[TC-I Call to Action]: Total Immersion Programme in Finance and Development Summer Internships

The Centre for Development Finance (CDF) announces some very exciting internship opportunities for this summer.  If you’re looking for something more long term, word has it that CDF will likely be releasing postings for BoP related full time positions in the coming weeks… check back for more information!

Total Immersion Programme in Finance and Development (TIP/FD) – Summer 2009

CDF invites internship applications for the Summer 2009 IFMR “Total Immersion Program in Finance and Development (TIP/FD).”

Description of the program follows and application requirements follow below and in this CDF TIP document, and to apply please use the following link.

The TIP F/D provides undergraduate and graduate students interested in microfinance, development finance, and economic development an opportunity to gain hands-on experience in working on issues relating to access to financial services for urban and rural poor in a developing country. Interns will participate in a structured, two-week course directed by leading researchers, IFMR Centre Research Associates, and practitioners from the Indian government, microfinance institutions (MFIs), and NGOs. The course will be followed by eight weeks of work on a CDF projects which will consist of either field-based research, policy/sector wide studies or data analysis.  Past interns have completed stand-alone projects or worked to initiate, implement, and scale-up existing projects or pilots at the Centre.

The list of summer internship projects can be found online here and in this CDF Project Descriptions document. Interns may also be placed on another of CDF’s ongoing projects.

Internships are unpaid, although CDF will assist with housing and food or provide a small stipend of up to Rs 10,000/month toward living expenses. All interns are encouraged to obtain funding to cover international travel and personal expenses during the internship period.

This year, the TIP/FD will take place between June 8 and August 14, 2009. Applications will be accepted until April 15, 2009, although we encourage interested applicants to apply as soon as possible to ensure the best matching of interests and skills.

Positions of Particular Interest to the TCI Readership: Continue reading

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Nokia poised to help farmers to expand its rural base

Nokia is about to launch a set of “Life Tools” to be embedded in its mobile phones in an effort to expand its base into rural India. These Life Tools cater to the needs of the rural community with information on three different sectors namely Agriculture, Education, Entertainment. On agriculture, the Life Tool is likely to offer updated information on weather and market prices for the farmers produce on the mobile phone in the farmers native language.

As the old proverb goes, a picture is worth a thousand words. Nokia’s datasheet on Life Tools provides an easy-to-understand picture. Evidently, this tool is developed not just to penetrate into rural India, but rather to the “rural world”.

If my everyday observation is any testimony, Nokia seems to have a wide user base at the lower economic sections of India, and this tool can be an excellent vehicle for informational empowerment of the rural Indian community. However, given that the rural buy is likely not going to buy these phones off a Nokia Priority Showroom, how Nokia is going to market this tool so that the buyer buys a low cost Nokia phone for its Life Tools rather than its ruggedness, ease of use or longer life would be an interesting point to observe. This may also be the crucial factor that may determine the tool’s success.

Quiz: India’s most Innovative company?

Here is the quiz:  Which of the following Indian organizations made it to the Fast Company’s list of 50 most Innovative companies in the world?

1. Infosys
2. Wipro
3. Dr. Reddys Labs
4. Aravind Eye Care System

The answer is 4. Aravind Eye Care System! Its remarkable. Aravind is the only Indian organization in the Fast Company 50 list and shares the honors with many other with others like Google, Cisco, Intel, Apple and the Obama Campaign (Yes, you heard me right!)

Below is the excerpt from Fast Company:

The network of not-for-profit hospitals and vision centers performs 300,000 eye surgeries each year — 70% for free — using broadband connections to on-call doctors in city hospitals for instant diagnosis. Camps in rural areas screen thousands of patients weekly. “We are going from village to village to provide eye care to the unreached,” says Aravind’s chairman, Dr. P. Namperumalsamy. Aravind won the 2008 Gates Award for Global Health.

Well, the folks in the Indian media need to take note. We have never seen Aravind in the list of India’s Most Innovative Companies in the past (where it rightfully belongs)

Click here to see our previous coverage on Aravind.

A Mighty Way to Light Up Rural India

MightyLight, a product created by Cosmos Ignite Innovations, is reaching 15,000 children, thanks to an effort by eBay.  Since children are unable to study at night without a light source, the MightyLight is a way to improve education, among other issues.  eBay employee Anna Sidana and her nonprofit One Million Lights were key drivers in this gift.  MightyLight, according to an IndiaWest article, has many benefits.  The product is:

a solar-powered LED light that is eco-friendly, robust and built specifically for rugged conditions. It can withstand falls on hard surfaces and water or dust without being damaged. The Mighty Light produces ~500 lumens of clean white light versus ~10 lumens of light from a kerosene lamp. Other benefits of the solar light extend to health and the environment with no harmful carbon emissions.

