Winds of Peace Foundation

Steve Sheppard | February 21, 2011

In conjunction with my January visit to Nicaragua, I also accompanied a delegation from Augsburg College in Minneapolis, the parent organization for The Center for Global Education (CGE).   The delegation included Augsburg’s President, Paul Pribbenow, five members of the college’s Board of Regents (of which I am one), and a number of Augsburg faculty and staff members and spouses.  This occasion marked the first time that a Regents’ delegation had traveled to any of the CGE sites around the world and thus served as an important moment for that governing body.  After all, it’s more difficult to adequately consider strategic direction and investment for an organization like CGE without having any direct knowledge of its work, and the only way to really attain that is by going to where they are.  The visit proved to be invaluable to the Regents as an act of asset evaluation, of prudent stewardship.

The visit also proved to be a special one for the staff members of CGE, affording them the opportunity to demonstrate the transformative nature of their work as they carefully immerse delegates into the difficult realities of Nicaraguan life.  Their work is not to spoon-feed answers, but to cultivate questions for our own deliberation and conclusions.  Our collective reactions over the four days of traveling together suggest that the staff performed their work beautifully.  Within a week, the Regents convened at their winter meeting, in part to share their experiences and feelings about the journey.  Their reflections served as strong testimony to the personal impacts that such experiences often provide, and affirmed the importance of their first-hand observations on behalf of the Board:  in other words, good stewardship.

I remained in Nicaragua for another week after the Regents departed, visiting our current and prospective partners, trying to understand how and where Winds of Peace might make a difference, and even participating in a workshop on cooperatives which the Foundation sponsored.  It struck me that I was performing the same sort of work as the Regents: assessing the work being done and, in the process, being a good steward of the resources being employed.  I noted to myself the similarities of purpose between the two weeks, the first on behalf of Augsburg College and the second on behalf of WPF.  And it dawned on me that there is likely a third stewardship at play during any of the visits made to Nicaragua, the stewardship of hope.

Just as Augsburg Regents are the keepers of the CGE asset and WPF staff are the keepers of Foundation resources, anyone who has the chance to travel to a land like Nicaragua and discern the realities there is a keeper of something valuable: the notion that somewhere in the world there are people who care about what happens in such a place.  For Nicaraguans, knowing that someone else has witnessed the struggles of their lives is a comfort.  To those who daily face the uncertainty of how to survive an oftentimes friendless circumstance, the commodity of caring is priceless.  It is a gift to be given by those of us who can, a wealth which conscious stewardship calls us to share.  It is an accompaniment which transcends material aid, a development not of economy but of the spirit. 

I’m pleased that Augsburg Regents are looking after the “jewel” that is CGE.  I’m privileged to be watching out for the use of Foundation resources for sustainable impact.  But likely the more important work for each of us is being a good steward of optimism and good faith, which our neighbors in Nicaragua so desperately need….

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Steve Sheppard | November 13, 2010

If you have read blog entries here over the past couple of years, you already know about the Genesis spinning cooperative in Ciudad Sandino, Nicaragua.  Winds of Peace has worked with this group since their inception, and watched as these women and men created something from nothing, a cooperative from a disconnected group of people desperately needing to work, and a building from an empty piece of land.  It has been a remarkable story of people overcoming the odds, even as the odds continue to work against them at every turn.

The latest chapter has had to do with the failure of a U.S. firm, Coker International, to deliver the spinning plant equipment as agreed.  The Cooperative has been waiting for delivery of the equipment for nearly an entire year now, as promise after promise from Coker has failed to complete the transaction.  Meanwhile, some of the Cooperative members finally have been forced to finally leave the coop to find other work, for the survival of their own families.

The conflict may have reached its peak this week, as a Greenville, South Carolina television station (WYFF) aired a story about the dispute in the hometown of Coker, International.  I have included a link to the story so that you may hear a summary of the tale.  (Click on the link to get to the TV site.  Then type Coker International into the search box.)  You be the judge of what’s going on here.

Meanwhile, lost in the middle of the dispute, the women continue to wait and to hope for a chance to see their incredible journey finally come to fruition.  They deserve it….

