Archives For social enterprise

Building Impact into Investment

Lisa Genasci —  March 12, 2014 — 2 Comments

Lisa and Charly Kleissner

Sophisticated Investors like to think their portfolio risk has been carefully mitigated and hedged. For the average portfolio, however, standard risk calculations don’t necessarily include analysis relative to environmental and social  issues an investee company potentially faces, or even resource consumption analysis, yet all can have a significant impact on returns. This is particularly true of a long-term “buy and hold” investment strategy.

By contrast, impact investors believe not only that these factors weigh on a company’s returns, but also a positive screen for companies actively managing these risks can improve a portfolio’s performance.

Speaking in Hong Kong about their own 13-year journey toward an “Impact Portfolio” were Lisa and Charly Kleissner, founders of the KL Felicitas Foundation. As part of their mission, the Kleissners have urged audiences globally to think about how we can better deploy capital to help better steward the planet’s resources. On Tuesday, they spoke at a forum organized by the RS Group, hoping to advance the discussion in Hong Kong.

Today, the Kleissner’s foundation and personal portfolios, managed by San Francisco-based Sonen Capital, are more than 93 percent allocated across four different asset classes to “Impact Investments”, which signal the intent to generate both financial return and “purposeful, measurable, positive social or environmental impact”.

According to “Evolution of an Impact Portfolio: From Implementation to Results“, a report published by Sonen in October last year, the Kleissner’s portfolios have achieved index-competitive risk-adjusted returns, illustrating that, “impact investments can compete with and, at times, outperform, traditional asset allocation strategies, while simultaneously pursuing meaningful and measurable social and environmental impact”.

Their journey toward impact has not been easy, according to the Kleissners, Silicon valley denizens who both worked under Steve Jobs at Apple, among other firms. The process began with dim looks from early investment managers who wanted to focus only on returns.

“We wanted to know about the positive upside for communities, for the environment, from our investments,” Lisa said. “We wanted to make money and have positive impact but our early investment advisors had no idea how to achieve this.”

They sought an advisor who cared about impact. “We didn’t want someone who saw this as simply a job,” Charly said. “We want to change the world not just make money and our investment advisor needed to be a partner in this.”

The results were far-reaching, meaning investment policies needed to become impact investment policies, due diligence restructured, term sheets re-written, new monitoring and exit strategies developed. Sonen Capital was founded in response to this need.

The portfolios the Kleissners ended up with are far from US-centric, with more than 50 percent of investments made globally. Among those are holdings in renewable timber, carbon offsets, water and land use that is respectful of biodiversity. In other words, the Kleissners invest in companies that reflect positive impact. They have opted not to invest in coal-fired power plants or extractive industries.

Three percent of their assets are in early stage direct investments, reflecting their silicon valley, entrepreneurial background. Indeed, the Kleissners efforts to promote the impact sector has included investments of money and their own time in social enterprise incubators. These, and others, the Kleissners like to think of as “catalytic” investments that can lead to change.

Beyond the incubator model to support social enterprise development, the Kleissners  also have invested in helping to build networks of like-minded investors to share due diligence as well as in promoting intermediaries to help develop the impact sector.

“Development of these investor resources is critical,” Charly said, “We want people anywhere to be able to tap into the knowledge”, which is available on the KL Felicitas website.

Measurement, always a difficult discussion, is rigorous across the portfolios, captures trends across the sectors and then includes qualitative analysis, which involves telling the story from the numbers and more.

Charly spoke of impact investment as often an evolution of smarter philanthropy. He also spoke of the importance of collaboration between grantmaking and investment to widen impact, pointing to microfinance as an example of this and to social enterprises that can start life as a nonprofit but move into a more commercial space over time using blended capital.

Speaking in Hong Kong, the Kleissners said, was a learning for them, that having worked with an incubator in India over a number of years, the entrepreneurial context there was more familiar.

In China, where the environmental challenges are substantial and polluting companies numerous, an audience member pointed out that impact might also come from working with conventional companies to change their environmental and social practices, rather than shunning them altogether.

In asia, China, Environment, Hong Kong, impact investment, Philanthropy, pollution, social enterprise , , , , , , , , , ,
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Angkor Hospital for Children, Siem Reap Cambodia

Lisa Genasci —  October 13, 2012 — 3 Comments

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Angkor Hospital is the spectacular facility in Siem Reap, Cambodia I have written about in previous blog posts. Last year, the hospital offered 157,000 treatments to children free of charge, ranging from physical therapy and dental care to heart surgery. The boy above is an AHC heart patient who prior to surgery could hardly walk. When I came across him with his mother in the packed waiting room – back for a check up – he was running across the courtyard. His mother wanted to show me his scar.

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The hospital includes an incredible team of 49 Cambodian doctors and 149 Cambodian nurses, not to mention an equally dedicated support staff of 130. Although foreign teams do sometimes assist and train in more complicated procedures, there are only two full-time foreign doctors and two full-time foreign nurses at AHC. Above is the ER team comparing notes on patients.

The AHC budget for this year is US$4.5 million U.S., which works out to a cost per child of US$23. This compares to an average cost per child in the U.S. of US$1,853. Throughout this year, an average of 1,400 children were visiting the Emergency room at AHC and its satellite clinic thirty kilometers away, while 290 patients required admission. On average, the hospital’s three surgeons performed seven surgeries daily.

Those numbers have increased over the past few months, however, with a regional dengue outbreak and a larger number of patients seeking quality medical care they can’t find or afford elsewhere. In some cases, patients have had to rest on mats in the corridor for lack of ward space, while others have been sent to other hospitals.

A new four-floor building is now under construction. This will help improve medical care and create an additional 250 sq meters in the main hospital. Among the additions will be a neonatal ward, a new ward for recovering children, an expanded ER and labs (including the research lab, which is a partnership with Oxford University). Beyond the recent pressure from larger numbers of patients, an April medical audit identified a lack of adequate space, the small ER and lack of neonatal unit as the top three weaknesses of AHC.

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AHC works hard to provide the quality of medical care and compassion that a sick child would receive in a developed world context. The type of treatment offered at AHC, which is free of charge, is rare in Cambodia. This includes support to chronically ill patients, physiotherapy and palliative care for very sick children.  A home care program follows up with many such patients and includes a social work team.

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Some patients and their parents who aren’t able to see a doctor on the day they arrive must wait until the next day. The hospital provides cooking facilities, clean water and mosquito netting, which, innovatively, is tied between benches in the waiting area.

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These two children were waiting with their mother and a sick sibling, who needed medical attention.

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Beyond providing medical care and support to government hospitals around Cambodia in developing their medical and nursing protocols, AHC helps educate communities about issues related to health care. Some of the main causes of sickness, the main reasons that patients end up at AHC’s gates, are drinking contaminated water, poor sanitation and poor nutrition. In the context of working in one of Cambodia’s poorest regions where malnutrition is surprisingly still rife, AHC staff teaches children and their families the basics to keep them healthy.

