New Textbook Web Site Hits Tufts Tufts Engages with Microfinance
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Today: Cloudy THE TUFTS High 50 Low 27 Tufts’ Student Tomorrow: Newspaper Few Snow Showers Since 1980 High 31 Low 24 VOLUME LII, NUMBER 59 DAILY THURSDAY, DECEMBER 7, 2006 Tufts engages with microfi nance Hey, hey, hey BY ALEX BLUM AND MARC RAIFMAN wide, Crawford said that his company would Daily Staff Writer and Daily Editorial Board only consider investing in about 250 of them, — look what’s he told the Daily for a May 21 article. As the Omidyar-Tufts Microfinance On the other side of the coin, the less risk going on here! Fund continues to invest the $100 million it investors take, the less the potential benefit received from Pierre and Pam Omidyar (A for small businesses. Fencl’s thesis, entitled ’88 and J ’89) upon its inception last fall, Tufts “Using Rural Micro-Credit in Madagascar students and faculty are investigating the to Promote Sustainable Development,” will emerging sphere of microfinance. discuss what investors look for in businesses High school was back in Microfinance, pioneered by Bangladesh’s they consider to be ready for microfinance. session last night, as approxi- Grameen bank, issues tiny loans to small Fencl became interested in this topic after mately 150 students crowded businesses and individuals who would do living in a small fishing community in south into Barnum 008 for an eve- not qualify for traditional financial services. western Madagascar while studying abroad ning with Lecture Series’ lat- Seniors Amanda Fencl and Jarret Szeftel last year. She said that a microfinance inves- est guest, Dennis Haskins, an are writing their senior theses on different tor there told her that the community was actor best known for his role aspects of microfinance. not ready for microfinance investment. as the hapless but helpful high Neither student’s thesis directly addresses Banks that invest using microfinance do school principal on the popu- the Omidyar-Tufts Fund, the independent not have branches in many impoverished lar ‘90s sitcom “Saved by the organization, guided by its own Board of communities, Fencl said, making it difficult Bell.” Trustees, that holds financial responsibility for those people to get a business started. Look inside for full coverage for investing the donation. “Commercial banks in the cities aren’t going of Mr. Belding’s visit to the But both hope the ongoing process will to go into those rural areas either,” she said. Hill. shed light on the Fund’s potential effects. But even though microfinance did not Szeftel decided to write a thesis on micro- help the poor from the fishing community finance after learning about the increasing she lived in, Fencl said that the same may not see WEEKENDER, page 9 attention that it is getting among banks and be true in all locales. firms looking to invest. He is investigating Microfinance is “really location- and “whether this increased competition…will model-specific,” she said. “What’s working change the industry,” he said. Microfinance in the community I was in is not necessar- has “historically been poverty-targeting…but ily going to work in a community across the now there are banks moving in who are country.” JEFF CHEN/TUFTS DAILY [more interested in] investing for a profit.” As Szeftel and Fencl move forward in their “I’m trying to really figure out what it is that research, they are unsure about how much they’re after,” he said. information they will be able to tap Evans He is investigating the ethics of specific and The Omidyar-Tufts Fund for. investors, who could charge high interest “I went into it thinking it would be a huge rates, he said, claiming that start-up busi- resource – which it might be,” Szeftel said. New textbook Web site hits Tufts nesses in the third world are high risk. This “I haven’t gotten to the stage of my research BY JENNA NISSAN taking the same class will look up the practice could lead to high debt for third where I’m talking to actual investors.” Daily Editorial Board book, make contact, and meet on cam- world entrepreneurs. But the Tufts-Omidyar Fund may aid aca- pus to exchange,” he said. The Omidyar-Tufts Fund plans to invest in demic research on microfinance in another Booksoncampus.com, a student-run Escobar has been promoting the Web mostly low-risk businesses, said Tryfan Evans, way. Tufts President Lawrence Bacow believes textbook Web site that enables stu- site at Tufts primarily through post-it Omidyar-Tufts Microfinance Fund Director. the donation has changed Tufts for the bet- dents to sell their textbooks directly flyers reading, “No more bookstore. “Our goal is to ensure that the risks we ter because of the increased concentration to other students, is being launched at Buy for less, sell