Uncle, important: take pics showing the relative wealth of the kamis...

Jim March

Jim March

Knifemaker / Craftsman / Service Provider
Joined
Oct 7, 1998
Messages
3,022
There's a reason for this for beyond "bragging rights". I know one of the things bothering you is your inability to help the *whole* country.

I think you may have missed something: you have become an expert on 3rd-world economic development! You have more practical experience in that area than any dozen Universities worth of professors.

It's got to be possible to use that expertise, get some individual-scale venture capitol cash freed up stateside maybe. I'm not talking about you, Pala or HI doing more than you'd do regardless, I'm thinking more along the lines of documenting the HI business model and real-world effects on a sub-site under the HI website, and getting it noticed among economic development agencies and similar.

Does this sound anything like practical?

What would be REALLY effective would be to funnel small-scale venture capitol bux through Pala and Gelbu into non-kami/sarki related businesses. Either one could spot almost immediately somebody who had strong potential in something like a pottery business, or transport or whatever and could make recommendations to foreign investors unfamiliar with local conditions. It'd have to be a "sideline" of course, or they could find some other familiy member to take this on who isn't already tied up in HI business.

Then again, I could be "full of it" because of potential difficulties in getting cash in and out of Nepal.

Still, if it were possible...hmmm...I wonder how many forumites would be willing to kick $100 into such a "development pool"? Me, for one. Pala then manages loans of $100 to $300 to set people up in business...? The new businessmen pay Pala off in Nepal with modest interest, and then Pala/Gelbu keeps track of each investor's running total, to be paid off in future blades which we know we can get OUT of Nepal much easier than cash?

Does this sound crazy? "Micro venture capitol" is well understood elsewhere, it's been tried in India and Bangladesh with great results. One oddity: they get better results loaning to WOMEN than men, take that for what it's worth but this is a fairly universal result. Still, if Pala/Gelbu or somebody they choose as "fund manager" are hand-picking candidates with known reputations, that might make for more of a difference than gender.

COMMENTS WELCOME. I'm just brainstorming here...but...this would seem to have potential?

Jim
 
Pix are done.

We already have a crazy sort of college scholarship fund for kami kids. They work part time and go to college part time.

The micro business idea is a proven winner and I think we might be able to get something going.

More on this when I return and thanks, Jim.

Blessings from all of us in Nepal.

------------------
Uncle Bill
Himalayan Imports Website
Khukuri FAQ

 
Kewl. No need to think heavy on it now, except that while you're running around with a camera in Nepal, *document* the living standards of your kamis and others connected with HI. That's the one piece of the puzzle you can't accomplish from stateside...

Jim
 
Jim that sounds like a great idea. I think that I oculd manage a small investment towards it. I would like to see more than kukhris come out of nepal with the quality of HI. You have just had a marvelous idea.

------------------
"Clear a path for the Kukhri or it will clear one for itself"
 
Mr. March / Uncle Bill: This is an excellent idea, especially if you could find other saleable, but genuine and unique Nepali items to import. I probably could micro-invest in something like this. Think on it.

G. Bass
 
I recommend *against* trying to form microbusinesses that export product out of Nepal. Any such thing would be too involved, plus you'd need to develop an overseas market and distribution system OR divert Bill's resources in ways we can't afford.

Here's a simplified example of what I'm proposing, using one investor and one microloan:

Investor gives Pala $50. Remember that porter Bill met, who hauls 88lbs 3 miles for peanuts? Pala buys him a bicycle for $50. The dude doubles his loads and hauls 'em three times faster. A year later, him and his family are a lot better off, he pays Pala $60. Pala keeps two for bookkeeping and tells the investor they've now got $58 in "Khukuribux". Investor says "Cool", orders a 15" AK worth $130, pays $72.

The value comes out of Nepal in Khukuris or other HI product (swords, etc). Why? Because we KNOW WE CAN.
smile.gif
We know we've got the market lined up, we've got the shipping, etc.

Pala has the advantage of having cash in hand *before* shipping a blade, an improvement over his usual cash flow of "ship blade, collect from Bill later".

However, to do this right we do NOT link an individual investor to a particular loan. It's a pool. We'd need a spreadsheet set up to track and calculate the following:

1) Who paid what in, and when.

2) Amount going in/out in loans, and when.

3) Total pool value growth.

4) Individual investment value based on how long your money has been in.

Gelbu could EMail Bill a copy of the spreadsheet every quarter, for distribution to the investors.

People would need to commit to a minimum investment length, at least a year I guess, maybe more for the early players so we build up a good pool quickly.

If an investor needed cash instead of an HI product, you could always sell your shares at a bit below current value right here on the forum.