In asia, Cambodia, children at risk, health, Philanthropy, social enterprise , , , , , , ,
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Forest Impact Bonds:

Lisa Genasci —  January 4, 2012 — Leave a comment

We have been thinking a lot about Social Impact bonds and how the concept might apply to conservation finance, which is something about which we ponder a great deal.

Why not a Forest Impact Bond, issued against promised aid streams from sovereign development banks wanting to mitigate climate change and/or promote forest conservation?

These could work in circumstances where communities are key to protecting High Conservation Value forest.

FIBs would be focused on impact-driven community development (schools, livelihoods, health, education) but linked also to real conservation outcomes.

Time is slipping as we try to establish the best way to protect ourselves at scale from climate change, manage and protect our forests for future generations.

The multiple challenges around forest conservation is something we’ve written about previously in this blog here and here.

In essence, the problem is how to compensate governments and landholders for the huge rewards they reap cutting trees from native tropical forests; how to balance development with conservation.

Since 57 percent of the world’s forests are located in developing countries, it is hard to make the economic argument that these areas should not be developed for the benefit of the national population.  Indeed, timber revenues represent the major, sometimes only, export commodity of a country.

The Commission on Climate and Tropical Forests has estimated  that 17 percent of greenhouse gas emissions – an amount equal to the transportation sector – are from deforestation.

At the same time, the scale of financing required to halve deforestation will reach US$30 billion annually by 2020, the U.S.-based commission estimated in the same report.

Only turning to the global capital markets will provide sufficient funding to meet the challenge deforestation presents today.  That strategy could include the use of bonds, which would allow the desperately needed investment at scale.

Communities and Livelihoods the Key to Conservation

Key to this discussion is that not only do governments and landholders need to be compensated for not chopping forests for timber, but local livelihoods are also often linked to forests.

Nearly 90 percent of the 1.2 billion people living in extreme poverty worldwide depend on forests, which provide them with building materials, food, coffee, cocoa, medicinal plants and income from other sources.

Without access to the forests not only do many of these people lose livelihoods but they also may lose their crops to droughts or floods as climates change with deforestation.

Thus communities living in and around forested areas are key to their protection.

Still, even with access to forests, local populations who face the immediate need of supporting their families often don’t recognize the value of conserving forests for the longer term because they cannot meet their immediate needs for food, housing, clothing and education, among others.

Thus, local communities need both education on the value of long-term forest conservation to their own lives (livelihoods, water etc) and help establishing alternative and sustainable income sources.

At the same time, battling to defeat poverty, poor nations argue they cannot be expected to forfeit income from economic activities that lead to deforestation, particularly since there are global  benefits from developing world forest services – carbon, water etc.

They have argued collectively that if global powers want to preserve the rainforests and their natural services provided then those must be paid for.

Rainforest Bonds Not a New Conversation

Indeed, for many years now there has been talk of rainforest bonds, which would help pay the large upfront capital expenditure required to invest in development, livelihoods, conservation to maintain the forests.

Under conventional thought, either forest carbon revenue or other sources of income such those generated by sustainable timber, agriculture or ecosystem service markets (water, biodiversity for example,) would repay investors.

But the conversation around REDD carbon has stalled with regulatory uncertainty. Additionally, in Asia certainly, we are a long way from any scalable ecosystem markets, while the significant upfront investment needed to promote agriculture as an alternative or to build local livelihoods to protect forests is just not available philanthropically.

And that’s just it…the bond conversation has gone on for years with significant players like the Prince’s Rainforest Trust and others eventually pulling back given the difficulties in identifying revenue streams that would work.

Turning to Forest Impact Bonds

So why not step back entirely from the conversation around how to make forests pay and look instead to the large sums promised by sovereign development banks at Copenhagen (US$4.5 billion) and other aid that has yet to find a home for want of knowledge of how to invest those funds with surety and with impact.

And that’s not surprising. Over the past two decades, substantial funds have flooded into Indonesian conservation  (usually to secure national parks or protect wildlife and its habitat) without corresponding transformational change. Over the same period, deforestation has only accelerated, fueled by burgeoning consumption, population explosion and massive urbanization.

So the problem remains, how to ensure that limited funding for conservation is spent with measurable and significant impact? How to balance development and conservation and raise the funds from global capital markets to pay for both?

Indeed, we must increase the availability of performance-linked finance to protect forests for local communities and local governments, in order to maintain them for global biodiversity and as carbon sinks.

In 2007, a similar discussion emerged in the UK around improving social outcomes and reducing uncertainty of funding for social services.

Shortly thereafter, London-based Social Finance introduced the concept of social impact bonds, which target funds to specific projects with measurable results.

If the identified targets are reached, the UK government saves on social programs and those savings are used to repay bond investors, in certain cases with interest. If targets are not reached, bond investors lose out as they would in any junk bond investment.

Turning to the U.S, in last year’s  budget speech, President Obama announced that he had set aside US$100 million for social impact bonds and at the same time two Boston-based companies have recently been established to apply the UK social impact bond concept to the U.S. context.

Why could this innovative approach to generating social impact in the UK and the U.S. not work also to protect forests in Indonesia, targeting communities and livelihoods but at the same time generating extra and measurable impact in conservation?

Given the argument above, and the lack of current appetite for REDD+ and other forms of eco-securitisation backed by forest assets or credits, might we then apply the social impact bond example to community development initiatives in a country like Indonesia?

In this scenario, international government funds, funds from multi-laterals with an interest in combating climate change and conserving  forests for future generations pool funds in an SPV that are then allocated to community development initiatives with specific parameters and measures of impact.

The key would be to persuade the local government to join what would essentially be billed as a development initiative but with additional conservation benefits.

The SPV funds would be available to repay investors in the event that the community development programs, livelihood initiatives, the conservation targets achieve desired results. In this way, the pooled funds are used only if they have been effective and only after impact has been achieved and quantified.

Country funds would likely have to be established separately, with their own fund administrators (local country officials?)  and project monitors.

An initial pilot would likely include just one country – Indonesia perhaps – and one specific target: perhaps livelihoods and education around several conservation areas.

For in-country implementing partners we could draw on local NGOs to support conservation (research and protection) and identify appropriate targets. Microfinance institutions could support business initiatives where appropriate and rural development organizations would help build agricultural businesses that local communities in Indonesia want to generate income.

Legal organisations would need to be employed to help sort out land-titling to establish a legal basis to land ownership. Education NGOs could be employed to boost local knowledge around conservation, while healthcare providers could support rural health development.

This would then be associated by local communities, along with improved education, for example, with conservation of their local forests.

So rather than trying to pry an uncertain financial return out of forest services or REDD+ (although if these markets develop in the future, certainly these could be added to SPV funds) we are trying  to achieve only effective allocation of government/multilateral resources  and measurable impact.

At the same time, however, there could be a return on investor depending on the effectiveness of the programs., while a tranche structure with different risk/return profiles could be used to simultaneously appeal to both groups.

