MAKING A DIFFERENCE by F.K. Day 
MICROFINANCE: THE TWO-EDGED SWORD OF CREDIT 
There are no "silver bullets" in the fight on global poverty, just many tools that can be used to assist committed individuals find a way out. Just as a bicycle is a tool, so are microfinance instruments, or small loans made to individuals to enable economic development. Like any tool it must be used correctly to be effective.

The sword's edge that helps
World Bicycle Relief has partnered with Zambian-based microfinance bank HARMOS to pilot a 1,000-bicycle loan program specifically aimed at offering bicycles with a 3-6 month payback period. When a person purchases a bicycle, it has the immediate impact of both making money and saving money. Riding vs. walking increases productivity, which enables them to have more time to work and reduces the amount of money they spend on transportation.

The success of this phenomenon is that the microfinance pilot program -- which was to last a full year -- began in January and sold out by mid-April, with an over-97 percent payback rate. HARMOS has accelerated the program and placed a second order for 2,000 more bikes. This is how the microfinance sword's positive "edge" provides the spark for an economic engine.

The sword's edge that hurts
Poor-performing assets paid for with credit steal profitability and can drive a person out of business. Inventory does not equal wealth.

In a recent microfinance seminar we held for our Master Mechanics in Zambia, I was encouraged by their view and ideas on the business opportunities available to them with access to credit. Through some simple cash-flow exercises we found that some of the ideas had a good return on investment (ROI) and some ideas were flat-out money-losing propositions.

Our breakthrough with the Mechanics was illuminating the difference between accumulation of assets on credit versus a profitable business. This new understanding helped them see how to use credit carefully to ensure they were maximizing their profitability. This was just one more step toward transferring the business knowledge that will allow credit to help instead of hurt.

No silver bullets
Access to capital and transportation are two of the primary tools required for economic sustainability and growth, in both developed and developing countries. We are enabling these tools to reach some of Zambia's poorest people. None of this works without the commitment and integrity of the recipient and appropriate assistance and training where needed. When this is all brought together, great things can happen.


FROM THE FIELD  by Joe Mundaindwa, as told to Leah Missbach Day
'I CALL IT A VEHICLE'
It is April 24, 2008 in Chongwe, Zambia, and Joe Mundaindwa wants another bicycle. Three months prior, Joe was one of the first people to take out a bicycle loan with HARMOS, the microfinance bank. He has been a customer with HARMOS for over a year already, starting as a borrower in a group in which five members are responsible for each other's loan. Previously, Joe worked for the Zambian Government as a prison officer for twenty years. He left his Government position to try his hand as a businessman. His group's first loan was for $75 each, and was used to grow a vegetable business. Due to his excellent payback history, Joe is now able to get a loan on his own. He chose transport as the next step.

In Joe's own words:
"When I had no transport, it was very difficult for me, I was not able to do my business better. You know, when you sell vegetables, the vegetables can easily perish because they are fresh. You cannot carry enough on your head, of course, selling vegetables. So, I found that getting a bicycle for growing my business because I could easily go - pass through door-to-door, sell my vegetables. Yes.

"So now, when I found out my business was a bit expanding, I decided I should change to get goats, buying and selling, because these bicycles are very durable. They're very strong and have to move in the rough places where stones are and even deeper places. They have very good brakes. They're not dangerous. It could carry two goats at one time, the big ones. And this gave me a lot of good money. My business went that way.

"Me particularly, right now I am very busy going out in the villages buying goats.  As you saw, my bicycle, I have a carrier. And each time I go in the bush I come back from the villages, I have myself two goats. When I gather about ten or fifteen goats here, I phone some people - my customers. They come on bike to this house here.

"The other bicycle is for my wife, Catherine. She started also riding the bicycle. This time, she is able to go door-to-door with our tomatoes when I am busy with the buying of goats. She does a job in the market too, by selling vegetables now and then, because people rush for roughage. She has okra. They like okra. And she brought in some onions.

"[The bicycle] it's one of my very big assets. And I make sure I use it very proper. If I misuse this bicycle, I don't have another transport. Actually I don't call it a bicycle; I call it a vehicle.

"I am very happy about the ability to buy the HARMOS bicycle. I wish this program went already all over Zambia, because people, they could get assisted, you know, in making their businesses."




DEVELOPMENT UPDATE  by Jill Reid, VP of Development
BREAK IT DOWN

New Donation option online
Do you want to donate to World Bicycle Relief but need to break your donation down into monthly payments? Now you can set up recurring payments on your credit card from our online donation page. You have flexibility on the form to select how often you want to make payments and how much you want either your total donation or incremental donation to be. For example, you can select to have $20 taken charged to your card every month for a year - the total would be $240 or just over two bikes. Please contact Jill Reid at +1.312.664.3604 if you have any questions. 

First Quarter 2008 Fundraising Update
You, our World Bicycle Relief donors, raised just over $300,000 in the first quarter of 2008. Thank you! Most of this funding is from individual or small group efforts. Please continue to spread the word as we near the end of our goal of distributing 23,000 bicycles to help those affected by HIV/ AIDS in Zambia! 


