@ La Plata

Yesterday, we visited a new centro at Villa Alba to meet some more borrowers. We also met Grameen La Plata's president, Alicia. Not only does she lead the administration, but also is a bank worker. It's wonderful how the board involves themselves in all aspects of the bank. In this way, they can feel the pulse of the bank, which is the borrowers. I think this is a great way to lead and make sure the bank fulfills the right goals!

We had a great discussion with the ladies about microfinance. The most interesting discussion was on whether there are microfinance institutions in the United States and if they improve the lives of the poor. Pramod and I knew of Grameen USA, which is giving small loans to Americans. When I thought about the businesses of the ladies in Villa Alba, I started to wonder if these same entrepreneurial ventures would survive the competitive marketplaces in the US. With Wal-Marts and McDonald's serving the poor at scandalously low prices, I don't know if small businesses could compete and still make a profit. Also, given the lack of developed business infrastructure here, it is easier to start a business. While there are not enough marketplaces and some legal obstacles, it is much easier for the poor to launch a small business in a developing nation than the United States.

The verdict on whether microfinance reduces poverty is still undetermined, but I would wager that it would be less effective in developed nations than the developing world because of competition and red tape.

Here is a photo of us with some of the ladies:


Today we started our first series of surveys for the impact study we are doing on behalf of ADITO. While Grameen wants us to present and then write a report on our experiences with microfinance in La Plata, ADITO (the Harvard student group we came with) is conducting a study to examine the impact of microfinance on the living standards of the poor. We are the first year of interns who are collecting data. Pramod and I were the last group to conduct the study, so we didn't really have to deal with initial issues regarding the survey questions and reaching out to borrowers. The collection of data was relatively simple. However, with Swine Flu, the impact study has had to adapt and be accommodating of the effect of Swine Flu on these communities.

Here is a photo of the kindergarten that all the Villa Alba meetings are held. There are a few of the borrowers in front of the school:


Tomorrow evening we are heading out to Mendoza (Argentina's wine country) for the conferences of all the banks in the Federación Argentina de Replicas Grameen. We'll be there for the weekend and then head to Chile for a few days before heading back to BA!