Gracious Liveswww.graceworksmyanmar.org.au

Joining Hands, Joining Hearts

Ka Yin Ma is a single mum with very little income supporting 4 children. She has nowhere to live, no assets, no education and no job. Sounds extraordinary. Not really. Ka Yin Ma is the face of millions of women throughout Burma.

In November 2009 her life changed forever, as she became the first recipient of a GraceWorks microfinance loan for $50. With this money she has purchased a pig (a valuable asset in Burma) and expanded her only source of income, gathering and chopping up fire wood. Receiving a loan has a much greater impact than the money alone would suggest.

The most dramatic effect is the empowerment of the recipient and their families to break out of their immediate poverty cycle. Research has also shown that, hope for a better future and increase in self esteem are the 2 most important aspects of receiving a loan for the individual. Over 90% of loans are to women. In poor communities they are generally the bread winner and carers of the

families. The repayment rate worldwide is approximately 95%. Poor people are very appreciative of the opportunity to receive a loan and are so committed to making a success of their new venture, they rarely miss a payment.

GW has a goal to reach the very poor communities. Our research has shown that the very poor are often missed by humanitarian aid and mission groups. This can be a result of location as some areas have military restrictions and are geographically difficult to access. Many of the very poor are so intimidated by the prospect of receiving a loan that they simply stay away from those providing the finance.

Over 76% of women in poor communities are illiterate and only 24% have completed more than 5 years of formal schooling. Almost half of the women have lost a child of under 2 years of age, an incidence which has far reaching traumatic implications for their mental and emotional health. Nearly all households live in highly congested one-room houses with an average family of seven members.

Poor no more...

GraceWorks Myanmar is a Christian based organisation and functions according to Christian principles and ethics.

2010, 1st Edition

From the Chairman’s DeskDear Friends,

The major focus of GW is “improve the quality of life and wellbeing of the people of Myanmar”. This focus is directed to the very poor including approximately 2000 orphan children under the care and support of GW children’s homes. This group of people is defined as having no income, no guarantee of one meal a day and in many cases no secure living arrangements. Further impacting their tenuous hold on life, they have no access to health care and education. A change in their environment such as a natural disaster or a shortage of rice can have a devastating impact on their ability to survive life at its most basic level.

We continue to direct our aid through a number of programs which are delivered through our local workers. Their efforts are supported by the many volunteers from Australia who so generously give of their time. This support is given through our Education programs which includes: teaching english, farm management, computer training, management seminars and preschool teaching.

A more recent challenge has been the emerging teenagers from our Children’s Homes who are now seeking careers or desire to start a small business through a microfinance loan. Much overseas aid is directed to an orphanage but little thought is given to the challenge of children growing up and maturing into young adults. This aspect of supporting an orphanage is often overlooked. Our commitment to our Children’s Homes is that GW will stay involved with the child until they reach adulthood. This is a minimum 20 year commitment.

Each time I visit Myanmar there seems to be many changes to be made or about to be made. However, progress is slow, none more so than the impending elections, which at the time of writing have still not been confirmed.

I am regularly asked if the elections will go ahead and what will happen if they do. The fact is nobody really knows. Trevor Wilson (our former Ambassador) has given an interesting perspective in this newsletter. GW will continue to visit and take teams despite rumours that visas will become more difficult to obtain closer to the election.

The last 6 months have seen GW develop in 2 new areas. The first is in community development which includes our microfinance program. The second is the establishment of a medical facility for Australian surgeons to practice in Myanmar. Both these initiatives will be long term projects and details are highlighted in separate articles. There has been an increase in our team travel, the highlight being Ballarat Grammar students who were also involved in a humanitarian project at one of our Children’s Homes. We encourage as many people as possible to make a trip, the experience of those who have been is well documented and universally acclaimed as an investment well spent. We now offer a unique opportunity for people to combine a relaxing tour to famous tourist locations, with a visit to various GW’s projects. This combination has been most appealing with some of our teams and has resulted in several making return trips.

Thank you to our many committed supporters who so generously give of their time to raise funds and visit our staff and projects in Myanmar.

Peter Simmons Chairman & Founder of GraceWorks Myanmar

Peter Simmons is an Associate Fellow of the Australian Institute of Management.

