Friday, May 7, 2010

Cape Town: Week 1

Arrived in Cape Town Tuesday morning. Until today, the weather has not been great: overcast, windy, cold, and sometimes rainy. My apartment is in down town and has an incredible view of Table Mountain and Lions Head. Incredible. Only yesterday, when the weather cleared for a few hours, was I able to see the top of the table mountain.

I've walked around the city and done some scouting of the area. The nearest grocery store is about a 10-min walk. I joined a gym that's about a 7-min walk. Definitely will not be needing a car or using public transportation that much. The gym has a great indoor pool and workout area -- rivaling Lifetime fitness. I'm impressed.

Met a lot of the other interns at a little happy hour get together last night at Perspectives. We ended up holding it in my room because the room on the roof was closed. Managed to get by with no spills. Met some other interns who are on the opposite end of their twenties like me; it's reassuring that I'm not the only "old" guy. I also met a few of my coworkers at Planet Finance, also interns with Connect, and one of them has a car. Which is great. I start work on Monday.

The weather is great today and Torti and I heading to Cape Peninsula National Park (or something like that). It's about an hour drive outside the city. It's where the Cape of Good Hope is...as well as a Penguin colony which Torti really wants to see. After Ushuaia...I've had my fill. Penguins are penguins...but the landscape down at the cape sounds awesome. Looking forward to that and just hoping the weather holds up.

A few remarks so far:

- Living in downtown, they say it's not the best idea to walk around at night. Even in groups. Just get a cab and be safe. That's going to be tough considering I'll be going to the gym at night...but hopefully cabs are plentiful.

- I buy electricity for my apt from the security guard downstairs! 100 Rand gets me about 140 kWh. With a digital meter in my room, I'm definitely keeping an eye on my electricity usage.

- I pay for the internet by the MB. Which means no Slingbox...and no Spurs. Although, they're making it easier on me by going down 2-0. Not going to be missing too many more games. (Reverse jinx intended here).

- South Africa's history is amazing. In a very sad way. I knew the history on a high level and understood Apartheid's concept but until I started reading more about it here, I didn't make the connection that it's very different than what we had in the US. In the states (as far as I know), all of the past segregation laws were not apart of the constitution, and thus, over time, deemed unconstituional. In South Africa, the segregation policies and racial biases were incorporated into the constitution. They were law! It was an institution. And, obviously, the people in charge of amending/modifying the constitution were the white supremicists (the Afrikaners). So, it was going to take a miracle for the constitution to be changed. In the US, there were at least a lot of racially unbiased people that worked in the government, especially the Supreme Court. It was only a matter of time that the segregation policies were deemed unconstitutional. If it wasn't for the threat of major civil war and Nelson Mandela, South Africa would still have Apartheid today.

- Ghandi started his civil disobedience work in South Africa! There was/is a large Indian population in South Africa (thanks to the British, who brought many over here in the 1800's/1900's) and they were treated poorly like all other non-whites. Ghandi spent years here before heading back to India...

Saturday, April 17, 2010

A Guide to Living in BA

Was thinking it might be helpful for someone visiting/moving to BA to provide a little inside info on the city:


LIVING

If you're unfamiliar with BA, I wouldn't arrange long-term housing before you get down here. Stay in a hostel your first few days here, get the lay of the land, then start looking around.


Craigslist BA: Craigslist postings tend to be way overpriced (because they know foreigners can afford more).


Piso Compartido: http://www.pisocompartido.com.ar/ is a great local apartment locator. It's used by locals so you're roommates will be Portenos and rent is much more reasonable. Website is all Spanish though.


Palermo
My personal favorite part of town. It's the biggest barrio here. Tons of restaurants, cafes, nightlife, gyms, movie theaters, etc. Santa Fe is the big street that runs through it. Try to find a place close to or on Santa Fe to make for easier transportation. The Subte D-line runs along Santa Fe. Plaza Italia (at Sante Fe y Sarmiento) is a major hub for colectivos (city buses). There are some decent parks and running trails in Palermo as well. Palermo Soho and Hollywood have a higher density of restaurants and nightlife. I lived in Palermo Viejo (Santa Fe y Scalabrini Ortiz) and the location was great. Everything you need is nearby: grocery, pharmacy, ATMs, laundromat, and good eats.