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Steve Sheppard | September 26, 2010

I traveled to Nicaragua a couple of weeks ago, likely my final trip for the calendar year, and as usual came away with a range of emotions that include hope, despair and everything in between.  We visited the Genesis Cooperative in Ciudad Sandino once again.   They continue to await delivery of the spinning equipment which is now some nine months overdue, despite its having been paid for.  The women have labored for months, and without income, to make the spinning plant dream a reality, only to run afoul of an unscrupulous U.S. businessman.  (See http://peacewinds.org/blog of August 26.)  We visited the Women of UMOYS, that remarkable group of 1,700 women from 22 communities that has transformed their communities into high-functioning civic voices and transformed its members into confident, activist leaders.  We read and digested a full scholarly study on the state of cooperativism in Nicaragua, undertaken by social scientists Rene Mendoza and Edgar Fernandez at the request of Winds of Peace Foundation.  In it, I was pleased to read about the somewhat “model” performance of one of WPF’s long-standing partners, Jose Alfredo Zeladon Cooperative and the excellent organizational work they are  doing for themselves, in addition to growing world-class coffee.  I also lamented the fact that not many other models could be found. 

The study on cooperatives presents some groundbreaking work.  It identifies some of the structural obstacles that have prevented grassroots coop members from improving their economic situations more than they have to-date.  It describes some of the sociology at work when significant outside funding becomes available to a coop but then fails to find its way throughout the membership.  It identifies the weaknesses of cooperative leadership which has few models from which to draw, except for the standard hierarchical, top-down authority so long exhibited by U.S. corporations and other organizations.  (If you’re interested in seeing the study, let me know.)

In the end, the conclusions are clear:  success follows a pattern of broad participation, involvement, communication and the development of a sense of ownership throughout the cooperative.  It’s what keeps the Genesis women together when there is little other “glue” to do so.  It’s what the Women of UMOYS have used to re-engineer their lives and communities according to their own priorities.    It’s what Jose Alfredo Zeladon has employed to achieve pre-eminence in the coffee marketplace and as a stable organization that is truly helping its members to grow holistically.  I came away from the Nicaragua trip with an affirmation that the principles that seem to be vital for success in WPF grantmaking and microlending are, in fact, the principles that seem to undergird some of the most successful Nicaraguan organizations.

Within a week’s return from one of the poorest countries in the world, I next found myself in the mountainous splendor of Sun Valley, Idaho.  The opportunity to speak to The Northwest Chapter of The ESOP Association and The Wood River Economic Development Partnership on behalf of the Employee Ownership Foundation took me to this picturesque spot which has hosted as many luminaries and wealthy guests as any spot in the U.S.   There is no poverty evident here; rather, it is a place for spending of one’s success in a decidedly luxurious surrounding.   Bald Mountain and the area were built for this.  It’s a long way from Nicaragua.

Not all of the companies present in these two speaking venues were swimming in exorbitant profits, to be sure.  Some, perhaps most, had been hard-hit by the economic recession.  All of the Chapter attendees were either from employee-owned firms or were professional providers to ESOP companies.  They came to the conference to learn more about what makes a strong ESOP, what makes a great ESOP company, where the “magic” lies in creating ESOP value.  It’s a topic that is addressed at virtually every ESOP gathering across the country, as ESOP companies (end even non-ESOP firms) strive to discover some incredible secret that will vault them to transformational success.

The presentations were exciting for me to deliver and I truly appreciated the focused interest that the attendees brought to the meetings:they really did hope to hear some bit of magic to apply during this tough economic time.  Whether they realized it or not, they received exactly that.

As I headed for the airport on Thursday afternoon, I realized once again that the message carried to impoverished Nicaraguan cooperatives and community organizations is precisely the same as that taken into ESOP companies across the country.  Where organizations build themselves holistically, with broad participation, communication with all members and with some form of true ownership stake in the outcome (positive OR negative), they stand a much better chance of flourishing, even in the face of economic hard times.  How ironic to be preaching a message of people needing to be a part of their own worklives!

