Making a difference one loan at a time

Mark Potter Correspondent • E-mail

APIA, Samoa - On a blustery and rainy morning, in the rustic village of Manunu, a traditional welcoming ceremony was in full swing. 

The Samoan chief and several of the village elders competed at full volume over who could lavish the most praise upon the honored guest. Nearby, women in bright green outfits worked diligently to prepare a sumptuous feast.

At the center of all the attention was a seemingly unlikely guest: A former Ford and Mazda auto executive in slacks and plaid shirt, kneeling uncomfortably on a woven mat, awaiting his chance to finally address the gathering.

He is s 42-year-old Greg Casagrande, a hard-charging American businessman, who eight years ago stepped off the corporate treadmill, vowing to devote the rest of his life to helping the poor. 

"My passion is working with underprivileged people, giving them meaningful opportunity," says  Casagrande. "I sincerely believe that by empowering the poor, we can eradicate poverty."

After moving his family to New Zealand, Casagrande began to search for a way to make a difference. 

Helping the poor help themselves
His brother, who worked at the World Bank, suggested he look into the economic principle known as microfinance, which was growing in popularity in developing countries.

Microfinance promotes giving small unsecured loans to the poor, who normally — with no collateral or business skills — would be denied credit.

The theory is that with just a small loan, and a bit of training, the poor can open their own small businesses, improve their health care and living conditions, educate their children and take control of their lives.

After reading books and studying the concept on the Internet, Casagrande was convinced he could use his extensive management skills honed in the auto industry to help people with the very least in life actually help themselves.

"There is no one who is more motivated to get out of poverty than that poor person, him or herself," he says.

Casagrande has ‘definitely made a difference.... He’s also flown the flag for the United States here in Samoa, in a very effective way.’ — Misa Telefoni Samoa deputy prime minister and finance minister

I’ll take Samoa
After searching for a place to begin, Casagrande settled on Samoa, a tiny independent nation in the South Pacific near the equator. It is only a short flight away from American Samoa, the U.S. territory.

With its mountainous coastline and lush tropical landscapes, Samoa appears at first glance to be the sort of island paradise framed in postcards.

But, economically, there are major problems. Wage-paying jobs are scarce; only 20 percent of the population can hope for paid employment. Many people live in abject poverty in rustic villages, sleeping in pebble-floor huts without running water.

Because Samoa is also a gentle and peaceful nation, it seemed the perfect place for Casagrande to open the South Pacific Business Development Foundation (SPBD), a not-for-profit loan company.

Much of the start-up money came from his own pocket.