The difference with the UK Social Impact Bond, of course, would be the potential for shared savings. Although it would be important to have local governments as key participants, it is unlikely their own development investments would make this worthwhile.

Who would buy Forest Impact Bonds?

There is growing interest on the part of institutional investors in markets where there are environmental and social as well as financial returns or where there are at least screens for negative impact.

According to Eurosif, total SRI assets under management increased dramatically from €2.7 trillion to €5 trillion, as of December 31, 2009. This represents spectacular growth of about 87% since 2007.

The sense is that when environmental social and governance issues start to affect share price or impact bottom lines boardrooms will take note.

Increasingly, SRI is a mainstream criterion in equity analysis and several stock exchanges have launched tradable indices that track SRI companies or ESG alongside financial performance.  And ratings agencies are emerging to rank companies on their ESG performance.

At the same time, part of the consideration around forests is that they have long carried appeal to institutional investors.

According to an article in The Banker from 2007, more than US$30 billion globally is invested in forest assets, although mostly through funds and largely in the US.

These investments generally offer competitive returns with low or negative correlation to traditional asset classes making them a counter-cyclical hedge.

In Summary…

  • A FIB is a contract with the public sector in which it commits to pay for improved environmental and social outcomes
  • On the back of this contract, investment is raised from investors motivated perhaps not only by commercial but also by environmental and social returns.
  • This investment is used to pay for a range of social outcomes such as poverty alleviation of local communities, improved health and education, all tied to and contingent on conservation of an area of high-conservation value local forest
  • The financial returns investors receive are dependent on the degree to which outcomes improve i.e, they may receive part or all of the initial investment back, and in some cases additional financial returns.
  • A FIB shifts emphasis from paying for inputs and outputs to paying for impacts
  • In its purest form, a FIB has a risk profile more similar to an equity investment than a debt investment
In asia, carbon, Environment, forests, impact investment, indonesia conservation, Microlending, Philanthropy, redd, social enterprise, Uncategorized , , , , , , , , ,
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Redefining Fiduciary Responsibility

Lisa Genasci —  December 29, 2011 — Leave a comment

I’ve been thinking recently about Fiduciary responsibility and what that has come to mean over the past two decades of rapid growth.

I’ve been thinking about how and why the interpretation that has crept into investment culture over that period – simply to maximize rates of return  – has slowed an appreciation of investment that doesn’t cause social or environmental harm.

It goes without saying that this has also slowed investment that promotes social good as well as generating returns.

I’ve also been thinking that by itself  this narrow interpretation ignores both business risk and opportunity  – neither of which should be ignored considering the dictionary definition of fiduciary duty:  to act prudently.

Writing in a Capital Institute blog, Stephen Viederman, former president of the US-based Jessie Smith Noyes Foundation, argues that foundations should align program work with investment strategy – something that is all too rare.

“Foundation fiduciaries have an obligation to seek  ‘good’ and ‘competitive’ returns, not necessarily to maximize them,” he says.

Part of the problem has been the accompanying  “myth of financial underperformance from ‘social investing,’ a myth that still lies at the heart of the problem for finance committees who conveniently forget that two-thirds of traditional active managers underperform their benchmarks every year,” Viederman says.

“Yet the profit-maximizing argument–that you will underperform if you do sustainable investing–comes up time and time again in conversations and is never examined by the people who are making it.”

Indeed, most investors are not considering the business risk associated with investing, for example, in a power company, a textile operation or mining business in a region that is water scarce.

Most ignore the reputational risks associated with investing in factories or plants that are polluting, overly consumptive of resources, or engaged in bad labor practices.

“All investments are about the future, but most investment decisions are made on retrospective data, which as fund offerings make clear, are not predictors of future earnings,” says Viederman.

“We need to ask about …  ‘predictable surprises,’ which include climate change, the BP Gulf disaster and the financial bubble among others. …Any institutional investor who ignores them is in breach of their fiduciary duty. To be prudent, as in the prudent person, is in its original meaning, to be farseeing.”

The ADM Capital Foundation launched a web portal, China Water Risk, in October to provide investors and companies with information about water scarcity and pollution in China.

Part of the thesis behind the initiative is that better investment decisions produce better returns in the long run and these usually come with more information – and not the information investors traditionally have sought.

But, certainly, few could disagree that the regulatory environment is changing to reflect resource consumption and that water pricing in the near future will reflect scarcity.

Few could disagree that NGOs are increasingly sophisticated in exposing pollution incidents (see my blog posts on IPE’s Ma Jun and Apple, on Greenpeace’s Dirty Laundry and other reports) and that local protests in China are growing around pollution incidents.

Workers are no longer content to suffer exposure to hazardous chemicals silently, or work extraordinarily long hours without proper compensation.

All are, potentially, a drag on profits. Would it not then make sense for fiduciary duty to include analysis of  such risk?

Fully Risk-Adjusted Returns (FRR), as they might be called, should certainly not be lower as a result, indeed given the current and future challenges the world faces, they could even be enhanced by additional information.

For those who missed this, one company that is looking to consider the impact of production is PUMA, which earlier this year announced the results of an unprecedented environmental profit and loss screening.

This was a big step toward assigning economic value to resources consumed and to emissions. The value assigned was also a step toward determining the true cost of production of PUMA apparel and shoes.

Results from PUMA's Environmental Profit and Loss Analysis

The analysis showed that raw material production accounted for the highest relative impact of Greenhouse Gas Emissions and water consumption within PUMA’s operations and supply chain.

According to PUMA’s report, the direct ecological impact of company operations translated to the equivalent of 7.2 million euros of the overall impact valuation. An additional 87.2 million euros was distributed along the four-tier supply chain.

Thus, the overall environmental impact of GHG and water consumption amounted to 94.4 million euros. That compares to a third-quarter net profit of 82 million euros.

“By putting a monetary value on the environmental impacts, PUMA is preparing for potential future legislation such as disclosure requirements,” the company said.

“By identifying the most significant environmental impacts, PUMA will develop solutions to address these issues, consequently minimizing both business risks and environmental effects.”

Finally, a new and important report from IESE Business school, “In Search of Gama, an Unconventional Perspective on Impact Investing,” steps into the discussion with questions such as:

  • By focusing exclusively on the creation of financial wealth for individuals are financial markets destroying value for society?
  • Is social responsibility a component of investment that is necessarily detrimental to financial return?
  • Should changes be made in the taxation and supervision of financial transactions to account for financial markets’ responsibility to society?

Clearly, business as usual is no longer smart business and change is imminent. Considering the impact of investments and reconsidering how we make investment decisions will be the way forward.

Let’s start  by redefining fiduciary responsibility, considering Fully Risked Returns. Clearly, returns may actually be enhanced either when viewed through the lens of an appropriate risk framework/weighting or in reality as a result of a superior business environment.