Continued page 2

Their existence is very vulnerable and their ability to access food and shelter is often a daily challenge. Any change to their immediate circumstance such as poor health or a natural disaster can have a devastating effect on their families. GW is currently expanding its microfinance into several different locations each one significantly different. There are two main types of loans. The first is a commercial loan which is requires an ongoing monthly payment. The second, is a rural loan. This loan is not paid back until the crop or fruit is sold, usually 6 months from the time the loan is received.

However microfinance is only part of the answer for the very poor. GW has invested in the development of a very poor rural village of 20,000 people.

Ka Yin Ma became the first member in this transformation of the village community through receiving a small thatch house. The community development is called Eva May Village.

GW has purchased several blocks of land and is currently negotiating for another 8 acres which includes several thatch houses. People in this village now have access to education through Eva May early childhood development centre, which includes 2 preschools and English lessons for adults. The GW medical program will be available for the community many of whom have never seen a doctor or received any medical care.

There is also a rice distribution program which will be reduced as people become self-sufficient through their own projects made accessible through microfinance loans.

This development is transforming a community. There is a new atmosphere over the village and the people have expressed that for the first time in their lives they have a future and hope particularly for their children.

Poverty is not about people. Children born in poverty have the same intelligence, same creativity and the same compassion as children born in the affluence of the West. They just don’t have the same opportunity.

Peter Simmons Chairman & Founder of GraceWorks Myanmar

Peter is currently studying his Masters in International and Community Development. He has just completed a paper on “Microfinance for Poverty Reduction”. If you would like a copy please email: info@graceworksmyanmar.org.au

Poor No More continued

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Ka Yin Ma & Glenys Davis

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GW has regular seminars on Management and Leadership in Yangon.

The most recent seminars included an “Introduction to Microfinance Development” and “Successful Leadership”.

The first seminar was presented by Peter Simmons (GW Chairman), Ron Carpenter (GW Treasurer) and Marco Stromberg (Focus Business School – Yangon and Sweden). GW has a networking relationship with FBS in which the students can have the opportunity to apply for a GW loan upon the completion of the course.

Subjects covered in the seminar included, the purpose and goals of microfinance and a practical session on how to apply for a loan. Delegates were shown how to design a business plan which is an essential aspect of the loan application.

A number of applications were presented at the completion of the days teaching and several delegates received approval for their loan.

The growth of microfinance has been overwhelming with applications greater than the available funds.

As the loans are being repaid new applications are being approved.

The “Successful Leadership” seminar was presented by Dr Ian Richardson the founder of Life Builders Inc. Melbourne.

Delegates included leaders from Churches, Businesses and Children’s Homes. The key focus of the teaching was on team building and working together in unity.

If you would like to know more about Life Builders please visit their website: www.lifebuilders.org.au or email: contact@lifebuilders.org.au

Life Builders has a networking relationship with GraceWorks.

GraceWorks seminars

Marco Stromberg

Team building exercise

This was my second trip to Myanmar and what a great time I had. Not only did I get to catch up with people I met last year, but I met new people and visited different orphanages and made new friends. I also had the pleasure of ‘teaching English’ in two GraceWorks summer schools and two GraceWorks orphanages. The school children learn English as a second language and most can read and write English but cannot speak it or understand the spoken word. They thought it was a privilege to have someone from Australia to teach them the spoken word. However the privilege was all mine. We had enthusiastic interaction as we learnt more about each other. They have great ambitions and learning English is an important step in their journey. We had a lot of fun trying to pronounce some of the English words. The younger children love to sing action songs and we had a great time singing the ‘hokey pokey’ and playing ‘Simon says’. They are bright children and picked up the concept of the games very easily. Books and flash cards were also very popular with the younger ones. In an adult women’s class we discussed

the differences between our cultures and the common areas and struggles in our lives. As women, we had a lot to talk about and there was a lot of laughter and frivolity. They have a desire to learn, most having little or no formal education and learning English is a great boost for their self-esteem. They also see it as an opportunity to help their children. I really admire their commitment to their families and their culture. I do not have any formal teacher training however I was able to help them with some grammar but mostly with pronunciation of words. Everyone from pre schoolers to adult were keen to learn how to speak and understand the spoken English language and I felt honoured to have been able to help in a small way.

