A New(ish) Beginning

Four and a half months into my life in Rwanda and I’ve managed to say virtually nothing about my life here so far! My intention was to round out my experience working on the Obama campaign with one further entry detailing the micro-managed, super-focused, hugely rewarding and in the end massively successful two months that I spent in Las Vegas but the task of writing that piece has seemed so overwhelming that all I have to show for it is two months of silence. So I’ve decided to skip that and move on to the present.

Where to start? Let’s begin with the personal. That large house I referred to a few posts ago which was one of two options I was considering to move into is now my home. My bedroom, whence I’m writing this, is large enough for a huge bed and could comfortably accommodate a table tennis table and a pool table besides. I’ve no doubt this is the largest bedroom I will ever inhabit and would probably compare favourably in size to the entire flat I lived in before leaving London. It’s ridiculous. I share the house with three people, all girls and all Canadian. That they are all girls is entirely unsurprising; the NGO crowd here is overwhelmingly female (clearly not a problem, at least not for the minority gender). That they are all Canadian is much more so albeit that they’re an interesting mix: one Scottish-Canadian; one Eritrean-Canadian; and one US-Dutch-Canadian. In Kigali though one mostly comes across Americans, Belgians, Germans and Brits. And virtually no French. For those who don’t know the history, these last have not entirely covered themselves in glory in their dealings with this country and continue to shoot themselves in the foot diplomatically by pursuing government officials for war crimes and generally being on the wrong side of the argument. However I’m teetering into the political sphere about which I will unfortunately have to be less talkative than I was in Peru. (Incidentally the trial of Alberto Fujimori which I discussed a fair amount over a year ago is due to come to a close very shortly. A conviction is likely assuming the trial doesn’t collapse on the technicality that he’s in ill health and his absence from the courtroom for 12 days would entail starting all over again.)

Work at the Clinton Foundation is fantastically fun and extremely rewarding. And constantly in flux. Amusingly in some ways it’s very similar to what I was doing at Goldman Sachs, i.e. sitting in an office working with Excel all day. In important ways though it’s very different. Whereas my work at GS for six years was almost entirely inward facing, here I am daily in meetings with Ministry officials and every couple of weeks am out in the field meeting with regional health managers. At GS it was always difficult to explain to people what I did, particularly to those who didn’t work in finance, which led some to think I really worked for the intelligence services, but here it’s essentially very simple. We are here to help the Rwandans build up their capacity to successfully manage their own affairs and to do ourselves out of a job.

Unfortunately success isn’t going to come rapidly and someone will likely still be doing what I’m doing by the time I’m considering retirement but you would go mad in this line of work if you didn’t consider and accept the long view. And in Rwanda things happen. I’m constantly hearing from my NGO colleagues who work across African countries that there’s a level of thought, coordination and direction here that isn’t to be found anywhere else on the continent. From the Big Man on down there’s a will to pull this country up and to do so in a systematic, government-driven and clean way. It’s impressive to behold even for someone as inexperienced as me who has nothing with which to compare it. Of course the Rwandans have no resources. There’s very little to drive tax revenue so the country is massively dependent on foreign funding. And as previously said, this will not change anytime soon. But there is the will and there is the understanding of how to do it even if with other people’s money. It’s extremely exciting to be a part of. Over time I want to talk more about the challenges and the opportunities, the hopes of this tiny little over-populated country, the expectations of the international community and the tensions that result when the two rub each other the wrong way. There are endless anecdotes that constantly have us thinking about how to improve and make more effective our work to help Rwanda. The goal is nothing short of colossal.

A Short Backgrounder, Part Two

Amongst the political entertainment during my time in California (New York Governor Eliot Spitzer the unwitting tangential prize of an organised prostitution-ring bust, Detroit Mayor Kwame Kilpatrick charged with eight felonies, Alaska Senator Ted Stevens charged with improperly compensating a building contractor, etc), a very serious one was continuing its eighteen month-old machinations. What had begun in the snows of Iowa had really started in February 2007 when Barack Obama declared his candidacy for President of the United States and even much before that. My memory of Barack Obama entering my consciousness is a little hazy although I recall that by the time he delivered the keynote address at the Democratic National Convention in July 2004, I had been following his progress for some time. When the Big O declared he would run for the Presidency two years after becoming the junior US Senator from Illinois this came as little surprise to any political egghead.

