My semester in Santiago

What's next? Micro-health care, micro-food?

2006-10-13T10:26:00.000-04:00

Today, Muhammad Yunus was named the winner of the Nobel Peace Prize for his work with microcredit aka the Grameen Bank. It's ironic for me because it was just yesterday that I was talking to a co-worker about this micro-revolution that has taken over the "do-gooder" world. She had just talked to a official from Accion International (Different from Accion Emprendedora) and had learned some of the criticisms about Yunus's model of microfinance.

Read the NY Times article, and you'll see that his model sounds just perfect. 99% repayment rate and 97% of loans to women! When I was a kid I learned that if something sounds too good to be true, it usually isn't. Now that analysis isn't based on hard facts, but how can the poorest of poor be able to pay back 99% of their loans without some other forces being involved?

So one of the things that turns out is that Grameen Bank relies on many government grants to stay afloat. And this whole women's empowerment thing? It might not be as true as it sounds either. Read this article. I had never really thought about the fact that just because you lend to a woman and make her pay it back doesn't mean she's the one that uses the money.

And is it really ideal to have every poor person in the world start their own business? Obviously entrepreneurs can't be risk-averse, that's what it means to be an entrepreneur. But if you can't put food on the table, are you really going to use the free, no-collateral $200 loan for starting your basket business or for feeding your children? The problem is that none of this can really be proven with hard facts. There's a lot of hypothetical situations, so it's hard to ever have a for-sure answer.

Maybe this whole micro thing is so big because it sounds really cool. I certainly thought so and got sucked into it. Micro-finance, micro-leasing, micro-entrepreneur, blah blah blah. What the hell does that all mean, and what makes something micro? Perhaps when we hear that prefix all of a sudden our minds are trained to think we are doing good for the world.

Here in Chile we call the entrepreneurs we work with microentrepreneurs, but I don't know if I really understand why. Sure they are micro compared to big entrepreneurs, but the real goal of Accion Emprenedora is that each microentrepreneur be able to hire a new employee. Well, that means that what we really want is for micro-entrepreneurs to become macro-entrepreneurs. I think that makes sense. Not everyone needs to be an entrepreneur, some people just need a decent-paying job. So what's our goal as Accion Emprendedora, make more micro-entrepreneurs or strengthen the existing ones so that they can have more employees and become more competitive?

One important lesson from David Bornstein's book on social entrepreneurship is that the reason social entrepreneurs are so successful is because they work within the communities they know best and never give up the hope and effort to change them. Note that it's two things, not just the never giving up, "entrepreneurial spirit" part but also the "own community" part. Most successful social entrepeneurs grew up or lived much of their lives among the situation they are trying to resolve, such as rural electrification in Brazil or education in India.

It doesn't mean Muhammad Yunus doesn't deserve the Nobel or that his work is pointless. Perhaps it's just that micro-credit was only effective for the community he came from, rural Bangladesh, and perhaps it can't work everywhere in the world.

One of my favorite messages from Jeffery Sachs' book, The End of Poverty, is that development works like practicing medicine (clinical economics). You have to diagnose each case separately. My sore throat and someone else's sore throat don't necessarily come from the same virus, so you can't just give us all the same remedy. Is micro-credit the answer that will save the world? Now, I don't think so.

If there's anything I' ve learned through this past year is that the more you do and the more you study about this whole development "saving the world" thing, the less you know. Those who think they have the answer, are usually really, really wrong. That's because there is no right answer.

My idea: let's keep empowering the people that know their community best and feel that they have the solutions for their community. Let's train more ethical leaders and have those leaders create even more leaders. The only "large-scale" international development organizations should be firms that go out to look for these people and support them. From what I know, that's what Ashoka and organizations like it does.

But really, as my wise friends in Oaxaca would say, ¿Quién sabe?

Did I really do all of this?

2006-10-10T13:26:00.000-04:00

This past weekend I:

Trekked through and rapelled down a cliff in the Andes
Biked through a small Argentinian community on a beautiful and sunny day to visit 2 wineries, a wine museum, and an olive oil factory
Tasted and learned about the differences between Malbecs, Borgonas and Torronteses
Spent a whole day wandering around Mendoza - walking a little, having some artesanal chocolate, walking some more, eating some gelato, walking a little more, eating cheap gourmet lunches, and so on
Ate, for about $11 US, a piece of Argentinian filet mignon with spinach a la crema and a glass of locally made Cabernet
Discovered alfajores - a chocolate or sugar covered shortbread cake filled with dulce de leche or fruit marmelade
Brought home two bags filled with wine, alfajores, clothes, Argentine leather goods, etc.

