Tabula Rasa? Conceptions of microfinance in Juba, Sudan · Juba’s “tabula rasa” • 2005 Comprehensive Peace Agreement (CPA) between the Government of National Unity (Khartoum)

TabulaRasa?ConceptionsofmicrofinanceinJuba,Sudan

CrystalMurphyMorgan

UniversityofCalifornia,Irvine

IMTFIResearchersConference

Juba’s“tabularasa”•  2005ComprehensivePeaceAgreement(CPA)betweentheGovernmentofNationalUnity(Khartoum)andSudanPeople’sLiberationMovement/Army(South)

•  Endedthenorth‐southcivilwarthatbeganin1983thatforced4millionsouthernersinexile

Image:http://mapsof.net/sudan/static‐maps/png/political‐regions‐of‐sudan,‐july‐2006

Returning,rebuilding• “Everyone”iscominghome

• Estimated4,000peopleremainedinJubatown

• Jubapopulation2.2million(GoNU2008)

• Differenttypesofexile(Malkki1995): Metropolitan Rural Camps—IDP,Refugee• Differenttypesofstart‐upassistance

Researchsite

•  Jubaasacaseof:– Humansecurity– Post‐wardevelopment– Economicanthropology

•  ResearchonmicrofinanceinthiscontextstillNOTthere– MostMFresearchinconflict/post‐conflictdelineates“preconditions”fordevelopment(Nagarajan1997,2004)

– MFtorefugees/returneesvirtuallynonexistent

MicrofinanceinJuba•  “Dualbankingsystem”–  Islamic+Conventional

•  4MajorMFIsoperating–  (2othersoperatinginotherstates)

•  MFIsestimate5%outreachofJubaareamarket

•  InterestRates15‐36%•  Clientsmainlyinformal–  68%Trade–  15%Agriculture–  11%Manufacturing(Atil2009)

TraditionalMicrofinanceMethodologies

• TraditionalEvaluation:• Repaymentrates• #clients

• MicrocreditSummitCampaign,MIXprominence

• AlternateIndicatorse.g.“empowermentofwomen”throughproxyvariableslikebirthrates,education

ProjectMethodologySteppingoutoftraditionalmethodologies—focusonlivedrealitiesofmicrofinance

•  Researchquestion:HowdoJubaresidentsthinkandtalkabouttheeconomythroughmicrofinance?

•  Post‐positivist/ethnographicmethodologies– Narrativeanalysis

•  Talktothe“market”participants;observeform– AnyoneinJuba– MFIstaff,execs,andclients

EconomyfromEconomies•  Sudanese– Thatstayedwithin

•  JubaTown•  KhartoumIDPs

– MetropolitanEconomies•  NairobiandKampala

– RefugeeCamps– RuralUgandaandKenya

•  Non‐SudaneseNatives

InstitutionalPerspective

“Outofthehandoutmindset”

“Ifyoulookattwentyyearsofcivilwar…lookatsomebodywhowas5yearsoldwhenthecivilwarstarted,rightnowheshouldbeabout30years.Thispersongrewuprelyingentirelyonrelief.Knowingnothing—hejustknowsfoodcomesoffatruck.Sorightnowhewakesupandsomeonesaysheymister,fooddoesn’tcomeoffatruckfoodcomesfromthesoil.Andhesays‘no’.Sochangingthatmindsetissomethingweneedtodobeforepeoplewillappreciatethat.Andthatformeisthebiggestchallenge—thedependencesyndromebeingremovedfromtheirminds.”

Image:http://www.nationalpost.com/news/world/story.html?id=1468989

ClientPerspectives•  PreliminaryThemes:– Distrustinmoney

– Distrustinexchangeprocess

– Distrustininstitutions– Lastingpeace?

Distrustinmoney

•  Mid‐2007SudaneseDinarconversiontoSudanesePound–  Playingcard“dupe”

•  Manycurrenciesincirculation

•  Subvertedcurrencies–  $100USDnote≠5X$20

USD–  “Thisplaceiscomplicated!”

•  Losinginexchange

Image:http://www.biyokulule.com/view_content.php?articleid=1872

Distrustinexchangeprocess “Inmostcases,theytradewithUganda.

Actuallyatthistime,becausetheyareusingtheUgandaShilling.BeforetheCPAwassigned,itwaseasy,butrightnowyouhavetheburdenofsellinginSudanesePounds.[Onemust]convertactuallythe[microloan]moneyfirstofallindollars,thengointoUgandaandgetinUgandaShillingsandmakeyourpurchases.Sowhetheryoulikeitornot,youaregoingtoconvertyourcurrencythreetimesandwillexperiencelosses.Sotheywillalwayscomplain….theywanttofindoptionsoutofthis.ButItellthem—wearenotthegovernmentofSouthernSudan.Definitely,there’snowaywecandisburseDollars,wecannotdisburseUgandaShillingsandwehavenowayaroundthis.MaybeonedaywhenwecangeteverythinginSudan,theycandotheirshoppinginSudan.”

Distrustininstitutions

•  NCBcloseddown,leavingpeoplestrandedandcashless

•  Dailyfinancialstrategiesofmicrofinanceclients– Strategizingkeepingmostaccesstocashinperson

– Requestingpaymentup front

LastingPeace?Iaskedaclientaboutwhypeoplemightnothaveconfidence

inbankinginstitutions,heelaborated, “That’soneofthem.Anotheristhatpeoplearenot

confidentwiththepeacesometimes.Anythingcanhappensoifyougetyourmoneystucksomewhere,you’llnevergetit.Iguessyoushouldhaveyourmoneyalllllthetimeonyousoyoucangoanytimewithit.”

MicrofinancepracticesinformedbytheCPA“peace”ANDfutureunrest.–  Hoardingofcash–  Delayingrepaymentuntillastpaymentdue–  Raisingpricestomatchinflatedcostsofsupplies–  Requestingpayouts(fromMFIandtheircustomers)upfront,

immediately

Post‐conflictmoneyvs.calmbetweenstorms?

•  Peaceasfundamentalassumptionofdevelopmentpractitioners(beyondrelief)(Lewis2005)

•  Typesofdevelopmentinstitutions– Aid/reliefStart‐upSustainabledevelopment

Howcanweenvisionamoneythatcanfunctionforpeopleinasituationthatisnotguaranteedtoprogressinpeace?