Wait, what exactly is going on at Fundacion Paraguaya? Why are they not just making loans?  Have I found the "journalistic" Holy Grail and uncovered Something Scandalous?

The Short Answer: (1) No, I haven’t uncovered anything scandalous and (2) they do more than make loans because, quite simply, it is helpful to the people whom they serve!

Important Context: I am a wet-behind-the-ears Microfinance Guy who undoubtedly still sees things as being much simpler than they really are. #Kiva

Now The Long Answer: As I climb the Development / Microfinance learning curve, I’ve observed some variation in the approaches to poverty alleviation taken by various Microfinance Institutions (MFIs). Among the differences I’ve observed, some MFIs focus on lending while others present their clients with a broader array of services.

I’ve also learned that one of the criticisms of microfinance is that borrowers often may lack some of the “hard” business management skills required to maximize the impact of their loan and build the most successful business they can. This resonates with me and, as a result, the MFIs that really pique my interest are the ones which not only make loans but also provide educational support that should enable borrowers to make savvier use of the funds and improve their business’ success.

Again acknowledging that I am a metaphorical teenager who sees things more simply than they truly are, it seems that at least one good acid test of how ambitious an MFI is about alleviating poverty would be the extent to which it strives to provide – directly, or by coordinating with other organization(s) – a broader array of support resources that include some form of entrepreneurial/business education.

Fundacion Paraguaya, a pioneering MFI with which I have been lucky to be allied during my Fellowship, falls squarely into the category of offering such support and thus passes that acid test with flying colors. Their portfolio includes three major elements:
  • A traditional Microfinance Program aimed at smaller microentrepreneurs who are generally neglected by other microfinance institutions.
  • An entrepreneurship education program for children, youth and adults which, among other things, includes the a variety of Junior Achievement programs.
  • A financially self-sufficient and award-winning agricultural high school, which teaches organic agriculture and entrepreneurial skills to low-income youth from rural areas, transforming them from poor campesinos into rural entrepreneurs.
Source: http://www.kiva.org/partners/58
Following a recent visit to the agricultural high school (Escuela Agrícola San Francisco) in Cerrito, an hour’s drive northwest of Asuncion, I came away with my bias intact and supremely impressed by its students, programs, facilities, and guiding principles. Unknown Object

The campus formerly was a type of monastery, home to the Lasalle Brothers congregation

The school’s director explained to me that the overarching goal is to provide young boys and girls from rural areas with a clear awareness of the possible plus the skills, and the opportunity to grow from “campesinos pobres” (poor country-folk) to “emprendedores rurales” (rural entrepreneurs). The ultimate objective is to engender in students a strong sense of self-worth and provide the skills required to improve their prospects for a more independent and financially secure life.

In order to achieve these goals, the school’s three-year curriculum is built around the idea of learning by doing and structured such that students all rotate through the various subject matter areas balancing classroom time with time spent, literally, in the field (or barnyard) applying what they’ve been learning in the classroom. 

Out of a huge litter, these guys scored the choice spot on top of their mother.

This young lady was not pleased when she realized my tour guide didn't actually intend to milk her!

In a surprising twist, the school also operates an on-site hotel and conference center, so the students have a non-agricultural option.

Going into their third and final year, students choose an area of the curriculum in which to concentrate for the remainder of their time in school. At the same time, they are given supervisory responsibility within their chosen area of specialization. 

Artwork seen in the conference center and around the campus reflects the campus' Lasalle Brotherhood history.

In the interest of “keeping it real” and ensuring that students don’t graduate with an unduly cloistered Ivory Tower biased view of the world, the curriculum is oriented towards the needs of the employment market. Regardless of their “major,” all of the school’s graduates earn dual certificates in Agricultural Sciences and Tourism/Hospitality, which is unique in Paraguay.

Perhaps most “real” of all, a graduation prerequisite is that each student must present a “final thesis” in the form of a business plan which they will have refined with input from faculty coaches. Once the business plan has received faculty approval, students qualify for a line of credit from the Fundacion Paraguaya if/when they choose to implement their plan.

Attesting to the program’s effectiveness is the dramatic contrast that I observed between shy and hesitant First-year students and the vastly more outgoing, confident, and optimistic Third-year students. Also part of the transformation from First to Third-year is an obvious sense of pride in their accomplishments, growth in responsibility, and subject-matter expertise.

