Economic Development Team

I will be heading to Kanyawegi this summer as part of the Economic Development team. But in case the phrase "Economic Development" doesn't immediately inform you of everything we've done in the village so far (I mean, they are two very descriptive words in every context right) I have prepped a quick overview, so that my posts make a bit more sense.


 In 2007, GIVE worked alongside the Kanyawegi community to set up a savings bank. Many of the villagers had expressed their desire to learn how to care for themselves financially, but had no resources to do so. Up until then, many people actually hid their savings under rocks or in cupboards (not joking). Since the majority of people live in poverty, it was seen as greedy to not share any extra funds that one may have saved up, since family and friends are always in desperate need of help. The banks in Kisumu (the closest 'town') were too far away, and had too large of fees for these villagers to afford. The GIVE Bank, lovingly called the Bank from now on, provided individuals a safe and confidential place for whatever they could manage to save up. As a savings bank, no start-up fees are charged to those who sign up, and it is located in Obambo market, which is central to many of the villages. A financial curriculum was offered in these initial years to educate the villagers on the benefits of saving - how if you don't spend your dollar today, you will have an extra dollar tomorrow.


 In 2009, a pilot micro-credit program was started up. This system lent out small loans to business owners in the villages who could not qualify for the loans or high interest rates at the larger banks. This program was wildly successful, running for two years with a 100% repayment rate. In fact, not one single payment was missed by any participant over the two years!


 In 2011, GIVE decided to pause the micro-credit program to work on the security and structure of the Bank. The structure, though extremely safe for members, was not fool-proof and was largely run by Maurice. By largely, I mean completely. He is the foundation of the Bank, but there were very few policies in place for an other person to come in and help him, should he get injured or the like.


 And that brings us to this year - 2012 The overarching goal of this summer is to implement a Board of Directors to oversee the workings of the Bank, and serve the members. However, the means to achieve this goal will only be determined once I go to the village. We as a team have determined that, as we look to transfer the responsibility of the Bank to the community, it is in the best interest of all involved for the villagers to create their own system. Graham and I will be acting as advisers, and to give perspective into the decision making process.


 This blog is more or less going to follow my experience of this implementation, but don't worry, this will be extremely entertaining