My husband Gary and I also spent some time with a small orphanage of seven children called Victory Home. They are a poor orphanage and live in a room on

Personal reflection by Margaret True (GraceWorks Yarrawonga)

Margaret with her students

the seventh floor of a building (with no elevator). With donations and funds raised from sausage sizzles and market stalls we were able to purchase some essential items for them. The lady who cares for the children said that they were a poor orphanage but now they are a rich orphanage, yet we had only supplied items like bedding, crockery, cooking utensils, fans, cooker and a refrigerator. This small contribution has made a big difference to their lives. There are so many that need our help.

Gary and Margaret True are from Yarrawonga, Victoria. This was Gary’s third and Margaret’s second trip to Myanmar with GraceWorks.

Micro-finance development by Ron Carpenter

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Last year a church in Adelaide connected with an orphanage in Yangon and enabled them to purchase 36 acres of farm land. With some rudimentary farm equipment, some local labour and the advice and encouragement of a neighbouring orphanage farm, they laid out their first couple of paddy fields. In Australian dollars that land cost a little over $550 per acre, but it is good, productive land. When I visited them toward the end of last year I was very excited to be able see their first rice harvest come in.

That first heap of rice is a significant step forward. It’s a significant step for the orphanage, because after years of planning they have become partially self-supporting. It’s significant for the older children because some of them are getting experience in operating and maintaining machinery – pumps and cultivators. And it has made a difference in the local village near the farm property because there is a new employer in the district.

In the part of Australia that I come from, it seems that all of the good land (and even some of the not-so-good land) is under cultivation or being grazed by livestock, even though there’s often no sign of the people. In direct contrast, there are people to be seen everywhere in the districts around Yangon, but a surprising amount of land seems to be lying idle. The landlords are absentee and the potential workforce of casual day labourers is under-employed and living in dire poverty. So the six-monthly cycle of planting and harvest in that new orphanage farm will provide several days of extra employment for the day labourers in its local community. That’s good for everyone.

GraceWorks started off by meeting urgent and obvious needs in Myanmar,

especially amongst the children, and will always continue to provide support wherever and in whatever way it is needed. However, we have been very mindful of distance, cultural differences and limited resources, and so we have directed our effort toward partnerships with national people who are already doing everything they can with what little they have, and in providing resources to them. (Our partnerships are non-exclusive; these folk are encouraged to raise funds from whatever sources are available to them.) Rice to feed children, clean water and housing has always been a priority, but we can see now after several years the good and productive results that most of our partners have been able to achieve when we provided a well, a few cows or some farm equipment, or rent for a business enterprise.

We have always found our national partners to be honest and accountable with what we have provided to them. We have worked to establish relationships based on mutual love and care for children before committing substantial funds to partners, rather than just offering money, and this has proven a most successful approach. Some projects have been more successful than others, but we can have confidence that everyone has always given of their best. It is evident that some have more maturity and entrepreneurial flair than others, and we have fostered contact and networking so that good ideas and examples can be shared. So it was in that spirit that we conducted our first Micro-finance Seminar in Yangon last December.

The concept of micro-finance recognises that most people in third world countries are held back from earning a living by the absolute lack of even the smallest amount of the capital needed to start any sort of business enterprise. In Western countries it might represent the good clothes and the train fare needed to attend a job interview. Or it might be the apprentice’s first tool kit. For people in Myanmar it represents the first pig or hen, the first bag of seed rice or the first pump to raise water for the market garden. For one of our successful loan applicants, it is the simple style of packaging needed to make her home-made cookies more saleable at the local market.

We invited our friends and partners to an afternoon seminar to present these ideas to them. We spoke about talents and fruitfulness, and the principles of faithfulness in small things. We offered the opportunity over coming months to think of ideas and make business plans consistent with our organisation’s aims and apply to us for small loans. Repayment of loans will add to Gracework’s capacity over time to expand the scheme.

A Swedish businessman who has founded a business school in Yangon also spoke at the seminar. He has been disturbed by the number of young people leaving Myanmar to seek work elsewhere because of a perception of a lack of opportunity within the country. He used his prior business training to set up successful micro-finance schemes after Cyclone Nargis. His school is called Focus Business School which holds classes once a week on Saturday mornings, teaching basic principles of finance and budgeting in the local language.

