Even jogging up my six floor walk-up in New York could not prepare me for how winded I become walking up one flight of stairs here in Cusco. At 3326 meters (over 11,000 feet), the altitude and thus lower level of oxygen in this city perched in the Andes Mountains takes some serious acclimation. I have fortunately not become physically sick, as do some, but have endured some intense exhaustion and headaches, which is partially helped by the local remedy, mate de coca (coca leaf tea). Even so, my first week here in Peru has been vigorous and exciting, and I’m looking forward to an eye-opening and adventurous winter/summer.
I arrived in Lima early Monday morning, and soon went to the Innovations for Poverty Action (IPA) office to meet my new colleagues, and to immediately begin to learn about how IPA conducts its various studies here in Peru. The day also included a delectable ceviche lunch and sushi dinner. The seafood in Lima is incredibly fresh and wonderfully prepared; Peru’s large Japanese and Chinese populations have left a distinctive mark on its cuisine. The next morning Dan (from IPA) and I headed out on a morning flight to Cusco, which provided a stellar aerial view of snow-capped Andes Mountain peaks, as well as the Sacred Valley and Cusco city.
During my first few full days here in Cusco, I have spent most of my time with Dan and Giordano, who is managing the interest rate study with Arariwa, an organization that does microfinance as well as other community projects in the department (i.e. state) of Cusco. IPA is currently in the pilot phase of its project to examine how interest rates affect demand and impact of credit among poor households, and has partnered with Arariwa in order to conduct the study. Arariwa is embarking upon a major expansion of microfinance services into new and more rural areas of Cusco, and so this provides an excellent opportunity to survey households before and after access to credit, and at different rates. The entire expansion area was first divided into randomization zones, which were then divided into control and two types of treatment groups: one to receive offers of credit at low interest rates, and the other at higher interest rates. We are currently completing the initial household surveys in the pilot areas, and during the summer Arariwa will begin to open new banks in these areas, following the guidelines we have given them regarding treatment and control groups. My work this summer with Giordano will involve finishing this initial survey process and data entry, as well as coordinating with Arariwa and the loan officers to ensure that the study guidelines are being followed throughout their expansion process.
Most exciting so far was my opportunity to attend a Banco Comunal (village bank) meeting in the Sacred Valley community of Yanahuara. I was warned that we would be served breakfast which would of course be rude to refuse, and that it would likely include red meat – something I have not eaten for about 12 years. I prepared myself to suck it up and at least eat a bit of it, at the risk of my stomach punishing me later. I was slightly worried when I walked in to see several cuy (guinea pigs – a local delicacy) running around the dirt floor. But I lucked out – it was fish. So I happily ate trout and rice for breakfast with the socios of the San Isidro de Yahahuara Banco, while watching the community bank members conduct their monthly business of reviewing the bank methodology and repaying principal and interest on loans to Arariwa. As is typical in microfinance, most of the members of this 21-person bank are women. They walk up to the table one at a time, for all to see, repaying the soles that they owe as the transactions are recorded by hand in a notebook. In a mix of Quechua and Spanish, they then negotiate how to allocate funds that some place into the communal savings bank and which will then be loaned out to others. We had the opportunity to speak a bit with the bank members at the end, and I asked them if and how their life had changed since joining the bank. Several members chimed in to explain that their lives had improved and that before, banks in the city had required a land title or other forms of collateral that they could not provide. 
I’ve spent the last few days trying to soak up as much of the information that is coming at me as possible, so that I can make the most – in terms of both my own learning, and my contribution to the project – of the next two and half months here in Cusco. Between the Quechua names, my rusty Spanish, and adjusting to the altitude, all while being thrown into a new project - my brain is feeling a bit saturated! But I think the IPA folks did a good job of placing me on this project, and with someone who posseses a complimentary skill set. I will have the opportunity to learn some data management and statistical programming from him, while I will be able to help out with my project management and organizational experience. I’m happy about my choice to spend the summer here and look forward to reading the posts on others’ adventures on this blog!
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