NEWSBYAARON JACOBOWITZ

You will need to excuse my posting tardiness, for as our last few weeks draw to a close, we have been very busy here in Jinja.

Earlier today, we finished both our discussions of the financial system, including the loans, accounting and operating procedures, as well as the training on the SavingsPlus software.  Monday and Tuesday focused on the discussions of the technical aspects of the bank system and procedure while Wednesday and Thursday were filled with training on how the software functions.

The discussions went very well, and we learned some valuable lessons, mainly that our co-workers are very smart people.  Listen carefully: our African co-workers are very smart people.  I know many of us would profess to accept this statement at face value, but I challenge you.  How many of you truly believe it?

For our work to be sustainable, we knew we needed their input and that we must value their opinions, but we were surprised to find that they have mountains of insights that went far beyond the system we had created.  Throughout our training we were constantly reminded to listen to our co-workers and those we aid.  We certainly took this to heart, but more as a courtesy than as an asset to be valued and sought after.  We must remember that even though someone has not had the same level of formal education or experience with the technical aspects of an issue, does not mean that they do not have something highly valuable to say.   It does not mean that they are not clever in solving problems once the issue is presented to them in the right light.  We quickly found our co-workers ideas piling up regarding everything from specifics of when trips to the commercial bank should be made to how people would best react to increased membership fees.  By the end, our guide was smeared in red ink.  The system and procedure are truly theirs, for most of it is actually their ideas!  As of today the system are procedure guide is not complete, but it is very close, and we are confident it will be done before we leave for the states.

As for the training, despite a few hitches, it also went successfully.  We had planned to conduct the trainings on four computers, but three of them broke.  We were able to gain access to a fifth computer, so we taught nine people how to use the program with only two computers; not an ideal situation.  Two other computer malfunctions and three fortunate computer repairs later, we finished the training.  We found ourselves teaching accounting we had only learned several weeks earlier.  Throughout the process our co-workers identified several program glitches and improvements that we will be taking up with Vincent, the software's creator, on Wednesday of next week for the final time.

Now that these two immense tasks have been completed, the real work has just begun.  The most important and most challenging step will be teaching and training the Management Committee and leaders of the VSLGs on the how to use this new system.  This will likely take months, but I am confident ORUDE is up to the task.

As our time here draws to a close, we have been very successful with nearly all of our objectives.  We find that only one major task remains, the Re-Launch event to take place next Tuesday.  The invitations are out.  The announcement has been playing over several local radio stations for a few days now.  We are excited!  We are ready... almost.

At the Re-Launch, we will introduce the first MARUSACCO Market, where all VSLGs will have a booth to sell their goods, hopefully to each other and other community members.  We will also be putting in place the bank's signpost, painting the outside and inside sky blue, and hanging framed pictures of all the VSLGs, the Management Committee, and the Bank Certificate.  It will be a good day.  We just hope that people turn up!

Tune in next week to hear about how our project concludes, and a account on the Re-Launch day.  Also, despite what is turning into a successful 7 weeks, I will be analyzing whether our success was ours alone or whether the community has benefited as well.  Most importantly, did we do enough?  Could we have done more?  How were we limited, and where did we fail?

We got the electricity.  We got the bank certificate.  We are real!

We have hope.

Over this past week, the ORUDE staff and NU interns were able to twist enough arms to get the power connected and became a real SACCO!  After waiting nearly a year for the certificate, we finally are able to pool all of the VSLG accounts into one joint account, allowing the bank to function as was planned a long, long while ago.  This means that MARUSACCO can now start using the collective shares to grant more and larger loans to members in desperate need of cheap credit.  There are kinks in the system, and there must be much more training at both the MARUSACCO and VSLG level, but we just took one huge leap forward.

Throughout the rest of the week, there were several notable events.  The NU team members came back together from working on our seperate projects to synthesize our ideas into a grand scheme of how MARUSACCO can better function from the top down.  We are now ready for discussions of the new financial system and procedures, trainings on using SavingsPlus, and trainings of VSLG leadership to begin next week.  Notice I said discussions, for our ideas are set, but we have yet to make sure our ideas align with ORUDE's vision and later, the desires of the community.  As I have said all along, garnering their input is the most important facet of sustainable development, as well as a simple human decency.

