Which Came First the Hen or the Egg?

Inspired and conflicting conversations can be so interesting, yet often leave me at the end of a group discussion feeling like we all still walk away with our own opinions and without any enlightenment or consensus. Saturday FSD hosted a Micro Enterprise Financing in Uganda talk with presentations from GESI interns from Northwestern University and a paper presentation by a Mr. Fred Muwaya, a professor from Busoga University.

The group discussion that followed consisted mostly of remarks, concerns and comments from Busoga University students with a few FSD intern comments here and there with a question, clarification, or observation. My favorite clarification was the GESI intern who claimed that Uganda should not look to America's saving culture as an example, considering how America does not have a culture for saving... To which, our moderator commented, "So they aren't better than us... " I thought it was so hilarious.

Anyways, the conversation topic focused around closing the gap between microfinance institutions and the micro enterprises they offer services too. Enter the circular philosophical question; which comes first savings or financing? The hen or the egg? Several people claimed the financing comes first, in order to receive capital to begin saving regularly.

I disagree. From my experiences, (and according to many banks and MFI policies) members need to achieve a certain level of savings before taking out loans. At Marusacco, members can take loans up to three times that of their savings. In addition for providing the MFI with capital to access loans at a better rate, I think it trains members in long term business planning strategies. They need to learn how to assess risks and set goals for future growth. But I also do not claim that that is the only or right answer.

Cultural changes take time, and need to be decided by the people of said cultural community. Similarly, I do not think that asking short term American interns how we can address these challenges is very efficient or sustainable. Someone needs to lead the change - and a sustainable change for Uganda will come from Ugandans who accept responsibility, refuse corruption, and welcome the challenges and costs in pursuit of long term prosperity.

So wait why am I here again? Well, that is a philosophical train of jumbled thoughts for another blog.

Moving Through Mobilization

The past couple weeks of my project has focused on mobilizing the community of Bugembe to do ONE thing - attend a free training on savings skills. You even get free food out of it! What a deal.

Unfortunately, mobilizing has been harder than I thought. Despite trekking all around the community for over a week spreading the word about the training to groups, schools, and churches, we only received an attendance of 50 on Saturday. Out of a target group of 300. Did I mention that they all arrived 2 hours after the training was scheduled to start?

Fortunately, even though it was a small number, the training was successful and I feel the attendees earned a lot. Hopefully it will translate into a larger number of people attending the second training and signing up for lockboxes!

Part of this problem can be attributed to African time (aka the attendees showing up 2 hours late), and so it's something pretty much out of my control. The attendance is the frustrating part! It shows how essential proper mobilization strategies are in a community where formal advertising doesn't take place and is expensive. Word of mouth is the most powerful form of stimulating people - and it takes time and energy. It takes talking to the right people, talking to a LOT of people, and visiting groups. It also takes knowing that you don't have the easiest product to sell - can you see how difficult it would be to convince people to come to a savings training when they have a deep-seated mistrust of banks?

But the most rewarding part of that aspect of my project is making impact in the community by changing misconceptions and establishing appropriate savings skills! The project isn't just about increasing working capital for the SACCO: it's establishing new culture.