Although well-organized microlending programs have experienced success in developing countries, I don't think similar success would be realized in most areas of the United States. One of the key factors of this is the fact that developed nations have well-developed economies, and the entry barriers for entreprenual companies are very high. If you think about the businesses that are the products of microloans, many of them are on a very small scale, and are grocery stores, restaurants/food-stands, or the owner sells their own hand-made crafts. This type of business is able to thrive in the lower developed nations, mostly because the market is not over-flowed with huge corporations or chain restaurants. On the other hand, in the United States, forum.belmont.edu states that for entreprenuer-based companies, "credible studies show success rates five years out...to be around 50% +/- 5%". It is important to note that many of the people in the United States that start their own companies are those that most likely have acheived a higher education, have experience in the given field, and have some sort of financial resources or other means of capital to serve as initial investment in their company. Microloaning, by definition, encompasses small amounts of money that are extended to applicants. Also, the aim of a program of this type is to alleviate poverty. In a country such as the United States, an impoverished person would most likely need a considerable loan to start a business and be successful, because the loan would serve as most, if not all, of the initial investment. Here, a microloan would not suffice because the materials, certifications, land, etc. would require a lot of financial capital, most likely not equitable to the amount of money a microloan would offer.
However, in the United States, although a microloan in its true form would not be efficient in starting a business, it would work to build credit. In this sense, it is possible that a microlending program in the United States would have similar success to a comprable program in a developing nation.
My trip to Belize confirmed my opinions of the potential success of microlending programs in the United States. For example, the grocery store that we helped to expand, although successful in Belize, would not survive in the United States. I think that many Americans would opt for a store like Wal-mart, for example, that would have lower prices, a wide variety of inventory, and more convenient locations. I do think that there are limited situations within the United States where microlending could experience success, but I feel like this would only occur in isolated areas of extreme poverty, such as Eastern Kentucky, where outside (but nearby) developed communities could extend support in the form of microloans. I feel like in this case, the impoverished areas of developed nations would be in similar conditions of developing countries, and microlending would work.
Although I have identified circumstances in which I think microlending could experience success in the United States, overall, I feel like there are too many institutional and social boundaries that would prevent the success of microlending programs.
Friday, March 19, 2010
Friday, March 12, 2010
Blog 4
Belize was not what I expected, but it was SO MUCH BETTER. Looking back on the trip, I am so glad that I got to experience what I did and if I could go back and replay that week I would without thinking twice. I had a lot of fun getting to know the rest of the team and experiencing the culture of Belize, and although I felt 100% prepared for the trip, there were many things that caught me off guard. I could have never predicted some of the things I saw and I wouldn't have been able to guess how I would react to them. Seeing many people living in such poor conditions, but truly being happy, made me think about how our society is so far away from what is really important in life. During our de-briefing, Jessica mentioned that many people probably don't realize that they are 'poor' and they have a less-than-desirable way of life until people come in and tell them that they need help making their life better. One of my favorite pictures of this trip was the little boy that was the son of the wood carver that applied for a loan. He was so happy playing with his pet quash in his yard, and despite the fact that his dad was applying for a microloan and his family was 'poor', he was so happy just to be able to play in his yard with his animal. So often so many kids are always demanding the latest and greatest and I think in the US we have lost sight of what is really important in life. Seeing people in Belize that were genuinely happy despite the fact that they didn't have a lot of money made me realize that in the grand scheme of things, the things that matter are nothing that money can buy.
As an economics major, there are many connections between my studies and the Belize trip. I have studied the works of Yunus in my International Trade and Finance class, and I was interested in the microfinance programs then. Seeing the process and the results of microfinance programs first-hand was so awesome. I love helping others, and being able to combine that with an area of economics that I'm interested in was such a great experience. I've been considering Microfinance or working with developing economies as my specialty, and the trip really furthered my interests in these areas. It was also really interesting to think about the concepts and theory that I had learned in my economics class and look at how they applied to things we were involved with in Belize. For example, when we went to the client's houses with Michelle and Ursuline, the qualities of a good loan candidate that Michelle and Ursuline had defined aligned with those that I had learned in my classes. Also, I thought about the relationship between Gross Domestic Product and the standard of living for the Belizeans, and I found it very interesting to compare Belmopan to San Pedro, and look at the effect that tourism has had on the country. It was so neat for me to be able to connect the things I learned in my classes back in Louisville to things I was experiencing first-hand in Belize. I'm hoping that I will have more opportunities to experience this in the future (a repeat Belizer...?) and I would love to pursue this as a potential career.