Speaking of listening to the community, we did just that this past Wednesday when we presented our ideas on improving VSLGs.  Although much of our planning and work has been behind ORUDE doors for the past week and a half, we brought our results to the MARUSACCO Management Committee yesterday.  To begin with, spirits were high upon hearing of the certificate and seeing the lights turn on for the first time, only making the discussion that much more empassioned.  Within the 3 hours meeting we went step by step on the methods and actions we thought could improve everything from VSLG attendance to record keeping to higher lending.  But, we did this very carefully.  We made a point of asking for their input before giving ours, as a way of not overshadowing their thoughts.  It worked.  Not only did the presentation become a conversation as we hoped it would, their ideas were frequently better than ours.  Once again, we found ourselves serving more as a catalyst than anything else.

That is all for this post, but look forward to updates on how trainings and discussions progress over the next week.

On a side note, my eldest African brother, James will be getting married in October.  The Introduction, a traditional Ugandan ceremony of introducing the man to his fiance's parents, is this Saturday.  I will throw in a post about our experiences, which I am sure will be a once in a lifetime event.

In the midst of several more VSLG visits, the observational portion of our project has come to an end for myself and another one of our group members. A few days ago we dove head first into the thick of it, and now it's up to our eyes!

Over the past two days, myself and another group member have gone about creating the operation system for MARUSACCO. This means that we have greatly supplemented the current (partially functional) Financial System, invented a Financial Procedure, and incorporated the new SavingsPlus software into both of the above. It has been hectic. It has been tiring. But, it has been worth it. While we are not creating a final product, for our system and procedure will need to be reviewed and supplemented by the ORUDE staff and then taken to the Management Committee for their all-important suggestions and input. For the time being, we have been given free range to be as creative as possible, trying new ideas and testing old theories to see what will work best for the blossoming MARUSACCO bank. While we will be visiting two other VSLGs tomorrow, and have Friday off for a weekend retreat with FSD, we will be hard at work until Wednesday of next week with solidifying our proposed plan. Here is what we have done so far.

Seeing as this is a village bank concerned with microfinance, we began with loans. As I have mentioned many times, we have taken the 26 page document created by a consultant entitled "Loans and Procedure Manual" as our basic guide. We then applied it to the existing MARUSACCO "Financial System," while incorporating the features of the SavingsPlus software. It is so technical and businessey, Dad, and Aunty Ann, you would love it!

This process was lengthy, for we need to cover everything from loan interest rates and loan terms, to the processing of issuing loans and writing-off those loans that have gone sour. While most of the details are extremely dry, and hard to understand without knowing the context, there are a few points which I hope you will find interesting. To begin with, there are three basic types of loans: individual loans with guarantors, group loans with guarantors, and individual loans without guarantors. Individual and group loans with guarantors are extremely important to the success of the SUSALECO model. In order to apply for a loan, one must the other four members of her/his FABA serve as guarantors. (Note: remember that FABAs are groups of 5 people within the VSLG that have the same occupation i.e. chicken farmer, basket weaver, ect There are 5 FABAs in a VSLG, giving each VSLG 25 members maximum) This creates an automatic check of the probability of a person repaying a loan. If a single guarantor does not believe a person will repay her/his loan, the person cannot get a loan. It also makes sure all FABAs are sharing ideas for their investments and business developments, while ensuring that all FABA members are on the same wavelength about what are good practices.

After the person applying for a loan gets their FABA to agree to guarantor their loan, they must then also get approval from the VSLG level. This process will be determined differently by every VSLG. Some will vote as a group, some will let a single person decide, while some leave it up to a committee. Once again though, it provides another level of support for the loan, further spreading business practices, investment ideas and good practices.

Note: Individual loans without guarantors can only be applied for once someone has successfully taken out and repaid three loans. They must essentially graduate out of the SUSALECO model, meaning they have become educated in a skill, developed their understanding of finance, gained an ability to save, and grown their own economic capacity. They must be able to support themselves. This is the ultimate test to see if SUSALECO has worked!

Finally, the loan gets to the MARUSACCO level, where the three member Loan Committee and the Secretary Manager, Stellah Maris, uses a complicated rubric, credit, savings and shares information in the SavingsPlus software, and a recommendation form from the VSLG level to determine whether the member(s) should receive a loan. All of this takes about two weeks, and guarantees a thorough evaluation of whether a person should receive a loan.