for more.” take are prudent, commensurate with the investors now have on the school. Tufts this semester. “I leave them on tables everywhere potential return on the fund’s investments, “This gift is transformative for Tufts,” he Brandeis University undergraduates I go,” he said. “When I see them later, and carefully managed,” he said. said “It has attracted an enormous amount Mark Kantor and Tim Suzman, along people have moved them around and But as the Fund makes only indirect of attention among other institutional inves- with Suzman’s brother Ted, an under- looked at them, which shows they’re investments, Evans will put his trust in the tors.” graduate at Washington University in being seen.” microfinance investors based on their past Economics Professor Margaret McMillan St. Louis, started the Web site in 2003. Escobar also recently created a track record. has also seen the benefits of the attention the The Web site is now available to college Facebook.com group, now with almost Gil Crawford, the general manager of fund gained for Tufts. students nationwide. 200 members, to promote the Web MicroVest Capital Management, a micro- “As a result of the gift, the economics Senior Juan Escobar is managing the site. finance investment firm that invests in department has been able to find financial project at Tufts and helping promote “I invite about 100 people each microfinance banks in the third world, told support for an exciting new research initia- the Web site for students. According to night, including graduate students and the Daily last spring that he considers most tive in microfinance,” she said. “Professor a press release from the company, the undergraduates,” he said. microfinance opportunities to be high risk. [Edward] Kutsoati and I have three projects Web site has already saved Brandeis Escobar has also posted flyers in the Of the 8,000 microfinance banks world- currently underway in Ghana.” students $150,000 on books. campus center and in the dorms. “The guys from Brandeis were look- Escobar said that he has seen a posi- ing for representatives on different tive reaction from Tufts students. “I Globe, Crimson report Bacow on Harvard’s short list campuses, and I thought it was a great was sitting at a dinner table the other idea, so we contacted each other,” day and a girl approached me and said As the search continues to fill Harvard’s Daily. “He came here with the expecta- Escobar said. that she was excited about the idea,” he presidency, the Boston Globe and the tion that this would be his last position Escobar said that the current goal of said. Harvard Crimson, Harvard’s student daily, and that’s still his expectation.” the project is to get students to check if “It’s very hard to get a massive group reported a list of 30 possible contenders Bacow could not be reached for com- books are available at booksoncampus. going, but the support people have yesterday. ment by presstime. com before they go to the bookstore. been showing is pretty cool,” he said. Tufts’ current president, Lawrence In March, Bacow told the Daily in an “We’re a similar size and population “If the Web site is easy to use, it Bacow, appeared on the reported e-mail that he expects to stay on here to Brandeis, so we’re hoping to save sounds like a great idea,” freshman Rob list, which also includes University of at Tufts. “I am very happy at Tufts and students the same amount of money, if Delean said. Pennsylvania president Amy Gutmann, have no desire to leave,” he wrote. not more,” he said. “I’d definitely be interested in using Brown University president Ruth Nevertheless, Bacow has been repeat- “The online textbook exchange helps the Web site because I’ve heard that the Simmons, and Princeton’s president edly mentioned in connection with the students avoid the excessive cost of bookstore is a rip-off,” freshman Jess Shirley Tilghman. Harvard post. books from the bookstore,” he said. Daniel said. “It sounds awesome.” The Crimson originally broke the story Harvard is expected to name a replace- “Students should also be able to sell Sophomore Samriddhi Bhalla said on Sunday, after the university’s overseers ment for Lawrence Summers early next their books back for more than $10 that the site could be a great oppor- meeting. year, according to the Globe. Harvard’s when the book is worth $80 or $100.” tunity for students. “I know a lot of According to yesterday’s Globe article, Presidential Search Committee actively Escobar said that he assumes the students don’t make enough money only 13 of the names on the list have looking for the new president, but before bookstore staff is aware of the Web site, when they sell their books back to the been verified with independent unnamed any candidate can be announced, the but has not spoken to them directly.