Around early June I slowly started to realise that a golden opportunity lay before me to engage in a political process which I had enthusiastically been following from the comfort of my armchair and the earphones of my iPod for well over a year. Being the type who respects those who walk the walk rather than talk the talk, it became clear that not only would my job-search take time, but if I were so convinced that the Big O would be a better alternative to any Republican then I ought to do some’at about it. By this stage Hillary was for practical purposes already out of the race. So in amongst travels to Europe for aforementioned family reasons and a fantastic 4th July holiday around the southern United States (I highly recommend Savannah and New Orleans) I looked for ways to become involved. One aspect of the Big O’s now famous campaign was his harnessing of the “new” technologies first employed on a large scale by Howard Dean during his not-so-successful run for the Democratic nomination in 2004. Obama’s website, being designed as it was by the guy who developed Facebook, was set up such that people could publicise events, rallies, organizational meetings and so on and allow others to get involved. I started attending various events, mostly talking up Obama to people passing in the street and at summer fairs. Obama had also decided that his policy framework (for which read high-level principles) would be decided democratically by a wide swath of his supporters rather than just those who attend the Convention. Thus I attended various policy discussions to elaborate a submission to Obama’s staff which taught me a whole lot about education and healthcare in the States. And allowed me the opportunity to educate a few people on what goes on in “Europe” (expressed by some as though it were somewhere close to the Moon).

Another event posted on the website, MyBO as it became known, was a voter registration drive in Las Vegas. One of the most impressive organizational decisions by the Obama campaign was to pair rock-solid states with geographically proximate swing states. Thus California was paired with Nevada and a large number of events were set up for Californians to travel to Nevada to help the local effort. So I drove up to Las Vegas with three other people I’d never met before, a girl who does public health work in developing countries and who was in LA between jobs, a guy who had run for local elected office in Southern California unsuccessfully and whose day-job is computer programming and an octogenarian battle-axe who provided constant hilarity. She was part Muhammad Ali, part Erin Brockovich. We spent the weekend standing outside WalMart (not generally considered Democratic-friendly terrain) and signed up large numbers of voters. It was hot. It was very, very hot. But it was also a lot of fun. The best ploy to get people to stop is to make them laugh combined with an overly strong appeal to their better sense. And never ask a question to which the answer is “yes” or “no”. “I would love to register you to vote today.” “I don’t have time.” “It will only take a few minutes to register and it will give you a voice.” “It doesn’t make any difference.” “Yes, that’s how Floridian Democrats feel too.” And so it went.

That weekend was so much fun that I went back with Sara (the public health girl) and a friend of hers the following weekend. And that one turned out to be so much fun again that I started talking to the regional managers about coming up full-time to volunteer. At the time I was semi-serious about it. But by the time I’d got back to LA I realized that it really was something I should do. When was I going to get the opportunity again to work on a presidential campaign? When was I going to get the chance again to work on a campaign which I had heard from at least a dozen people had not roused their passions to such an extent since 1960? So a week later I packed up my car and headed back to Vegas, this time to stay until the election. I had little idea of what was to come; 60 uninterrupted 16 hour days at the grindstone. No weekends. No days off. The hardest I’ve ever worked.

A Short Backgrounder, Part One

How did I get here? And where have I been? Questions I’ve asked myself a few times of late. After seven months in Lima, the last one and a half of which I spent separately traveling with parents and friends from London, I decided the time had come to move on. But move on to what? I had looked into a few jobs which would make some use of my combined experience in the finance and non-profit arenas. I had even had a telephonic interview between Lima and my interlocutor in Nairobi (where she was visiting on business) for a job based in Washington DC. The line was bad and my interview sharpness not much better. The outcome was as expected.