Recoleta
One of the pricer parts of BA. Rent is higher. Nightlife is not as great. Has mostly bars and it shuts down by 1 or 2am.


Las Canitas (in between Palermo and Belgrano)
A pricey but great part of town. Has a 2-3 block concentration of great restaurants and bars. Does not have many late night boliches (clubs).
San Telmo

Not sure why anyone would want to live long-term in San Telmo. Besides tango, it doesn't offer much. It's on south side of town and a good 15 minute cab ride to Palermo. And at night, it's not safe. It's next to La Boca, which is a dangerous part of town.


La Boca
Not safe for living in or touring at night. Famous for old port/docks, painted houses, and of course the Boca Juniors soccer team.

TRANSPORTATION

Taxis
Taxis are abundant and very reasonably priced. If you're travelling with at least one other person, the low fares almost always make it the best mode of travel.

Subte (Subway)
www.subte.com.ar for maps. One way trip is AR$1.10. The subte closes at 10pm.

Colectivos (buses)
Definitely the most common mode of transport in BA. The colectivos ONLY take change (monedas), so do not board a bus without any. Costs are anywhere between AR$1.10-$3.50. www.comoviajo.com is a GREAT website to determine the optimal bus route between any two points. Very very handy.

Guia T
This is a hand-held city map that everyone should own. Also, has information on colectivo routes. Can be purchased at most kiosks.

AIRPORT TRANSPORTATION

Ezeiza (International flights)
Taxis will run about AR$130 to Capital (Palermo/Recoleta/Microcentro/etc). Recommend: Manuel Tienda Leon shuttles are about AR$45 one way to/from their hub in Microcentro (downtown). You can reserve online at www.tiendaleon.com.ar. 45-60 minute trip from downtown.

Aeroparque/Jorge Newberry (Domestic flights)
Taxis from Palermo are about AR$25 and about a 15 min drive (no traffic). Domestic airlines to choose from: Aerolineas Argentinas and LAN.

CELL PHONES

Pay-as-you-go phones are typically the best option. There are three main providers: Movistar, Personal, and Claro. Movistar probably has the best coverage. Your best option is to buy a local SIM card at one of these providers' stores and put it in your US-based phone. However, for reasons unclear, this is NOT possible for an iPhone. So, if you have an iPhone, I recommend two things: 1) buy a cheap/old phone in the states before you go down to BA (because the cheapest phone in BA will cost US$50), and 2) temporarily suspend your service with AT&T (to ensure your iPhone doesn't accidentally download data in BA, which costs a fortune). You can do this (and undo) with a click of a button online. You will still be able to connect to Wi-Fi. Note: When you suspend your service, you still pay your bill 100%.

Skype
A cool tip with Skype for iPhone users. Download the Skype application and you can use it just like a phone wherever you have Wi-Fi access. Costs about 2 cents/min to the states.

FOOD

Besides the hundreds of inexpensive, quality food spots that BA has to offer, here are several personal recommendations:

Parilla La Escondida: One of the rare BA steak houses that come with warm bread rolls and a great salad bar. The meat and wine are, needless to say, great. Expect to spend a reasonable $US15-20/ea if you're with a group (includes wine and tip). Costa Rica 4464 -- Plaza Armenia in Palermo Soho.

Sushi Club: Some of the best sushi in town. Located in Las Canitas. Expect to spend US$20-25/ea if you're with a group (includes drinks and tip). I recommend the Spicy and Apple rolls as well as the Sambayon de Maracuyita cocktail. Has outdoor seating if the weather is nice. Consider getting drinks beforehand at a number of outdoor bars nearby. Baez 268 -- Las Canitas.

Sarkis: voted #1 mediterranean/middle east cuisine in BA, and appropriately so. The food is great (and offers a nice escape from typical BA cuisine). Order several dishes and share between a group. Prices are VERY reasonable, if not cheap, for the quality. Expect to spend US$10-15/ea if in a group (includes wine and tip). Thames 1101 -- Palermo Soho.

Miranda: one of the nicer parillas in BA, located in Palermo Hollywood. I had the best cut of steak there in my entire trip: the ojo con el bife. Expect to spend US$20-30/ea if in a group (wine and tip included). 5602 Costa Rica -- Palermo Hollywood.