GRASSROOTS ROUNDUP by Stephen Janes
MOVIE SHOWING DRAWS SUPPORT IN NC
What is better than eating pizza and drinking great beer, freshly brewed at the local micro-brewery? Eating pizza, drinking beer, and watching an intriguing documentary about a 24-hour mountain bike racer. That is exactly what happened on Thursday night, May 29, in Asheville, N.C.

Asheville Pizza and Brewing Co. hosted a benefit for World Bicycle Relief as we presented a one-time viewing of 24 Solo. The movie follows 24-hour solo World Champion (and friend of World Bicycle Relief) Chris Eatough of Team Trek/VW on his quest to win a seventh-consecutive title. Shot in high def, this rare glimpse into the personal life of the sport's most successful 24-hour racer is a roller coaster of energy and emotion. The film balances action and feeling with commentary from the biggest names in mountain biking including Gary Fisher, John Stamstad, Hans Rey, John Tomac, Alison Dunlap, Ned Overend and others, and is cut to a powerful soundtrack crafted by the award-winning Off Road to Athens composer Haik Naltchayan. From resounding victories in China and Wisconsin to his tumultuous training and the final race, viewers have an unprecedented glimpse into the intense "machine" that is Eatough and his support crew. The film's dramatic conclusion leaves one racer victorious and one hospitalized with severe blood poisoning.

We had a great showing of people, most of whom walked home with a door prize. The prizes were donated by several local shops, including Liberty Bicycles, Bio-Wheels, Youngblood Bicycles, and Black Dome. Three lucky people also went home with a copy of 24 Solo, autographed by none other than Chris Eatough himself.

Special thanks goes to the Asheville Mountain Sports Festival, which jumped on board to help sponsor the showing. 

It's easy to get involved as a Team World Bicycle Relief member. Volunteer opportunities are available in the Upcoming Events listing to the right, or contact us to learn how you can work within your own community. We'd love to hear from you!


NATURE UNLEASHED FEATURES TSUNAMI PHOTO 
The Field Museum in Chicago just launched its latest exhibition, titled "Nature Unleashed: Inside Natural Disasters." The exhibition is a captivating exploration of natural disasters and their effects on our world. "Nature Unleashed" takes an in-depth look at tornadoes, earthquakes, hurricanes and volcanoes.

Featured in the exhibit is a beautiful photo taken in Sri Lanka by World Bicycle Relief's own Leah Missbach Day. The Field Museum will host the exhibit through January 4, 2009, after which it will tour throughout the country. Leah's photo is near the end of the exhibition, along with several other photos depicting hope in the face of extreme devastation. The exhibition can be explored online at www.fieldmuseum.org and the photo can be viewed at www.fieldmuseum.org/natureunleashed/ndandyou.asp. (Click the picture of the little boy for the complete photo and more information.)


TECH NOTES  by Craig DeAmbrose, Product Manager
THE SIMPLE POWER OF THE RACK 
A rack or carrier may not be essential for the movement of a bicycle, but it is an absolutely critical element for people in developing nations. A rack transforms a bicycle from a simple machine into a cargo-carrying utilitarian wonder. The possibilities for use are endless:

• Taking little sister to school
• Bringing home cooking charcoal for the week
• Taking your sick child to the doctor
• Delivering medication and care to those in need
• Bringing your goods to market

All these situations and more become possible or much easier with a bicycle that is equipped with a strong, appropriate rack.

Because the racks on our bicycles get used every day, they have to be very strong. After examining different racks from various manufacturers we decided that we had to design our own as none had anywhere near the capacity or robustness that we were looking for - these racks routinely carry 150 lbs. or more. When inspecting our rack you will notice that it has heavy-duty 3/4 in. tubing for its main frame, compared to the stamped steel that is standard on most bikes in Africa. In addition, 1 in.-wide, 13-gauge steel cross supports provide a cargo area that is 8 in x 14 in. This design is simple, strong and adaptable to a wide variety of uses.

As one community leader in the Western Province told us as he examined our rack: "When all the other parts on this bike are gone, this carrier will find a new life on another bike."

June-August: Pubs Against Poverty cross-country ride, Westport, Wash. to Atlantic Beach, N.Y.

June 21: Starlight Spectacular, Colorado Springs, Colo.

June 22: The Power of Bicycles reception, Evanston, Ill.

June 28: Mycles Cycles Ride, Georgetown, Ohio

August 2-3: 24 Hours of 9 Mile, 24 Hour National Championships, Wausau, Wis.

Hosting a World Bicycle Relief event? Please let us know! 

The Power at Home

Sunday, May 25 saw the transformation of Chicago's Lake Shore Drive into a cycling paradise, as 18,000 riders took over the boulevard and rode along the magnificent Lake Michigan shoreline.

World Bicycle Relief was on hand, with riders on the Drive and volunteers speaking to participants at the Expo.


Passers-by definitely noticed the World Bicycle Relief bicycles on display.

A very special thank you to our Chicago-area volunteers who helped out, telling everyone about The Power of Bicycles!




By the end of the day, a couple hundred people passed through the World Bicycle Relief area.

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SRAM's Asia Development Center in Taiwan passed along this photo; they have installed a collection location and information kiosk at the entrance to the facility. Thank you!