Around the same time I pursued a connection I had made shortly before leaving London. During the whirlwind few weeks between leaving Goldman Sachs and leaving on a jet plane in June 2007 I had breakfast with the lovely Cassia who I’d been put in contact with by a colleague. Cassia worked at the Clinton Foundation, regularly commuting between London and various places in Africa, working in a division of the Foundation called CHAI. It sounded like tea, it sounded like fun. We spoke for about an hour at the conclusion of which she told me to give her a call when I was done in Peru because they were always looking for “people like you”. At the time my thoughts were more focused on microfinance than health system strengthening as I felt my finance background was more suited to the former. However a few months’ reflection led me to realise that my passion lay in international development generally not microfinance specifically. So come December 2007 I did what Cassia suggested. Unfortunately she didn’t answer my emails and I had no contact number for her. I did find out through our mutual friend the Goldman Sachs colleague that Cassia had gone on maternity leave but that she didn’t know much more than that as they hadn’t been in touch for a while. As practitioners of the espionage trade would say, the lead went cold.

As my pre-planned departure date of mid February slipped to late February, I did at last book my flight out believing that my future lay in the States, leaving behind some great friends and a wonderful Peruvian family who had taken me in as their sixth (and eldest) child. My grandmother in California was in failing health and I decided to move in with my uncle there to spend some time with her, a grandmother who had been a major influence in my life. This turned out to be fortuitous timing as just eighteen days later I watched as she breathed her final breath, thankful that I’d been able to spend a couple weeks with her. Her passing was to foretell further sadness in the family as both my French grandparents succumbed to old age just three months later and within a week of each other. My French grandfather had similarly loomed large in my formative years and I was fortunate to be able to spend some time with him just prior to his passing when I visited France in June.

From early March, when I arrived in California, until exam day in early June I had been studying for the second level of the CFA, the first level of which I had passed in 2003, since when I had concertedly avoided any further participation. By this time my decision to resume the qualification resulted from the combined desires of pursuing something useful to my career as well as giving me space to contemplate my next move. It succeeded on one of those fronts at least. By early June I was back into job-searching again in full force. Applications went out to various non-profits and a further attempt at contact with Cassia was made, this time successfully. I was extremely saddened to hear from her that she and her husband had experienced a tragedy in the intervening period and despite this Cassia was as helpful to me as could be and excited that I’d contacted her. She ran me through the various possibilities available at CHAI (Clinton HIV / AIDS Initiative) and asked me to forward my curriculum vitae.

A set of interviews ensued for a position which would have involved travelling around a third of Africa on a fairly constant basis assisting countries in their procurement and internal distribution of drugs. (That would be malaria prophylaxes and HIV anti-retrovirals rather than cocaine and ecstasy tablets.) Fortunately for me some combination of the three interviewers decided I wasn’t suited to the post and immediately it was suggested that I consider a “managerial” position. The job would have been very satisfying but too restless and clearly would have upped my carbon footprint by a not insignificant number of cubic metres. The Foundation’s suggestion was well taken. There followed two interviews, one with the CHAI Country Director for Rwanda and Burundi, Pascal, and t’other with the gentleman I would be replacing, the Program Manager for Rural Health, a Kenyan by the name of Kisimbi (which, I would later learn, is his family name; apparently all six sons in the family refer to themselves by their last name which causes no end of amusement when friends call their house in Nairobi). The interviews failed to entice me to say anything controversial or stupid and a visit to Kigali was hastily arranged for a tête-à-tête. After a mammoth Las Vegas – Washington DC – Rome – Addis Ababa – Kigali country-hop I arrived in Kigali for four days to seal the deal.

Thus am I now in the employ of the Clinton Foundation providing technical assistance to the Rwandan Ministry of Health. This has prompted several observers (as though I have those) to ask what exactly in my professional experience qualifies me to provide technical assistance on health matters to an African government. Or any government for that matter. Allow me to explain.