While there are many more specifics to the system and process, the levels of group accountability and support provide yet another reason why the SUSALECO model is so unique and advantageous to community development. It fundamentally guarantees that the community develops at the same rate, while spreading the wealth of knowledge and money across all members of the community. One only gets ahead if his neighbor gets ahead. There is no room for a zero-sum-game in this development pie. Everyone gets a slice.

With the retreat this weekend, my next post will likely be delayed until next Monday or Tuesday, but keep a lookout for some information on how our accounting system and procedure develops, along with feedback from ORUDE before we present our ideas to the Management Committee. At the same time, remember that what we have constructed is preliminary. No development work is sustainable without the input and direct involvement of the community. Only after they mold the product we have crafted as a guide, will they have the sort of empowerment they deserve.

I leave you with this. This past Monday, we finished receving our training of the SavingsPlus software from a wonderful gentleman named Vincent. Vincent is the co-creator of the SavingsPlus software and has worked with over 30 SACCOs. While SACCOs are often used in Uganda by wealthy and powerful people, he got into the business after graduating from Mkere University in Kampala to help and empower those that have limited access to fair microfinance. Despite the many groups he has worked with, he has never seen anything as impressive or inspiring as ORUDE's SUSALECO model. He went as far as to dedicate any additional service he could be to ORUDE in training and customizing all aspects of the software to make it as useful as possible for MARUSACCO. He knows MARUSACCO is doing something good. And he is not alone. No matter who we meet, they are continually impressed with the ability to empower of SUSALECO. The more time I spend in Jinja, the more I realize just how ground-breaking and important our work may be for the developing world. Here's to doing a good job!

This week's post is short, for time has been in great demand here over the past few days. With a friend visiting, a trip to raft on the Nile, as well as work, I have had little time to post. Overall, we are approaching the technical phase of our project, so stick with the dry parts because those are often what matter most. I want you to understand what is really happening here.

Throughout the past few days, we have continued our visits to the different VSLGs. Having visited six, we have four trips left which we will be completing in the upcoming week. As expected, we have learned many, many very interesting and diverse approaches to self-development that these women have chosen to embrace. Some focus on social issue, others on economic. By Friday of this upcoming week, (2 posts from now) we will have visited all VSLGs and have compiled a guide to good and bad practices with the input of ORUDE staff. I will be sharing our observations with you then, but for now, know that the visits are always exciting and really give life to our project. Meeting the people, and hearing their songs of welcome contrasted to their tales of woe, burns an ever-lasting passion to help these people into our souls.

During the visits, we are also learning another very important contribution we can make to the success of MARUSACCO, the empowerment and training of Stellah Maris, the Bank Manager. Besides a security guard, she is the only person currently hired by MARUSACCO. Her responsibilities are many, but she has little training with accountaning and general finance practices. We have already increased the amount of training sessions for Stellah from 3 to a minimum of 6, and will likely add more, in order to make sure she is well equipped to do her job. However, we have encountered one unavoidable conflict. Stellah is only on the payroll for a year, and will likely leave after her contract runs up. While she is Ugandan, and comes from a nearby village, she is also not from Mafubira Sub-County, in a way making her an outsider controlling the reigns of the operation. We are going to attempt to counter these problems by also training the local leaders of the Management Committee, mainly the ChairPerson Dorothy and the Treasurer Ruth, in order to encourage lasting empowerment and ownership. Stellah is a very smart individual, and we are placing a lot of confidence in her. We know she will succeed. We see it with every visit. Many of these VSLGs she has not yet had the opportunity to meet, making our visits also her first introduction. But you wouldn't know it. Within 5 minutes, she is already joking and laughing with the members as if they grew up just down the block. She is a people person, and she will rally the organization to new heights once she has the right tools and work schedule.

Beyond the visits, several of us, including myself, stayed behind on Friday to learn how to use an accounting program for SACCOs called SavingsPlus. We also configured the software for use with ORUDE's SUSALECO model. The training went well, and we are confident that we can both create a guide for application of the program along with the Loans Policy and Accounting Manuals. That will be a task for the upcoming week.