A little too indulgent at times, but learning about wine is simply great fun. I just hope I don't turn into Miles from Sideways soon.

Not bad for about the cost of one or two nights stay and dinner in a medium-priced hotel in New York or London!

Apoorva

The fight for normalcy

2006-10-02T23:20:00.000-04:00

After exactly one month in Santiago, I finally have settled in to a place with internet access and comfort. I moved to a room in a different part of Santiago, a little farther from work than the old place with the spawn of the devil children, but much more relaxing and comfortable.

It's so nice to get a good quality home-cooked meal and be able to watch the news or a movie with peace and tranquility. It's funny how the little comforts like that can really affect the whole experience. I became more productive at work and generally happier. (I also realized that I am an internet addict, but it is the beacon of globalization and a wonderful thing that keeps me informed, so who cares)

I cannot believe a month has passed already. I can't say that time has flown because that's cliche and it really hasn't gone that fast, but it's gone fast (ah the contradictions).

Work has gotten a tad bit more interesting, as I've gotten briefed about my upcoming assignment which has more to do with Accion Emprendedora and not so much with the DUOC Universidad Catolica. This new project is to do the research and development work for the financial sector of AE.

What AE wants to become its own lending institution that gives entrepreneurs microcredit. It's an ideal situation because during their tutoring and classes, they learn about and monitor all the entrepreneurs, so they know who would be a good person to lend to - it's kind of like the way a bank in the US does a credit check. I think it's the first of its kind not-for-profit bank in which the interest paid goes back into funding the organization and more loans. (UPDATE 10/17/2006: That statement is totally wrong. Turns out what I was talking about is a microfinance institution, and there's tons of them. I called myself out)

No one really knows much about how this would work, and there's lots of other micros - micro-leasing, micro-factoring - that can become options in this bank: BanAccion. I'll be spending much of my time doing this research to modify and improve the proposal to a point where it can be presented to funders and international development organizations (World Bank, etc.).

Exciting and challenging, I like it.

Greetings from my peaceful and quaint new home,

Apoorva

TAKA-TAKA!

2006-09-28T15:48:00.000-04:00

Highlight of the day:
Getting my ass kicked at foosball (Here it's called "Taka-Taka!", yes, and the exclamation mark and boldness is necessary when saying "Taka-Taka!") by my boss and his secretary.

What made it all worthwhile: Seeing my boss's reaction as he realized that he had forgotten about an important meeting while he was busy kicking our butt at "Taka-Taka!".

Entrepreneurs are really neat!

2006-09-27T09:35:00.000-04:00

Yesterday evening I met with a man named Luis who is a micro-entrepreneur in Santiago. For the last 10 years his business has been to repair automatic transmissions in any type of vehicle, but especially buses. Lately, big businesses have come in and taken over the market, so Luis has lost a ton of work and has come across hard times.

Realizing that he needed to adapt, he took a soldering class and decided he should start his own soldering business because the market for small jobs is huge. He explained to me his whole strategy and plan, and I thought it was simply awesome. I think it's so cool how he never once complained about the fact he lost so much business. He just stated it as a fact and looked towards new opportunities. Not only does he attend Accion Emprendedora's classes 3 times a week, he also goes to soldering classes as much as possible. All the while responding to any calls for work on transmissions 7 days a week.

What an amazing ability to adapt. I guess that's what it means to be an entrepreneur.

I met him through Accion Emprendedora's tutoring program, and for the next few weeks we'll be starting to write his business plan that he can turn in to the municipality and banks to get microcredit loans. He needs to buy all the tools for soldering and cover some of the costs of starting a new addition to his business.

Through all these years, Luis never had to buy anything on credit. That's pretty awesome, but I'm sure a little microcredit help this time won't hurt. I'm looking forward to seeing how the business plan and his business progresses. It's very exciting.

Stay tuned!

Apoorva

Proof that I'm really here

2006-09-26T11:36:00.001-04:00

The Plaza de Armas. I like to refer to this as Santiago's zocalo.

But Zocalo means nothing here. Art in Valparaiso - the whole city is covered with
murals, graffiti, and stairs - very sweet
I can even take pictures of me by myself!!Valparaiso 's harbor

I should take more pictures of Santiago since I live there. That will come soon.

