Crowd-funding Part II: FDR Global Fellow Alicia Merganthaler Reports In

Posted on August 13, 2014 by in FDR Suite

FROM LONDON:

As we get closer to launching the website, this week has been challenging but very exciting. The vast majority of the week, I researched and performed calculations to try to estimate as precisely as possible how much money is going from various crowd-funding services to the developing nations they serve and forecast how much money they are likely to raise over the next year. This was a challenge, as I’m starting to learn that crowd-funding, especially in impoverished nations, is more complicated than it might appear.

Team at Tavern

It’s not always all work and no play: Alicia, second from left, enjoys a traditional pub meal with her team, including project founder Lars Kroijer, Adams ’94, right.

Often, websites like Kiva (a service that gives mini-loans to female entrepreneurs in developing nations) work through field partners in the developing nations themselves, like Micrograam (based in India). This system makes sense, as there has to be infrastructure on the ground to interact with the lenders themselves.

For example, if a woman in India raises enough money to take out a loan on getting a stove, she would deal directly with an organization in India (Micrograam) that is partnered with Kiva. This approach to microfinance makes sense, but the two-tiered process definitely makes the stream of money harder to follow. Mr. Kroijer has been great giving advice as to how to make analytics like this as accurate as possible (along with general career advice) and I’m learning a ton.
One of the things I’ve been thinking about throughout this project is what other steps NGOs and governments can take to drive crowd-funding in developing nations that could give entrepreneurs the final ‘push’ towards launching their businesses. While working, I came across an interesting article from the World Bank that really resonated with our project.

The World Bank argues that for crowd-funding to reach its full potential a variety of cultural, economic, and technological factors need to come into play. On the economic end, securities regulations need to be loosened to allow for equity crowd-funding (which is sort of like mini-venture capitalism) and crowd-funding needs to be tied to a positive cultural message. Socially, in order for crowd-funding to succeed, there needs to be greater awareness of what it is through social media and events that build trust towards this kind of finance. On the cultural end, greater involvement of girls and women in entrepreneurship, more spaces for innovation, and education about consumerism and investment can bolster microfinance.

Our project is vital because it works on the technology end, having determined the gap in information that makes it hard for investors to get money to developing nations. We are working towards fixing that gap by uniting all crowdfunding platforms in one place and providing clear and consistent information about what each service does.

In other news, our team went to the pub together on Tuesday, shown above. It was great to get to know everyone a little bit better and have a traditional English tavern experience (minus the mushy peas!). The group is a fascinating mix of people from all over, including the US, UK, Spain and Denmark, which makes for a great mix of perspectives.

In terms of exploring England, I’m finally getting out of the gravitational pull of work and London this weekend. As I write this, I’m on the long bus ride to Bath, a city known for briefly being the home of Jane Austen as well as having ancient Roman baths. It’ll be wonderful getting out of the chaos of London for a little bit and explore the English countryside for the weekend.

Crowd-funding & Developing Nations: FDR Global Fellow Alicia Merganthaler

Posted on August 8, 2014 by in FDR Suite

IMG_20140725_155448_816This week Alicia checks in from London

The life of a rising senior at Harvard can be unpredictable. I was all set to intern at the Financial Times in London, but at last minute my required work visa didn’t go through. However, despite this setback, I was saved by the Foundation and Adams House alum, Mr. Lars Kroijer, who offered me a place working at the London startup that he’s heading. The startup’s concept is a ‘crowd-funding platform aggregator’ with a focus on investments in developing nations. What is a crowd-funding aggregator, you may ask? Crowd-funding in its most general sense is the practice of funding a cause or business venture by gathering contributions from a large number of people (especially if it is facilitated through the internet). The idea of a crowd-funding aggregator is to unite these websites that send money to developing nations and put them together in an easily searchable and informative way so individuals from all over the world can support budding entrepreneurs in these countries.

Having the chance to work with an Adams House alumnus here in London has been an incredible experience so far. Every day as I ride the tube and see advertisements for Oxfam, Amnesty and other international charities, I’m reminded of what a socially conscious and vibrant city this is.