Cosmos Ignite Innovations itself is an interesting venture, as it is a partnership between Cosmos Energy in India and Ignite Innovations in the US.  With millions of people in rural India still using kerosene, the potential for scaling up the environmentally safe and affordable light is substantial.

UFV-CRRID partnership promises grassroot-level business development

Indian Express and Abbynews.com report that University of the Fraser Valley (UFV), Canada and The Centre for Research in Rural and Industrial Development (CRRID) have signed a memorandum of understanding (MoU) to “empower the rural entrepreneurs of North India.”

“India needs entrepreneurs at the grass roots level, and our partnership with CRRID allows us to fuel business start-ups and the development of SMEs outside the city centres, in the areas that need it most,” said Professor DJ Sandhu, UFV President’s Advisor.

A quick look at the university’s website to find out what the nature reveals some of the ways means of intervention this partnership will possibly employ.

…for example, students enrolled in UFV’s BBA degree at SDCC will be able to work with research faculty at  CRRID to implement projects aimed at uplifting businesses involved in such industries as agriculture and agrifoods.

In a way this partnership is similar to Tata International Social Entrepreneurship Scheme (TISES), a partnership between TATA sons, UC Berkely and Cambridge University. Continue reading

Back to the drawing board? — A harsh look at microfinance

To start, I want to say that my mind has been racing despite sleep deprivation and jet lag since I touched down in Mumbai at 0135 IST this morning. This is the first I have set foot in India since 2005 and thus my first visit since the inception of TC-I, which makes the experience all the more exhilarating. But on to the post …

In the past, I have criticized microfinance’s shortcomings, particularly with regard to its inability to actually stimulate significant job creation. However, I also have recognized that despite its downfalls, microfinance still serves as a useful tool in the arsenal of a poverty alleviation strategy.

Now, microfinance has come under more scrutiny, as opponents argue that this financial product actually hurts the interests of the poor and that it can lead to the romanticization of the bottom of the pyramid, creating dangerous consequences. These new arguments further support my point that microfinance is relative to other approaches not an effective tool in combating poverty.

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(IFMR) Trust Me

Editor’s note: In addition to being informative, this post also outlines what IFMR Trust is looking for in potential hires. If you would like to see that immediately, go after the jump.

Before Thanksgiving break I had the pleasure of sitting down at an informal roundtable with Dave Wallack, Senior Vice President of People to learn more about IFMR Trust‘s ambitious plans to provide financial inclusion to every person in India. Chaired by Dr Nachiket Mor, who is also the President of the ICICI Foundation for Inclusive Growth, the Trust’s mission is to “ensure that every individual and every enterprise has complete access to financial services.” In order to accomplish this goal, the Trust is looking at a rather unconventional business model that where the non-profit parent oversees multiple self-sufficient for-profit silos in various financial sectors.

The three ventures that the Trust has currently launched are the IFMR Trust Holding Company (ITHC), the IFMR Trust Advisory Services (ITAS) and the IFMR Trust Guarantee Company (ITGC). Each venture has a specific and distinct goal. The ITHC aims to build a network of Kshetriya Gramin Financial Services (KGFS) that will serve as low-cost, paperless branches providing access to financial products. According to Wallack, the goal is to have one of these branches for every 10,000 people or 2,000 households. Wallack emphasized the feasibility of such scale is due to the incredibly low-cost structure of each branch. By being completely paperless, transaction costs is on the scale of 20-30 rupees as opposed to $20 dollars. Wallack self-titled the initiative as the Starbucks of microfinance, as they are able to provide loans at only 11.5%, far less than the typical 20-30% charged by traditional MFIs.

The ITAS’ charge recognizes that microfinance is merely a stopgap or defensive measure and that more aggressive financial services will be needed to enable true inclusion. In order to do this, the ITAS has structured as essential a private equity firm and with the aim of raising $150 US. Utilizing this capital, ITAS will look at 14 different supply chains that reach the rural population and figure out ways of improving and fixing them through investments in operating companies along the product cycle. These investment strategies, organized as Network Enterprises, will operate in a for-profit fashion with the belief that the quest for profits will seek out the most efficient and effective ways to address the supply chain breakdowns.

One example is the current gap that exists between urban labor demand and rural supply. After some preliminary research, ITAS discovered that the major hurdle was that rurual workers could not afford to live anywhere in the city for their first 2 weeks, because they had yet to been paid. In order to resolve this ITAS partnered with a local temporary housing and staffing company in order to provide that stopgap housing for these workers.

Finally, the ITGC will focus on providing much needed debt capital to small and medium size enterprises throughout India to truly enable them to grow. Here, the organization is partnering with many existing financial providers to roll out their offerings more aggressively.

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