Faces of Indego Africa in NYC!

On Thursday, March 26, 2009, more than 160 Indego Africa supporters turned out for a special photography exhibit, Faces of Indego Africa: An Evening of Art & Social Enterprise at The Soufer Gallery on Manhattan’s Upper East Side.  The collection of photographs – taken by some guy named Ben Stone – captured the inspiring stories of the women and children who benefit from Indego Africa’s innovative approach to defeating poverty through access to export markets and long-term skills training.

Amazingly, Indego Africa raised almost $6,000 for its training programs, even though the suggested donation at the door was only $10!  And just as they did at Indego Africa’s ibirori in December 2008, Indego Africa’s supporters proved themselves hearty philanthropists, braving the rain to enjoy an evening of art, cocktails, networking and social awareness.   The Soufer Gallery provided an amazing backdrop for supporters to take in the faces, images and personalities of those directly impacted by Indego Africa.  Thank you to everyone who made it such an incredibly fun and successful night!  

Below you can find slideshows of the event and the actual photographs on exhibit.  If you are interested in purchasing any prints, please contact me at ben.stone@indegoafrica.org.  Special thank you to Beth Packman for her excellent event photography.  Enjoy!

For a larger images, CLICK HERE

For larger images, CLICK HERE

Support the Rwanda Book Drive!

We always strive to promote the efforts of fellow social entrepreneurs, particularly those focusing on Rwanda. A good friend of Indego Africa, Claire Umubyeyi (claire.umubyeyi@yahoo.com), is organizing a book drive to benefit secondary schools and universities in the Huye District of Rwanda. If you've got an extra few books to donate (in the New York/New Jersey/Connecticut, Philadelphia, Washington DC, or Boston areas), please get in touch with Claire. The project runs from April 1 to May 15, 2009. We're proud to support this cause as part of our broader commitment to Rwanda and education.

For more information, see this link:

http://indegoafrica.org/images/indego/docs/Multimedia/Book.Drive.Rwanda-2009.pdf

Rwanda's Development Strategy

Fast Company has a lengthy article on efforts by the Kagame government to promote economic development by building strong relationships with the private sector and then leveraging these relationships to create viable market linkages.

These personal relationships are oftentimes based on twin goals: a desire to do good and a desire to do good business. Business leaders want to help the recovery efforts in Rwanda, but they also want to, and need to, provide a good product or service for their customers.

For example, based on its own estimates, Costco is now the second largest buyer of Rwandan coffee. The company's purchases help support the country's thriving coffee industry -- an industry that supports tens of thousands of families in Rwanda. But, Rwandan coffee has to appeal to Costco's customers - otherwise the company wouldn't be able to sustain the relationship.

Costco got involved in Rwanda after CEO Jim Sinegal was invited to visit the country by President Kagame. Kagame argues that traditional development aid "dehumanizes" recipients, robbing people of their dignity. A better model, he believes, is trade. "If that [genocide, violence-ridden] past is never going to happen again, we must grow our economy," Kagame says in the article.

In 2006 President Kagame created an Advisory Council of prominent business and spiritual leaders to provide him with guidance on how best to grow the Rwandan economy. As one council member, Christian Angermayer, says: "Rwanda is a place [where] we can make money and also make a huge difference . . . the best thing we can do is not to give charity, but to treat it as a normal economy." This is a well-traveled path to growing an economy -- hopefully one that works as well for Rwanda as it has in other, more developed countries.

HT: Tyler Cowen

- Karol

President Kagame discusses Rwanda's strategy at an investment conference in Boston

(Photo: Ben Stone, Sept. 2008)

The Bottom Billion Blog

Paul Collier and others, including Jim Crust, are now blogging. The site is new (like Social Enterprising) and so there's not much material on it yet, but it's still worth a visit.

Collier is the author of the 2007 bestselling book, The Bottom Billion. (Here's a review of the book by historian Niall Ferguson from the NYTimes.) There are parts of The Bottom Billion that I like quite a lot -- Collier's repackaging, in manageable form, of his important work on conflict and development -- and some things with which I disagree -- would another UN Charter provide meaningful incentives for governments to operate more openly and transparently? maybe, maybe not. And, there are some important issues I think he just does not address in this book, most noticeably to me: what role do on-the-ground entrepreneurs play in promoting development and positive institutional change? Nonetheless, it's an important book that stakes a middle ground between Jeffrey Sachs and William Easterly.