It’s a message that lots of organizations in NIcaragua don’t like to hear.  It upsets the status quo in the way communities and organizations have been governed for generations.  It seems to threaten the role of the leader.  But then, it’s a message that lots of organizations in the U.S. don’t like to hear, either, and for the same reasons.  That reality may not be the most comfortable thing for leaders to learn, but the truth isn’t always an easy thing to hear….

 

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Steve Sheppard | August 26, 2010

We’ve talked about the exploits of the Genesis Cooperative in Ciudad Sandino, outside of Managua.  It has been an inspirational journey to observe, and a privilege to accompany the women and men who have made this initiative come to life.  (You can read previous references to Genesis here, dated July 7 and June 21, 2010.)

The journey has not been an easy one, however, and there is now a new threat to the courage and perseverance of these would-be entrepreneurs.  The spinning equipment for which they have been awaiting delivery for months, is now stuck in Venezuela through no fault of Genesis.  Please read the following e-mail that Winds of Peace received today from our friends at Jubilee House, which has been assisting the women in their venture.

“Dear Friends,

We don’t usually do this, but we desperately need your help. We need you to send an email.

You are receiving this email because you receive our e-newsletter. We really need you to help us in this emergency regarding the work of the Jubilee House Community and the Center for Development in Central America, including the Genesis Spinning Cooperative.

As many of you know, the Genesis Cooperative has been working for more than 3 1/2 years without pay to build their yarn factory that will be part of the organic cotton supply chain for fair trade clothing. The Genesis co-op needs your help now. Here’s why:

Ten and a half months ago the Jubilee House Community contracted with Coker International, a used equipment company in Greenville, SC, to deliver the machinery needed for the Genesis spinning plant. Coker requested a $100,000 deposit in Oct. 2009 and in early Dec. 2009 another $50,000 because they claimed the disassembly of the equipment was “very close to being done” and expected to be ready to load the machinery in early January. Since then, we have spent every day calling and emailing with Coker, the plant in Venezuela and other contacts, trying everything we can think of to get this equipment moving.

Now, after months of delays and lies, we are being told by the original owners of the equipment, a company in Venezuela, that they have never been paid for the equipment and Coker will not provide us with receipts to prove otherwise. Two of the machines have been shipped but are being held by the shipping company for lack of payment by Coker of fines, fees, and damages incurred by Coker’s complete refusal to deal in a serious manner with this problem. All other machines, approximately 12 containers, will not ship because Coker hasn’t paid for the equipment. (For details on the equipment saga, see our blog on Genesis Equipment).

Please contact Jack Coker at Coker International and urge him to act with integrity and responsibility to resolve this situation immediately. This is our last effort to get Coker to respond and fulfill its obligation before we enter a long drawn out legal process that will inevitably lead to more hardship for the women of Genesis.

Below you will find a sample email (don’t forget to sign your name). Please send an email to Coker International at: jack.coker@cokerinternational.com, paula.yarborough@gmail.com, angel.magliano@gmail.com with a copy to us at jhc@jhc-cdca.org and forward this to your contacts.

You can also call to give the same message. Coker International: 864-335-5200, Jack Coker’s cell phone: 864-304-4161, Angel Magliano’s cell phone: 864-313-3133.

Thank you for all you do!

All of us at JHC & CDCA

Dear Mr. Coker,

As long-time supporters of the work of the Jubilee House Community in Nicaragua, we are appalled to learn of your unconscionable treatment of this non-profit organization and even more so of the hardworking women and men of the cooperatives they support. Please act with honesty and integrity to immediately fulfill your contractual obligations with the Jubilee House Community on behalf of these courageous women and men of the Genesis Spinning Cooperative by immediately delivering the agreed-upon spinning equipment to the JHC Nicaragua.

Thank you for doing the right thing.

Sincerely,

[Your Name]“

This is nothing less than a travesty of justice for people who have given everything they have- materially, socially, emotionally, physically- and face the demise of their dream in the shape of dishonesty.

There.  You have the circumstances and the opportunity to render some help. It is most deserved….

