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Capitalism or Charity?
Monday, 26 July 2010 18:04
Say you are a poor rural subsistence farmer in Zambia just inches away from serious hunger. You know what you need and you know charity does not work, but charity is all you can get. What do you do? You wind up accepting charity. Along with charity comes it serious side effects. Charity destroys personal incentive, since no matter what you do, you wind up accepting free something or other. Charity distorts local markets, since instead of purchasing items from your local economy, those items come for free to you, purchased from a distant location by the charity. Worst, charity relieves the consciences of distant donors even though they do nothing in the long term to address the real problems of the people on the ground. Time and again I heard subsistence farmers telling us they do not want charity, they want investment. The people in Zambia are probably the most industrious entrepreneurs on the planet. We saw them creating and selling items, even miniscule amounts, to the local economy from makeshift mini-stores (emphasis on mini) along the rutted roads. Some of these little markets had only one or two items. Yet, the Zambians marketed them with the enthusiasm of a Cadillac salesman. Even in the smallest villages, local leaders told us they needed “start up” capital. Zambia has many commercial farms, vast enterprises with irrigation and sophisticated machinery. Local farmers are trying to compete against them with small plots, less than ¼ acre, worked by hand. The commercial farms have access to foreign capital. Not surprisingly, most are owned by Whites, Indians, or Asians. Locals have no access to capital. The villagers complained that without collateral (yes, that is the word they used) they could not secure a loan. Even micro-loans are inaccessible. We talked with one of the micro-loan organizations to understand the challenge. Micro-loan groups charge very high interest rates because they have to borrow the capital themselves, originate the loans, and service the loans. They demand that payment starts within a month or so of the loan origination. This might work for someone who wants to buy some goods to sell at the market or a sewing machine to tailor for neighbors. But what about a farmer who wants to plant Moringa trees, which take two years to mature. The leaves of the Moringa tree are sources of vitamin A, a chronic deficiency in Zambia, as well as other important nutrients. They would not only provide a great source of income for the farmer, but needed nutrition for the Zambian public. Yet, no micro-loan loan organization would wait two years to start getting repaid. In other words, the reality of loans locks Zambian villagers into a marginal life. But we also found a solution. The Micro Bankers Trust consults with local village cooperatives to set up a village bank, which is a modification of the Grameen bank model. In the Zambian model, the cooperative sets the rules for repayment because they are the ones accepting the risk. During the training phase, the cooperative members have to set up a savings plan in which each member deposits funds into the village bank each month. The deposits are whatever they can afford, no matter how small. After 6 months, they have completed the training, which includes financial management, financial reporting, and long range financial planning. At that point, they can start making loans. They can also accept outside contributions to their working capital, as long as it is not so much that loaners feel they do not have to repay. $1000 seems to be about right. This small amount kick starts a local economy, allowing long term investment into their village enterprises. As the capital in the village bank increases, the bank expands its lending to non-members, and even develops other local banks in surrounding villages into a consortium of sorts. In other words, it develops a local economy that is sustainable. Once started, it does not need any more outside input. So that is the plan we are working on, Project COPE and the Micro Bankers Trust, to develop local economies. Just consider, for $1000 we can start a sustainable local economy that can lift people out of poverty while turning loose their entrepreneurial spirits. It still seems strange to me that our capitalist society would rather give charity than build capitalism. Perhaps now is the time to change that. Add a commentYesterday I woke up depressed and anxious. How could we ever meet the hopes of those who have asked not to be forgotten? How can we make a waterless toilet in a flood plain? How can we create financial partnerships?