Look forward to more stories of VSLG visits, and exactly how we will be setting up the technical operations of MARUSACCO bank in the next few posts.

For this post, I would like to take a brief detour from describing our project's development. Instead, I will briefly touch on the prevalence of another fast emerging issue of the constituents of MARUSACCO: the desperate need for access to more markets for their locally produced goods.

As mentioned in the previous post, we have spent the majority of this week traveling from VSLG to VSLG, observing meetings, collecting financial information and getting to know those we are here to help. The visits never last more than 3 hours, but each second leaves an indelible mark on my memory.

I feel I may be harping on this issue, but it is deserving of the stress. These individuals and the communities in which they live are incredible. If I may speak for the other members of my team, they inspire us like no other experience we have ever had. But not only us Westerners, they inspire our co-workers, fellow Ugandans. They live in extreme poverty, but they find hope and inspiration within each other. Their successes are immense. Most groups have saved over 1,000,000 ($1,000) Ugandan shillings, with some reaching over 2,000,000 ($2,000) in the past two years alone. That is a ton of money when you make a little more than a dollar a day. In the meetings, we also learned something new about the VSLGs. They are not simply groups of mostly women that come together to learn how to save money and eventually access loans at a low interest rate. They are not simply part of an institution they designed and own. They are a living community.

Through the help of the wonderful people at ORUDE, each VSLG has received grants to start group based programs. For example, of the VSLGs we visited, one was rearing chickens, another cows, another pigs, and one was producing hand-made goods. It is with this that I will focus.

Through the VSLG structure, they come together once a week to save, and once a week to learn something new. Sometimes it is related to public speaking, self-respect, dealing with a drunken husband, handling all 7 of your deceased brother's orphaned children, ect. Often though, they learn a new skill. They learn good agricultural practices: when to grow, how to grow, what to feed livestock, how to administer medicine. They learn how to sew a basket, make a necklace from local materials. The list goes on. Like everything else I have described, they are immensely successful at not only learning, but teaching each other, teaching their family and friends not in the groups. Most importantly, the women teach their children.

It is with this that I leave you: the problem of their success. These groups have produced so much that their current markets, i.e. local villages, are saturated. Few other village members have the funds to buy large stocks, or more than an occasional pig or food-warmer. They need to expand their markets, but few have transportation means or access to the internet. We have proposed of creating an inter-VSLG market. Although this would circulate funds for the most part, at least someone would be incentivized to buy the extra goat from the a fellow VSLG member instead of at the local market. The problem for us is that as foreigners, we can be their markets, but are forced to distance ourselves as much as possible because we cannot alter expectations of groups to come or reinforce destructive stereotypes about buzungus. That being said, mom, aunty Ellen, aunty Ann, you all have a few things coming your way that you will really appreciate!

As always, post with your ideas, especially as it relates to expanding local markets.

As of Friday, we officially got approval from ORUDE and FSD and submitted our project proposal to the Northwestern faculty.  Our project is under way.

Earlier in the week, I left you with the myriads of project options, stumbling through the pitfall of idealism.  Since then, we have worked hand-in-hand with the ORUDE staff, in particular Justin, Catherine and Stella Maris and members of Mafubira Sub-County to develop a working project.  Justin and Catherine co-founded ORUDE, and Stella Maris is the ORUDE liason to MARUSSACO.  We also set up a computer, installed the SavingsPlus software for tracking loans and savings electronically, and received 5 new safes at ORUDE to be distributed to the emerging SUSALECOs in nearby sub-counties.  We also had the pleasure of meeting with several of the members, ChairPerson Margaret, the treasurer, and a member, of the Kayetataga (incorrect spelling) Village Savings and Loan Group (VSLG).  They are the highest functioning of all of the ten VSLGs in the Mafubira Sub-County, having given out 6 loans since loaning began in May of this year.  Repayments began in June on schedule.

Before I progress to describe the details of our project, let me take a brief moment to describe the SUSALECO model we are helping to implement.  SUSALECOs are a novel concept, but they stem from SACCOs which are immensly popular in Uganda.  The difference between a SUSALECO and a SACCO is that with SUSALECOs, the ownership and participation must be primarily women, with certain membership quotas and women serving in key leadership positions.  This is ORUDE's creation.