GW has a networking agreement with FBS where students who excel in the school will be given priority to receive a loan from GW to start a business.

We have offered initial loans up to the equivalent of $US200. There are two types of loans, to suit different short term purposes. The agricultural loan has no progress payments, but is repaid in full plus a moderate interest charge at the end of the season. The commercial loan, on the other hand, is intended to assist trading efforts and is repayable in regular monthly installments over a 12 month period.

One immediate result of this seminar has been the establishment of a Credit Co-operative in a village not far outside Yangon. A board of management was quickly formed and was able to recommend a number of applicants for small loans – we approved 17 loans with an average loan amount around $US100. This promises to be a model of its kind. It is administered by senior villagers on the board who are not borrowers themselves, and has a typical loan profile for third world micro-finance operations – over 90% of our borrowers are single mothers. Most will buy a pig or some chickens, and we hope that it will be the start of their path toward some sort of financial independence.

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Delegates at work

GW Chairman Peter Simmons

GW treasurer Ron Carpenter at

the Microfinance seminar

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There are other exciting opportunities for financing community service initiatives in this way. In Myanmar, pharmacies can be run by a qualified nurse under licence to a doctor, and six or seven orphanage girls either qualified as nurses or will receive their qualification by March this year. Two new pharmacies have been started and we hope to raise finance to begin others. Careers open up for the older orphans and poorer communities get access to medicines and remedies they would otherwise have to travel distances to obtain.

Another initiative we would like to support in a greater way is co-operative farming. One of the orphanage projects that we have been associated with for a long time has developed a model farming operation, and the district they are in is suitable for market gardening. They are fortunate to have more land available than is required to support the 160 children in the orphanage and have developed sustainable farming methods which they are able to teach to others.

Their proposal is to invite a dozen local villagers to develop market gardens on 2 acre lots, gain an income from the produce and to be trained at the same time in farming methods they will be able to take with them later to sharefarm on larger holdings.

Starting up this project will require pumps, reticulation pipe, plants and trees – about $A1,000 each, borrowed over 2 years – but it will transform the lives of the families involved.

I am excited about this type of expansion of the GraceWorks vision, as I can foresee the snowballing effect as existing donations begin to be augmented by loan repayments which can in turn be lent on to others. We need to start small and establish good stewardship, but we have the potential to change lives and bring hope to people who currently live in unimaginable poverty. It’s the best form of investment.

Ron Carpenter is a GW board member and Treasurer. He has been instrumental in the launch of the microfinance project. He has been to Myanmar four times.

“...micro-finance recognises that most people in third world countries are held back from earning a living by the absolute lack of even the smallest amount of the capital needed to start any sort of business enterprise.”

EducationDr Kathryn Richardson (International Education Consultant, Melbourne University)

Jenny Webb (Teacher and GW board member)

Government Liaison – AustAidPeter Simmons (GW Chairman)

Jenny Webb (GW board member)

Leadership Training & DevelopmentDr Ian Richardson (Founder Life Builders Inc)

Peter Simmons (GW Chairman)

MedicalPeter Simmons (GW Chairman)

Trevor Wilson (Former Aust Ambassador to Burma)

Associate Professor Dr Bruce Conolly (St Lukes Hospital, NSW)

Dr Joyce Conolly (NSW)

Dr Judith Pau (GW board member)

In Yangon: Professor Dr Saw Simon

Microfinance DevelopmentSteve Polgar (Former National Bank Executive)

Stuart Maclean (I.T. Architect)

Ron Carpenter (GW treasurer and Business analyst)

Consultant Dr Sean Turnell (Economist, Macquarie University NSW)

Taxation Deductibility ApplicationLaura Simmons (Senior Project Officer, Govt Department)

Ron Carpenter (GW treasurer and Business analyst)

Gerri Koelma (Project Management, Community Sector, NSW)

If you would like to know more about the work of our subcommittees please email: info@graceworksmyanmar.org.au

Sub-committees at work

GW has the following of subcommittees working on various issues.