And onwards to Rwanda

[ This is an entry which I had previously circulated via email, not knowing whether I'd resume the blog. Since I have now decided to do so, I'm republishing this November 26th summmary from shortly after my arrival in Kigali. For those who are wondering "Kigali? WTF? How did you end up there and what have you been doing since you left Peru? When did you leave Peru? Why did you leave Peru?", the short answer is 6 months in California, 2 months in Las Vegas, now Kigali, Rwanda working for the Clinton Foundation. I'll come back to all these themes later! ]

13 days into Kigali life and it has flown by. I feel I'd better grab every experience by the horns else two years will go by in a flash and I'll look back wondering what I've been up to! I can't wait for some visitors to tell me they're coming so I can book a trip to see the gorillas! There's a trip prospectively happening in early January to Bujumbura (capital of Burundi). Two girls I've met here have recently moved to Buj and I figure what better reason to go to Burundi! I mean it's not like I'll be sitting later in life thinking, "where should we go on vacation, hmmm, Burundi is a good option". Apparently it's very different to Rwanda. There's a fairly spectacular beach there from what I hear, on the shores of Lake Tanganyika. Of course another likely trip in 2009 will be to Dubai to visit an old friend.

Work is starting to become a little clearer in its goals and responsibilities. I have a team of two and a half (two people full time, one person who works with me half of the time). One Kenyan and two Rwandese. Almost everyone I met when I came in September [for the interview] will be gone by Christmas, which is a little strange but I knew that was a possibility. So I have a brand new team. My boss is still the Swiss guy, Pascal, who hired me. He's a really interesting character who grew up in a UN family and who is very well respected within the Foundation and without.

Our dealings are entirely with the Ministry of Health, other NGOs working in the health field and the regional governments of the 30 districts of Rwanda. We had a meeting last Wednesday with the Permanent Secretary at the MoH, the number two person at the Ministry – she's quite the character. We were having a call with a large international NGO about getting some funding from them and she was impressively and amusingly firm in her approach.

On the personal / social side I'm in the midst of figuring out where I'm going to live. I'm currently living in the house of the guy who I'm replacing, but it's too far from everything. It's a pleasant if quiet neighbourhood but a 20 minute drive from the office. Ideally I'd like to be walking distance to the office, or at most a 5 minute drive. I will indubitably have to buy a car. Kigali is not a walking city. I've got two houses in mind, one of which is currently occupied by Guen and Felicia, two girls who currently work at the Foundation but who will both be leaving Rwanda and who have been extremely generous in welcoming me to Kigali. The other used to be occupied by the Minister for Education and is a grand place but a little off the beaten track.

Thus far I've found a tennis partner, a friend of Phil Bowen's who used to work at the Home Office and who now works for Tony Blair's initiative here. And Sunday afternoon is ultimate frisbee with a fun mix of Rwandese and mzungus (including some combination of the six Marines who are stationed in country to guard the US Embassy – they're pretty good). I might potentially take up Swahili but the jury's still out on that one.

Kigali is an amazingly safe place. After spending time in Nairobi where people live in barbed wire-encircled compounds, Kigali is surprisingly different. Even my female colleagues tell me they feel comfortable walking around at night and getting taxis home at all hours. Of course there's a cottage industry here set up just to serve the mzungu crowd. A bunch of taxi drivers whom everyone has stored in their contacts. Real estate agents who only deal with the high end of the property market. Stores which only the elite Rwandese and foreigners can afford. Although even the foreign crowd find the only decent supermarket in town to be excessively expensive. The difficulty is that Rwanda produces very little apart from coffee so even some basic food stuffs are imported. I bought five oranges yesterday and paid £4.60!!

Rent is going to turn out pretty cheap but other aspects to Kigali life will be surprisingly expensive. Thankfully it turns out that the US government is generous to people who earn their living outside the US and promise not to spend more than 30 days per year in the States: no federal income taxes!

Let's not lose sight of human weakness

Is it incompetence? Or pure dishonesty? Sadly, probably the latter. There have been stories in the press recently (see links below) reporting suspected fraud at credit unions in Uganda. These Savings and Credit Cooperatives are set up as societies where members can deposit funds and take out loans, in essence much like any microfinance institution, but due to the law limiting its remit, the Bank of Uganda has no jurisdiction to oversee these institutions. And the body that does oversee these credit unions is reportedly understaffed and lacks expertise. Many clients are reporting that the institutions are making it difficult for them to withdraw their savings. Recent pronouncements by the Bank of Uganda indicate that some of the poor clients may well lose their savings entirely.