Tandoor: great, authentic Indian food. An upscale restaurant and a little pricey. Expect to spend US$15-25 (wine and tip included). Laprida 1263 -- Barrio Norte.

Las Lilas: one of the premier steak houses in BA. Located in Puerto Madero, on the water. Great outdoor seating if weather is nice. Expect to spend US$35-$50 (includes wine and tip).

Other Argentine 'delicacies':

Choripan (aka 'Chori'): the Argentine version of a hotdog. Chorizo inside a baguette, preferably with chimichurri sauce on top. Puts the hotdog to shame. Can be found at parillas and at street trailors.

Milanesa Napolitana: this is essentially chicken friend steak (or chicken) with cheese and tomato on top. Delicious.

Tarta: somewhat like a stuffed pizza slice, it comes with ham, cheese, egg, and tomato.

Empanada: the classic delicacy. A stuffy pastry can come with meat, chicken, ham & cheese, and many other types.

NIGHTLIFE

BA has an impossible number of bars and night clubs. Here are some of the good...and bad:

Bars

El Alamo: this is the quintessential expat sports bar. Expect to see a lot of study abroad students and other English-speakers. Great for watching American sports. Plenty of good, cheap beer on tap. Gets crowded early on, ie 10pm. On weekends, don't expect to get in after 2am. Uruguay 1175 -- Recoleta.

Casa Bar: the other quintessential expat sports bar. Probably best American sports bar equivalent in BA with quality wings and other sports food. Rodriguez Pena 1150 -- Recoleta.

Milion: overrated and overpriced. The bar is inside a renovated old Mansion but that very fact makes it difficult to walk around. Drinks are expensive and crowd is more on the 'posh'/prententious side. Not a great place for singles as it's a couples hangout. With a million of options in BA...I wouldn't recommend it. Parana 1048 -- Recoleta.

Sugar: in Plaza Armenia. Great bar for having a drink and not much else. Nearly impossible to get into after 12am. They have a very low capacity. Don't recommend it.

La Bomba del Tiempo: Mondays at Konex. This isn't a bar but a Brazilian drum/beats show. They sell beer and food and it's a fun atmosphere. Lasts from 8-10pm. AR$20 cover. Niceto Vega 5510 -- Palermo.

There are a ton of great bars in Las Canitas, all within walking distance of each other.

Boliches (clubs)

Club Kika: if you're looking for something Tuesday night, this is the place to be. Tuesday nights at Kika are hip hop nights and the music doesn't disappoint. Also, has an adjacent dance floor with more electronica/latin music. Make sure you put yourself on the "list" via their website, to avoid paying a cover charge (AR$40). Honduras 5339.

Belushi: next door to Kika. I never went but it sounds like a great place. They have separate areas for bars, lounge, and dance floor. For all tastes and interests. Anywhere from 80's music to electronica, depending on the night. Honduras 5333.

Liquid: on Saturdays, great music: typical top-40 US Charts on lower floor and latin music on second floor. Great area in the back that's more quiet and lounge-like. Free cover on Wednesdays. Santa Fe 3651.

Club Araoz - Lost: The best spot to be on Thursday nights -- hip-hop night. Araoz 2424.

Crobar: If you're looking for the quintessential huge techno club, this is it. After 1am, expect a constant supply of techno/electronica until 6am. And lots of sweat. Cover is AR$50. I don't recommend it. Paseo de la Infanta -- Palermo.

Jet Lounge: Expensive, inconvenient location (near airport), pretentious crowd, loud. It sucks. Rafael Obligado 4801.

Pub Crawls

Buenos Aires Pub Crawl: if you don't mind mingling with other foreigners, it's a great pub crawl. It goes on Wed - Sat nights. The cover includes free entrance to a boliche at the end of the crawl. The only bad part is that the boliche is typically Crobar (see above).

SPANISH LESSONS

Private
If you're living in the Palermo / Recoleta area and looking for private lessons, I recommend Marco Luccon. Great instructor and very affordable: AR$35/hr. He's an English major at the local University, in his late twenties, and tutors in the afternoons. He's located in Palermo Viejo, near Plaza Guemes. info@hablarenbsas.com.ar. tel: 114.825.7817.