As I have briefly touched on in previous blogs, the point of the SUSALECO is to give ownership and management of a financial institution, technical training in economic theory as it relates to accounting and loans, and organization for support of a common cause.  All of these concepts point towards empowerment, fundamental to the development process.

SUSALECOs begin with a single group of people attempting to access credit.  This group should grow to 25 members maximum.  Once 10 groups of this size have formed, they are evaluated if they are qualify to form the SUSALECO.  If at least 7 of them are ready, the SUSALECO is formed.  At this point, members are required to buy a particular number of shares for a particular price, determined by the elected Steering Committee.  This guarantees that money is available for loans, and provides ownership.  The shares are incentivized because the more shares you have, the higher your interest earned and the bigger loans you can take out, both also determined by a group consensus.  The second requirement is compulsory monthly savings.  The amount is also determined by the group, but when most participants survive on slightly more than a dollar a day, this is the hardest part.  Voluntary savings are also accepted, but less common.  All of these decisions are recorded in the SUSALECO constitution, also created by the group.  Throughout all this process, ORUDE provides support and guidance, but no direct leadership.  Most importantly, the process teaches a savings culture, foreign to most of its constituents.

As mentioned in the previous blog, ORUDE wants to start pulling away from MARUSSACO, the most developed of the 6 SUSALECOs they are developing, but we found out that they are far from reaching this level of maturity.  Our project will focus on developing the MARUSSACO through 9 different objectives.  They can briefly be categorized as follows: 1) development of the 5 struggling VSLGs based on research of best practices of the 3 succesful ones, 2) training of the management committee on systems and structures and use of the accounting and loan manuals in conjunction with the SavingsPlus program, and 3) a Liftoff Event to raise moral and participation in the SUSALECO.

I leave you with this.  We have found that the SUSALECO is losing interest and membership, especially from the struggling VSLGs.  We believe that is primarily due to two reasons: members of those VSLGs have not fully come to understand the concept of savings as beneficial, and the SUSALECO is not functioning properly because it lacks a government certificate to gain access to a joint bank account.

This is the most demoralizing and frustrating problem we have faced so far.  ORUDE applied for a SACCO bank certificate from the government of Uganda last September.  They have yet to receive it, meaning it has nearly been a year to stamp and sign a few pieces of paper that should take a few weeks.  It has been held up for bribes and all sorts of corruption.  Without the account, members are only able to loan within their own VSLGs, and can't reap the benefits of joining into the larger SUSALECO structure of gaining bigger loans.  This essentially decapitates the model.  However, there is good news.  The papers have reached the highest office necessary, and are due back in 2 weeks.  Whether this happens has yet to be seen.  If not, expect to be hearing about a trip to Kampala, the capital of Uganda with 3 weeks.

Throughout next week we will be visiting all 8 VSLGs, and developing a basic computer literacy guide, as well as implementing basic meeting practices and agendas to the MARUSACCO Management Committee.  Sorry no pictures this time, but I will try hard to get some up on Tuesday.  Stay tuned.

To begin with, I have tried uploading photos to both this blog posting as well as several others, but all attempt have failed so far.  I will keep trying though, and hopefully you will be able to see pictures soon.

Over the past few days we have put ourselves to work on finalizing a project proposal.  As I mentioned in my most recent blog, we had narrowed down the choices to two.  After some lengthy debate, nearly two days, we decided to work with the ORUDE staff and the community members of the Mafubira SUSALECO, MARASACO, to attempt to create the structure of the final SUSALECO.  Before our visit to Mafubira Sub-County today, we believed that MARASACO is currently in the Maturity Phase, attempting to transition to a fully functional bank with paid staff and a secure bank building.  We spent the past two days thoroughly reviewing accounting and loan procedure manuals.  Once we believed we had gained sufficient knowledge in all of the technical procedures of running the MARASACO, we starting developing the structure of the final bank.  We sifted through many options, and finally decided on an Executive Board with an Education Committee, Disciplinary Committee, and a Loan Committee serving underneath.  We further elucidated the final MARASACO structure by establishing the roles necessary to each Committee and responsibilities of all these roles.  We also reviewed election procedures, technical aspects necessary to all roles, ect.  Finally, we discussed the organization of the actual Bank, the day-to-day operations and employment policies.  We talked a lot.