British investment houses were doing calculations a lot more complex than this 300 years ago. With a modern spreadsheet program, no sweat.

Waddya guys think? Is this or something like it doable?

Jim
 
Jim,
This sounds like a great idea! The economics for us are very minor, but to a Nepali, could mean all of the difference in the world. A loan of $50 or $100 could really turn someone's life around in a country where the per-capita income is only $150! This seems to be another win-win situation if we can successfully manage it. I don't have a lot (any) 'spare' cash, but this would be something worth sacrificing other things for. The opportunity to bless others with our prosperity would be nice. On such a small scale as this, we can be assured that the money is not being sucked into some big government machine. I pray that this idea comes to fruition. Keep up the good work and brain-storming.

Sincerely,

Rob

------------------
Nothing soothes the nerves like a sharp knife in hand...
 
Errr...two problems:

Bill and Pala, if you opened a "First International Bank of Khukuri" (
smile.gif
) do you have safe storage for the cash? If Pala becomes known as "that guy that spreads US bux all over Kathmandu", I don't care how low the crime rate is, he just became a target.

More importantly...if Pala ends up "putting a good face on personal-scale capitalism", well, them thar Maoists ain't gonna be happy. Under their sick ideology, Pala just made himself "public enemy #1". The Shining Path in Peru pulled crap like that.

This has to be thought out. If it's at all possible for Pala, Gelbu and maybe a few other key people to score gun permits, I'd recommend it. Heck, I'd recommend it no matter what happens with any type of "bank biz"; BirGhorka is turning into a sizable business on it's own, some of these security issues may already be problems.

Jim
 
Jim,

Excellent idea, count me in! What a rare opportunity to do some good. And we know that the people handling the money will actually get it where it is supposed to go---not always the case with some charity org.s .

Rob
 
For the record: *none* of this falls into the category of "charity". Everybody *gains*, it's true capitalism.

Pala collects a small "banking fee" plus gets faster cash turnaround on some sales. The borrowers get a bootstrap, and we get quite respectable returns on investment.

By pulling the "value" out of Nepal in Khukuris, we dodge most tariff problems. If we tried to pull the value out in gold, silver or currency we get a whole pile of "government problems" we don't need. The fact that Bill and Pala have already worked out a way to pull Nepalese value out of Nepal is what makes this whole thing at least plausible, although there's still things to be worked out. Like security, which can only be plotted out in Nepal.

I would also urge Bill *not* to give special discounts to investors paying all or part in Khukuribux. We'll already be getting extra value kicked in via Nepalese labor over time.

Long term, charity is a bad idea. This is a lot better for all concerned.

Jim
 
:
I'm in if it flies.

------------------
>>>>---¥vsa---->®

"Know your own bone, gnaw at it, bury it, unearth it again."

'Thoreau'

Khukuri FAQ
 
Cool thought: I'm working for UC Berkeley right now. I could probably line up an Economics grad student to write the spreadsheet plus maybe do a thesis on "A unique microbusiness direct investment scheme for knife knuts".

The tracking spreadsheet would be fairly complex. The fund's rate of value increase won't be absolutely steady; a default now and again would produce blips. This would get reflected in an investor's payout based on exactly when they joined and when they cashed out.

There IS risk to the investors. Pala should be able to pick good prospects BUT a natural disaster in Kathmandu could hurt a lot of repayments at once, fr'instance. Not too likely though.

I gotta go study what interest rates the successful microloan systems use. It might be fairly high, up into the 20%/yr range; if the loan is done right and you have an immediate major impact on somebody's income potential, that's not a problem and it insulates the system from the few defaults you'll get.

It's all a fun what-if game right now and Bill, I hope you realize I'm just having fun speculating - please don't take this as "pressure" of any sort. I realize there's potential problems.

Jim
 
VERY interesting ideas flowing here. Looking forward to hearing Bill's reactions/idea to further this thread. The basic idea is sound and it seems like there is enough expertise on our end to make it fly.

Rick
 
If Bill and Pala think this is worth their time and energy, they can count on me.
 
Right, that's one of MANY things that could shoot it down. Too much time spent by Pala/Gelbu/??? is another, security needs thinking about...banks have vaults for a REASON. It's a dead certainty we've missed something(s).

(Can the kamis forge a SAFE!?
biggrin.gif
)

It's all a cool concept but if it don't fly, we won't cry
smile.gif
.

Jim
 
They do have banks in Kathmandu, and I'm sure HI has an account somewhere. They wouldn't need to keep lots of cash on premises.
 
Right, I figured as much...but what about distribution? The people getting the loans aren't going to be able to cash checks?

Jim
 
You must log in or register to reply here.
Back
Top