tabula rasa? conceptions of microfinance in juba, sudan · juba’s “tabula rasa” • 2005...
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TabulaRasa?ConceptionsofmicrofinanceinJuba,Sudan
CrystalMurphyMorgan
UniversityofCalifornia,Irvine
IMTFIResearchersConference
Juba’s“tabularasa”• 2005ComprehensivePeaceAgreement(CPA)betweentheGovernmentofNationalUnity(Khartoum)andSudanPeople’sLiberationMovement/Army(South)
• Endedthenorth‐southcivilwarthatbeganin1983thatforced4millionsouthernersinexile
Image:http://mapsof.net/sudan/static‐maps/png/political‐regions‐of‐sudan,‐july‐2006
Returning,rebuilding• “Everyone”iscominghome
• Estimated4,000peopleremainedinJubatown
• Jubapopulation2.2million(GoNU2008)
• Differenttypesofexile(Malkki1995): Metropolitan Rural Camps—IDP,Refugee• Differenttypesofstart‐upassistance
Researchsite
• Jubaasacaseof:– Humansecurity– Post‐wardevelopment– Economicanthropology
• ResearchonmicrofinanceinthiscontextstillNOTthere– MostMFresearchinconflict/post‐conflictdelineates“preconditions”fordevelopment(Nagarajan1997,2004)
– MFtorefugees/returneesvirtuallynonexistent
MicrofinanceinJuba• “Dualbankingsystem”– Islamic+Conventional
• 4MajorMFIsoperating– (2othersoperatinginotherstates)
• MFIsestimate5%outreachofJubaareamarket
• InterestRates15‐36%• Clientsmainlyinformal– 68%Trade– 15%Agriculture– 11%Manufacturing(Atil2009)
TraditionalMicrofinanceMethodologies
• TraditionalEvaluation:• Repaymentrates• #clients
• MicrocreditSummitCampaign,MIXprominence
• AlternateIndicatorse.g.“empowermentofwomen”throughproxyvariableslikebirthrates,education
ProjectMethodologySteppingoutoftraditionalmethodologies—focusonlivedrealitiesofmicrofinance
• Researchquestion:HowdoJubaresidentsthinkandtalkabouttheeconomythroughmicrofinance?
• Post‐positivist/ethnographicmethodologies– Narrativeanalysis
• Talktothe“market”participants;observeform– AnyoneinJuba– MFIstaff,execs,andclients
EconomyfromEconomies• Sudanese– Thatstayedwithin
• JubaTown• KhartoumIDPs
– MetropolitanEconomies• NairobiandKampala
– RefugeeCamps– RuralUgandaandKenya
• Non‐SudaneseNatives
InstitutionalPerspective
“Outofthehandoutmindset”
“Ifyoulookattwentyyearsofcivilwar…lookatsomebodywhowas5yearsoldwhenthecivilwarstarted,rightnowheshouldbeabout30years.Thispersongrewuprelyingentirelyonrelief.Knowingnothing—hejustknowsfoodcomesoffatruck.Sorightnowhewakesupandsomeonesaysheymister,fooddoesn’tcomeoffatruckfoodcomesfromthesoil.Andhesays‘no’.Sochangingthatmindsetissomethingweneedtodobeforepeoplewillappreciatethat.Andthatformeisthebiggestchallenge—thedependencesyndromebeingremovedfromtheirminds.”
Image:http://www.nationalpost.com/news/world/story.html?id=1468989
ClientPerspectives• PreliminaryThemes:– Distrustinmoney
– Distrustinexchangeprocess
– Distrustininstitutions– Lastingpeace?
Distrustinmoney
• Mid‐2007SudaneseDinarconversiontoSudanesePound– Playingcard“dupe”
• Manycurrenciesincirculation
• Subvertedcurrencies– $100USDnote≠5X$20
USD– “Thisplaceiscomplicated!”
• Losinginexchange
Image:http://www.biyokulule.com/view_content.php?articleid=1872
Distrustinexchangeprocess “Inmostcases,theytradewithUganda.
Actuallyatthistime,becausetheyareusingtheUgandaShilling.BeforetheCPAwassigned,itwaseasy,butrightnowyouhavetheburdenofsellinginSudanesePounds.[Onemust]convertactuallythe[microloan]moneyfirstofallindollars,thengointoUgandaandgetinUgandaShillingsandmakeyourpurchases.Sowhetheryoulikeitornot,youaregoingtoconvertyourcurrencythreetimesandwillexperiencelosses.Sotheywillalwayscomplain….theywanttofindoptionsoutofthis.ButItellthem—wearenotthegovernmentofSouthernSudan.Definitely,there’snowaywecandisburseDollars,wecannotdisburseUgandaShillingsandwehavenowayaroundthis.MaybeonedaywhenwecangeteverythinginSudan,theycandotheirshoppinginSudan.”
Distrustininstitutions
• NCBcloseddown,leavingpeoplestrandedandcashless
• Dailyfinancialstrategiesofmicrofinanceclients– Strategizingkeepingmostaccesstocashinperson
– Requestingpaymentup front
LastingPeace?Iaskedaclientaboutwhypeoplemightnothaveconfidence
inbankinginstitutions,heelaborated, “That’soneofthem.Anotheristhatpeoplearenot
confidentwiththepeacesometimes.Anythingcanhappensoifyougetyourmoneystucksomewhere,you’llnevergetit.Iguessyoushouldhaveyourmoneyalllllthetimeonyousoyoucangoanytimewithit.”
MicrofinancepracticesinformedbytheCPA“peace”ANDfutureunrest.– Hoardingofcash– Delayingrepaymentuntillastpaymentdue– Raisingpricestomatchinflatedcostsofsupplies– Requestingpayouts(fromMFIandtheircustomers)upfront,
immediately
Post‐conflictmoneyvs.calmbetweenstorms?
• Peaceasfundamentalassumptionofdevelopmentpractitioners(beyondrelief)(Lewis2005)
• Typesofdevelopmentinstitutions– Aid/reliefStart‐upSustainabledevelopment
Howcanweenvisionamoneythatcanfunctionforpeopleinasituationthatisnotguaranteedtoprogressinpeace?