In air pollution, asia, carbon, china water, Environment, health, Hong Kong, impact investment, Microlending, Philanthropy, pollution, social enterprise, water , , , , , , , , , , , , , , , ,
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Education for India’s Lowest Caste: The Musahar

Lisa Genasci —  April 3, 2011 — 3 Comments

ADMCF recently spent time in Patna, in India’s Bihar state where we were looking at how we might work effectively with the Musahar community, which ranks at the bottom of the dalit or untouchable caste.

We found that there is apparently relatively little concrete information about or assistance given to the Musahar, whose name translates quite literally as the “rat-eaters.” Estimates of their numbers in Bihar and other states range from 2 million to as high as 5 million.

The Musahar fall so far down the well of the Indian caste system that by all accounts its people live in modern India much as they did 2,000 years ago. In an initiative that was perhaps telling about the regard in which the community is held, in 2008 the Indian government acted to help the Musahar by allowing the commercialization of rat meat.

A brief portrait of their situation gleaned from what is available online and through conversations in Bihar: In the villages around Patna in Bihar state, India, child marriage at 13 or 14 is still common, although illegal in India.

In the rural areas, Musahar are primarily bonded agricultural labourers, but often go without work for as much as eight months in a year.  Children work alongside their parents in the fields or as rag pickers, earning as little as 25 to 30 rupees daily.

The Musahar literacy rate is 3 percent, but falls below 1 percent for the women. Yet it is cast discrimination rather than parents that keep Musahari children away from schools. That said, the schools to which they have access apparently offer so little in the way of education that perception among the community is that schooling doesn’t offer them anything. And it is certainly true that even if they do manage an education certificate, discrimination means few manage to find jobs anyway.

By some estimates, as many as 85 percent of some villages of Musahars suffer from malnutrition and with access to health centres scant, diseases such as malaria and kala-azar, the most severe form of Leishmaniasis, are prevalent.

Besides eating rats, the Musahars are known for producing a good and cheap alcohol so not surprisingly alcoholism is rampant among the community, particularly the men.

Government development programs provide very little support to the Musahars. They are not recipients of housing schemes because generally they do not possess title deeds for their land. They are also the lowest number of recipients of loans from revolving funds within government schemes.  Thus the social support system bypasses them, as do private donations since so little is known about them.

The Dalit community in Bihar as a whole suffers frequent and often unpunished human rights violations. In the ten years before 2003, for example, 4243 cases of Dalit atrocities were registered in police stations, including 694 cases of murder, 1049 of rape, 1658 of severe injury and 842 cases of insult and abuse.

Into this picture walked Sudha Varghese 26 years ago, a nun who wanted to give voice to India’s dalits. The Musahars were the least advantaged of the dalits she could find and she moved into their community to truly understand their needs and way of thinking.

her organization, Nari Gunjan, was born to give voice to the Musahar women in particular. The organization now runs 72  primary education centres and a residential hostel/school for girls. Nari Gunjan promotes social, political, and economic empowerment for the women and girls. Beyond education, some of the centers provide vocational training and assist with micro-credit for Musahar women.

A decade ago, recognizing the need also to represent Musahar women in the courts, Sudha sent herself to law school and returned armed with a new skill set she has used to pursue the prosecution of ten rape cases that without her would have gone unpunished. In each case, she lead a column of Musahar women to the police stations to persuade officers to make the right arrest and in each case she has succeeded in putting the perpetrators behind bars, she says.

Known as the “bicycle nun” Sudha visits the various communities on her bicycle, and her fragile appearance belies a ferocious determination to provide Musahar children with education, self-esteem and purpose, its women with hope. For her courage, India’s national government recently awarded Sister Sudha the country’s highest civilian award, the Padmashri.

During a visit, the difference between children who attend her education centers and those who don’t was immediately apparent. Still, like any organization working in difficult circumstances that has been around for some time, achieving a constant flow of funding, even at the modest scale Nari Gunjan requires, is extremely hard. Some of the education centers have gone unfunded for 10 months although the teachers continue to work and the children appear.

In asia, children at risk, cultural preservation, health, impact investment, Microlending, Philanthropy, pollution, social enterprise , , , , , ,
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Fighting for Education on the Thai-Burmese Border

Lisa Genasci —  February 17, 2011 — Leave a comment

An estimated 50,000 children of refugees from Burma live in the Mae Sot area of Thailand,  80 percent with no access to schools. Among them are children from the Mon, Karen and Shan minority groups fleeing decades of political, economic and military oppression at home.

These migrant populations along the Burmese border are largely forgotten, subject to harassment and have little access to support or education.

Estimates are that with a near absence of economic, educational, health and job options at home, about 2 million Burmese have migrated to Thailand since 1988.

Of these, 150,000 are living in refugee camps, 500,000 are legal migrants and the rest live illegally in Thailand.

Although the camps and borders are officially closed, an estimated 1,000 people cross into Thailand daily and this was evident on a recent visit to Mae Sot, with fighting raging just across the border.

Life for migrant Burmese in Thailand, however, is not much better than at home.  In a report released last year, Human Rights Watch described “an atmosphere circumscribed by fear, violence, abuse, corruption and intimidation for illegal Burmese in Thailand.”

The illegal migrants are kept to just a few low-skill job opportunities.  Most work as day labourers with no rights, no protection. They are commonly exploited and abused by employers, police, immigration and others with little recourse, according to HRW.

Schooling options for their children are also limited. Places for them in local Thai schools  are almost non-existent, although there are some limited Burmese “education centres” as the Thai government prefers to call them.  

In the Mae Sot area, Ashoka fellow Naw Paw Ray has worked hard to get Burmese children into some sort of schooling over the past 11 years. Of the 50,000 locally, she estimates 12,500 attend the  60 education centres, as they are called by the Thai government, gathered under her Burmese Migrant Workers Educational Centre network.

BWMEC works to make sure the curriculum and facilities of the education centres under her umbrella are adequate for learning, providing training, funding, administrative support and school buildings or dormitories where necessary.

A migrant herself, Paw Ray’s story is fairly typical of the migrant Burmese community. She left Burma  in 1986 when her village was destroyed by soldiers and entered a refugee camp in Mae Sot when they were set up by the United Nations a year later.  

In Burma, Paw Ray was a teacher but in Mae Sot she worked in a gas station until she said she could no longer stand to see the discrimination. “I could teach and I wanted to teach. I wanted to do something to help my people,” she said, setting up a first school with just 25 Karen and Burmese students.

Chosen as an Ashoka fellow in 2007, Paw Ray said that in her work she hoped to address the vast educational gap between Thai children and the children of Burmese migrant workers.

Naw Paw’s schools hopefully give migrant children options – preparing them for a prospective return to Burma or integration into Thai society and culture – critical to establishing a pluralistic and tolerant Thai society. The idea is to pave the way for migrant schools, students, and teachers to gain public support and official accreditation in Thailand.

No other organisation in Thailand fields such an array of minority schools or is doing so much to build a long-term solution to the growing number of uneducated migrant children coming to or born in Thailand each year.