Group
Spanglish: checkout out www.spanglishexchange.com for an opportunity to meet some locals and practice your Spanish. It's set up like speed dating where you rotate tables. Thursday nights are the best. Spanglish also offers group classes.

MAIL -- POST OFFICE

If you're expecting a package from the states, there is a good chance it'll go through Correo Argentina. They have several offices around town but their main warehouse is in Retiro. I received a package from USPS and it took about 7 days to ship, 4 days to clear customs, and another 3 days to receive a note in the mail saying I had to pick it up from the Retiro office. So, expect at least 2 weeks all in all.

SOCCER -- FUTBOL

I recommend seeing a Boca Juniors home game at La Bombanera. Games are typically played on the weekends. The stadium is in Boca and is about a AR$35 taxi ride from Palermo. You can buy tickets from scalpers outside the stadium several days before the game and even immediately before. The only problem is you're never assured that the ticket you're buying is real. Tickets should cost no more than AR$70-80 if you're scalping.

Your other option is purchasing a ticket through an "agency". A local secures the ticket for you, takes you to the stadium, and sits with you for the game. Tickets can cost up to AR$300, however. Not a cheap option but you're assured of actually seeing the game. A quality agency: 4922.4409, ask for Guido, and be ready to speak Spanish.

BUENOS AIRES SIGHT-SEEING

BA Bus Tour: the company offers a double-decker bus tour around the city, stopping in all the major neighborhoods. You can get off and tour the neighborhoods at will, as the tour buses come by each stop every 30 minutes. AR$70. www.buenosairesbus.com.

Ecological Reserve in Puerto Madero: on weekends you can rent bikes and bike through the reserve. Some great views of downtown and of the "beach" overlooking the river. The food stands next to the reserve have some of the best Choripan in town.

Tigre: if you're looking to escape from the city for a day, take a tour of Tigre, one of the provinces outside of Capital Federal. Tigre is located on the river delta and is beautiful. You can take boat tours through the tiny river inlets. It also has a small amusement park as well as a market on the river where you can buy anything from mate gourds to leather bags. Tigre also has a casino.

EXERCISE

Gyms
There are gyms all over town. Megatlon is one of the premier, and more expensive, chains in BA. Several of the Megatlons, as well as other local gyms, have indoor lap pools.

Jogging
Los Bosques de Palermo offers decent running trails. It starts at the intersection of Libertador and Sarmiento and goes northwest from there. The Ecological Reserve in Puerto Madero also has great running trails but is harder to get to.

Things I'll miss about Argentina...

In no particular order...

- choripan (aka chori)
- helado (tramontana y frutos del bosque)
- stray dogs
- delivery (including ice cream and beer)
- homogenized milk
- kiss on the cheek greeting
- colectivos
- sweating profusely
- $3 lavaderia
- milanesa napolitana
- swimming with 5 other people in a lane
- 5am+ club closing time

Last asado!

We had an asado at a friends last night. My roommates and several coworkers were there. It was a great time. It was on a rooftop terrace and the weather was perfect. Great food, great drinks, great company. We were running low on beer at one point and had some more delivered. That's right, the kiosks here will deliver booze to your doorstep!

The host put me in charge of music...which was a bad idea for the rest of the party-goers. I subjected them to everything from David Banner to Brooks and Dunn to Crash Test Dummies...and of course, my obnoxious singing.
EntreTodos gang...minus James and Per:



Friday, April 16, 2010

Last day at work

It's my last day at Entre Todos. It's pretty chill -- for me -- expect Ford is having a freak out session because la gerencia is back to their old antics. It may be the last day for someone else too. Not sure how much longer he's going to last here.

The big item on the agenda today is getting some "el cruce" hamburguesas. There's a cafe nearby that has ridiculous burgers with all the toppings: eggs, ham, cheese, lettuce, tomato. But to top it all off, it's got those tiny little french fries on it. Pretty unbelievable stuff. There's a mutiny astirring at Entre Todos though -- some want to go to another hamburger joint that doesn't have near the quality of the "el cruce".

The plan is to do a big asado tonight in Palermo. Most of the Entre Todos gang should be there and the roommates. Should be muy rico!

