Foreign Service Officer: ORAL ASSESSMENT STUDY GUIDE

The Embassy of the United States of America
Asima, Kuman
MEMORANDUM
TO:
FROM:
SUBJECT:
Members of the Working Group on Special Projects
USAID Office Manger – Todd Kowalski
Micro-Credit Project (K8)
Unfortunately, USAID Director Myra Saxgelt will not be able to attend your meeting today due
to a family emergency. She asked me to pass on to you information on a project proposed by Dr.
Fawaz al-Otaibi, President al-Kurbi’s adviser on nomadic affairs. Myra considers this proposal
important for economic and social development throughout Kuman and, thus, worthy of full
funding.
Using the model of the Grameen Bank in Bangladesh, Dr. al-Otaibi has developed a plan to
establish a micro-credit institution in Kuman to provide would-be entrepreneurs with small loans
(limited to $500 per client but usually much less) and with essential training in how to run small
businesses. The most likely borrowers would establish small-scale trading or agricultural
ventures, but there is potential for the service sector. Dr. al-Otaibi believes that a micro-credit
institution will provide economic opportunities for a significant number of low income Kumanis,
including nomads who have limited or no access to loans from existing credit institutions. Once
free to cross national borders with their caravans and herds of camels and goats, Kuman’s
nomads are now a marginalized group beset by poverty, ill health, and lack of education. (Please
note that President al-Kurbi’s grandfather was a nomad.)
The total cost of the project is $355,000. The Government will provide $100,000 to cover all
initial loans made, plus $60,000 for renovation of offices operated by the new credit facility in
Asima and the four other Kumani cities and towns of any size. Kuman's leading economic
development NGO, Dar al-Khalil, has no money to contribute but will advise the credit
institution on which entrepreneurial projects to finance and will help train the loan recipients.
The Government is asking us to provide the remaining $195,000: (1) $70,000 for the salary and
living expenses of a Grameen Bank micro-credit expert to remain in Kuman for one year to help
establish the new facility and train its staff; (2) $50,000 to cover travel and expenses for 10
members of the facility’s staff to participate in internships at the Grameen Bank; (3) $45,000 for