It behoves those in positions of authority not to lose sight of what must be one of their primary objectives, supervision. The lack thereof doesn't only exist in Uganda and sadly closer to (my current) home, there are anecdotal stories of heads of microfinance institutions (MFIs) using their loan portfolios to curry favour with friends and influential people. Sad but true. Fraud can occur even in an arena which supposedly attracts those who want to help others. No harm in helping yourself at the same time, I guess the argument runs.

There are three responsible parties when it comes to supervision. The first line of defense is the board of directors. Some may treat being invited onto a board as another line to be added to their curriculum vitae with a couple of meetings to be attended per year as the price to pay. However being on the board carries responsibility and the senior management of the institution must be held to account. Regulators have their obvious role to play and as in the Ugandan case, microfinance institutions (MFIs) of whatever kind must not be excluded from the remit of the banking regulator. These are financial institutions just like those which cater to better-heeled clients. There may be a cost burden to the MFIs of providing information and of course the resultant bureaucracy should be kept to a minimum but this is a necessary precaution. Lastly the rating agencies have an important role to play. There are a handful of agencies which specialise in providing ratings for microfinance institutions, entirely on a voluntary basis for the MFIs. It is an important function of these agencies that they adopt a hard-headed mindset and ask the difficult questions. One would hope that the development world would be immune to such human weakness as defrauding the poor, but knowing that it isn't, all necessary steps should be taken to prevent it.

Microcapital article on Ugandan credit unions
New Vision first report of problems

Recent Peruvian History: An Update

Hot off the press this morning, the Minister of the Interior in Fujimori's cabinet at the time of the dissolution of Congress and the Judiciary in April 1992 has been sentenced to ten years in prison for having participated in and backed what is referred to in Peru as the "autogolpe" (self-coup). Nine other members of the cabinet from that time have been given four year suspended sentences for having been secondary accomplices.

Fujimori himself cannot be tried for this crime as the terms of his extradition from Chile only allow him to be charged for specific offenses, two related to alleged human rights violations and five related to alleged corruption. Fujimori's trial on these charges is to start on 10th December.

Lima Reconnaissance Trip in May

In May 2007 I hitched a ride with Tom Sanderson, Director of Five Talents UK (FT UK), Craig Cole, Executive Director of Five Talents International (FTI), Helga Buck and Kelli Ross of FTI and David Fletcher, board member of FT UK, to Lima. For them it was an opportunity to visit the project they are funding in one of the southern poor districts of Lima called San Juan de Miraflores. For me it was an opportunity to meet the people I was, at that stage potentially, to work with come July. During the trip David filmed our encounters with clients as well as an interview with the Executive Director of ECLOF Peru, Carlos Venturo, one of the most upstanding citizens of the world you are liable to meet. This is the fruit of those labours.

A Primer on Recent Peruvian History

In amongst the microfinance discussion, it would be remiss of me not to mention the political dimension here in Peru. As Jeffrey Sachs repeatedly says in his rather good book The End of Poverty, you cannot think about altering the economic situation of a country without giving ample thought to all the factors which affect it: political, geographical, historical, infrastructural, personal.

The president of Peru is currently Alan Garcia and this is his second go at running the country. He was previously in charge between 1985 and 1990 and left office with hyperinflation causing economic havoc and Sendero Luminoso (Shining Path) and the MRTA (Tupac Amaru Revolutionary Movement) causing havoc of a different kind. Strong evidence for not electing a 36 year old to head the government it might be suggested. With the country needing some strong direction Alberto Fujimori, a half Peruvian half Japanese politician whose birthplace is disputed (he claims Lima, others claim Japan and it's of importance because only people born in Peru are allowed to run for president) beat writer Mario Vargas Llosa in an unexpected victory in 1990. Interestingly five years later Fujimori beat Javier Perez de Cuellar, former United Nations Secretary General in the 1995 elections.