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Recommended Reading“Banker to the Poor”, Muhammad Yunnus

Sometimes life can seem just too hard and stressful. Family hassles, financial problems and a boss who just seems to want to make things unbearable.

Spare a thought for this man. He has no home, no income, no health care, no education for his children, no regular food and lives on this boat with his wife and 2 little children. In the rainy season they have little shelter (the roof falls in under the weight of the rain).

If he remains in these present living conditions he will probably lose his children before they reach teenage years through a sickness or disease. Feel like giving up now?!

Do you sometimes feel like giving up?

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A special gift Stuart Maclean an executive with IBM recently travelled to Myanmar with a GW team. A group of IBM employees from Managed Business Process Services raised funds for Stuart to distribute in a Children’s Home. The funds were used to purchased shoes.

Many children do not have shoes much less one pair they can call their own. This was a very special gift for the children in one of our GW orphanages.

The value of a small amount of our money has a profound effect on the lives of children who not only lack shoes but many of the other items we view as our right such as toothpaste, clothes, medical care and education.

A big thank you to Stuart and the staff at IBM.

James from Melbourne, his name sake was a member of our recent team trip to Yangon, and after nearly 5 years they met. It was a special moment, one that is etched in my mind as I watched two boys from incredibly different backgrounds come together as friends.

“I seldom end up where I wanted to go, but almost always end up where I need to be.”

– Anonymous

A number of years ago I met a small boy who had just arrived in one of our Children’s Homes. He was very sick and had no name and no family connections. GW arranged for specialist medical care which ultimately saved his life.

The leader of the orphanage asked me to name him, an incredible privilege. I named him James after a close family friend. He is now a vibrant, fun loving little boy dedicated to his school work and helping in the business of delivering water to raise money for his orphanage.

A great storyby Peter Simmons

Orphan children with their shoes

James and James

Wow, it was amazing how quick my memory of Myanmar returned, the kaleidoscope of smells, the flow of city traffic with its unwritten rules of engagement, the searing heat and humidity and the obvious contrasts with Australian life. Driving from the airport, my 15 year old son asked an observant question, “Dad, what’s up with the busses, they open onto the road, not the footpath?” That my son, is Myanmar, some things simply defy a logical explanation.

My son had been looking forward to the trip for a number of years. He had heard so much about Myanmar. My first trip was in 2002, my wife’s in 2003 and we have been involved with GraceWorks as a family ever since. This trip introduced James to Myanmar and allowed him to see first hand the impact GraceWorks is having on the lives of many children. For me it was an opportunity to catch up with old friends, to reconfirm the need to be involved and to observe the fruit from many labourers who have sacrificed time and money over the preceding years.

I observed in my son, the same emotional trauma and overwhelming sense of unbelief I had experienced in 2002 as he witnessed the living conditions of an orphanage in crisis. It was the nagging question that demands a response; “How can this be, somebody needs to do something about this?” that once again answered the question “why did we come here?” I call this “poverty shock”, it’s the emotional trauma of seeing first hand the reality of poverty and its impact on human life.

We, you and others can and should do something about it. The poverty, the injustice and the overwhelming need, it was still there, yet for me it was different the second time round. Visiting some of the orphanages that were initial recipients of GraceWorks support I observed the incredible improvement and transformation that they had achieved over the preceding years. Buildings had gone up, bunks and bedding standard, some had play equipment, education facilities, wells, running water from gravity fed systems. There were acres of farm land with their planted

crops, two cows had grown to sixty, goats and pigs increasing in number. Farming and animal husbandry skills that had been being taught and practiced were yielding results. It was amazing to see a couple of what are now considered model orphanages. They had started with next to nothing, now they are somewhat self sufficient. It was encouraging to see some of the children eight years older, to talk with them and see first hand how their lives had been impacted GraceWorks supporters.

I experienced less poverty shock this time and was able to better observe the impact of poverty, its relationship to culture and the way GraceWorks is empowering its recipients to overcome some of the associated cultural barriers.