It's a welcome addition to have this new blog and to see what Collier and his colleagues are finding exciting in Africa and elsewhere.

- Karol

The Pros and Cons of Informal Markets

There's a really interesting article in the Wall Street Journal on the role that informal markets (i.e. not formally registered, non-tax paying, non-regulated) are playing during the economic downturn. You can find it here.

As the article points out, economists typically view the informal sector of an economy as a problem child. If people are working in the informal sector, it's because the formal sector (the registered, oftentimes larger) businesses are not creating enough jobs. The size and scope of an informal sector is an indication of real problems elsewhere in the economy. True enough, but the problems that lead the informal sector to expand are often things like corruption and regulation that make it extremely costly for individuals, especially poorer individuals, to start and run a business. The informal sector is the outlet that many poor people turn to to make a living when the institutional environment limits opportunity.
As the WSJ points out, we shouldn't necessarily see this as a bad thing. First, the informal sector gives the poor and unemployed some place to go to find work -- some choice is better than no choice for most. Second, the informal sector IS meeting consumers' needs -- poor consumers shop as well as sell, and they may be better able to find what they need, at prices they can afford, in the informal sector. Finally, as the article argues, the informal sector may be less subject to the kind of volatility that the formal sector is currently experiencing, precisely because it's not as tied to that formal sector. In an economic downturn, the informal sector will continue to operate when formal sector factories close. As I.P. Gautam, a municipal commissioner in Ahmedebad, India points out in the story, per capita income may be less for these workers, growth may be slow, "but you get your bread and butter."

- Karol

Literacy: A Bridge to Microfinance

We've formed an internal team to launch our training program in Kinyarwanda literacy and basic English language skills. The team includes Mary Mitro and Raj Kamdar, both with experience in teaching literacy and English to Africans. Our women have very limited Kinyarwanda reading/writing abilities (perhaps third/fourth grade equivalent) and are generally only fluent in spoken Kinyarwanda (no spoken or written English or other foreign language ability). We've been assigning preliminary responsibilities and setting target dates, trying to get a handle on a formal workplan. 

Objective: To ensure that the women are fully literate in their own language (Kinyarwanda) in order to help them become more proficient in management and to give them a better chance of becoming micro-entrepreneurs in Rwanda.

Preliminary Steps:
(1) Recruit Kinyarwanda Literacy Intern through Orphans of Rwanda – Done (Yves Ndashimwe).
(2) Acquire English Literacy Test – Find a standardized English literacy test to gauge current Kinyarwanda literacy levels. Computer-adaptive methods will be very hard for us to administer. Target: March 16

(3) Translate English Literacy Test to Kinyarwanda – Translation will need to include all tests, rubric, results/level figures, and explanations. Target: April 1.

(4) Administer Kinyarwanda Literacy Test – Yves will draft a report showing the results. Target: April 10.

(5) Purchase Kinyarwanda Literacy Materials – Yves and Jadot can begin purchasing basic elementary school literacy books in Rwanda. Target: April 10.
(6) Draft of Formal Workplan – The US team begins a formal workplan, including: (a) statement of objectives, (b) metrics, (c) resources available and needed, (d) budget, (e) funding plan (if relevant), and (f) implementation timeline. Target: April 10.
(7) Draft of Curriculum/Topics – Pursuant to the workplan, the Rwanda team develops a curriculum that tracks with workbooks, textbooks, and other materials purchased by the team. Target Date: April 20.

(8) Commencement of Kinyarwanda Literacy Training – A training schedule should be coordinated with the cooperative and the other training interns. Target: April 20.

(9) Development of Kinyarwanda Literacy Tests & Testing Schedule – The Rwanda team develops testing for each module and administers these tests on a defined schedule. Target: April 30.

We'll keep you updated on our progress!

-Matt

Yves, already hard at work training the women.  

For a great article about Orphans of Rwanda, our invaluable partner, CLICK HERE.

Prunier on Rwanda

I'm reading Gerard Prunier's book Africa's World War right now. It begins with a discussion of the Rwandan genocide and draws on, but also amends in interesting ways, his earlier book, The Rwandan Crisis: History of a Genocide. Here's a review of that book.