Tuesday, April 13, 2010

T-minus...7 days!

It's my last week at work and last week in BA. I leave next Tuesday. Not really looking forward to leaving...I've gotten into a good routine, met some great people, the weather is finally cooling down, Spanish is still coming along. I could use another few months here. If it wasn't Cape Town that I was going to next, I would heavily consider staying here.

Went to Ushuaia and El Calafate two weekends ago with Kevin. Ushuaia is the sounthernmost city in the world and beautiful. A lot like Norway, or Alaska, I've heard. Snow-capped mountains that come right up to the shoreline with the city tucked in between. Although it's the southernmost city in the world, it's not that far south. It's on the latitude as London or Calgary.

We did a boat tour out an island inhabited by penguins...it was pretty awesome.

El Calafate is home to Glacier National Park and it was beautiful. We did a four hour hike on top of the glacier. I strapped crampons onto my tennis shoes...and it worked surprisingly. Hiking boots not needed. The glacier is about 80 meters tall and moves about 600 meters a year, by sliding down from the mountains. The edge of the glacier melts and falls into the lakes. We got to see a few wall collaspes but nothing on camera.


*******

I started taking Spanish lessons last week. Figured I would do some intensive studying my last two weeks here. I should have made this a priority when I got here but things were busy at work.

Something I learned in one of my Spanish lessons: that Argentina still thinks the Falkland Islands (Malvinas) are still theirs. My tutor pulled out a new map of Argentina and underneath the name "Islas Malvinas" it said (ARG). Pretty comical...but that's how the country feels about the situation. Apparently, every politician here uses it to bolster his/her ratings, saying that they'll do their best to get it back, but it never happens. It's just easy to do because it's a common enemy for all Argentines. There's no left or right politics about it.




Wednesday, March 24, 2010

Iguazu

I went to Iguazu last weekend and it was great. It's a pretty stunning sight. Tons and tons of waterfalls. The jungles and the green surrounding the waterfalls looked like a scene out of King Kong. Just all very surreal. I took a boat tour around the waterfalls and they dipped us under one of them a few times.



I shared a room at the hostel with a group of Australians. I ended up hanging out with them most of the weekend which was great. Travelling by yourself can be a little boring sometimes. On another note...I left my glasses at hostel. So now I'm putting my contacts in and taking them out at my night stand. Wonderful.











Sunday, March 7, 2010

Asados, driving...and cockroaches

Time is flying by here! I'll be at the half way mark next week. I haven't taken any trips yet but the Iguazu waterfalls and Perito Moreno Glacier (down south) are on my list. I got out of the city for my first asado (BBQ -- Argentine style) last weekend. We went to my roommate's boyfriend's house out in Pacheco, about 30 mins outside of the city. The food was great. We had some chorizo (sausage), bife de lomo, and morcilla. From what I understand, the morcilla is congealed pig blood mixed with some kind of meat. It has a very distinct flavor but is good stuff. Apparently, you have to slit the pig's throat and collect the blood while the pig is still alive so the blood doesn't congeal. Nice visual huh? This guy's house was great. Big backyard and pool...definitely how the "other half" lives in Buenos Aires. It was great getting out of the city for a few hours.


I've kind of un-immersed myself in the local culture here the last few days. My roommates and I went to an expat bar the other night and last night we joined a pub crawl, where it was impossible to speak Spanish. Both were a lot of fun. I'm lucky that my Argentinian roommate doesn't speak English, so I still get to speak some Spanish even among all the expats.


We have a major cockroach problem at the apartment. I put some bread in the toaster yesterday and when it popped up, there was a cockroach hanging out on one of the slices. It scarred me for a few hours but I made some more toast later...after cleaning the inside of the toaster, of course. An exterminator has come a few times but it's not helping...the apartment's just too old. The roaches are all behind the walls. The GOOD thing is the roaches are all pretty small -- nothing compared to the ones in Houston...

I drove for the first time here last week! It was...a lot of fun. I hadn't driven a manual in a long time but it came back to me (after a couple of stalls). There are few rules to driving here...no blinkers, no real lanes, no blind spots. It's defensive driving on a whole new level. Speaking of blind spots, they don't teach it in driver's ed here! Ford, my coworker, was driving with his girlfriend once and she changed lanes and nearly hit someone. Ford freaked out and asked if she had checked her blind spot... Blind spot? What's that? She had NO idea...