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Steve Sheppard | August 16, 2010

One of the many needs within Nicaragua is that of fighting against abuse, of helping the sexes- and men in particular- to understand the needs, rights and expectations of all members of the society.  Abuses of women, in particular, take all forms: physical, psychological, economic, and social in nature, and to an alarming degree. 

The United Nations Development Programme’s (UNDP) report, published in September 2009, revealed that at least 25 of the 45 women killed in Nicaragua in the first half of 2009 were victims of domestic violence.  When she presented the outcome of the investigation, national police chief Aminta Granera stated that of the more than 65,000 women who reported that they had suffered some form of abuse, only 15,000 filed a formal complaint with the police. The women who pressed charges had suffered the worst abuse, including sexual assault, bodily injuries, mutilations and torture, Granera said. More specifically, 4,129 were cases of domestic violence, 2,253 were cases of sexual assault, and 8,645 were cases of physical and psychological harm, such as threats, blackmail and verbal abuse.  “The rest of the victims kept quiet. This shows that even though it is the leading public security problem (in Nicaragua), it is the least reported crime, and, therefore, the one with the greatest impunity,” Granera said.

In light of the reality, Winds of Peace has long maintained its support of women’s groups which seek to raise awareness of such problems and to help both women and men recognize the physical, emotional, family and economic costs related to such abuses.  One organization to receive WPF support is Foundation Sacuanjoche Women’s Group, located in and serving the department of Matagalpa.  The women who run this group are professional women whose mission is simple if difficult: promoting community development through health and social outreach, while defending the human rights of the family, especially of women and children.

Teaching women about their basic human rights is one thing; getting the men in their lives involved in the education process is quite another.  Yet this element is critical to the Sacuanjoche initiative.  We were pleased to receive an update about the progress being made in this regard and the pictures illustrating the significant participation of men in this education process in some very rural locations.  These are places where accessibility to education on topics like these has been very limited, at best.

One might think of educational efforts like this as good, worthwhile work that probably has its number of challenges.  And then I stop to think of what it must be like to arrange for seminars wherein the main participants are men and the primary presenters are women; where the transit to the classroom is often very long, very difficult and partially on foot; where the topic to be discussed is something in the men’s behavior which is unacceptable; where the behaviors being challenged have been largely acceptable in the culture for generations; and where the investment of the participants’ time is in conflict with earning a day’s income. 

In light of all these drawbacks, that men attend at all is a remarkable fact; the odds seem overwhelming.  But it’s critical work that needs doing and the Sacuanjoche Women’s Group  is making a difference in these rural lives.  You can hear it is the classroom discussions and see it in the faces of the “graduates…..”     

                         

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Steve Sheppard | August 9, 2010

I’ve been reading through the latest group of project proposals submitted to Winds of Peace for the next funding cycle.  And while each project contains its own character and nuances, there are oftentimes repetitive themes that emerge from the 30 or so proposals that we consider each year.  That’s not too surprising, given the relatively small size of the country and the fundamental nature of many of the issues there.  One such theme which has evolved over recent years has to do with preservation of native seed in Nicaragua, a practice of identifying, cultivating, planting and sharing agricultural seed which is indigenous to the country, well-suited to the climate, genetically untouched, available and capable of harvest for re-planting.  It’s not a unique idea; Decorah, Iowa is home to Seed Savers Exchange, whose mission and philosophies are remarkably similar to the rural Nicaraguans.

The native seed preservation is just one of many similar initiatives which focus upon “hanging on” to something that is perceived as natural, healthy, essential, important both past and present, environment and economy.  Albeit slowly, some cultures around the world have awakened to preservation of vanishing plant and animal species, forests, clean rivers and lakes, archaeological and architectural treasures, even our atmosphere.  This yearning for retention of certain elements of our world is not born of nostalgia, but of the growing awareness that the diversity which they represent is worth saving, or that some things in our past really were better than their modern counterparts.  For the rural farmers in Nicaragua, native seed is not simply a preference, but a need.