Prunier is a highly readable academic, which means he doesn't use too much jargon and writes in an accessible and clear way -- this is actually quite unusual among the scholarly set. But if you venture into Africa's World War be forewarned: he does assume familiarity with this subject. And, as the 15th anniversary of the genocide approaches, it's well worth investing some time and effort to try to understand why what happened Rwanda in 1994 and why. It is a complex and deeply troubling piece of human history, but Prunier's work helps us understand the darker aspects and how the genocide affected later events.

Here is an interview with Prunier done by PBS. Based on the earlier book, I found it to be a good introductory discussion of the social dynamics in Rwanda. Recommended as are the other works.

-Karol

Encouraging Business

As encouraging a movement as social enterprise is, there is probably just so much that social entrepreneurs can do to improve the daily lives of the people with whom they work. What do I mean? Social entrepreneurs can start businesses that, hopefully, will provide long-term jobs to people in the developing world. In turn, people with these jobs are better able to take care of their families and they can, and do, learn new skills which increase their human capital.

But, can enterprise change the institutional environment in a country? What I mean by "institutional environment" is the rules and norms that structure how people interact with other people and how government officials treat people. These rules and norms create a set of incentives that (among other things) encourage people to create more, better, bigger businesses OR that stifle legitimate business creation.

When governments create complicated, multi-step administrative procedures to open a business, this tends to limit the number of small businesses that get registered in a country. All those steps are time consuming and provide opportunities for government officials to ask for (or wait for) bribes. The process becomes too costly for a small business person and so that person either gives up the idea of running his or her own company or they do start their business, but in the informal sector.

When governments make it easier and less costly for their citizens to open legitimate businesses local entrepreneurs and investors do just that. A number of African countries have been working to reduce the costly, complicated procedures needed to start, run, and close businesses. An interesting discussion of how this reform process has worked in one of the most economically successful African countries, Mauritius, can be found here.

One of the lessons of the Mauritian experience is this: unless someone in government is willing to supply institutional reforms that encourages people to do business, social enterprise and local enterprenership will have a limited -- albeit positive -- impact.

Social Enterprising Spotlight: Daphrose Mukamugema

Megan, Indego Africa's awesome In-Country Coordinator, recently sat down with Daphrose Mukamugema, a 56 year old master weaver at Covanya.  How has Indego Africa affected your life?

Indego has helped not only me but also all of the women here, because before Indego came I used to have their products here but no one to buy them. Some of these products were still here and when Indego came, we were able to get more orders and get money to solve some of the problems in our family. I can buy new clothes for myself and if I need to visit my friend somewhere far I can pay my fee. Now I can help people because I have something they do not have. I can give clothes to a friend and I can give food. I live by this help because I do not farm; I use the money to go to the market to get everything I need. I do not have me own family, because all of them were murdered in the genocide.

What is the most important skill you have learned in the training programs?

I cannot tell you computer or management training which is more important because everything I see is useful. I got a 72% on my test because I am so interested. 

What is your favorite part of the training program?

Recording, I was so happy for recording, I am the secretary, so I am so happy to do this it matches with my role in the cooperative.

If you could tell people in the U.S. one thing, what would it be?
Before Indego, I was like an abandoned forgotten person but now I feel like I am useful to society because I can produce something. I am no longer a consumer I can contribute. The way I perceive America is as good people who do not think of themselves only because they send computers and they train us, they help us to get out of our poverty.

What is your favorite part of the computer training, and why?
I love saving files. You cannot lose those files once you save them, but when you write you lose the paper, but when you save on a computer, it cannot be changed or lost.

How does it make you feel knowing that people all over the United States have your baskets/wine coasters in their homes?
When I think of people having my items in the US, I feel useful because I can give my best to the people. Whenever people have my things, people think of me. I feel like I am a useful person. I feel like I am very happy for that but I feel like I need to see that picture of people who have my product on their table. I am very happy, but I need to see the picture of how it is because I cannot see it in my mind.

Anyone have a picture of themselves with Indego Africa handicrafts?  If so, send to ben.stone@indegoafrica.org and we'll make sure Daphrose gets it!

More on Peace through Commerce

Yesterday, I attended a talk given by Professor Timothy L. Fort of George Washington University's School of Business. He is also the Executive Director of GW's Institute for Corporate Responsibility. The theme of the talk was "Peace through Commerce," a growing interdisciplinary field in academics.

One of the questions Tim addressed was this: what specific behaviors (or actions) can businesses take in order to contribute to a more peaceful world? He noted that by putting people in face-to-face contact, on a continuing basis, employment itself oftentimes leads people to change their perception of others. Work provides people with a reason to work together and sometimes this makes a signficiant difference in terms of lessening hostility or reviving trust.