Tuesday, 20 July 2010 23:30
Yesterday I woke up depressed and anxious. How could we ever meet the hopes of those who have asked not to be forgotten? How can we make a waterless toilet in a flood plain? How can we create financial partnerships? And in one day, answers to all our questions came clear. We stopped by a local chemical factory to find out if they had a quote for the toilet bowl on our waterless toilet. The manager gave us a figure that was so ridiculously low that I believed I had misheard him. But he repeated the same price. Then I asked him how much their entire waterless toilet would cost. $450! I was flabbergasted. That is half what we would be spending to build one ourselves by hand. We asked to look at the toilet up close. It is a plastic mold injected toilet and underground tank with a digester and vent tube that assembles into one piece. The design solved all the problems we were facing, and at half the cost. We came back today to see actual toilets in action, and were taken to a very rough compound (think Soweto in South Africa) where two had been built at a school and clinic. They were excellent! And the design breakthrough is a high energy concentrating dome that heats the underground tank, turning the waste into compost. Hence the name, Ecodome. We met with the president of the company, and agreed to try a test toilet in the closest village, where we already have a hand constructed toilet. We can compare them and see if the villagers would accept the new style. The president also agreed to give us training on the installation, so that if we decide to do more. We will have the knowledge to accomplish it ourselves. Then we went to the Micro Finance Trust. They were very skeptical at first, not knowing who we were. But Webby Mate had given us a reference, and one representative sat down to talk with us. After a brief summary of what we wanted, he excused himself and came back with his boss, who moments before was too busy to meet with us. Turns out they have developed a different concept for the village bank that breaks free of the normal constraints on micro-loans while keeping all the capital in the village. And they provide training to village cooperatives that want to participate. And they agreed to train one of our team so we did not have to pay them consultant fees every time we want to start a new village cooperative. So, after the depression of yesterday morning, we have renewed faith in the world today! We have answers to the tough questions, and all that remains is the even tougher task of putting the solutions to work. But the Zambians are the hardest working people I have ever met. They are also hopeful against all odds that they can get economic control over their own lives. So who am I to not have hope, or to not work hard? The Earth Charter gives an ethical framework for a sustainable future, and here in Zambia, that future includes the environmentally responsible elimination of poverty. And if we are successful here, we will have created a model for all sub-Saharan Africa. Add a commentThe Chief looked at us from the chair of honor in the small meeting hut. “Protocol says that you must kneel before the Chief when you come into his presence.” He had a small smile around the edges of his mostly stern face.
Tuesday, 20 July 2010 00:27
The Chief looked at us from the chair of honor in the small meeting hut. “Protocol says that you must kneel before the Chief when you come into his presence.” He had a small smile around the edges of his mostly stern face. The Retainer, in his military uniform looked uncomfortable. What, I wondered, would be the consequence. We had started the last part of the adventure from Zambezi at 5 AM, in the dark without power as usual. No breakfast or coffee, Fr. Dominic threw a few Cokes and some water into the truck, and we were off like the wind. The sun was up, but it was very cold, when we arrived at the pontoon ferry. Again it was on the opposite side of the river from us. They were attempting to load a very large truck onto the deck, but since it lacked brakes (a luxury, I suppose) they brought it down the steep slop by chocking the front wheels with logs every few feet, then backing up to allow the logs to be moved a few feet more. Another hour delay! When we hit the Black Forest, the bush driver in Fr. Dominic really rushed out. 100 – 120 kilometers per hour along a sandy track barely wider than the truck. This time we could see the trees, the land, the environment as we flew, literally since the bumps were so frequent, past. The land is hauntingly beautiful, with wide open plains followed by cramped trees holding limbs over the track. We stopped at one point to drink a coke, eat a muffin, put the fender back on, try to reattach the windshield to the truck, and put the light that had fallen off the roof into the map case! We made it into Kaoma in 6 hours of physical abuse. Fr. Dominic remained as cheerful as ever, and when he drove into town, we felt we were with a rock star as people yelled and screamed and waved! People ran up to the truck to talk and shake his hand. He took us to the central bus square, a large and dusty lot surrounded by bus companies, each begging for our business. We would have been eager to give it to them, but none had buses leaving anytime in the foreseeable future. We settled on a company that said its bus would be there momentarily, and we foolishly agreed. Instead of the Greyhound style bus we came on, this blue mini-van showed up. They told us to look inside to see if it would work. It was cramped, but only two other people were on it, so we agreed. After paying our money and leaving the lot, the van immediately stopped and let more people on. This happened twice more, and we left Kaoma with 16 people in an 8 passenger van. This time on the ride through the wildlife park, we saw elephants! They were right next to the road, and as a favor, the driver stopped for 2 or 3 minutes for us to watch. Then we sped off, past the Zebras, the elephant herd rolling in the mud, the gazelles and the wart hogs. We did, however, stop for 30 minutes so the driver and conductor could eat supper! 