In the process of working on this crowd-funding project, I’m learning a ton about the budding field of crowd-funding in general and its potential to spur economic activity in developing nations. Although crowd-funding is largely a developed country phenomenon (i.e. campaigns to start a food truck in San Francisco or fund your vacation to Hawaii), it’s widely recognized that crowdfunding has a great deal of potential for developing nations, where talented entrepreneurs are often restrained by traditional attitudes towards risk, finance and innovation. For example, it may be next to impossible for a small-scale entrepreneur in El Salvador to buy cloth and a sewing machine to start her clothing shop, but with the help of a crowd-funding campaign, she is able to make her business a reality. The job of the crowd-funding aggregator we are working on is to increase the visibility of these campaigns and empower investors to support projects like these.

My first week working on the aggregator has me in the thick of the action. Last week, I enjoyed going on a “treasure hunt” and researching existing crowd-funding services that send money to developing nations with the rest of the team. This week, I’m calculating the capital flows from these websites to each country. In addition to these facets of the project, I’ve been finding humanitarian, academic, and non-profit contacts in developing nations that could provide invaluable information for the business strategy.

Many of the crowd-funding concepts we are making more visible and accessible are lesser-known platforms that may only be known at a local level. Even though there are 1000+ crowdfunding platforms online, I only knew a handful before embarking on this project (Kiva, IndieGogo, Kickstarter). Now I’m familiar with platforms that are focused on specific humanitarian purposes in typically unrepresented countries, like kangu.org, based out of Nepal, which raises money for healthy pregnancies and women’s heath.

On a lighter note, exploring what London has to offer culturally has been wonderful. Despite the heat wave that has washed over the UK, I’ve enjoyed being in air-conditioned galleries and museums, including the British Library and British Museum. It was incredible seeing two surviving copies of the Magna Carta and a Gutenberg Bible (second only to Harvard’s, of course) up close, along with Mozart, Chopin and Beethoven manuscripts. Next week, I’m hoping to visit several local microfunding non-profits and visit a local Rotary Club to learn more about the vibrant non-profit scene here. As a Rotary alumna, I’m curious about the work they’re doing there (not to mention that FDR was an honorary Rotarian!)

 

 

 

Progress Report: FDR Fellow and Goldman Scholar Gina Kim in Korea

Posted on July 29, 2014 by in FDR Suite

At the Ministry of Justice with Mi-Young Ahn, the Chief Prosecutor of the Human Rights Policy Division.

This post FDR Global Fellow and Lillian Goldman Scholar Gina Kim reports in from Korea — MDW

 

My first few weeks in Seoul have been incredible in more ways than one. First and foremost, despite initial challenges securing interviews in Korea, I was able to utilize family connections to obtain diverse and fantastic contacts. One highlight was having the chance to go to the Ministry of Justice (the equivalent of the U.S. Department of Justice) to interview the Chief Prosecutor of the Human Rights Policy Division. Not only was her interview incredibly helpful, she also had her staff prepare literature on human trafficking in South Korea for me to take back. Having the opportunity to actually come to East Asia to research on the ground has been very rewarding. I am learning so much more from independent research than I did from classes and books. I have a new-found appreciation for this fight against human trafficking that so many amazing people are engaged in. I am also learning to appreciate the huge challenges of conducting independent research, particularly on a topic as controversial and nuanced as human trafficking policy changes.

So, what drives human trafficking policy changes? Is it NGOs, the media, political will, or foreign pressure? The easy answer is that it is all of the above factors. However, one thing I have discovered is that the way the issue is framed and the word choice used is incredibly important for the creation of policy changes. My interviews have suggested that details such as the type of trafficking (e.g. labor trafficking, sex trafficking), a victim’s gender, or nationality can be crucial to the popularity of a news article or the viability of a policy change. For example, in South Korea, combatting human trafficking becomes much more politically contentious when it is in regards to North Korean refugees.

Culinary delights high above Soeul

Culinary delights high above Seoul

On a lighter note, Seoul is the coolest city I have ever been to. It is so modern and efficient on one hand, but on the other, it is not difficult to find ancient history and culture. Seoul is also very convenient in that there are so many places to eat, shop, and hang out. It feels like such a big city not only in population, but also in area–it almost seems to me like there is a different metropolitan city at each subway stop. Overall, I am having a wonderful experience in Seoul.

