'm actually pretty excited over the fact that this blog might cause a significant amount of debate or healthy dialogue amongst friends and family when I get home.  It's essentially about making it easier to put people in homes.  In the U.S., the same notion arguably sparked the largest economic downturn since the great depression.  What happens when institutions like FMSD help people reach not the American dream, but the Colombian dream?

As part of its overall mission to develop communities, FMSD has built four housing projects across the country.  Between 1985 and 2009, a total of 7,000 homes have been built with the support of both the local and national governments.  The newest project in the San Pablo neighborhood of Barranquilla houses 139 families.  We visited San Pablo earlier this week.

Similar to capital for small businesses, affordable mortgage financing from traditional lenders is not accessable to everyone.  Today, over 1,000 of the households residing in the four projects receive mortgage financing through FMSD.  Below is a breakdown of the financing structure for a family interested in a home with a basic floor plan:

Home price - $13,575
National government subsidy - up to $4,350
Local gov't subsidy - b/t $1,250 and $1,500
FMSD mortgage - up to $7,500 @ 16% interest
Down payment - as low as $225 (13575 - 4350 - 1500 - 7500)

To put the down payment amount in perspective, the minimum wage in Colombia is $250 per month.  Without knowing the financial standing of each applicant, what are your initial gut reactions to this program?  Are you thinking this is a way to get economically active families out of the bad neighborhoods and into blossoming communities?  Are you concerned about overindebtedness, the same epidemic we face in the United States?   

What I can tell you, and what may help persuade in a dialogue, is that FMSD is doing far more than simply financing people's mortgages.  They are heavily involved in all phases of the housing project, including but not limited to:

- housing construction (including electrical/plumbing assistance)
- attracting small business and services
- starting community committees (including safety)
- building health clinics
- school construction
- recycling, alternative energy, planting of flowers and trees
- recreation and leisure (parks, play zones, etc.)

I'm convinced of the positive impact these housing projects will have on the economic development of Colombia.  I look forward to hearing your thoughts on it as well.

Sunset at Porto de Colombia

On Sunday night, we added another member to our group - Lindsey Freedman.  Lindsey is a Field Support Specialist for Kiva.  Originally from California (only miles from where Trevor grew up), she oversees all the microfinance institutions in South America with which Kiva has formed a partnership.  She currently lives in Buenos Aires.  She's been an awesome addition to our crew.
  

(from left-to-right: John, Trevor, Me, Lindsey)

On Monday we all took a break from our work to go see the sunset at la playa Porto de Colombia about 10 km outside of Barranquilla.  The clouds obstructed the sun as it approached the horizon, but it was still a beautiful scene. 

 

El Fundación and Shani's Elegant Designs

My apologies for the long gap between blog posts.  We've had a jam-packed schedule since Tuesday visiting FMSD clients, delivering presentations and traveling to the branch office in Cartagena.  I've got some down time right now to try to catch up.  I'd like to use this post to tell you a little more about the Fundación Mario Santo Domingo (FMSD) and introduce you to one of their clients. 

FMSD is a private nonprofit organization dedicated to developing programs for the poorest sections of the Colombian population.  Mr. Mario Santo Domingo is on the Forbes 150 list having made his wealth primarily in the beverage distribution business in Central and South America.  The Santo Domingo family has donated a significant portion of their wealth to improving the lives of their fellow Colombians.  In 1985, FMSD started its microcredit program, providing capital to small business owners and aspiring homeowners.  Today, the microfinance program employs 135 people and provides loans to at least 12,000 small business owners and homeowners who lack access to traditional, formal financial service providers. 

 

Let's consider some interesting facts about the economic environment in Colombia.  There is a painfully visible income disparity between the rich and the poor in Colombia.  80% of the population lives at or below the average annual income level of $3,300 (about $9/day) - herein lies FMSD's target market.  The average loan size distributed by FMSD is $1200 or about 35% of their clients annual income.  As profit-seeking institutions, the larger, traditional banks do not/cannot participate in the microenterprise market.  FMSD steps in to fill this need.

 

All this week, we have been visiting FMSD clients at their places of business to observe how they operate and inquire about the opportunities having access to credit has opened for them.  Here is FMSD client Shani Escobar and her story:

 

 

 

Shani makes and sells handicrafts in the manner she learned as a young child, which is when she first dreamed of opening an art business. She started her training with ceramics, working with them for two years before moving on to new techniques with “country wood” and, ultimately, paint on canvas. She continued taking short classes to improve her art and currently works in the style of Britto, a Brazilian artist, making necklaces that go well with her other beautiful accessories.  One lucky family member of mine will be the lucky recipient of one said necklace.  For the "bling" lovers among us, Shani also designs these awesomely extravagant Blackberry cases. 