6 hours later, and well after dark, we arrived in Lusaka. We went to the Intercontinental to meet up with the rest of the Team, who had been in Livingstone. We had a quick debriefing, which included beer and wine! The next day we went to see Chief Bandu Bandu, who is in charge of Chongwe, where our Chilipula Village project is located. He asked for a visit, and one cannot say no to a Chief. We hired a cab, driven by our sometimes friend Mike, to take us the 30 km to the Palace. We waited in the appointed open hut for the required 20 minutes until the Retainer came and asked us to follow him to the Chief's meeting hut. We entered, bowed, clapped our hands, and sat down. That is when Chief Bandu Bandu informed us of our breech of protocol. All in all, he was a nice guy, and he laughed at our nervous response. He thanked us for working in one of his villages, then took us for a tour of his compound. He was a very articulate and worldly man who worked in the government before becoming Chief. He told us about the details of the Chiefly life. He introduced us to his wife, who immediately fell in love with Val. He showed us, at a safe distance, the shrine to past Chiefs, where their symbols of power were kept, like canes, and axes, whatever. He also said that if we tried to look inside, the people around the compound would rush over and kill us. I do not think he was kidding this time. Then we went to our new hotel. We are staying in an industrial area not far from downtown. It cost us less for the last 5 nights we are staying here than one night at the Intercontinental. The amenities are a little more sparse, but the people are friendly. When we went to dinner last night the waitress asked what we wanted for supper. No menus, just choose between T-Bone, pork, or chicken. Served with nshima, of course, and some sort of vegetable to be determined after cooking. We returned to our room, and she came around 30 minutes later to let us know the meal was ready for us. The food was delicious, Sunday is a rest day, so I have been developing a report on the COPE Project for WEAZ and ECUS. And reading a fascinating novel by a Zambian called “Bitterness”, and it exactly matches what we saw. Bitterness of the poor that the promises made after the whites were kicked out were never met, and that the corruption, cruelty, and harshness remained. It is the rich predating on the poor, the strong predating on the weak, the privileged predating on the abandoned. And through it all I remember the pleas of the villagers were met. “Please do not abandon us.” They cannot stand to be abandoned once again. Add a commentThe lady in the back of the bare church with wooden benches raised her hand during the question period. "Why have we been so ignored?" What is the proper response? No one is going to care. You have to save yourself, and that's what our project is about
Saturday, 17 July 2010 14:30
The lady in the back of the bare church with wooden benches raised her hand during the question period. "Why have we been so ignored?" What is the proper response? No one is going to care. You have to save yourself, and that is what our project is all about. Father Dominic has proven to be one of the all time great characters! Beside his legendary driving exploits, he prides himself on getting people to challenge themselves. Which is how I wound up walking across a narrow suspension bridge, the longest in Zambia, far above the Zambezi river. Despite my morbid fear of heights, I kept deep breathing and focusing on Fr. Dominic's words, "Keep your eyes on the horizon. You only fall if you look at the obstacles right in front of you." Words to live by. The next day, he had me jump into a leaking dugout canoe to be paddled a quarter mile across the Zambezi to Mise Village. We then walked 7 kilometers to the village itself to meet the Chief. He was very excited about the project and gave his blessing to our efforts. Then off to the church, which was constructed in the 1950's The people inside the church were singing and drumming in welcome to our visit. They sat on the short benches instead of pews. The inside and outside of the church was bare, but the people were joyful. We had a chance to explain our program, and the people were extremely interested. They showed an understanding of basic physics lacking in most Americans, and questions the operation of the solar and rocket stoves. They remain skeptical, but want to see the finished product. They were most excited about the waterless toilet because it would protect them from the most prevalent diseases of the rainy season, dysentery. During the question period, the woman made the comment above. We explained that they cannot expect anyone on the outside to help them. They must help themselves to build a sustainable local economy, and that we were partners in the endeavor. Again, I came away with a deep appreciation for the Zambian culture. Their problems are not their culture, but the intrusions of modern technology and modern diseases into their lives. If we can help them address those challenges, then their culture can continue doing what it has done for millenia, meet their human and social needs. That is a real Earth Charter project! Add a commentThe Deputy Minister of Education had the look of "Why am I in this meeting" when we mentioned sanitation, waterless toilets, and rocket stoves. He came alive instantly. "Those are projects we are interested in!" And then things really took off.