Tim suggested that businesses can contribute in three distinct ways to promoting more peaceful relations. First, they can help to bolster the rule of law in a country by following legal rules AND by allowing for external evaluation of their activities -- so open and transparent accounting will help shine a useful light on corporate activities. Second, by providing jobs businesses help to address problems of poverty. In turn, people who have some income may be less likely to resort to violence to meet their needs for food, shelter, etc. And, people who have work may be less likely to resort to criminal activity. He pointed to Paul Collier's work on poverty and conflict to suggest that businesses can also help promote peace by helping diversify an economy. This may be especially important in countries where the primary source of export revenue is mineral wealth. Finally, a third way in which businesses can help promote peace is through community engagement. This might mean being more sensitive to local culture or it might be a deeper involvement with local communities. While Tim wasn't suggesting that all businesses engage in corporate philanthropy, but he pointed out that in some situations this strategy will make sense.

Although Tim didn't discuss social enterprise as an "ethical" approach doing business, this is certainly what drives many of the people involved in the movement. For those of you interested in learning more about Tim's work, check out this co-authored book: The Role of Business in Fostering Peaceful Societies.

E-Commerce Innovations

When you buy a product in commerce, it's easy to forget that you're the last link in a long supply chain.  I'll certainly never lose sight of that fact.  The women we work with in Rwanda make their products with little more than traditional knowledge, incredible craftsmanship, and creativity.  In some cases they're working with foot-powered sewing machines (circa 1950). What's incredible is how these products get here and the role the women play.

The inventorying and fulfilling of Indego Africa handicrafts is fully-outsourced through a new program, Fulfillment by Amazon.  This required us to develop UPC barcodes, product style codes, detailed photos, and web-based management expertise.  Very few nonprofits or handicraft sellers use such a sophisticated process, yet Indego Africa didn't stop there.  Our Rwandan artisan partners learn the style codes, create the product tags, and apply the bar codes.  They now know exactly how their product gets from their workshop to your home.  Just another way that social enterprise is providing commercial education and integrating women into the (increasingly electronic) global marketplace.

Social Enterprising at HBS

Conferences can be hit or miss, but congrats to the students of Harvard Business School and the Harvard Kennedy School for putting on an extremely well-run, informative, and energizing social enterprise conference this past snowy Sunday in Boston.  

Linda Rottenberg, Co-Founder & CEO of Endeavor, a nonprofit that identifies and supports high-impact entrepreneurs in emerging markets, talked about business solutions to development and creative capitalism and how we must focus on systemic change and shoot for measurable impact on a country's GDP.   She suggested that the question has moved from "What is social enterprise?" to "What has social enterprise achieved?" Later in the morning, Peter Kellner, Co-Founder and Managing Director of the newly-launched Uhuru Capital Management, spoke -- correctly, in my opinion -- about how social enterprises must compete in transparency and accountability. 

After lunch I watched the tail end of the Pitch for Change Competition Finals, an "elevator pitch" contest for new social enterprise venture ideas.  From cows to bikes to online screenwriting platforms, I was impressed.  Just sitting there I met Nick Sowen, who works with ToughStuff International, a fantastic company in the works making personal -- and cheap! -- solar panels to charge cell phones in Africa.  

The afternoon's Keynote Panel included William Drayton, Chair and Chief Executive Officer, Ashoka: Innovators for the Public; David Gergan, Professor of Public Service and Director, Center for Public Leadership, Harvard Kennedy School; Jonathan Greenblatt, Co-Founder, Ethos Water; Lecturer, UCLA Anderson School of Management; and Clara Miller, President and Chief Executive, Nonprofit Finance Fund.  My turkey sandwich and a long week of social enterprising were making me a bit sleepy at this point, but the consensus seemed to be that, with the significant downturn in the economy, there will be (a) a potential for a broader base of donors rather than a deeper base, (b) a rise of ethical brands, and (c) a flight toward value and values.   One of the panelists remarked that, in today's new world, service is the new greed.

The panelists were also asked if there was one thing they would tell all of us about social enterprising.  Drayton: You have permission to persist. Don't let anyone tell you that you can't follow your dream. Greenblatt: Look to the horizon.  Find that point and go for it. Gergan: CHARGE!