And then we visited MARASACO.  The current Management Committee consists of 9 members.  They are essentially responsible for all higher level MARASACO operations.  They hold weekly meetings every Wednesday.  They are the most dedicated and involved members.

Only 4 were present.

We learned many important things at the meeting.  We got to discover what is going well and what is going wrong.  Most importantly, since the members that attended speak English, we had the chance to hear about why they are involved, what they care about and their lives.  I spoke with Ruth the Treasurer for nearly 30 minutes about her life.  She shared stories of her family, and I showed her pictures of Chicago.

The day was extremely important to our project, for we realized that there are many problems that don't translate to paper.  We also learned that the dedication of those that show up is pure and strong.  Before the meeting ended, we asked them all what we could help them with and why they have stayed around for the past 2 years.  They all resoundingly answered that they wanted to learn.  They asked for "capacity building." They wanted to own their own institution, and they wanted to understand accounting.  They have an insatiable thirst to understand and own a part of their world.

Our project has certainly changed.  I have a feeling it will be much more training oriented.  Since our project proposal is due on Friday, I will have the final version in my next post.  Stay tuned.

Earlier this week, our team had the pleasure of witnessing an election of the Executive Board of the Busede Sub-County Steering Committee.  In order to explain what that means, and why it is extremely exciting, let me first backtrack a bit.

We began our work with ORUDE on Wednesday, doing basic observations of the assets of the ORUDE team and facilities, situating ourselves in the office, and hearing more about the history of ORUDE and her projects from Justin, the head of ORUDE.  Afterward, on Thursday and Friday we began the process of determining our summer project.  We have it narrowed down to two options A) develop a 5 Year Strategic Business Plan for ORUDE or B) finish implementing where the previous Northwestern teams have left off by teaching the members of Mfubira Sub-County how to use computer software, understand and follow several important manuals pertaining to "Loan Policy and Procedure," "Human Resources and Board Governance," and "Operations and Accounting."  We will hopefully have decided by Monday.

On Thursday afternoon, Justin happened to be facilitating the election of the Executive Board of the Busede Steering Committee.  He invited us to tag along and observe.

Wow!

We witnessed real democracy.  The minute we arrived, they jumped up to greet us with huge smiles and open hands.  We knew we were welcome.  The elections proceeded as follows: in their beautiful attire, the general assembly nominated a ChairWoman, a Vice-ChairPerson, a Treasurer, and a Secretary. Seeing as this model, called the SUSALECO (Sub-County Savings and Loan Cooperative) is meant to empower women and children, the ChairWoman and the Treasurer must be women.  The other two positions can be women or men.  With nearly 30 people in attendence, all representing their individual groups of 5 members, the elections went smoothly.

After the elections had ended, we began to realize how incredible of an event we had just witnessed.  These women and men live far from any running water or electricity.  As we learned when the newly elected ChairWoman delivered a speech at the end of the proceedings, many, including herself had never received any formal education.  She proclaimed that they must not fail, for if they do, outsiders will blame it on their lack of education.  They must walk the great distances, often taking up to two hours to cover, in order to attend the 3 hour meetings twice a week, while still caring for the many children and chores at home.  There are no supermarkets.  In many cases, there are no markets.  She also spoke of her cancer.  She was fearless. She will be strong for her community members, but they must also know of her physical health.  She thought it just.

I had the honor of thanking these women for letting us witness such an incredible event.  Although I rarely am, I was at a loss for words.

Generally, these people are developing a village bank.  A SUSALECO empowers local village members by allowing them to own something, be involved in an organization, save, access loans without any of the injustices of some microfinance institutions in the area, and most importantly, have pride in their work and what they produce.

More on how we can help these incredible women in later posts.

I have been in Uganda for a little over three days now, and while I have yet to begin my work with ORUDE, the local microfinance and community development NGO in Jinja, one facet of Ugandan life already stares me in the face, shaking my core.  Tragically, many Ugandans perceive their identity as inferior to the buzungs (white people/foreigners) because they have dark skin.

Before I continue, let me be clear, I am not making any racially charged accusations throughout the rest of this post, but trying to accurately report what I witness on a day-to-day basis while living in Jinja.