In our own country we take great pride in the return of the bald eagle from the brink of extinction.  We worry about the demise of the polar bear habitat.  We cheer at the birth of each new Panda bear, we stop major construction plans in deference to rare turtles or plants.  It’s as if we are slowly awakening to the awesome variety of life on earth and even if we don’t completely comprehend why it’s crucial to preserve such diversity, we somehow inherently know that it’s important. 

It’s an encouraging movement.  If only our country would have viewed the Native American populations in the same way, or that world governments would come to see their Indigenous populations as precious as native seeds….

                                                  

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Steve Sheppard | July 7, 2010

If you’ve visited the Winds of Peace website in the past and/or read from my observations in this blog, you are familiar with the Genesis Cooperative in Ciudad Sandino.  With help and guidance from the Center for Development in Central America (CDCA), this largely women’s cooperative has emerged from a mere dream to the threshold of viability in the form of an organic cotton spinning plant.  They have built an incredible facility by hand (see June 21 entry here), they have weathered the vagaries of Nicaraguan law in achieving their registration, they’ve even withstood the claims of unscrupulous neighbors who have tried to illegally wrest the ownership of the property for themselves.  If ever there was an organization that deserved and earned a break, it is Genesis.

But sometimes even the most persistent and patient reach a breaking point, and that could be on the horizon for these inspirational people.  The spinning equipment, which is to be shipped from Venezuela, has continued to run into delays and pitfalls, none of which are of the coop’s making.  First there was a problem with the size of the containers that the equipment broker provided.  That generated the need for more funds.  Then the Venezuelan government ran into port inspection problems and instituted national guard inspections, which backlogged all port traffic.  Now the equipment broker could be headed for bankruptcy, further complicating the equipment flow.  In short, equipment which was scheduled for installation last December is still awaiting transport to Nicaragua. 

And behind it all, the women wait.  Without opportunity to earn money but with their very lives invested in their cooperative venture, the women and their families have waited out the process for about as long as they can.  But children need to be fed.  So do adults.  Basic needs still cost money, even when you’re engaged in a noble undertaking.  And the women draw ever closer to the break point, when they will be forced to give up on their dream and seek work and income elsewhere, just to survive.

CDCA has put out a call for “bridge assistance” for these entrepreneurs who are desperately trying to transform their dreams, toils and commitments into a meaningful, long-term business created by and for themselves.  Funding for some very minimal, basic food needs are being sought for the coop members until such time as the equipment is installed and operational. 

Winds of Peace intends to help.  And while it is not our practice to tout giving opportunities, I can provide more information to you or you can visit www.jhc-cdca.org if you have interest.   At the very least, remember the tenuous tightrope these women are walking in their efforts to make their own way.  They have a lot at risk, including their very selves….

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Steve Sheppard | February 12, 2010

Old-fashioned, head-shaking astonishment just seemed to be the theme for my January travel to Winds of Peace partners.  After seeing the completion of the magnificent building by the Genesis Cooperative,  later in the week (reported in my previous entry here), I found myself north in Pantasma visiting our partners at the Buculmay Cooperative.  And the transformation there is no less than the miracle at Genesis.

  Visitors to this site will have read about the dubious beginnings of Buculmay (one of their earliest meetings in a hotel lobby, at right), how the Women’s Oversight Committee of the Indigenous people of Jinotega were illegally removed from their positions by unscrupulous leadership, how they stuck together to form their cooperative, how they were willing to receive training and, as a result, become funded for a pig-raising project, and how they have watched their own infrastructure and facilities grow.  How could such an evolution be measured to convey the journey they have been on?

We arrived in Pantasma at mid-morning.  Chairs were needed at the cooperative site so Mark drove the truck to haul the seats while I walked the half-mile or so with Julieta, President of the Cooperative, and Ligia, our consultant with the Indigenous communities. Now, I had visited the site just last August, so I knew the progress that they had been making on the buildings and the preparation for the animals.  Still, to see the facilities nearly complete and ready for production, and to hear the cooperative members report on their organization, strategies and preparedness was to encounter a moment of amazement for these resilient people.  They have literally come from nothing but their self-respect to a moment of potentially remarkable triumph.  The presence of their offices (right), signifies the organization and formality of their intent. 