All the police constables drive around here with their lights on. All the time. No sirens. You look in your rearview mirror and see flashing lights...you're not getting pulled over. Just a cop roaming around.

Monday, February 22, 2010

Swimming, sweating...and hoping I still have a job next week.

Time is flying by and I just realized I haven't taken a single picture yet. I need to get on it.

I joined a gym here last week, called Megatlon, mainly for the indoor lap pool. And swimming has been an unbelievable experience thus far. There are only four lanes in this pool -- one for slow (lente), medium (medio), and fast (rapido) swimmers. The last lane is for lessons. So, it's basically three lanes to share with an entire gym's worth of people who want to swim. I've been there three times so far and have had to share the rapido lane with no less than four other people every time. Which doesn't sound that bad...expect the other swimmers don't like to swim for long spurts of time. They like to take breaks -- a lot of breaks. They socialize. They hangout. And they do all this inside the lane. It doesn't even cross their minds to get out of the pool if they're swimming. So, it's usually two or three others swimming around two people just hanging out...talking. And, then one of the swimmers will take a breather and stand next to them. And you're left with no wall space to kick off of. I've almost run head on with somebody, been kicked by breaststrokers swimming in the opposite direction, and pushed off of the wall at the same time as someone else, vying for one spot. It's a nerve-wracking experience.

The best part of all this...the pool lifeguard sitting back, sipping on mate (the local tea), talking to...the other lifeguard.

The other thing I don't get is having to wear a swimcap and flip-flops. If Lifetime fitness in the states doesn't make you wear those...is it really necessary? But then I realize that Lifetime doesn't require these because they're cleaning their floors and pool regularly. What I think Megatlon is trying to say: "look, the mop handle broke years ago...and the pool water isn't blue for a reason...enter at your own risk".

******

My coworker and I have a coined the term, Sweat O'clock...which is normally about 5pm, when the heat reaches the daytime high and I start sweating through my shirt in the office.

******

It's been raining like crazy the last few days. They had major floods last Friday evening. It took me over 2.5 hours to get home from work on the city bus. Can't complain though...at least I can be reading or sleeping instead of driving.

******

Work took major change today. The GM called Ford (other American coworker) into the office to him

1) they're completely changing our audience from people who have little to no credit histories to people with credit histories and established business (kind of goes against the social -- and premier -- mission of microfinance)
2) they want to cut back the number of loan officers from 5 to 2, and
3) they do not want him working on "state of the company" report because it's going to reflect very poorly on the managers' performance.

This basically turns all the work Ford has put into improving operations (and eventually bottomline) into a waste of time. The GM is getting pressure from the directors to be sustainable in a year's time and, as a result, is making the very rash decision to make the portfolio a majority of individual lenders, as opposed to group lenders (the proven Grameen method). Individual loans of the same size as one big group loan (divvied up among 4 group members) have much better returns than group loans. This is because you're doing leg work and administrative work for the same revenues. The biggest problem, however, is the company does not have tight enough credit policies to pick out minimally risky individuals. Such tight credit policies include background check, verifying long-term established business income, etc. This is the whole point of microfinance: finding a way to sustainably lend to poor people who have little or no collateral. And group lending is the way. The GM's answer is forget microfinance to the people that most need it...let's lend to people who we can trust and our bottom line will be better.

It's very demoralizing. The GM is very stubborn. And as good as Ford's Spanish is...there's still a major language and cultural barrier between him and the GM.

The GM has given us a week to present our results with a group-lending dominated portfolio. We have to show that the company can be sustainable, and sooner rather than later. It will involve growth models...something I know little about. I'm looking forward to the learning opportunity.

Friday, February 12, 2010

One week under my belt...!

Buenos Aires has been great so far. This city is absolutely crazy. I read in Lonely Planet that typical nuisances are stepping on dog crap, getting ripped off by taxis, and tripping on loose stones on the sidewalk. It took me less than 48 for all that to happen. It's no joke apparently.

