HolaDR.com: Everything About The Dominican Republic!

This is my second post on a hopefully series of post i will be making about a journey of a young High School student describing his experience in the Dominican Republic and how micro-loans are allowing some Dominicans to dream again.  This young man, Brett Mennella, is doing a fantastic job.  It is always nice to see that Dominican Republic from a foreigner’s eye.

Brett Mennella, a senior at Bellevue High School (at right), helped start the school’s Microfinance Club, which focuses on learning about the global effect of microcredit. The club raised more than $130,000 in the last two years to support microloans, and decided to invest the money in Esperanza International, a global microfinance institution based in Bellevue founded by former Mariners catcher David Valle. This is the second post he’s filed from the Dominican Republic, where he is doing volunteer work.Posted by Kristi Heim

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After another day in the country, I have gained even more insight into the Dominican culture and frustrated economic situation. I attended another Esperanza International microcredit bank meeting this morning that was regrettably not as efficient as the meeting I went to yesterday.

Carmen Mota received a microloan from Esperanza International to support her small shop in Hato Mayor, Dominican Republic.

The meeting took place in a bank leader’s home in Hato Mayor, the town where I am staying. All 25 associates were present or had an excused absence except one woman. Unfortunately, this particular woman did not send her money with another associate, so the other women in her bank had to cover 1,000 pesos (about $28) for her before anyone could leave.

This was a very uncomfortable situation because all the other women had been responsible and made their biweekly payments, but they also had to support their fellow associate who had failed them. This group solidarity model is the main reason micro loans have such a high repayment – more than 98 percent worldwide, and a very similar rate here in the Dominican Republic.

Borrowers know the importance of education. All the people I have talked with so far assured me that their children are going to finish high school, and many have said that they want their children to attend a university. However, affording a university education is a completely different issue.

I interviewed several entrepreneurs, including a woman named Carmen Mota. She was extremely proud of her business and wanted to take me there to show me how she was making her living. Next to her house she had a small “colmado,” or food stand, which she operated with her husband and brother. She gave me a soda and valiantly refused to accept any money from me in return, even though she was already living on so little. She was saving to put a cement floor in her business to replace the existing one made of dirt.

This type of generosity and the overall sincerity of the Dominican people continue to inspire me.

BRETT MENNELLA- Pascual Nieve, 57, has received seven microloans from Esperanza International, which he used to develop his horse saddle business.

Although the people here are all very sociable, the men and women associated with Esperanza and other such organizations seem to be exceptions from the vast majority of the population in terms of their independence, economic stability and plans for the future.

For those seeking a way out of poverty, taking out a microloan or other source of financial assistance has had another, more subtle benefit — it teaches them how to dream.

The culture itself seems to be a bit confused. Technology comes off as a surprisingly high priority in society. Men, women and children watch hours of television each day and music is always blaring out of home radios and cars. Kids have cell phones at such a young age you would think you were living in the States. Still their families struggle to eat every day.

The unemployment rate of 15.4 percent, according to The World Factbook, is not representative of the real number of people without jobs. Three or four people often work a one person job just to be doing something productive. There are men on “motos,” mopeds and street-designed dirt bikes, on every corner when most people can walk anywhere within the city limits in about 20 minutes.

Another problem that I see as probably the most detrimental in the long run is the lack of variation of businesses in the economy. Everyone seems to run a colmado, fantasia or clothing store, none of which require skilled labor. One woman told me that she started a colmado because “everyone lives on this earth and everyone has to eat.” This simple thinking seems to work because although many people are only just getting by, these businesses are still bringing in an income.

If the Dominican Republic wants to push into the modern world economy, it needs to develop business variation or possibly find new successful cash crops. The economy is heavily reliant on sugar cane, but thousands are out of work when there is not a harvest. The development of the nation is dependent on the people as well as the government and all of its systems. Poverty is obviously not a quick fix here, or anywhere else for that matter.

Original post can be found at HERE

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