Yet like many good organizations, Paw Ray struggles to find adequate funding to support this forgotten community.

And the problem remains, children attending the Burmese elementary schools have only limited access to Thai secondary schools for reasons related to cost, discrimination and availability.  That limits future job opportunities and integration.

So Paw Ray’s challenge remains: what is the best way to provide education to a migrant population that may or may not return home ?

In asia, children at risk, cultural preservation, Philanthropy, social enterprise , , , , , ,
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Willie Smits and Sugar Palm

Lisa Genasci —  January 30, 2011 — 9 Comments

Recently we were in Northern Sulawesi visiting Willie Smits, an evangelist for sugar palm. I had seen his Ted talk and met him in Hong Kong on a previous visit and we wanted to see his work for ourselves.

We were keen to understand more about both sugar palm as a source of livelihoods for local populations and also his program of ecological restoration built around the trees, which are native to Sulawesi.

ADM Capital Foundation has been working with the Nantu conservation effort, also in Northern Sulawesi, and are looking at ways to help Nantu generate alternative local livelihoods. Clearly we can’t talk about forest conservation without working on the development/education piece for communities, as I have discussed in previous blogs.

Smits, a biologist/forester, has lived in Indonesia for three decades and is married to an Indonesian tribal princess who is also a local politician. Having worked previously for years for the ministry of forestry in Jakarta he has a good understanding of both Indonesia and its political/corruption challenges.

Over the past decade writing about, researching and working with sugar palm, Willie has built a unique store of data on everything about the tropical plant, as well as on deforestation, its causes and consequences.

He spends much of his time working through how to restore land for people and forest-dwelling animals alike, create livelihoods for local populations so they no longer must poach, log or otherwise log to support their families.

Understandably, Indonesia’s Forestry Ministry is focused not so much on conservation in Indonesia, but on how to support development that will sustain a rapidly growing population currently at around 230 million. This was made patently clear in a recent conversation with Jakarta MOF officials.

Understanding this, Willie Smits instead of talking about saving Orangutans from palm oil plantations, talks about community livelihoods, about Samboja Lestari, which is the restoration initiative discussed in his TED talk, about his sugar palm cooperative of 6,285 shareholders in Northern Sulawesi.

Although he now is not directly involved with Samboja, which is administered by the organization he founded but no longer leads, Borneo Orangutan Survival Foundation, Willie is still a board member of BOS. The principles around which Samboja was built stand regardless of its management: diversified secondary forest that includes sugar palm and at each layer provides income for communities as well as habitat for animals.

Secondary forest that produces income of course also takes the pressure off native forests.

To achieve this, Willie has developed a franchise process and system to sign up local holders of degraded land, provide the palms and training at a cost of approximately US$1000 per hectare.

The idea is that each cluster of about 150 farmers form a “Village Hub” or a cooperative that acts to build the social fabric, as a bank and to consolidate the product. The mini sugar processing plant, the core of the village hub, which is primarily solar driven, concentrates the raw sugar juice from about 20% to above 60% where it is nonreactive and easier to transport.

Each farmer has an account with the hub and this is credited with each container of juice brought in. They can then use the credit to buy goods and services in the village. This removes the use of actual money and the potential for corruption or theft.

The concentrate is delivered to a regional hub that processes the concentrate to various products, including raw sugar, rum, bio ethanol, among many others. Village Hubs are estimated to cost around 350,000 Euros.

Now to the numbers:

Willie claims to be able to plant 70 producing sugar palms per hectare in among other vegetation, with each tree producing 13 liters of sugar syrup, equivalent to 3 kilos of sugar per day. That’s roughly 36.5 tons of sugar or  19 tons of ethanol per hectare per year – according to Willie the equivalent of 82 barrels of oil per hectare per year.

Sugar palm, he says, requires little water, no chemical fertilizers or pesticides (they have their own built-in defenses), creates local jobs for tappers (trees must be tapped twice a day and this keep local people occupied and away from natural forest). They also enhance food security since sugar palms produce sago, sugar (better for you apparently than cane sugar) and fruit.

Sugar palm, Willie emphasizes, is not a crop but a forest and there are already an estimated 10 million existing sugar palms, many of these in Indonesia. Furthermore, there are tens of millions of hectares of grassland or wasteland that could be restored to include sugar palm that would provide local livelihoods, sequester carbon, while producing fuel and food. He is looking at where else in the world sugar palm might be used to generate income.

Some interesting concepts and hard to verify since most of the work around sugar palm has been done by Willie himself.

Certainly, we would be keen to be pointed in the direction of other numbers/thinking connected to community livelihoods and sugar palm.

In asia, carbon, Environment, Food, forests, impact investment, indonesia conservation, Microlending, Philanthropy, redd, social enterprise , , , , , , , , , , ,
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Impact Investing as an Asset Class

Lisa Genasci —  December 5, 2010 — 1 Comment

 

The world’s problems are too vast for philanthropy or governments alone to solve. The US$300 billion spent by U.S. philanthropists last year is just not enough to make a significant dent, while foreign aid represents less than 1 percent of global gross domestic product.

The reality is that only by harnessing the markets, large-scale private and institutional capital, will we even begin to meet the challenges posed by massive population growth, meet our many needs, address issues around water scarcity, our depleted resources as well as our polluted air and water.

Philanthropy can help spur innovation, it can be used as risk capital, to develop models for social benefit that can then be scaled. Governments can help take that innovation to scale but they can’t do it all. Only markets have the potential to bring about real change at the scale and speed we need that to happen.

In other words, we urgently need to take social investments out of the realm of just doing good and plant them firmly in business models in order to make our world fit for our children and grandchildren.

But how does that happen?

A new report released last week by J.P. Morgan and the Rockefeller Foundation in partnership with the Global Impact Investing Network  (GIIN) attempts to advance this discussion.

The report argues that impact investments are emerging as an alternative asset class, thus allowing the sector to be considered alongside any other as part of an investment portfolio.  Impact investments in this instance are defined as investments intended to create positive impact beyond, although not to the exclusion of, a financial return.

“With increasing numbers of investors rejecting the notion that they face a binary choice between investing for maximum risk-adjusted returns or donating for social purpose, the impact investment market is now at a significant turning point as it enters the mainstream, ” the report states.

It addresses questions such as what defines and differentiates impact investments, who is involved in the market and how they allocate capital. Also considered is what makes impact investment an emerging asset class, how much return investors are expecting and receiving,  how large is the potential opportunity for investment in this market and what does risk management and social monitoring involve?

The report analyzes five sectors that serve bottom-of-the-pyramid populations (the global population earning less than US$3,000 annually): Urban affordable housing, rural access to clean water, maternal health, primary education, and microfinance.

For just these segments of the impact investing universe, the report identifies a potential profit opportunity of between $183 and $667 billion as well as  investment opportunity between $400 billion and $1 trillion over the next decade.