 

Shani's story is just one of many very cool testimonials on the importance of credit in the underserved markets of both developed and developing countries.  I look forward to sharing many more with you.  Next blog, pictures of the 4 gringos at the beach, a brief Shakira introspective and a look at the FMSD housing projects. 

 

Hasta luego,

Adam

 

Tres Hamacas

Hola from Barranquilla!  If you're like me, you've never slept in a hammock (hamaca, en espanol) before.  If you're a "stomach sleeper" like myself, well, don't...ever. 

After a weekend trekking through the jungle and enjoying the beaches of Tayrona National Park, we are back in the city of Barranquilla.  I'll do my best to catch you up on the weekend's activities in today's post before we depart for Porto de Colombia and begin our in-depth look at microfinance in Colombia. 

This trip would not have been possible be it not for John Gwillim, the Kiva Fellow currently supporting Fundacion Mario Santo Domingo (sidebar: Kiva.org is the non-profit through which I had a Fellowship back in 2008 in Sierra Leone).  Most recently, John was/is a co-founder for an internet start-up company.  He graduated from Michigan State University (fellow Big Ten grad) and was a photo journalist for their sports teams.  He's mountaineered Illmani in Bolivia, scuba dived with tiger sharks, and ice-climbed the Alps of France.  I guess studying microfinance in Colombia was his next logical extreme adventure.  We met up with John upon our arrival in Colombia on Friday night. 

 

Our first stop was Taganga, a sleepy tourist town 100 km east of Barranquilla (above photo from our hostel balcony).  After a night at the cozy La Tortuga Hostel, we took a "puerta a puerta" to Tayrona National Park.  Tayrona is a stunning combination of jungle with high canopy and gorgeous beaches.  Donkeys and horses transported people and goods to the coastline.  We decided to do the 2 hour hike on-foot through the rough, muddy terrain.  We eventually came to the beaches and our resting spot.  The following was a photo taken from the hammock hut: 

Everyone should experience laying in a hammock, on the Caribbean, with rain pounding against the palm trees and rocks at some point in their life.  However, if you need your Heavenly pillows and blankets, don't want to have to bathe in bug spray before bed and don't have a bottle of rum by your side to aid in falling asleep, then hammock living might not be for you.  I've never been so excited about staying at a Howard Johnson before in my life (our hotel in Barranquilla).   

Buenas tardes,

Adam

Vamos a Colombia!

Hello Friends, Family, Students and Colleagues!

This is the first of a series of blogs I will post over the next 8 days as I embark on a research trip to northern Colombia to study microfinance (or financial services for the poor).  Along with my friend/translator/research assistant/videographer Trevor, I will be spending the next week with the staff and clients at Fundacion Mario Santo Domingo (FMSD).  

First, a little background on my cohort-in-crime, Trevor Wallace.  Trevor is a sophomore at Sarah Lawrence University in New York.  He is an incredibly talented artist with ambitions to work in social and economic development.  This is his first foray into microfinance.  I've tried to give him a quick education on microfinance and he's picked it up very quickly.  Trevor is fluent in Spanish and his travels have brought him to Bolivia, Fiji, Antarctica and many other exciting places.  You will be amazed by what he produces on film. 

FMSD is a private non-profit organization founded in 1960 in Barranquilla, northern Colombia. FMSD is dedicated to developing programs for underprivileged sectors of Colombian society, and is currently active in Barranquilla, Cartagena, Bogotá and areas surrounding those cities.  As well as numerous social programs, FMSD also has a microfinance program to strengthen micro-businesses in the areas where FMSD works.  You'll learn a lot about FMSD and its amazing staff over the course of the week.


As for me, I'm now in my 2nd semester teaching Microfinance at Tufts University and find it to be an incredibly humbling experience.  My students are bright, ambitious and eager to make the world a better place.  It's an honor to be their instructor.  During the day, I have the honor of working at Fidelity Investments, where I'm entering my 8th year. 

Over the weekend, we'll be exploring Taganga and the ancient ruins of Tayrona National Park.  Stay tuned for daily updates from the field starting Sunday or Monday when we return to civilization.  I can't wait to share our experiences with you. 

Paze y abrazos (peace and hugs),
Adam