The Real Gentleman’s C

Posted on June 30, 2014 by in Articles, FDR Suite

If you google the term “gentleman’s C,” chances are you’ll come up with some version of: “a grade given by certain schools (often Ivy League) to the children of wealthy or influential families in lieu of a failing grade” — that’s certainly what I always thought the term meant. But in FDR’s day, the meaning of a “gentleman’s C” was entirely different. A “C” was the grade a gentleman aspired to, so as not to seem too interested in studies and be considered a “grind.”

A 1909 verse by Robert Grant, ’73, LL.B. 1879, explains this neatly:

The able-bodied C man! He sails swimmingly along.
His philosophy is rosy as a skylark’s matin song.
The light of his ambition is respectably to pass,
And to hold a firm position in the middle of his class.

Should you try to hard, you became the stuff of parody, as the “The Grind’s Song” from the 1902 Hasty Pudding Show HI.KA.YA reveals:

I’m a typical College grind,
I look it, you’ll admit, you’ll admit, you’ll admit
You’ve heard it’s a grind to be a grind
Not a bit, not a bit, not a bit! Just the opposite!
Don’t let my words belie my looks
My happiness is in my books
I love to work, I hate to play
For me life’s simply the other way
Don’t enlist your sympathy, I’m as happy as can be,
For to read my Latin Grammar is life in Arcadie!

To document how much things have changed, I thought you might be interested in seeing the study cards of FDR and Lathrop, president and congressman of the United States, respectively. We’ve recently received copies from the Archives, and will reproduce them for viewing in the Suite.  The upper right hand corner reveals their entrance examination results, and year by year grades proceed from left to right across the bottom.

Click on each to view them full scale.

 

UAIII_15_75_10_F_Box_7_Brown_Lathrop UAIII_15_75_10_F_Box_7_Roosevelt_Franklin

As you can see, both FDR and Lathrop (especially Lathrop!) eschewed any possibility of being viewed as a grind! I find this fascinating, not only because it reveals a student ethos so foreign to the current one, but also because it shows the level of grade inflation since the Vietnam War when most universities across the country, including Harvard, felt the pressure of keeping students from falling below a B average and thereby opening them up to the draft. The result was a rapid escalation of grades, to the point where the average grade at Harvard is now -A. (One of our undergraduates recently made the suggestion during a Suite tour that there hadn’t been grade inflation at all, rather that the current students were just smarter, which left me and several of my peers a moment to wonder at the folly of youth.)

On an entirely different subject, today is the last day of the fiscal year, and our coffers are looking uncomfortably bare, given the roster of programming we have planned for the next academic year. I’d like to urge any of you who have been thinking about making a contribution to the numerous activities of the Foundation, that now is time to so! It’s quick, secure and takes only a few seconds online.


“The Only Way to Have a Friend Is To Be One”

Posted on June 15, 2014 by in FDR Suite

This summer, I’ve asked our Franklin Delano Roosevelt Fellows to check in periodically to let us know how they are doing. Here’s the first report, from Amanda Hess, in Kenya: MDW

SAM_0181

Amanda with the elders of the village.

So far this trip has been absolutely incredible! The classes and educational aspect of this experience are exceptional but it’s the Kenyan people who’ve made it so profound for me. I’m working with a community based organization called St. Ann’s. They represent a small village about 45 minutes outside of town. This little community has been nearly devastated from HIV/Aids, an annual cholera outbreak from nearly nonexistent water sanitation, and a generalized poverty which has it’s grip on every home I’ve visited so far.

SAM_0194I’m working closely with the matriarch of this village,  Lorane. She is a widowed superwoman. After 5 children, the youngest suffering from a mental disability which prevents him from being able to speak, HIV killed her husband. She’s poured herself not only into her family (all of her capable children have either gone to or are in college) but also her community. She’s begun a micro lending program for the grandmothers of their village and she lead the plea for the installation of a water kiosk, which will provide everyone with clean drinking water.