Many impact investments will take the form of private equity or debt investments, the report says, while other instruments can include guarantees or deposits.  Publicly listed impact investments do exist, although as a small proportion of transactions.

B-Lab differentiates Impact Investing and Socially Responsible Investing, which has been around for some time, defining SRI (estimated at $2.7 trillion in 2007) as primarily negative screening, or investment in screened public equity funds that avoid so-called ‘sin stocks’ or seek to influence corporate behavior.

The core of the II asset class is that the model of the business (which could be a fund management firm or a company) into which the investment is made should be designed with the intent to achieve positive social or environmental impact, and this should be explicitly specified in company documents.

There are a handful of investment funds established to finance businesses that address social problems, especially in the developing world. Examples of funds working in these space include Acumen Fund, Root Capital, E+Co and IGNIA, among others.

A significant challenge identified in making impact investments is sourcing transactions. Many impact investment recipients are small companies and the majority of deal sizes analyzed from our investor survey are less than US$1m.

Particularly for investors based in different regions, the costs of due diligence on these investments can often challenge the economics of making such small investments.

Another, of course, would be setting the reporting standards needed to establish just what constitutes a social or environmental return on an investment. This is something on which GIIN and B-Lab are working hard.

It’s great to see a mainstream financial institution dipping into this discussion.

Last week,  I participated in a panel discussion at INSEAD, Singapore on impact investing and many of the points above were discussed at length. In particular, we spoke of the  challenges of II in a developing world context where this is urgently needed.

In air pollution, asia, carbon, china water, Environment, forests, impact investment, Microlending, Philanthropy, pollution, social enterprise, water , , , , , , , , , , ,
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Philanthropy and Climate Change

Lisa Genasci —  November 16, 2010 — 3 Comments

 

We recently hosted a forum with the Asia Foundation on Philanthropy and Climate change.  We hoped to encourage Asian funders to draw the lines between climate change (something that seems often hard for the individual to grasp) and the more tangible and immediate air pollution, forestry degradation, water scarcity etc.

We also hoped to then get them to think beyond the environment to a wider philanthropic portfolio and to consider the impact of climate change on livelihoods, health, education – even how funders in the arts might get involved to build awareness around the need to act.

Why? We feel that given the enormity of the problem, it’s often hard for the individual funder, the family office foundation, to see how they might act in any way that is impactful.

But what we found was remarkable energy in the room. Rather than despair, we felt that participants left informed and energized by our panelists and keynote speaker, Stephen Heintz of Rockefeller Brothers Fund, which has an excellent environment and health, southern China program, managed by Shenyu Belsky.

Dr. James Hansen, one of the world’s leading climate scientists and head of the New York’s NASA Goddard Institute for Space Studies, provided an overview of climate science – setting the scene for discussion. Dr. Hansen, an advocate for a carbon tax, spoke of our inertia in the face of an emergency, the possible extermination of species, receding glaciers, bleaching of coral reefs, acidification of the ocean, basically that we are a planet out of balance.

Heintz also spoke about urgency, describing climate change as a “planetary threat that knows no bounds.” He emphasized the particular threat in Asia – that of 16 countries facing extreme risk, five are in in this region and they are among the most impacted, low-lying Bangladesh for example.

In all, he said, global warming could cost southeast Asia 6-7 percent of GDP. Clearly, Asia is squarely at the intersection of climate and development and he emphasized the need for new ideas and new ways of thinking, something that accurately reflects current realities and anticipates new needs.

It is easy, Heintz pointed out, to be discouraged by the science, yet philanthropy, government, civil society and the private sector all have roles to play. In reality , it is imperative that we act because, inevitably, climate change will impact every other issue that we are working on.

Global grant-making, Heintz said, has increased dramatically over the past decade yet environmental issues are way behind, receiving only 5 percent of funding. Resources targeting climate change specifically, of course, are far less.

The philanthropy sector, Heintz said, can play a crucial catalytic role, take risk, experiment, support advocacy to change public policy and trigger larger systemic change. Important will be innovative public-private partnerships, helping to develop emerging models of low-carbon prosperity. His was an excellent speech.

Our three panelists, Runa Kahn of Bangladesh’s Friendship, Dorjee Sun of Carbon Conservation and John Liu, an environmental filmmaker and journalist based in Beijing, spoke of the practicalities of working effectively within this context – and they also were inspiring.

Runa spoke about making life possible for the 4 million people living  in impossible circumstances in Bangladesh’s northern chars, John Liu on a massive ecological restoration project in China and showed the results, Dorjee on carbon, community and market solutions for saving forests.

The entire session was expertly moderated by the Asia Business Council’s Mark Clifford who managed to draw together the discussion, keeping an often amorphous and difficult topic moving toward practical solutions and away from fear.

The forum was a private side event to the C40 Climate change conference early this month organized by the Civic Exchange and supported by the Hong Kong government and Jockey Club Charities Trust.

It would be great to hear about other experiences linking climate change with a wider philanthropic portfolio, about nudging funders into action in this arena.

In air pollution, asia, carbon, children at risk, china water, Environment, Fish, forests, health, Hong Kong, indonesia conservation, Marine, Philanthropy, pollution, redd, social enterprise, Uncategorized, water , , , , , , , , , , , , , , ,
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Protecting Street Children in Sihanoukville, Cambodia

Lisa Genasci —  May 30, 2010 — Leave a comment

M’Lop Tapang is a remarkable organization. I’m reminded every time I visit. When I’m in Sihanoukville, I’m also reminded why I do my job. To be able to witness the incredible growth and impact of an organization like MT is truly a privilege. It gives me hope that we can help chip away at poverty and improve the lives of some of the world’s most challenged kids.

MT now works with 2,500 street and slum kids in the community, keeping them safe from abuse, getting drop-outs back into school, providing educational support to all, regular meals, healthcare, counseling and vocational training. There are night shelters for those without homes.

The committed staff works with the community, police and judiciary to make sure local authorities understand the challenges kids face working or living on the streets and educating them about pedophilia, which sadly is rife in Cambodia. As a result, the instances of kid abuse in the community have fallen and when pedophiles are caught they are much more likely to be kept in jail rather than being allowed to bribe their way to freedom.

As the M’Lop, or Umbrella tree, provides shade , M’Lop Tapang provides similar protection to Sihanoukville’s most vulnerable children.

I’m always struck by the surprising joy at MT, reflecting the resilience of the children, many of whom have suffered abuse, looked after an extremely sick or dying parent, or supported a whole family collecting cans or begging. There has not been much of what we would consider a childhood in these young lives – until M’Lop Tapang. The happiness, the determination to learn, is palpable walking around the centre, full of classrooms of attentive and enthusiastic kids. This is their place.

Most children participate in the arts and sports programs, which help foster the evident self-confidence in this lucky crew of kids. The arts of course also help them express themselves and learn new skills.