Apoorva

Bumps in the road

2006-09-26T09:57:00.000-04:00

So last Friday I went home from work and in 15 minutes packed up all my stuff and left my homestay that I was at. I had let many things pass during the time I was there, but I was absolutely fed up because I got sick a 2nd time because of the kids - that was the last straw. I thought living with kids would be a little challenge, and it was, but it was a bigger challenge living with the mother of those kids. My list of problems with that place can go on and on.

But I'm out of there now, healthy, and back in south Santiago with some friends until I can find a new place. It's like starting all over again. But being able to eat healthy food and not mashed potatoes with a side of iceberg lettuce makes it worth the hassle.

Culture shock here has been much different than in Oaxaca. There, it was about a total of a few hours. Since I was always around people and everything was pretty set up, I never had the time to feel homesick or anything. I was also prepared and briefed on exactly what to expect all summer long through my AMIGOS friends from home. =)

I miss home and friends very much, very frequently, and being back at home seems so far away. It's hard to keep in contact because so far the only place I've had internet is at work (very ironic that I was more connected in a rural town in Oaxaca). But it's also the little things you miss like how easy everything is with a car, good and cheap food, and other simple comforts of Houston.

But Santiago itself is an awesome city, and walking around and exploring the bustle makes you feel better. And the panaderias here are amazing. Buying myself a chocolate covered caramel filled shortbread cookie sure hits the spot.

Hopefully things will get a little more settled down and I will eventually have internet access in my room. But time here in the big scheme of things is very short - I certainly do remind myself of that very often. In the end, these will all be funny and ridiculous stories from my big, crazy adventure. Perspective affects so much.

Be well, do good work, and keep in touch,

Apoorva

The job

2006-09-21T12:37:00.000-04:00

As time as passed, I have learned more about what my job at Accion Emprendedora entails. I had mentioned that the first thing I did was write a report on the state of entrepreneurship education for preschoolers. Well the reason my boss asked me for that is because the government of Chile has contracted DUOC Universidad Catolica who contracted Accion Emprendedora to figure out what needs to be done to get that type of education started in the country. AE and DUOC UC work closely together and my boss, the director of AE is also the director of the Entrepreneurship Center at DUOC UC. (All of this has happened recently) The Chilean government hopes to teach entrepreneurship to as many young students as possible. I really see an interest in this country is business and development through entrepreneurship. (Chile is the easiest place to start a new business in Latin America according to the World Bank - easier here than in Spain or France)

My next task has been to develop a leadership curriculum. The reason for that is that DUOC UC wants AE to create a leadership and entrepreneurship program for all new students that enter its university starting next year. That's about 15,000 new students every year. They are also interested in creating a Entrepreneurship and Innovation Center, which has also been put into the hands of AE.

Since AE is such a small organization, people like me and another recent grad from Duke doing his Fullbright here can get some pretty cool tasks. The director is chronically busy and office space and resources are limited, but DUOC UC wants to get this stuff started and trusts our boss. So that means for the next few months, I'm not only working for Accion Emprendedora, but also indirectly for DUOC UC.

Then there's the AE part of my job. I have also mentioned that AE has 3 steps to their work: business classes for small business owners and entrepreneurs, tutoring for the creation of the business plan, and finally assisting entrepreneurs with microcredit loans. So far, AE has done the first two by itself and works with banks and municipalities for the microcredit part. The vision of the director is to become a self-sufficient organization in which it has its own funds to give out credit. Not only would AE be a training and support organization, but also a bank for microcredit.

My job for the next few months will also be to do as much research and analysis as possible on implementing this 3rd part. I will research microcredit, microleasing, and microfactoring and work with the business plan my boss has already created. I still haven't found out exactly all the details of this part of the job, but it sounds interesting, and I think I will leave with a super understanding of microfinances.

Finally, AE has also asked me to be a tutor for one of the small business entrepreneurs. As a tutor, I help the business owner create a business plan that he can turn in to the municipality he lives in as well as banks to get loans. My assignment is to work with a man who has a soldering/welding business. I have my first meeting with him next Tuesday and then I will learn more about him and his business. I'm very excited about this and I think it will be a valuable and fun experience.

So now I will get back to my research on entrepreneurship and innovation centers. The work is tough and draining, but very rewarding. I certainly do miss home though.

