Group Meetings Matter

I was just reading an interesting policy memo written over at the Centre for Microfinance (CMF) about microfinance and social capital. The study was conducted w/ VWS Microfinance in Kolkata, but the findings are relevant here in the US as well (although it's hard to be 100% sure that the results would be the same in the US).

Basically, through a randomized evaluation in which 1000 clients were put in groups that met weekly and 1000 were chosen to meet monthly, the researchers found that those that met weekly were more likely to trust one another and also spend time with one another outside of the group meetings. Also, in the medium term, those that met weekly were 8% less likely to default on their loans.

These findings demonstrate that group meetings can be beneficial for financial and community purposes. It's good to read that some of our assumptions about microfinance hold true with rigorous research. That said, cultures are very different across countries, so it is hard to take these findings in all locations/cities/countries.

For a more detailed dive, check out the India Development blog entry and 3-page memo here.
http://www.indiadevelopmentblog.com/2010/04/getting-handle-on-intangibles.html

Interesting approach to "green entrepreneurship": From Africa to NOLA to Rural US

The below is taken from an email exchange with Project HOPE:

"How do we link low-wage workers to "green entrepreneurship"?

Build homes, like The Millennium House in OK (http://www.pathnet.org/sp.asp?id=12535) but using enough, effective and applicable renewable energy to produce surplus electricity into the utility grid or, say in Africa, to use for entrepreneurial ventures. This is much of what Light for Africa does by electrifying rural homes with solar panels and some internal wiring to provide lighting and electricity with solar power!

Take Eldon Hathaway's Light for Africa concept one step forward and look at his approved and funded venture in New Orleans to replace one, destroyed school and the surrounding community, i.e. making it productive with green energy!
Suddenly, home owners have investment and direct interest in the energy market AND in renewable energy technology. You know what else?! The elementary school has access to renewable energy technology training, on-site! That is employment opportunity in a burgeoning market!

Thanks to a forward, thinking Prime Minister Nehru, India today has used this concept, i.e. getting their populace into the technology market, with the computer technology wave, lifting up millions in their poverty-stricken land to reach for dignity and opportunity along with self-determination!

Low wage workers can become entrepreneurs and use the ongoing, monthly payments for surplus electricity to re-vitalize their rural communities or expand their family's capabilities. All of this is done, while living in a safe, truly affordable home, with zero energy cost, the potential to produce a monthly income from surplus electricity sales, AND homes can withstand an F3 tornado, are immune to termites, won't mold, PLUS have a safe breathing environment, as Styrofoam and concrete put out no toxic fumes. Roof them with stainless steel AND solar shingles produced in Michigan, and the homes also have nearly permanent roofs, etc."

Social Security and Drug Addicts

http://www.druglibrary.org/schaffer/GOVPUBS/gao/gao20.htm

Government memo on social security, disability, and substance abuse as these topics relate to the payee system.

New Blog! Continue to follow our progress

Please check the Community Empowerment Fund's website for continuing research and reports on our progress towards adapting microfinance to meet the specific needs of the homeless and at-risk populations in North Carolina.

http://www.communityempowermentfund.org