The arts program  includes amazing citywide carnivals and educational shows. This week, for example, MT kids, led by the amazingly dedicated Bob Passion and his Cambodian team, will be putting on a show for the Sihanoukville community on traffic safety. Other topics have been child safety, hygiene, recycling among many others.

MT kids also play team sports and the football team, well-attired in clean uniforms, travels to games. And believe me, they play to win!

The outreach program is large and amazing, with teams of social workers spending close time in the town’s poorest communities, taking education and healthcare to kids who can’t make it to MT’s day centre. They support children and their families through problems that, unresolved, hinder school attendance.

The baby program at the main M’Lop Tapang centre allows girls who otherwise might have to stay home to look after siblings, to bring them to MT, where they are cared for by a dedicated staff. The program also represents a safe place for very young children who have no other or inadequate care during the day at home.

Maggie Eno, a former British/Irish nurse, and Khmer friends began M’Lop Tapang in 2003 after watching local people and foreign tourists prey on children on the beach. What began as an initiative to feed six children under a large M’Lop tree and talk to them about safety quickly blossomed into  a wider program for about 250 by the time we met MT in 2006.

It has so inspiring to watch Maggie and her team, now led by Sarin, develop MT’s programs, broaden the services provided to street children and grow into the successful organization it has become.

In 2007 we built a new centre for MT and this year that was almost doubled in size to respond to growing need. The new wing houses more classrooms and an expanded clinic. Hong Kong medical Practice, Owens & Trodd has been great in providing on-going support and counsel to the MT medical team.

The MT staff now numbers 150 and are almost exclusively Khmer with the departure of MT’s American nurse, Hannah and also American Kate, who had helped with reporting, newsletters as well as other development work.

Francesco Caruso, who worked with Maggie near the beginning of MT has run the ADMCF children at risk programs from Hong Kong over the past few years. He helps raise funds for MT and others, as well as providing ongoing strategic support.

The rapid and solid growth of MT has involved so much dedication on the part of the hardworking staff as well as the  financial support from a diverse funding base that has allowed that to happen: DFID, several foreign embassies in Cambodia, Sovereign Art Foundation, Deutsche Bank Asia Foundation, the R.P. Haugland Foundation, Planet Wheeler, International Childcare Trust, to name just a few.

Visiting with Maggie in Sihanoukville we talked about the next phase of MT’s development being about building in greater sustainability where that is possible. Already, each of the vocational training programs are small businesses.

Working with Gustave from Phnom Penh-based Friends International, an excellent social enterprise, MT plans to develop over the next year a vocational training restaurant inspired by Friends’ own in the Capital. Friends, or Mith Samlanh, which is the local organization, is able to generate significant revenues from its excellent restaurants – Friends and Romdeng. Restaurant earnings help support the entire organization, which like MT was established to support street children.

It is great to see the two NGOs working in partnership, learning from each other.  They also have collaborated on the Child Safe program, which builds community knowledge around the need to protect.  MT implements that initiative in Sihanoukville.

MT has just expanded its own centre kitchen to allow space to begin training youth and develop food preparation skills. The next step, closer to the year’s end, will be a restaurant.

With a significant tourist population visiting the town’s many beautiful beaches and few good eating spots, the restaurant should be a success.

Other options are also being considered that, like the restaurant, might generate revenues to support MT programs and help lift the annual fundraising burden.

We are always keen to hear of any development, social enterprise models that have been tried successfully in similar contexts.

In asia, children at risk, Philanthropy, social enterprise
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Can Indonesia’s HCV Forests be Saved?

Lisa Genasci —  May 18, 2010 — 1 Comment

Babirusa

If I were a pessimist, this might be a moment of total despair over the future of high conservation value tropical forests in Indonesia.

The question we and others have struggled with has been: how to make the economics work for conservation? Logging is profitable business for large landowners; for communities, cutting trees can often represent the only source of income.

Most recently, hopes have rested on the carbon markets and REDD as a source of funding for both communities and landholders, paid for by companies wanting to offset their carbon emissions.

But Copenhagen was a disaster, leaving little hope for any global carbon framework anytime soon, while the weak U.S. Climate Change bill looks like it won’t be up for debate this year.  The carbon markets are in disarray.

Meanwhile, climate science itself is embroiled in controversy over seemingly not very much and last year’s financial markets meltdown has made investors innovation adverse.

When one of our carbon champions returned last week from a tour of the U.S. seemingly distraught over the state of the markets, we knew that was at least not an immediate answer to funding conservation, despite the abundance of REDD carbon projects dotting Southeast Asia!

But what are the solutions? What can possibly compete with the huge profits from logging virgin forests?

For two years, we have been working with Oxford-educated biologist, Dr. Lynn Clayton, who for the past two decades has courageously worked to protect the 62,000-hectares Nantu forest in Sulawesi, Indonesia.

Working with a small team, Dr. Clayton has done an excellent and recognized job keeping hunters from the region’s many endemic species such as the babirusa and anoa, which are described  in Alfred Russell Wallace’s 19th century tome, the Malay Archipelago, which chronicles the naturalist’s journeys in the unique region.

Under consideration has been an off-shore trust fund that would generate resources to support the conservation effort at Nantu and at the same time help promote alternative livelihoods for local communities, which are vital to any such effort.

But trust funds, which involve sizable up front chunks of cash, have fallen out of favour in the rush to carbon thus raising those sorts of resources (we estimate that US$5 million in a loan or donations would help secure Nantu) has proven difficult.

With carbon less certain than ever, the other alternative has been to generate business models around Nantu that potentially could generate funding for conservation as well as support local livelihoods.

Once again, however, the sticking point seems to be the feasibility studies and business planning that involve significant upfront costs with uncertain returns. What are interesting conservation finance models, perhaps from other regions, that are working?

In asia, carbon, Environment, forests, indonesia conservation, Philanthropy, redd, social enterprise
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What is it About Philanthropy? Looking for Impact

Lisa Genasci —  May 5, 2010 — 1 Comment

We’ve been thinking a lot recently about how most people view philanthropy. We’ve been thinking that they view charitable giving  as something intensely private, something that comes from goodwill, from the heart, something that ought not to be confused with the rest of life, with numbers, with market norms.

We’ve been thinking that many people don’t really want to focus on the tough issues, on the “why?” for philanthropy: That 3 billion people, almost half of our world’s population, lives in poverty on less than US$2.50 a day, that 1 billion people don’t have access to clean drinking water, that 24,000 children die daily from poverty.

And then beyond poverty, the environmental challenges we face from increasing temperatures and rising sea levels to disappearing forests, from dramatic declines in fish populations to loss of terrestrial biodiversity.

We’ve been thinking that maybe we genuinely don’t have time in our busy lives to focus on what’s happening in the developing world or even the next neighborhood over, or maybe we just don’t want to see for lack of solution. What can we do, after all but write that check and feel that we have done our part?

It is true, that poverty, water shortages and the myriad environmental challenges don’t yet directly impact most of our own lives, which are full enough of each day’s stress.  So when it comes to philanthropy, to volunteering, we want to just enjoy the giving.