The children on the street shout "Muzungu!" as I walk by.  The men and women not-so-discreetly whisper "muzungu" while I pass their store fronts.  It is enough to make any individual stand out, but interestingly, I am not isolated, but greeted because of the color of my skin.  Despite years of racial subjugation by the British before Ugandan independence, children hold my hand just to feel the "whiteness."  Many view me as holistically superior because I say, "Nza America" (I come from America).  Would you not expect a dislike or even distrust of whiteness?

The most outstanding example I can provide relates to a comment by my teacher here in Uganda.  While I would prefer she remain anonymous, she is a very well respected and admired woman on Jinja.  With many degrees, and incredible local knowledge, she does amazing things for the FSD staff and people of Jinja.

In a recent training session, we were in small groups attempting to create sample work plans in preparation for our real projects.  Admirably, my teacher demonstrated the importance of including the community in all development work through an interesting example.

She roughly proclaimed that it would not be sufficient to provide her with bleach to turn her skin white.  She said this would not fix the problem, for once we left, she would run out of bleach and then her skin would turn black once again.  Instead we must provide the tools to build capacity and development.

While I agree with the importance of capacity building of local members so that they can grown themselves, and the sentiment was certainly judicious, my stomach turned upside down when I heard those words.  Coming from a friend and admired elder, how am I to react as a 21 year student?

I leave you with this to ponder.  How do race relations in the US, especially between black and white relate to this example?  In many ways they are almost diametrically opposite. In some ways, they are oddly similar.

I encourage you to discuss.  Have you been abroad where your skin color greatly affects your identity?

Note: note everyone here in Uganda feels this way.  This may seem obvious, but I want to note it.  I met several students studying in Rochester Hills, MI (very close to my home), a few days ago in a local library.  I know they do not feel this way.  But the fact that someone so intricately linked with the community, with such a position of responsibility consciously/subconsciously does, speaks loudly to the role of race in Ugandan society.

In a world of ever-increasing consensus about the benefits of free (re: fair) trade policy to the developing world, there may still be room for good-old protectionism.  I do not mean the sort of ISI development strategies that led to the growth of post WWII Germany, or the United Kingdom's pre-industrial revolution strategy of high tariffs for industry development to a internationally dominant level before exposure to the economic world.  In fact, I am not even talking about national level barriers to imports.  In line with the ABCD approach to community development, I am talking about the village.

One problem commonly facing local, village level development is that the profit of expenditures by local residents often go into the hands of outside actors, in that money flows out of the community much more often than it flows into the community.  If we look at these local expenditures from an export/import model, frequently there are significantly high levels of "village debt" incurred against a community because of the trade imbalance.  This can be extremely detrimental to local development.  If money stays within the community, it can have a compounding effect, essentially adding communal value to individual consumption and production.  So what, if anything, can be done to promote this?

The message is rather simple.  Buy local.  Buy goods, buy services, buy labor, local.  The prices may be higher in the short run, but the benefits outweigh the detriments in the long run.  Of course, I am not disparaging the purchase of technologically advanced products, such as computers, cell phones, ect. from outside sources.  These are necessary expenditures that cannot be produced in most local communities even in the United States.  However, villages should realize their comparative advantages.  If a member of a village grows grain, it would be beneficial for the other members of the village to buy their grain from their fellow community member.  In turn, the seller of the grain should hire local labor to harvest the grain.  In order to offset the higher price, NGO's or local governments could even subsidize production costs to keep prices artifically low in the short run, like the U.S. government does for agricultural production of American farmers.  (Note: subzidization is not a sustainable long run technique, and can in fact be dangerous.  I suggest it as one alternative, not a necessary component.)

This form of communal identity can be extremely beneficial for ABCD development practices as well.  If villages consider themselves as a competitive unit, they are more likely to realize shared values, ideas and methods.  They will be more willing to work together to realize and nurture their assets.

Once again, this is not the solution, and, in fact, local purchasing already is practiced unintentionally in many parts of the world.  But, it can help.

I invite you to criticize this approach.  I am sure it does not sit well with many of you free-traders out there, and I would love for a dialogue to start about the positives and negatives of locally centered economies.