No words will ever be able to describe how I felt about this experience!! I'm very glad that I took the advice from past team members and brought a journal with me to write down what we did.
Monday, February 22, 2010
realizations
AND, WE LEAVE IN LESS THAN A WEEK FOR BELIZE. I FEEL LIKE THIS ISN'T EVEN REAL.
I'm so excited to go have this awesome experience!!!!!
I'm so excited to go have this awesome experience!!!!!
Blog 3
Growing up in a Roman Catholic family, I learned early on that Jesus urges his followers to lend a hand to the poor or less fortunate. Also, from a young age I have been told to "treat others how I want to be treated". It is from these two beliefs that I have been able to connect my service to my faith. I act in a way that is beneficial to others not because "it's the right thing to do, so I'm supposed to do it", but more often, it is because I have identified that the group of people is less fortunate, and because I have been blessed with more resources, whether or not it comes in the form of educational opportunities, financial security, physical health, a strong family background, etc, I should pass my good fortune along. In a sense, I would feel guilty if I was selfish with those things that I take for granted and am blessed with having, and not use them in a way that I can help others better themselves or improve their current situation. Through my faith, I have learned that helping the less fortunate is the morally right thing to do and because it is Jesus' will for people to help others, I participate in service activities.
It is here that the Microlending Project fits in. Clearly, the people we will be extending microloans to in Belize have not had the same opportunities that I have had. Because the people in Belize have not had the same advantages and resources that I have, I am in a position where I could potentially help them better themselves. It is important to note, though, that I don't 100% associate "bettering situations" with "making someone happier". Offering service and financial resources to someone may reduce stress, but to say it would make someone happier implies that they were not happy before. I feel that too often people mistake this and assume if people aren't as lucky someone else, then the 'less-fortunate' are automatically in a position where they can't be happy. For this reason, the Belize Microlending Project will allow me to provide service that coincides with my faith in that I will be able to help those people in need take a step toward bettering their lives (most likely through their socioeconomic status).
When thinking on this topic, I discussed the relationship of service and spirituality with Susanne, a spiritual advisor at my friend's Baptist church. I was interested to see if there was any variance between the relationship of service and spirituality in a Roman Catholic sense and that of a Baptist background. What I found was the two religions are essentially the same with their stance on religion and service, but Susanne was careful to note that "people can do good things without knowing God, but they do not have eternal value. Those good deeds have value on this earth, but works will not get you into heaven". This statement depicted a major difference to me. After this interview, I felt that Susanne placed more of an emphasis on the direct connection between God and service, and by identifying with God and by acting in a charitable way with God in mind, one can get to heaven. Here, Susanne led me to believe that if one is not identifying with God, but still does good things, they are not going to get into Heaven. On the other hand, I look at service more in a way of only doing God's will. Although the variation might be slight, I personally feel that someone that does not necessarily have to follow a faith or religion that has 'God' or 'Jesus' as the main deity, through good actions, they can still make it to their own form of heaven, if it even is different from my concept of Heaven. In her definition of service, Susanne defined service "as helping others, helping in the church and helping to further the kingdom of God". This definition caused me to think that I should try to look at service and faith in a broader sense, and not focused on a small, individual scale.
Susanne also referred to her 'calling' as something that directed her actions, and therefore her service. She said that "our relationship with God provides the impetus for us to serve" and "His Spirit directs and leads me to do those things that are important to God as long as I am listening to him". Although many, including myself, look at the relationship between service and faith in a different way, I feel like Susanne summed up the connection between the service and spirituality very well in these two statements.
It is here that the Microlending Project fits in. Clearly, the people we will be extending microloans to in Belize have not had the same opportunities that I have had. Because the people in Belize have not had the same advantages and resources that I have, I am in a position where I could potentially help them better themselves. It is important to note, though, that I don't 100% associate "bettering situations" with "making someone happier". Offering service and financial resources to someone may reduce stress, but to say it would make someone happier implies that they were not happy before. I feel that too often people mistake this and assume if people aren't as lucky someone else, then the 'less-fortunate' are automatically in a position where they can't be happy. For this reason, the Belize Microlending Project will allow me to provide service that coincides with my faith in that I will be able to help those people in need take a step toward bettering their lives (most likely through their socioeconomic status).
