A trip to South India

It is my second evening in the Austrian mountains and a new bottle of wine. Tonight it’s a Cuvee – a delicious and smooth blend of different grapes from the region. I don’t know much about wines...just that they have recently caught my fancy and I have decided to explore them during my week in Europe. It has been raining since afternoon and the alpine air is wonderfully invigorating.

And as I sit in the hotel lounge, I again reflect on the events of the past few weeks.

The high point for me this summer was undoubtedly my visit to Chennai and Madurai last month. A visit that gave me an opportunity to see the impact being made by a microfinance organisation that was deeply committed to serving the poor by providing rural women with the means to achieve economic independence. When I visited the villages where they operated, I saw first hand how they had provided people the skills and means to emerge from poverty and attain a sustainable livelihood.

This opportunity arose thanks to a dear friend with whom I have worked closely for several years. She has now moved beyond the security and comfort of a career in the corporate sector and embarked upon a new journey as a social entrepreneur. Recently, she was approached by an acquaintance, a private equity investor in the social sector, whose fund had invested in this company and where he was a board member. They were looking for an experienced HR professional to serve as a strategic advisor, poised as they are for significant growth in the near future and felt they needed to really get the people equation right. She suggested my name and a few phone calls later introductions were made, connections established, and off I was to see how I could be of assistance in their noble venture.

What I experienced over the course of the next two days left a lasting impression on me and I came away with deep appreciation both for the dedication of these people, as well for their creativity and innovation.

I was received in Chennai by their Chairperson, a woman of very impressive credentials, who took me to a charming old house which served as the company headquarters. The private equity investor also flew in and over the next few hours, we had a spirited and absorbing discussion as they brought me up to speed on the nature of their work. By the end of the day, and several copious notes later, I had received my initiation into the fascinating world of microfinance. As I would realize a day later, this was just my ‘theory’ lesson. The ‘practical’ was to take place the following day through a field visit to the villages.

The next morning we took a 7am flight to Madurai, a small town in the very south of India. I had visited Madurai twenty years ago with my parents while on a summer vacation trip across south India and remember seeing the grand Meenakshi temple, which has lent fame to this town as it attracts both pilgrims and tourists from far and wide. This time though, the day was spent touring villages and branch offices of the company in and around the town. I was accompanied by the Chairperson, who also played the role of translator for most of the day as conversations took place in the local lingo - Tamil. I met with Self Help Groups (SHG) – clusters of 15-20 women organized by the microfinance company for the purpose of providing loans – and saw how they were educated and empowered to take charge of their lives. For most of these women, the journey to self-reliance began with an enrolment into a SHG, an entity that would form the edifice for much of their future existence and the foundation for lasting relationships with others united by a common desire to achieve economic independence and well being for their families. Each SHG would undergo months of training in entrepreneurship and basic finance and accounts. When considered ready, they would receive their group loan…which they would utilize to start a business venture. Some would purchase cattle, others would start a tailoring business, or else make trinkets and toys for children. Each month, the loan installment would need to be repaid and the group would be collectively responsible for ensuring timely payouts. The organisation has a quarter of a million women customers across the state, and an astounding recovery rate which would be the envy of mainstream banks. Just goes to prove the transformational power of enlightened and determined women.

One of the truly remarkable aspects of this organisation was their conscious desire to employ people from the very strata they serviced. This serves a dual purpose…of building trusting relationships within their customer base by being deeply etched in their lives; and underscoring their commitment to improving the lives of people in the rural areas by providing gainful employment to deserving candidates. The results - strong trust based relationships, a stellar reputation and a lasting impact on society!

I came across some astounding tales of human accomplishment.

We were accompanied in our field visit by the regional manager, a middle aged lady who oversaw operations across several branches. She spoke to me of her humble beginnings, from the time she had been a beneficiary of microfinance from this company 15 years ago. Starting off from a meager background (her husband was a daily wage labourer with a low and inconsistent income stream), this lady not only found a means to livelihood for her family, she took greater initiative by first becoming an employee of the company and forming more SHG’s, and in parallel pursuing higher studies, eventually completing a Master’s degree in commerce. Her three sons were now based in countries in the Middle East – all gainfully employed, with the eldest enrolled into a Ph.D. programme! This woman has worked tirelessly and risen to the position of regional head with oversight of several of the company’s branch operations. Recently, she has bought a computer and an internet connection and is learning to operate it.

There were more such stories…

The other revelation was the creativity and innovation in the social sector. The network of SHG’s is an extremely effective distribution channel and can be used as a conduit for several other ‘products’ – basic mobile phones, insurance plans, education and healthcare being a few examples. As technological advancements take effect, some of these will have a significant effect on the fabric of rural society. Imagine the impact of people in remote villages with access to information on their fingertips, combined with the ability to transmit it real time anywhere across the world. I feel this can lay the ground for transformation at the grassroots level. Such technology gives power in the hands of people and can help expose corruption, lay bare inefficiencies, and fight injustice…instantly and without censorship from any governing body!

I witnessed one such innovation. We had reached one of their branch offices in a semi-urban area of Madurai. This was in the upper floor of a small house in a narrow street reachable only on foot. On the day I was there, there had been a load shedding – long hours of electricity shut down - in that part of town. As we looked across the office, I noticed a printer on a table…this was their ‘collections’ room where they kept records of loan disbursement and repayment. The standalone printer was unaccompanied by a computer, something one would naturally expect to see in an operation that dealt with finances. When I enquired about how they managed accounts, the answer left me stunned with amazement. The collections officer, a 30 year veteran of the company whipped out his mobile phone and activated an application. Upon punching in a password, the screen came alive with up-to-date information on every SHG supported by the branch and the current status of loan repayment of each individual member! This information was fed and refreshed at the company headquarters in Chennai and all that was needed was for him to jack up the phone to the printer, produce the latest records and issue receipts to the customers every month! In one fell sweep, this innovation had significantly reduced the need physical infrastructure, reliance on electricity, and also the risk of fraud by unscrupulous employees. Grassroots technology at its very best!

My trip was an eye opener. I came away energized and refreshed from my interactions with these wonderful people. I spent the next few days thinking about how this organisation could harness its human potential and further its impact on the society. My past experiences provided some answers, but more came from friends who have immersed themselves to such causes. Today I see capable and highly qualified people who have chosen to dedicate themselves to bringing about sustainable and equitable development, rather than pursue the path of purely personal gains.

The wheels...they are surely turning!