Moving from anecdotal to quantitative validation of the school’s effectiveness are the following factoids:
  • 100% of the school’s graduates currently work in the agriculture / livestock / tourism / hospitality business, are continuing their studies and/or have started their own micro-enterprise.
  • The school is 100% financially self-sustaining: 2011 was the fifth consecutive year in which the school’s income covered its complete budget. The 2012 audit has not yet been completed, but the streak is likely to have lasted a sixth consecutive year.
  • It’s worth noting that students pay only a symbolic tuition of $20 per month and are able to work off the bulk of it through their activities on the farm and through selling the farm’s goods in nearby markets as well as in Asuncion.
(Source: http://www.fundacionparaguaya.org.py/es/esc_autosuficientes.php?tipo=contenido&id=40)

In its quest to remain self-sufficient, the school doesn’t hesitate to explore cost-saving technologies as well as potential new revenue streams. On the cost saving side they employ solar water heaters, capture cooking gas from manure, have experimented with solar cooking, and use a small steam plant to power their dairy. On the revenue side, they are experimenting with pisciculture (Tilapia), apiculture (bees/honey), and even vermicomposting (worm-assisted composting).

Solar water heating panels on the roof

A steam plant powers the dairy and, in Winter, heats the dorms.

At this point, dear reader, you may be thinking to yourself, "Okay, that's great!  But, so what?"  

Well, to bring this virtual tiptoe through the tulips to a conclusion, the moral of the story is that sticking to one’s knitting may not be the best advice in all situations. While it may be the safer/easier route to take, building on the foundation of one’s knitting in order to provide support in a more holistic manner -- such as the Fundacion Paraguaya does -- appears to me a more effective path to alleviating poverty.

I hope you will encourage your favorite microfinance institutions to explore and seize opportunities to broaden their array of offerings in order to better serve their constituency from cradle to grave. (How’s that for packing a couple of paragraphs with a messy mixture o’ metaphors, trite sayings, business jargon …and alliteration?!) 

Hasta pronto from Paraguay!


Ladies from a nearby village of indigenous Guarani people.

A pretty tree shaded path


Most enlightening . It surely would seem that broadening the program from simply microlending to education , both entrepreneurial as well as agricultural, would be quite a natural and even an imperative outgrowth from the lending alone , particularly in the environment in which the MFIs apparently function. Keep up the good and interesting reporting.

No - I can't support groups and committees. I've worked with and for organizations for seventy years and I'm disillusioned and frustrated by their frequent inability to make much difference. committees makes them extremely vulnerable to power struggles and inefficiency. Almost always every committe is dominated by self-centered individuals or frustrated by inadequate leadership. I give to Kiva because I can give to motivated individuals who are eager to take immediate action with a simple strategy. If Kiva starts giving to organizations I will have to go back to church charities.

the new operating system usually help to increase on the most recognized distinguishing show of microsoft Windows cell phones 7 computer software a consider sheet produced from flooring in which it family appropriate things together with. The what is known as town you live interface can be a strong part of an additional Windows 8 platforms. its main system may possibly be displayed on devices from ms collaborators much like Huawei, check out the, htc since enduring an early cell phone commander nokia, that may betting it's entire phone upcoming the actual Windows operating system. 'microsoft' urgently needs a hit in the cell phone niche market because tries to may possibly far off well behind to challenges iphone and bing or google on the road system industry. milliseconds aside from that announced the new computer system would include searching for bank offering dear line mail messages, and therefore would undoubtedly dump windows ask mapping package in preference of option model manufactured by nokia. ms at times told me that the new computer system would come with searching for wallet on in your area field of operations marketing and sales communications, or ordinarily should throw away microsoft's google applying computer system software in favour of option course of action developed by htc.

Add Your Comments

Rob grew-up on a small finca in the Puerto Rican countryside, the son of New Yorker professionals with an adventurous streak who decided to explore an alternative to living and working in Manhattan. His childhood exposure to a variety of Caribbean cultures, including Haiti during "Baby Doc" Duvalier's reign, left him with an enduring taste for cultural variety and a first-hand appreciation for the broad spectrum of socioeconomic inequality. After studying Romance Languages and International Relations in college, Rob embarked on a career in the international business world; ultimately earning an MBA and working in the market intelligence area of several large multinational technology corporations. While this career path has been rewarding in many ways, Rob is excited to focus on "giving back" via a new career in the nonprofit sector; lending support to people who may find themselves closer to the less advantageous end of the socioeconomic spectrum and are working to improve their circumstances.