Other nuisances are the city runs on cash and coins. Very few places take credit cards. I take the city bus to work everyday and it only takes coins. And because half of Buenos Aires takes the bus everyday, the city has a major coin shortage...and thus a blackmarket has developed. I get my coins from this guy near the bustop: a 10 peso bill in return for 8 peso coins and two cookies. You can't make this stuff up!!

I'm still getting used to the lifestyle: go to bed late -- very late -- and wake up late. Dinner at 10pm. The city here never sleeps. There are an endless amount of bars and clubs and they are always croweded (once 1 am rolls around). Every night here is a weekend night. A very crazy lifestyle.

BA has been having one of its hottest summers on record, which isn't quite as bad as Houston summers...except there is no central A/C here. Just fans and wall units. I've been in a constant state of sweat since I got here.

I found an apartment in Palermo...on craigslist. Craigslist rocks. I have three other roomates -- a Dutch guy, local Argie guy, and French girl. All seem like good people so far. The Dutchie is impressed with my knowledge of Dutch cursewords...kanker #$%! Think I should give it a few weeks before I show him my obnoxious Dutch / English accent.

Haven't had any crazy sleepwalking episodes...that my roommates are aware of at least.

The food has been good so far. A friend introduced me to Choripan...the Argie version of a hotdog. Chorizo on french bread. The chimmichurri sauce you put on it is awwwwwesome. I'm only doing about 2-3 bowls of cereal / day...which is pretty good. Found this cereal called Kellness (some international Kellogg's brand)...it's a mix of granola and corn flakes...yea buddy.

...

But...the reason I'm down here is Microlending. I'm working at a local microfinance institution (MFI) and it's been great so far. There's 10 employees at the company. I'm working with another gringo, Ford, a 24 year old from Connecticut. He's been at the company for 5 months now and the GM has basically put him in charge of turning the company around. The institution, called Entre Todos (translates Between / Among Everyone), is only about 8 years old and has very poor lending strategies. They have been lending to individuals and groups without solid background checks (living situation, microbusiness finances, expenses, etc), and they haven't been enforcing their contracts. As a result, nearly a third of their loan portfolio is behind payment and more than half is at risk of default (about 10% of the portfolio at serious risk). Ford is working on developing a standardized list of loan products, a borrower financial training program, and making the loan officers more efficient. It doesn't stop there: their contracts are obsolete and incorrect and their database system has glitches. Bottom line: the institution is unsustainable (but luckily funded by a well off hedge fund employee -- the founder).

I've come into a great situation with a ton of ownership...and the learning curve is steep. I've been helping Ford with his projects so far and I've already learned a ton. The guy's a rockstar. Not sure how the company will survive if, and when, he returns to the states. Some interesting things I've learned so far...

- The interest rates we loan money at are very high, which sounds a little counterintuitive for microfinance. The whole point is to provide the people with affordable loans and keep them from goign to loan sharks, right? But, the microentrepeneurs can handle the high interest rates because they make very high returns themselves. 100+% even. If you take out a loan to buy a microwave for your microbusiness and it quadruples your output, then the high interest rate seems reasonable. And, MFI's typically have to have high interest rates because the microloans are proportionately very expensive. The interest made on the loans are so small that the MFI profits very little from each loan after you factor in operating costs. Loan operating costs are more or less the same regardless of the size of loan. So, ideally, you want to lend much bigger loans. And it's this incentive that typically puts the MFI -- and borrower -- both at risk: lending more money than is repayable to a borrower and risking default.

- The government provides an 800 peso monthly stipend to families with 7 or more children. As a result, it's very rare to find a family with 5 or 6 children. But, our first loan is only 500 pesos. We're challenged with competing with the government stipend.

- A great success story: a women started several years ago with an entry level 500 peso loan for a breadmaking / pastry business and now has her own store and has an 18,000 loan.

- The hype about 98% global ontime repayment rates is a bit inflated. Most MFI's forgive their customers if they pay late...and consider it on time. However, default rates are still remarkably low.

Tuesday, February 2, 2010

Two Days to Departure

I'm heading to BA in two days. By way of Toronto. Using my frequent flyer miles nearly doubles my travel time from 10 hours to 18. Toronto to BA is a 14 hour flight...and it wouldn't be complete without a pit stop in Panama City.

Still need to pack, do my '09 taxes, and get rid of this bronchitis.