We prefer to contribute with emotion, with friends, regardless of the cause, without looking at numbers, statistics, without necessarily thinking about the end result. We want to give to what we know, what we assume will work, what we believe has always worked. We want the safe option, to be part of a community of people doing the right thing in the comfort of friends.

Understandable when we consider that the word philanthropy, loosely translates from its Greek roots as “love for humanity.”

But the reality is there is much more good work that could be done with the US$300 billion Americans give each year – an estimated 45 percent of world philanthropy. And the reality also is that to fix the damaged world our children will inherit, the poverty of our burgeoning world population, we must offer more than just “doing good” as an answer.

We must work against the sense of cross-purposes involved in thinking about the application of market norms to things social if we are to make the real and urgently needed change.  We must pay attention to the issues to which we are giving and use our philanthropy wisely to ensure we are indeed part of the solution.

There is precedent for doing more. We can look into philanthropy’s not so distant past to see that the Rockefellers and Vanderbilts were as innovative as it came in their charitable works. And of course it was Andrew Carnegie who so famously recognized the need for smart philanthropy, warning that most charitable acts go awry.

At essence, the philanthropy sector must draw on all resources at its disposal to build codes and gather information on and publicize successful or failed practices, we must learn to harness markets more effectively, to innovate around business models that can bring the sweeping changes we so badly need. There needs to be more tolerance of risk with charitable dollars.

Of course some of this is already happening with the growth of venture philanthropy, micro-credit and social entrepreneurship, with new models of investing for social impact, but there needs to be more and faster.

How can we promote transformation, not just in the professional philanthropic sector, but also among donors, which in turn will fuel change among implementing non-profits? How can we transform the attention paid to short-term results into a more patient investing in our future?

In asia, children at risk, Environment, forests, Marine, Microlending, Philanthropy, social enterprise, Uncategorized, water
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Break The Silence:Child Sex Trafficking

Lisa Genasci —  April 22, 2010 — 2 Comments

The sex trafficking and abuse of children is a growing problem regionally fueled by the $32 billion internet porn industry. As I’ve written earlier, UNICEF estimates that every year 1.2 million children are trafficked for sex, adding to the millions more already in captivity. 

Trafficking of children is highly lucrative and while profits are high, penalties are low in most Asian countries.  Internet porn isn’t the only outlet; growing sex tourism in Asia hasn’t helped. Child victims usually come from small villages, where awareness is lowest and poverty worst. 

Southeast Asian countries are source, transit and destination countries for child-sex traffickers and pedophiles. There is clear need for better education and awareness regarding the dangers children face. 

While, there are some excellent programs for Child Protection developed by local and international groups in Asia, for budgetary reasons these usually do not include smaller villages and often even slum communities where children are most at risk. 

It is here that awareness is lowest and families are often groomed to part with their children, supposedly to good jobs in the cities.

Parents, often faced with terrible decisions around paying medical and food bills, will separate from a child thinking they will be looked after by the kindly “auntie” or “uncle” who has promised the family financial support in return.

In rural and some slum communities, families, authorities, teachers and even small NGOs are neither aware of the problem nor able to prevent it.

Stairway Foundation  recognized years ago that in the Philippines, a favorite child-sex tourism destination, the 1.5 million street children and many millions more living in urban slums were easy targets.

In response, SF has developed three purpose-made animated films on incest, pedophilia and child-trafficking that have helped hundreds of organizations warn communities there.  But the message needs to spread widely in Asia and parents need to see alternatives.

Hong Kong-based ADM Capital Foundation is helping SF develop the animation materials and accompanying training into a regional strategy under the title, Break the Silence.  We believe that not only will BTS be complimentary to child protection programs already in place, but could be used in Western countries to educate young people about internet child pornography.

Ultimately, the goal is to build an effective awareness and protection program through local organizations that are able to offer a first line of support to children at risk of trafficking and abuse.

The program is designed to grow into a sustainable initiative driven by SF in co-operation with regional partners, sharing its approach toward reaching out to and effectively protecting marginalized children across Asia.

Have you seen any particularly innovative child protection work in Asia or beyond?  We are keen to learn of others working effectively in this arena.

In asia, children at risk, Philanthropy, social enterprise , , ,
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Preserving Bangladesh’s Wooden Boat Culture

Lisa Genasci —  April 10, 2010 — 3 Comments

French sailor Yves Marre first viewed Bangladesh’s myriad waterways from a plane and the adventurer decided the intriguing country below would be the location for his next exploration.

Yves perhaps would not have guessed that his adventure would consume him or that 25 years later he would be still living in Dhaka, married to a Bangladeshi Runa Khan and desperately struggling against time and lack of resources to document the country’s dying wooden boat building tradition.

What in 1994 then began as a development project involving transporting a 38-meter river barge from France to Bangladesh for use as a hospital boat in the remote northern chars, gave birth to Friendship, an excellent social enterprise I wrote about in my previous blog post. What I didn’t talk about was Friendship’s commitment to Bangladesh’s fascinating boat culture.

Last month, Friendship opened an exhibition of Bangladesh’s remarkable wooden boats at Dhaka’s National Museum as part of its cultural preservation programme. It is extraordinary that in a country so dependent on waterways, considered the world’s most susceptible to climate change, where boats are integral to trade and transport, that the art of boat building is dying quickly and with little fanfare.

Bangladesh has one of the oldest traditions in terms of naval carpentry, and it also has the largest fleets in the world. Here you will find the largest variety of boats

anywhere in the world, Marre says. It is all this that is being lost without adequate documentation or preservation of the country’s naval history, he says.

For many centuries, wooden boats with large earth-colored sails have plied Bangladesh’s hundreds of rivers and tributaries and they have become interwoven with the country’s culture. Yet over the past few decades, these beautiful vessels, many unique to particular regions of Bangladesh, have slowly been replaced by diesel-powered steel vessels, which are less expensive and more practical in terms of maintenance and navigation.

Yves and Runa have taken it upon themselves to draw attention to the disappearance and at the same time document and preserve the techniques and knowledge.

At his boatyard in Dhaka, Yves has built the more than 50 models on display at the museum in Dhaka of traditional Bangladeshi vessels. Building these, have been master craftsmen using only traditional techniques that are often unique to the country.

Here, Yves also has built or restored several full-size wooden boats, among them a beautiful 30-meter Malar vessel, one of the country’s largest hulls and now used to carry tourists along Bangladesh’s waterways. Some profits from the Friendship tourism company, Contic, built around the wooden boats, goes to support the social enterprise’s work.

Looking forward, Runa and Yves hope to establish a living museum that would preserve all types of traditional Bangladeshi boats in Dhaka and allow people to experience the craftsmanship involved.  To achieve this, they are searching for funding. Any suggestions of similar efforts elsewhere or possible sources of funding?

In cultural preservation, Philanthropy, social enterprise , , ,
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