A famous person once said that we will always have poor people with us. This is true. And upon seeing the desperate need of the poor one’s first response is to just jump in and give and seek to change the situation. This was my initial view and it is necessary in crisis situations, but unfortunately, as a long term solution it is short sighted. This trip I began to see that the strategic approach GraceWorks is taking through its microfinance loans

offers a transformational solution to the culture of poverty in Myanmar. It takes to heart the old adage, “Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime.” Microfinance provides an enabler that overcomes the short term fix. It produces initiative and self confidence. And the best part is that it benefits the whole community not just a single recipient. I was amazed to see the transformation of the Eva May community. The whole community benefited from a number of small loans to a few enterprising individuals. As individuals a transformed the community is transformed. I look forward the testimonies of lives and communities changed through microfinance support.

Returning to Australia, I’m challenged to keep the support fires burning. I hope you will be encouraged by my experience to engage with GraceWorks to support the people of Myanmar in any way you can.

Returning to Myanmar by Stuart Maclean

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Stuart and his son James

Joining hands, joining hearts – Stuart meets a Cyclone Nargis victim

GraceWorks fundraisingGW donation tins are now available for distribution. They are ideal for your home or office.

If you would like a tin please contact our office on (03) 8802 5490 or email info@graceworks myanmar.org.au

Don’t forget to visit the GraceWorks website at www.graceworksmyanmar.org.auAlso, let us know if you have heard the GraceWorks radio promotion on 89.9 Light FM

Guest speaker Dr Ian Richardson

Refuge children singing at our annual meeting

Don’t keep it a secret – tell others about GraceWorks!You might know about the life changing work of GW among the orphans of Myanmar but do your friends, family members, and work or colleagues?

A GW representative can change that by visiting your Church, Service Club, School, Community Group or any other organisation to which you belong.

You can arrange an interesting and informative GW presentation by contacting our office on (03) 8802 5490 or email info@graceworksmyanmar.org.au

GW annual meetingWhen: Sunday October 17th 2010.Time: 2.30pmLocation: Maroondah City Church, 320 Wonga Road, Warranwood, Melbourne, Victoria 3134

GW Golf DayWhen: Monday 21st February 2011Location: Ringwood Golf Club, Canterbury Road, Ringwood, Melbourne

Registration forms can be downloaded from our web page.

GraceWorks joins FacebookGraceWorks is now on Facebook. You will be able to post any questions about GW on the Facebook wall.

We will endeavour to answer all questions on a daily basis. Weekly updates will keep you informed of GW activities both here in Australia and in Myanmar. If you do not have a Facebook listing you will need to join by going to: www.facebook.com

The GW Facebook site will have a link to the GW web page. If you would like to know more about our Facebook site please contact Linda Subotsch on the following email address: lindasub22@yahoo.com.au

Fast factsDid you know that GraceWorks:• Supports approximately

2000 orphan children

• Partners in 2 farming projects

• Has 2 major microfinance programs

• Has 3 preschools

• Is establishing an Education faculty in Yangon to teach local teachers

• Is establishing a Medical faculty in Yangon where Australian Doctors can operate and train local doctors

• Has over 600 supporters in Australia

• Has 2 English learning centres and computer schools

• Has a fashion centre which includes a sewing school

• Conducts regular management and leadership seminars

WebsiteThe new GraceWorks website is now complete. Please take the time to read through the information particularly relating to projects and travel requirements.

We have added a new page titled “Current News” to keep you up to date with all that’s happening at GraceWorks both in Australia and Myanmar. Our website address is: www.graceworksmyanmar.org.au

If you have any queries regarding our website or wish to have information added to the site please contact Joel Roberts via the following email address: roberts89@gmail.com

or

I would like to make a donation today: $25 $50 $100 $250 Other $

You can donate direct debit to GraceWorks Account: BSB 083 132 Account No: 57–084–3050Bank: National Australia Bank – Blackburn, Victoria

I have enclosed a cheque / money order or please debit my: Mastercard Visa

Card no.: / :etad yripxE :erutangis s’redlohdraC

Title: First Name: Surname:

Address:

Postcode:

:enohpeleT:liamE

Please send me more information about:Becoming a volunteer Leaving a bequest in my will to GraceWorks

Donation SlipPlease return to:

GraceWorks MyanmarP.O. Box 245, Blackburn, Victoria, 3130 Telephone (03) 8802 5490Fax (03) 9873 5031

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