Fujimori turned out to be quite the authoritarian during his two terms. He succeeded in bringing the economy under control and eventually in crushing Sendero Luminoso and the MRTA. On the other hand, because Vargas Llosa's party retained control of Congress after the 1990 election and since Fujimori was finding it hard to get anything done during his first term, he simply dismissed the entire Congress and judiciary in 1992. ("If only...", Bill Clinton must have been saying a few years later when he faced the same problem.) At the end of his second term, Fujimori tried to circumvent the 1993 constitutional two-term limit which he himself had introduced and ran in and won the 2000 election against Alejandro Toledo. The ruse only lasted until evidence of political bribery eventually forced Fujimori to resign the presidency from the safety of Tokyo.

Worse than the political machinations however were the extra-judicial torture and murders. In 1993 Fujimori became close to an army Captain by the name of Vladimiro Montesinos who alerted Fujimori that certain elements of the army were planning a coup. Montesinos later became the head of Fujimori's security apparatus and was responsible for fighting the terrorists as well as for the political espionage and bribery. The findings of the CVR (Truth and Reconciliation Committee) after the downfall of the Communist terrorist groups found that up to 70,000 people were killed during the fighting. Most of these were innocents in the battles between government forces and the terrorists and their blood was not only on the hands of the terrorists. The tactics used in bringing the terrorists to their knees as well as the bribery landed Montesinos with a lengthy prison sentence with Fujimori similarly awaiting trial on human rights abuses. He was extradited from Chile in September 2007 and the trial is scheduled to start in December.

This is likely to be an unwelcome distraction for the Garcia administration as Fujimori still commands considerable public support. I was recently in the centre of Lima and saw a huge banner hanging from a hotel exclaiming "Fujimori Libertad". This time around Garcia is attempting to cast himself as the economically responsible type and is attracting foreign investment to the country as well as looking to get a Free Trade Agreement signed with the U.S. which is likely to be passed by the U.S. Senate in December, having already passed the House of Representatives. It is likely to sail through the upper house of the U.S. Congress as it did the lower house because from the U.S. point of view Peru is an important ally against the "red tide" of Chavez (Venezuela), Ortega (Nicaragua), Correa (Ecuador) and Morales (Bolivia).

For the good of the country, Alan Garcia needs to be careful to attract investment to all areas of the country and not just around the big cities and the mineral and gas deposits. A little bit of money can achieve big results in a country like Peru and a little bit of patronage can go a long way. When I was visiting Puno last month, on the shores of Lake Titicaca, I met with the head of one of the floating islands of Los Uros who told me at least three times that the solar panels they had attached to their houses providing them with electricity were provided by Fujimori. "And what has Garcia done for you?", I asked. "Nothing."

The danger is that Garcia's political base is along the coast north of Lima and in the centre of the country. Outside of those areas but particularly in the south Ollanta Humala, a man the U.S. would lump in with Chavez and the rest, is the popular politician. In the first round of the most recent presidential election in 2006, Humala came top with 33%. Given that an outright majority is required to win the presidency, a second round was held in which Humala lost to Garcia who had lapped up the votes of the third placed finisher from the first round.

Peru has fantastic advantages relative to some other developing nations. Natural wealth (copper, other metals, natural gas), agriculture (top exporter of asparagus in the world, potatoes, maize, fish), access to the sea, an entrepreneurial workforce and significant tourism. Inflation has been below 4% since 1999 and GDP growth averaged 5.7% between 2002 and 2006. What Peru requires for development, to the advantage both of the poor and the country, is leadership which will, in addition to keeping the economy ticking over, ensure that the benefits of increasing wealth are distributed widely. That's not to say the leaders should tax the rich and kill the entrepreneurial spirit. More that the right combination of fiscal, monetary, trade, diplomatic and social conditions are needed to increase the general wealth of the country, which are best managed by a centrist party with an active and targeted social agenda rather than a more extreme party of one wing or the other with misplaced ideas of how to run an economy and a country.