Some thoughts about my project....

So, for the past couple of days, I've been trying to map out how my research project should be organized. But, I can't really organize this project because, in reality, the local circumstances of my homestay and my internship will determine the scope of my research.

(the picture above is one from Honduras of some women who are part of a solidarity group who receive microfinance loans from an MFI called "FUNED")

I'm not sure if I actually went into what microfinance is and why I am interested in it. In essence, I still question its effectiveness; however, in theory, it is supposed to be a creative way of using capitalism to create opportunities for the world's poor (check out Mohammad Yunus winning the Nobel Peace Prize this year because he started Grameen Bank--a leader in the field of microfinance). Small loans are given either to individuals or groups of individuals who do not have the wealth to go to a regular bank because they don't have collateral. Instead, peer-pressure and other types of "social collateral" are used to ensure repayment of loans. Interest rates are higher because of the high transaction costs of giving out multiple small loans. MFIs provide financial and even social services such as education, business training, and health services. Also, the institutions can take multiple forms and have the potential to help many people who lack an opportunity for social mobility. However, the question remains whether individuals, especially women who are targeted the most by microfinance institutions, are empowered by this new opportunity to access financial services.




(this picture is of a microfinance client and his wife who were able to run a small store in their village ("pulperia" in Spanish)--these types of stores are numerous throughout the country--and I'm predicting that they are also throughout Latin America, but perhaps with a different name?? not really sure, but I guess I'll find out soon enough)

Okay, so that's the jist of microfinance, but I'm sure I'll go more in depth with my thoughts about the process later on. In any case, I've come up with some questions I would like to ask of microfinance clients (some questions could be asked of non-clients, as well) in Ecuador.

1. What led he or she to become a client?



2. How did he or she view the MFI (microfinance institution) in the beginning of the loan process versus now?



3. How did he or she hear about microfinance? (Were they targeted by the MFI or did they seek out the loan)



4. What were their loans used for, how much was their first loan, what loans are they on now, and how much is it for?



5. Are they taking out loans from more than one MFI?



6. How many microenterprises do they have, or did they diversify a single microbusiness?



7. Did their children go to school before receiving a loan? If not, are they now?



8. What would be a typical day for this person?



9. If this person could change on thing about his or her life, what would it be?



10. How does this person feel about the new president-elect?

So these were some questions I just thought of really quickly. But, this project is a work in progress.

Next on the list of things to worry about--how to pack light.....