Thursday, 15 July 2010 00:45
The Deputy Minister of Education had the look of "Why am I in this meeting" when we mentioned sanitation, waterless toilets, and rocket stoves. He came alive instantly. "Those are projects we are interested in!" And then things really took off. Our big meeting today was with a Deputy Minister of Education to promote the use of the Earth Charter in schools. He was not interested at all until Victor showed him a letter to Earth Charter from his boss saying he supported the EC. Then his excitement level went to mild boredom. We then started explaining our overall project, he suddenly realized we were on the same page! The schools are trying to develop rocket stoves for their nutrition program, and they are using very expensive toilet systems. We had answers to both things, and we had a curriculum that supported teaching the students the importance of both. In a matter of moments he was arranging for us to meet with the coordinator for USAID, the Deputy for Curriculum, the Deputy for Teacher Education, and several others in the department. He offered to introduce us directly himself. Just what we needed, more work. Then I entered my childhood fantasy dream. We were walking through the teaming and narrow alleys of a market, looking for Levy, the Tin Man, whom we wanted to make the metal parts for the waterless toilet. We found him in an cramped square in the middle of the market where his workers were making buckets, metal trunks, and welding brackets for doors. Instead of a welding helmet, the welder used ordinary sunglasses! We then went off on a weaving trek through the market to a small cafe, where we began to negotiate the costs for the construction of the parts. Here I am, the large white guy, in the dusty streets of an African city, hunched under the torn umbrella over an outdoor cafe table, negotiating! Humphrey Bogart, eat your heart out! We met with a whole series of people getting prices for the first 10 waterless toilets to put in the first two villages. The cost was, of course, nearly twice what Victor thought, and it certainly means a lot more funds to raise, but we now had a target. Our last stop was at a waterless toilet manufacturing company, where we wanted to buy some of the toilet seats he uses in his own toilet, which made him think of competition. His toilets are way too large and expensive to ever compete with us, but I am not certain he thought so. At any rate, he agreed to give us a price for 10 of the seats. Tomorrow we leave for Zambezi. It is in extreme northwestern Zambia. And the Zambians tell us it is the poorest region, which is quite an accomplishment. We will be staying with Fr. Dominic and meeting with the local elders and chief to see if they want to become the third project. A Zambian bus ride for 5 hours, then a 4wd ride for the next 4 hours. My back will be killing me! But we suddenly have a new hope that was muted before; we now can see that there is government support, and perhaps even money, to get this sanitation project not only into the rural areas, but into the unapproved settlements. Perhaps good planning and dumb luck does work! Add a commentMore Articles...
- Sitting under a tree next to the plaza, I was talking with one of the village elders. "What do you need to improve the economy of your village?" I asked. He smiled. "Start up capital."
- OK, I admit it, I ate the caterpillar. But that was only part of the fun.
- Have you ever had a dream of an entire African village dancing towards you and singing your name in greeting? My dream came true.
- I knew that coming to Zambia would change my life, I just did not think it would happen in the first 3 hours.
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