Yes Ben, I did get a sense of hope from Sostenica and CEPRODEL’s investments. The impact of their work extends beyond the economic and environmental benefits of each loan to include changing the mindset of borrowers. As opposed to government policies or economic trends, this kind of change can only be brought about on the micro level. I saw many examples of how Sostenica and CEPRODEL’s investments affected borrower’s views both of themselves and the world. Borrowers felt empowered not only to help themselves but to help others as well, and to become more engaged in their communities.

The impact of Sostenica/CEPRODEL was especially visible among rural borrowers. These borrowers are far more conservative about borrowing than their urban counterparts, because their ability to repay is based on factors out of their control (weather, crop disease, availability of water). Many farmers are also skeptical of the viability of sustainable agriculture. Sostenica/CEPRODEL was slowly changing both of these views through their technical assistance for individual farmers and through the example of successful farms. In particular, one farmer named Fabresio used CEPRODEL credit to develop a very complex and successful organic farm. His entire community witnessed his business grow, and he took a leadership role in cooperatives that spread awareness of his farm even further. Fabresio contributed to changing his neighbors’ mindsets regarding organic agriculture, but he also led by example with business planning and risk analysis that he applied to his farm. Fabresio had originally earned a University degree in statistics and lived in the U.S. for a short while, but had then bucked the trend of his peers and decided to return to his family farm. As CEPRODEL’s Director of Credit Orlando said of Fabresio’s success, “This is what happens when University education returns to the countryside!”

Reading this story it is easy to get discouraged. There is so much wrong on the macro-level that incremental improvements on the micro level can seem hopeless.

Did you get a sense of hope after observing the investments SosteNica was making through Ceprodel in Nicaragua?

Here is the story of one borrower I met in Nicaragua:

Martinez Medino is a cattle rancher who needs more help on his farm, but his children have all moved to the U.S. or to Nicaragua’s capital city of Managua. His daughter earned a degree from a Nicaraguan university, but couldn’t find work. Determined to stay in the city rather than return to her father’s farm, she is now working in a maquiladora (a factory that is tarriff-free under NAFTA) for $3 a day. This reflects a sweeping trend among youth across Nicaragua and the developing world.

Medino also faces abusive pricing from the truck drivers who take his milk to the city and sell it (Medino has no vehicle of his own). Efforts to establish coops that would give ranchers more bargaining power have been undermined by buyers’ manipulative tactics. Sometimes the buyers approach farmers individually and offer them better deals if they leave their coop, and once the coop is significantly weakened they raise prices for everyone. Or sometimes the buyers are deliberately late for pickup and refuse to pay for spoiled goods. Government protection is needed to preserve a level playing field for farmers and raise the impact of microfinance.

In the meantime, Medino has used CEPRODEL credit and technical assistance to build a trough and irrigate his field, grow hardy grass that can keep his cattle well-fed through the dry season, and build a shelter that protects his cattle from the elements. All of these investments are part of a business plan worked out with CPRODEL that guides Medino's credit allocations. Next he plans to use credit to pay for more labor during the peak season.

Thanks Keely. You give a clear sense of the serious and thorough approach we have taken. Can you give a few images from the various investments we have made? This will bring to life what we are doing...
Ben 08/11/08