The modern, expansive feeding and raising quarters (left) signify the significant scope of their endeavor, both the investment and the expectation of their husbandry, as well as the grant support that they have received as a result of their persistence and persona.  The sophistication and environmental considerations (right) that have gone into the development of their operation would impress any “green” activist.  And the future visions that they hold, including another facility for the birthing and nurturing of newborn animals speaks to their vision of a future that is prosperous and self-sustaining (below).  

No one owns a crystal ball to tell where this journey will lead nor whether all of the promise that has been generated will, in fact, come to pass.  The reality is that in Nicaragua, things are difficult for the rural poor and just when circumstances seem to invite progress, a natural or political storm breaks dreams apart.  But especially in light of that uncertainty, the courage and outlook of the people of Buculmay is as inspiring as any human attitudes I’ve encountered.  I feel great privilege in coming to know these heroes and for Winds of Peace to be involved with their journey. 

Somehow the words here are inept for conveying what has and is happening in this remote region of Nicaragua.  As in any written effort, success is only as good as the author and I fear my words are insufficient to describe the gentle determination of these individuals and the persevering group they have become.   All I can report is that I know there has been something universal, elemental at work within this cooperative; it is the power of believing, of faith, and of holding onto one another in the face of overwhelming odds.  It is the human spirit at work….

                                                     

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Steve Sheppard | February 4, 2010

The term “shock and awe” as I have come to know it over recent years has had to do with U.S. military might and the almost unbelievable precision and impact that human ingenuity can bring to warfare.  Yet I have recently returned from another visit to Nicaragua and, specifically, the Genesis Cooperative at Ciudad Sandino.  This is the spinning plant which has been in the making for several years now, its physical plant unfolding gradually as the women (primarily) members built this place of business from the ground up (see the photos on this site under Women’s Issues- Genesis Cooperative).  During my visit there two weeks ago, my first in several months, I experienced a brand new sense of shock and awe, and one that makes the military meaning of the phrase paling in comparison.  For what I encountered was, indeed, shock and awe nearly beyond description,  in this instance for an expression of human will, vision and achievement like few others I have ever experienced.

If you look at the early photos posted on the Winds of Peace site, you will get at least a sense of the scope this project has encompassed from the beginning , even if only in the physical facility that has been built.  The edifice is a marvel, an incomprehensible undertaking by women and men who possessed little in the way of construction know-how, almost nothing in materials, little money, and virtually no experience in the ways of creating a business or a building.  The ground was prepared by hand.  The post holes were dug by hand; the cement girders placed in those holes by hand. The cement was mixed by hand.  The steel rebar was twisted and formed by hand.  The cement flooring was mixed and laid by hand in four-foot sections.  Take a look at the building in this adjacent picture and envision what has gone into its creation, by hand. Knowing what was required of the inexperienced, unschooled participants makes its accomplishment even more remarkable. 

The impact of this project has been magnified in the face of economic and political times which have not reflected the best of human motives and aspirations; we have become numbed, in many ways, to the destructive outcomes of wars and greed and their legacies for the future.  But here, here is a tangible reminder of what the human will is capable of achieving in the best sense: a collaborative perseverance which exceeds even the imagination.  I have sufficient experience within Nicaragua to expect the unexpected from these rural teachers, but nothing quite like this.

The spinning cooperative is not functional yet.  The women await the arrival of the spinning equipment making its way from South America.  Their efforts are now on hold, as they are forced into patient waiting for the final pieces of this immense puzzle.  Even in the shadows of their magnificent building accomplishment, the women continually seek work to improve their future operation: on the day of my visit, several of the board members were busily excavating behind the building, preparing for the plumbing needs of their plant.  There is no pay for this, no compensations, no remunerations that they can take home for feeding the family.  Those resources have to come from their real jobs, when they can find such, undertaken during other parts of the days!