Love,

Apoorva

Long weekend

2006-09-17T19:54:00.000-04:00

This weekend is known as el Dieciocho is Chile. It´s the nation´s independence day tomorrow, and that means everyone is having a crazy time grilling meat, dancing Cueca (the national dance), and taking it easy. It´s so much more intense than 4th of July.

I decided to take off to Valparaíso/Viña del Mar for the weekend. I spent the first two days in Valparaíso. The city is quirky and beautiful. It´s at the edge of the Pacific but covered with hills. So the whole city is up and down, and little houses line every hill. Art is everywhere in the city, and every house is painted a different color. (Pictures will come soon) It was fun to see more of Chile and has been relaxing, even though I have walked like no other.

Then today I left the hostel to come over to Viña del Mar. Much less personality but more access to the ocean, so there´s a lot of great, tranquil views. The city is really small and dotted with luxury high rises.

I´ll be back in Santiago soon and back to work. A post will soon come about my work - I have found out more exciting things about my job description.

Take care and feliz dieciocho,

Apoorva

The working life

2006-09-11T11:17:00.000-04:00

I can't believe I've only been here for less than two weeks. I am starting to get used to the working life, which for me pretty much means sitting in front of my notebook in the library for hours during the day. (Office space is limited at the university where Accion Emprendedora is based)

However, my work is fascinating. Last week, I helped the director judge business plans for a university competition with something like a $20,000 prize. I read through about 7 or 8 and wrote comments based on innovation, viability, presentation, etc.

Then, Anibal, the director, asked me to write him a report on the state of preschool entrepreneurship education in the world. Apparently, he has the job of implementing such a program for public school students in Chile. My lessons from policy analysis class helped a lot and so did Google. It was fun to be able to make reccomendations about how to implement such a program and what it should include.

This week, I am working on creating a leadership education program for university students at DUOC in Chile. That's about 50,000 students in Chile. Anibal said he has been appointed to create and start such a program as well. All of this on top of the actual Accion Emprendedora work - he's a busy guy. But leadership education is certainly something I love working on, and all my time with Leadership Rice will continue to help me out. Don't be surprized if the DUOC leadership cirriculum looks a lot like Leadership Rice in Spanish. =)

On the non-work aspect of life in Stgo., this weekend, I saw a art exhibit by Nicanor Parra, who is a Chilean "anti-poet." He writes random poetry on pieces of wood and takes trinkets like tires, old computers, and buckets to communicate his message. It was absolutely hilarious, and I plan to go again so I can take pictures of his work. Daring is an understatement.

I also got to play some Ulimate Frisbee yesterday with mostly gringos and a few Argentines and Chileans here and there. That rocked because I really missed playing. I'm looking forward to continuing that during my time here. Most of them are very good, so it's challenging, but very fun.

It's back to the work week, and I must say there is no such thing as quiet in libraries in Chile.

Warm regards,

Apoorva

P.S. - I still have no internet at my room, so emails, photos, and more frequent posts will start coming as soon as that is done.

Listo, set, go!

2006-09-06T18:03:00.000-04:00

I have a place to live and a place to work. This week has been very productive, as first I found a room in a condominium in a nice part of Santiago - Providencia, and I am staying with a family. The room is impeccable and it is very cheap to live there. The only thing is that there are two little kids, 2 and 5 years old, and I am hoping they don't drive me nuts. Otherwise, it's a great set up.

2nd, I am officially working for Accion Emprendedora starting tomorrow at 9 AM. It is a 15 minute walk from my residence, so less money shall be spent on transport. The internship sounds very exciting. First I will be collaborating on creating a entrepreneurship cirriculum for AE clients. Then I will work on leadership education cirriculum. And then there will also be the research on micro-lending sources.

AE is an interesting and exciting organization. It is based inside a university and its director is a Duke-educated lawyer. The organization works to train small business owners in poor communities on how to create a business plan, and then it works to procure funding for the business person through banks. And finally, for about 6 months, trained graduates in fields corresponding to the business help the entrepreneur sustain his/her business.

My boss is the director and he is also a entrepreneurship/leadership professor at the university. I'm excited because he wants to learn more about teaching leadership, and I have been in leadership programs or classes since 10th grade in high school. I want to learn more about entrepreneurship, so this will be a great exchange I think.

I hope all goes well and I enjoy my work. I am very excited to be pretty much past the phase of finding a place to live and work and am ready to start settling in to normality.

Will surely keep this thing updated with the latest!

