American businessman, Greg Casagrande, founder and president of the South Pacific Business Development Foundation (SPBD) in Samoa has a decision to make: who should he hire to be the next general manager of SPBD, when the contract of his current general manager ends in January 2005. Should he hire a local Samoan or a palegi, a foreigner? Casagrande founded the SPBD, a microfinance institution (MFI) providing financial services to poor people, in January 2000. He hired a Samoan with an MBA from the US to be his general manager. Nine months later Casagrande discovered that the general manager was engaging in a variety of fraudulent activities, as were some of his staff. Casagrande was forced to leave his home in New Zealand to fly to Samoa to step in directly. He instituted a number of reforms, including the decision to lend to women only. Casagrande's reforms put the SPBD back on track and, in 2002, he hired Minh Lai, a Vietnamese-Canadian investment banker, to become the general manager. Lai built on Casagrande's reforms, expanded the client base, and introduced new products, including a savings product. But questions still remained. Was SPBD having its intended impact on the lives of its women clients? Would SPBD reach its goal of financial self-sufficiency by 2006? HKS Case Number 1804.0

In 2003, Minh Lai, manager of the South Pacific Business Development Foundation (SPBD), a nonprofit microfinance institution providing financial services to women in Samoa, made a decision to lend to fa'afafines after several asked whether SPBD would lend to them. Fa'afafines are biologically men, but dress and behave like women. How boys become fa'afafines varies. It may be a matter of choice by a boy to take on a female role or it may be a role that they are raised to play by a family that has no or few daughters and needs someone to carry out female tasks within the household: cooking, cleaning, and washing. HKS Case Number 1805.0