Matt Hoge, a KU graduate student in Latin American Studies, gave a comprehensive overview of his experiences, observations and some conclusions about the usage of microfinance in Paraguay to participants in the 2009 Annual meeting of the Kansas Paraguay Partners. Matt was selected for the 2008-2009 KPP Scholarship and worked as an intern with Fundación Paraguaya, studying microfinance as a strategy for economic development in Paraguay.

2. Thanks to: Kansas-Paraguay Partners Fundación Paraguaya Professor Melissa Birch

7. Junior Achievement Escuela Agricola Microfinance

11. Source: Heather Montgomery and John Weiss. “Modalities of Microfinance Delivery in Asia and Latin America: Lessons for China.” China and World Economy . 14.1 (2006); 30-43, pg. 34. Berger, Marguerite, Otero, Maria, and Schor, Gabriel. “Pioneers in the Commercialization of Microfinance: The Significance and Future of Upgraded Microfinance Institutions.” from An Inside View of Latin American Microfinance . Inter-American Development Bank: New York, NY 2006, pg. 47.

15. Rural Microfinance

17. In Paraguay, as in the rest of the world, rural areas are typically the poorest and the least served by microfinance These individuals are often those that most need access to financial services such as credit and savings Providing financial services for people in rural areas poses unique and difficult to overcome problems Fundaci ó n Paraguaya’s rural microfinance division consists of 1 person serving around 300 clients Program is operated with revenues from individual lending operations and support from the Inter-American Development Bank

31. Smaller firms are less likely than larger firms to collaborate with other businesses Larger businesses have greater access to formal support—therefore they face less risk in entering into anonymous agreements State needs to provide greater protection for smaller businesses that enter into anonymous contracts Inter-firm cooperation brings reduction in costs and risks, in addition to opportunity to pool knowledge and resources Davis, Robyn. “Social Capital Among Small Urban Enterprise in Asunción.” Employment Policy in an Open Economy: Paraguay . Joint Project CIS/CADEP Working Paper No. 10 Sept. 2006. pg. 10.

32. Paraguayan society is characterized by very low levels of anonymous trust, and alternatively high levels of specific trust (family, friends, neighbors). A 2004 Country Social Analysis suggests interpersonal trust in Paraguay is the 2 nd lowest in Latin America and the Caribbean While regionally 20% of people on average indicated having trust in most people, only 6% of Paraguayans claimed to have such trust 93% of Paraguayans feel they can trust those in their social networks (this is significantly higher than in other countries) Davis, Robyn. “Social Capital among Small Urban Enterprise in Asunción.” Employment Policy in an Open Economy: Paraguay. Joint Project CIS/CADEP Working Paper No. 10 Sept. 2006, pg. 11.

35. “ Money, says the proverb, makes money. When you have got a little, it is often easy to get more . The great difficulty is to get that little.” --Adam Smith