I have written about the women of Genesis Cooperative here before, and it won’t surprise me if I do again.  But there is nothing redundant about the spirit and resilience that drives them in ways that you and I can barely fathom.  Every day is a challenge against the odds and so who knows when cotton might be spun in this place.  But I I know this: the shock and awe that I have seen on the television screen each night over recent years is full of death and destruction.  The shock and awe of Genesis Cooperative is full of hope and help, dignity and drive.  They are not without their conflicts and “bad days,” but they represent the better part of who we all are.   Indeed, it is the type of shock and awe which we all need more of.

If you might have an interest in supporting these women in any way, please visit www.jhc-cdca.org, the organization that has helped these women come together. (Click under “worker-owned cooperatives” to see more about Genesis.)  It’s a chance to personally experience a healthy shock and awe….

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Steve Sheppard | October 12, 2009

One of the truly unanticipated things to have evolved in Nicaragua over recent months is the strange case of the “no-payer’s movement.”  This is a relatively small but vocal and visible group which has begun protesting against the Microcredit Finance Institutions (MFIs) which took a risk and loaned money to them.   Citing what they see as unfair loan terms and usurious interest rates, the movement participants even received a boost from President Daniel Ortega when he exhorted them to take their protests off the streets and move to the offices of the MFIs.  Sensing administration support, the protesters became more confrontational in their demeanor, in one case even firebombing one of the MFIs. 

This has had the immediate impact of some MFIs pulling out of Nicaragua for the safety of their people and their funding.  Naturally, it didn’t take too long for the government to realize that it was alienating a fairly important source of funds within the country, and it began the attempt to attract some of the departed organizations back to Nicaragua.  The President spoke publicly once again on the topic, this time to encourage all borrowers to make good on their debts and to thereby demonstrate the country’s attitude toward meeting its obligations.  The movement receded for a while in the face of this about-face from Mr. Ortega, but it never went away.  Now it has surfaced with a vigor which is intimidating and worrisome.  Their protests prevent employees from gaining access to offices while keeping customers away from sourcing assistance.  If the local police are present at all, they seem indifferent to the activities.

It’s a counter-intuitive movement, this backlash against some of the very institutions which have provided the greatest amount of financial help to some of the highest-risk borrowers.  It may be fueled by outsiders who seek to undermine any and all financial institutions, or by those who simply sense an opportunity to avoid repayment of a debt.  But whatever the genesis, it’s a potentially crippling movement which can only hurt the already difficult circumstances of the rural poor in Nicaragua. 

In response, a consortium of twenty-four finance providers working within Nicaragua published the following statement in both of Nicaragua’s major newspapers on September 22.  Their sense of confusion and concern is evident:

COMMUNIQUE FROM THE INTERNATIONAL PROVIDERS OF FINANCING FOR MICRO AND SMALL ENTERPRISE

We, the economic and social development institutions who provide financial resources for the strengthening of urban and rural micro and small enterprises in Nicaragua, including private investors, international banks, international NGOS and foundation, are watching with enormous concern the ongoing deterioration of the investment climate in the country, because of the actions undertaken by a small group of debtors know as the “non payers movement” who are attempting, through measures of force that alter the public and constitutional order, to NOT honor their commitments made to the financial institutions (banks, microfinance organizations) that are benefiting more than a million Nicaraguans in the countryside and the cities.

We urge the Government of Nicaragua, the National Police, the Judicial Branch and the other organizations ensuring social peace to redouble their efforts to protect respect for the judicial order, provide security to the officials of the financial institutions and their installations, and to protect the rights of all citizens.

We reiterate our commitment to continue the support offered for the economic development of Nicaragua and we join our voices to the clamor of the affected entities and their responsible clients, asking the State to ensure legal security so as to not put at risk the flow of financing for this industry which has benefited so much the most needy part of the population throughout the years.

Managua, Nicaragua, September 22, 2009

 

Winds of Peace was not a co-signer of the statement since we were unaware of its development.  But in following up with the authors of the article, we have affirmed both our concerns and the seriousness of the movement.  And now there is said to be a legislative bill coming before the government which would tightly control the activities of MFIs, effectively driving them out of the country.  While there may be very small chance that it passes as law, the initiative is further basis for concern.  Undoubtedly, we have not heard the last of this movement and its implications….

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