My project is to offer this community with something sustainable that will lead to their betterment and a heightened quality of life with the fewest unintended negative consequences as possible. At first, this was a bit daunting. However, I believe that I’ve devised a program that will actually make a substantial difference for these beautiful people.

Because of the HIV/Aids pandemic about 97 children have been orphaned as a result. Most often these children have no family members who are either close enough in proximity to take care of them or they are too impoverished to offer them anything that would make much of a difference. Also, because these deceased parents were usually unable to work in the last year to several months of their life they’ve left their children with no inheritance. So, the eldest of the siblings is responsible for taking care of the younger children. (Often times the eldest is a boy and there is a huge cultural stigma against men rearing children and this has posed to be an unusual barrier in their advancing within society.)

SAM_0156My program will be a joint micro-lending/mentorship program geared towards supporting these eldest orphan children who have nothing but are still expected to provide for their siblings. These children will be paired with a mentor; someone from the community who is trustworthy and also a business owner. this mentor will act as a co-signer for a micro loan from Kiva (we’ve already begun the process for setting them up with profiles) that will be awarded to our young entrepreneurs once they have devised a business plan with the help of myself and their mentor. (Training will also include basic personal finance management and accounting.) The mentors will work closely with their apprentices to establish the business and repay the loan. As incentive for our mentors, once the loan is repaid and the business has stabilized (making an average daily living wage for the child and the child’s family) the mentor will receive %10 of the profits and will continue to aid the child with their accounting, savings, and finding and maintaining healthy business relationships with clientele. The %10 is also reason for the mentor to do everything possible to make sure the business is thriving because the better the business dose, the higher that %10 will be.

The mentor/apprentice pair will report bi-weekly to the community board. This includes the chair members of St. Ann’s as well as the Chief of the village. During these meetings the progress of the business will be reported and if any obstacles or problems have arisen the board will offer advice and assistance whenever necessary. Board members will also be given the authority to “check in” on the pairs whenever they like, similar to a health inspector, as a way to ensure the child’s protection from any sort of corruption.

The chief has volunteered to serve as a mentor to the mentors. They will have a monthly meeting to make sure everything is running smoothly and to offer one another ideas, advice, and potentially partner whenever possible. Once our young entrepreneurs are capable of running their business on their own (something that will be determined by the board and the child) they will take over 100% of the profits.

The community is incredibly excited to get started and I am so thrilled that they’ve been so receptive to my plan. Next week we’ll be pairing our mentors with the children. (On average these kids are around 16)

Thank you again for your support and I’ll be sure to send updates as the program develops!

We’re Changing Our Name!

Posted on April 26, 2014 by in FDR Suite

I’m pleased to announce that as of the 1st of May 2014, the Foundation will be changing its legal name from the FDR Suite Foundation to the Franklin Delano Roosevelt Foundation. This will generally be followed in print and online by the descriptive “at Adams House, Harvard College.”

In the six years since our founding, the mission of the Foundation has grown exponentially, and we decided it was time for our name to reflect these new fields of endeavor. The new Foundation will be comprised of three linked departments:

The Suite Museum & Historical Collections division will manage the day-to-day running of the Franklin Delano Roosevelt Suite in Westmorly Hall and maintain the Suite’s collection of almost 2000 pieces of FDR and Harvard memorabilia. In addition, the Suite will continue to sponsor the annual FDR Memorial Lecture, lead Harvard Alumni Association historic tours, and host other cultural events to promote awareness of FDR, Adams House and Harvard College history.

The FDR Global Citizenship Program assumes charge of our non-historical undergraduate and alumni educational programs, including the FDR Global Fellowship, which each year awards summer grants to undergraduates whose international research in the sciences or humanities embodies FDR’s admonition that “that the only way to have a friend is to be one.”

The Foundation’s newest division, the FDR Center for Global Engagement, plans to honor FDR’s legacy by working with practitioners of international relations, global innovation, and public diplomacy on research and programs aimed at understanding and adjusting to the challenges of the 21st century. Jed Willard ’96 of the Harvard Kennedy School has kindly agreed to come on board to lead these endeavors as the Center’s first Director.

Heady times indeed, and all thanks to the continuing support of people like you.