Day 4 - Sonda and Un Techo Para Mi Pais

Each day brings something different and a new perspective on the successes and challenges that Chile faces.  Our first business visit of the day was to Sonda - one of Latin America's leading IT services providers with more than US$ 350 milion in sales per year.  We were hosted by Sr. Rodrigo Pena.  We were delighted to learn that he holds a Purdue MBA!

Sonda was founded in Chile in 1974 with 20 employees and one client - Copec, which is Chile's largest fuel retailer.  Now, Sonda employs more than 10,000 people in nine countries. It has operations in 95% of Latin American countries.  Its revenues for 2008 were US$758 million and it has a market capitilization of US$1.0 billion.  It became a publically traded company in November 2006.  Like many of the companies we have talked to, it is financially conservative.  It had no debt until 2005 and this has been a key competitive advantage against local competitors.

Sonda provides IT solutions across a wide range of industries and countries.  Some of their most interesting projects included a betting system on horse races a traffic control system in Santiago and Buenos Aires, modernization of the Chilean ID system, a livestock trackability project in Uruguay and Columbia, and an electronic payment system for the public transit in Santiago. 

On the way to lunch we came across this gentleman outside our restaurant.  He was sharpening knives and while we waited for the restaurant to open we saw a number of the chefs coming out to get their knives sharpened for the lunch and dinner meals.  I so wish that I could find someone like him - cooking is so much better with really sharp knives!

A few of us went to a very special restaurant "Como Agua Para Chocolate."  Do you remember that book?  It was a beautiful restaurant with excellent food and service.  We were seated next to a gently burbling fountain.  The food was excellent.  Hugh had a chicken that was flambed in brandy - interestingly, the chicken was flamboyently wrapped in foil and the lit liquor simply appeared to heat it. 

By FAR, the most special part of the meal was the chocolate fondue for dessert.  The chocolate was dark and rich and we were given fruit to dip into it. 

Our afternoon meeting was anticipated by many and it definitely did not disappoint.  We were hosted by Cecilia Dosal and Marisol Alarcon of Un Techo Para Mi Pais (UTPMP).  UTPMP is a non-profit organizatoin run by college students and young professional who construct transitional housing to lift people out of extreme poverty.  It was founded in 1997 as Un Techo Para Chile and began its expansion to other parts of Latin America in 2001. 

Poverty is an urgent reality in Latin America.  200 million people (38%) of people live in poverty in Latin America.  80 million of those (15%) live in extreme poverty - less than US$1.00 per day.

Their business model has three parts: 1) building of transitional homes, 2) social inclusion programs, and 3) building of sustainable communities.  The transitional homes are built in 2 days by teams of 8-10 volunteers per house.  The average cost to construct one of these houses is US$1,500, of which the families pay 10%. These houses are VERY basic.  They are built for families living in the slums who prior to getting one of these houses had no real protection.  The houses are simply a floor, walls, windows, a door, and a roof.  They include basic furniture such as beds and a table, but no running water or electricity.  These houses can last approximately 10 years.  UTPMP has built more than 43,000 houses since their inception and this year they will have built approximately 2,500 houses.  The houses are not the end of the project, but only the means to an end. The houses provide a channel to start working with families and building their trust. 

In Phase II (Social inclusion programs) UTPMP focuses on community organizing. Members of each family meet once a week with the support of two volunteers to set a road map identifying timeslines and priorities. This is important as it teaches the value of citizenship.  A second part of Phase II is the implimentation of social proramming including education, health programs, economic development and microcredit programs, legal aid, and cultural and recreational activities.  The aim of these programs is to reduce the families' vulnerability and exclusion with programs designed to empower.  The programs provide opportunities for people to take charge of their own development. Phase III is the development of sustainable communities.  In Chile, this means working with public housing.

It was heartening to learn the UTPMP's goal of eradicating poverty is now also a goal of the Chilean government!  Marisol, Cecilia, and their 200,000 volunteers were an amazing example of social enterprise in action!