Apoorva

The search goes on

2006-09-04T12:46:00.000-04:00

It´s Monday in Santiago and I am still on the search for a place to live. Hence very infrequent internet access. I think that I will be working at Acción Emprendedora, which is an organization that trains, finances, and supports entrepreneurs as a way to overcome poverty. It sounds really cool and the director is also a professor of entrepreneurship and leadership.

I think I would be working on researching different microcredit sources and also on other projects of theirs. I´ll find out for sure on Wednesday.

Until then, I hope to find a place to live! The search is pretty difficult and I think I have walked about 5 or 6 miles everyday since I´ve been here. But it´s all fun and I have been able to see a ton of the city. This place bustles like no other, and the city center is always alive with shops, restaurants and random acts of art. Once I get internet for my laptop I will be able to post pictures.

I must say, this city is huge. Hope all is well on the other side of the world,

Love,

Apoorva

In the big city

2006-08-31T15:20:00.000-04:00

I am in Santiago de Chile and it all seems so surreal. I've only been here for a day and a half and I already have housing and internships almost lined up. Now it's a matter of choosing what I want to do and where I want to live as opposed to not having any options for either.

Santiago is a beautiful city. Imagine stylish people, nice weather, European city life and the hustle/bustle of New York. But all the while still being Latin America. It's a very unique city and I think I will like it here.

I still don't have regular internet access yet so I will post more details soon once I move into a permanent place to live.

But everything is well in Chile!

Love,

Apoorva

Ya me voy

2006-08-29T00:56:00.000-04:00

Tomorrow, I am flying off to Santiago de Chile. Well as long as another little storm in the making doesn't get in the way.

Today, Mr. Ernesto decided to head right towards Miami, and so at about 8:30 in the evening I receive a voicemail from American Airlines telling me that the first leg of my flight, Houston to Miami, was cancelled. So I did a quick phone call to AA, and luckily I was re-routed, and I shall be flying to Dallas from Houston and then taking the flight from Dallas to Santiago.

I'll be leaving Houston a little later tomorrow and arriving in Santiago an hour later Wednesday, but no worries. I am sad I will miss out on the cortaditos and Cuban food in the Miami airport, but that shall wait for the trip back.

I have also been scrambling this week calling tons of different places in Chile to inquire about internship opportunities. There's a ton of interesting places, and right now I am looking into Un Techo para Chile and Accion Emprendedora. Both are organizations that work with microcredit and entrepreneurs. The second doing exactly what interests me right now: finding, training, consulting, and investing in entrepreneurs around the country to help improve their economic condition. And the whole organization is run by mostly students and recent grads.

But who knows where I will end up, nothing is secure yet. This week of finding an internship seems like it will be fun. I really don't know what to expect, but that's the theme of 2006 isn't it?

Goodbye for now Houston, see you in Santiago,

Apoorva

Some things just don't change...

2006-08-24T16:48:00.000-04:00

My summer home is still boiling in tension. I remember posting one week before I left for Oaxaca about the conflict between the teachers and the state government. And it looks like neither side is letting down yet.

It reminds me of one of those hostage movies where the police are confused because if they give the kidnapper what he wants, every criminal in the city would start kidnapping people and if they try to raid him, he would kill someone. But it always ends up okay by the end in the movie. Perhaps we need Samuel L. Jackson, "The Negotiator," to fly into Oaxaca and save the day.

There has also been some social unrest in Chile as well. Students there have made demands to the government for more benefits. It's an amazing feat of mobilization. But it's sad that a few idiots have spurred violence in an otherwise peaceful movement.

Legitimate social movements being taken over by radicals and fools...that's the news this time.

The idea

2006-08-23T00:29:00.000-04:00

This semester, I have taken a leave of absence from Rice University and have decided to go to Santiago, Chile until December. There I will be living in the city and pursuing an internship in an organization that interests me. For me, this semester is about gaining real, professional experience and learning more about social entrepreneurship, microfinance, economic and political development, and leadership.

I decided against doing a regular study abroad program because I felt like this would be a bigger challenge, I would save more money, and I'd get the chance to see a country my way - no big formal program, no other Americans to speak English with, no tuition.

While to many my idea seems a little off the wall and capricious, I think it's very deliberate and strategic. I want to come back to Rice in the Spring having been challenged and knowing more about what I want to do.

Here's to a wonderful semester. If you are joining me from the Oaxaca ride, welcome back. If you are a new reader, I hope you enjoy my writing throughout these months.

I'm back!

Apoorva