When thinking on this topic, I discussed the relationship of service and spirituality with Susanne, a spiritual advisor at my friend's Baptist church. I was interested to see if there was any variance between the relationship of service and spirituality in a Roman Catholic sense and that of a Baptist background. What I found was the two religions are essentially the same with their stance on religion and service, but Susanne was careful to note that "people can do good things without knowing God, but they do not have eternal value. Those good deeds have value on this earth, but works will not get you into heaven". This statement depicted a major difference to me. After this interview, I felt that Susanne placed more of an emphasis on the direct connection between God and service, and by identifying with God and by acting in a charitable way with God in mind, one can get to heaven. Here, Susanne led me to believe that if one is not identifying with God, but still does good things, they are not going to get into Heaven. On the other hand, I look at service more in a way of only doing God's will. Although the variation might be slight, I personally feel that someone that does not necessarily have to follow a faith or religion that has 'God' or 'Jesus' as the main deity, through good actions, they can still make it to their own form of heaven, if it even is different from my concept of Heaven. In her definition of service, Susanne defined service "as helping others, helping in the church and helping to further the kingdom of God". This definition caused me to think that I should try to look at service and faith in a broader sense, and not focused on a small, individual scale.
Susanne also referred to her 'calling' as something that directed her actions, and therefore her service. She said that "our relationship with God provides the impetus for us to serve" and "His Spirit directs and leads me to do those things that are important to God as long as I am listening to him". Although many, including myself, look at the relationship between service and faith in a different way, I feel like Susanne summed up the connection between the service and spirituality very well in these two statements.
Sunday, February 7, 2010
Blog 2
After reading more of Yunus' books, Creating a World Without Poverty and Banker to the Poor, I am starting to gain better understanding of Yunus' ingenuity and the uniqueness of the Grameen programs. I think that is is important that all anti-poverty programs lean from Grameen's success, and start to focus on creating a program to fit the people rather than trying to fit a person into an incompatible mold. For Yunus to start with only a concept and no previous banking experience and have the success he did is unbelievable. This should signal to people that it can be done and poverty can be eradicated. I had only brief knowledge of the extent of poverty and illiteracy rates in Bangladesh, and for Yunus to address both issues with his social business concept is amazing. I also found it interesting that Yunus puts such an emphasis on helping women in order to bring the Bangladeshis out of poverty. Also, I think that it was very beneficial to develop strict guidelines and criteria to define poverty, especially with such an overwhelming number of people that need help.
The excerpts from the book prompted me to think about if a Grameen-inspired program would experience similar success in areas of Kentucky, such as Appalachia, that are experiencing poverty on a large scale. After brief research, I found that some micro-credit programs do exist in Appalachia (arc.gov), but I had not heard of their methods or progress. We briefly discussed this topic in class, and I still believe that it would be harder to start a micro-credit program in an already developed nation and have it experience success comparable to that of the Grameen Programs. For this reason, I think that it would benefit other developing nations, such as those in Africa or Southeast Asia, to follow the Grameen structures, but on the other hand, a new plan should be applied to help those in already developed nations that are in poverty.
A quote of Yunus that I found interesting was in Creating a World Without Poverty, page 115: "I am opposed to giveaways and handouts. They take away initiative and responsibility from people. If people know that things can be received 'free', they tend to spend their energy and skill chasing the 'free' things rather than using the same energy and skill to accomplish things on their own. Handouts encourage dependence rather than self-help and confidence." This quote led me to believe that Yunus' ideology differ from philanthropy. Philanthropy is defined as 'altruistic concern for human welfare and advancement, usually manifested by donations of money, property, or work...'. Although Yunus' idea may have initially manifested itself as philanthropic, his new stresses on turning Grameen programs into social businesses have caused the programs to shift away from philanthropy. The programs needed some sort of philanthropy to get up and running, but because Yunus is intent on getting Grameen programs to a point of self-sufficiency, they are no longer reliant on donations, and therefore, philanthropy does not apply.
Service, on the other hand, still connects to Grameen programs. Two commonly used definitions of service include the use of service to describe a product, or output, of a company, and also, service can also be defined as an helpful activity, or aid. The first definition of 'service' clearly applies because a majority of Grameen programs provide services to people of the community. This would include, for example, Grameen Cybernet, Grameen Phone, and Grameen Telecom. The second definition of 'service' still apply because more fortunate people, such as graduating students, Yunus himself, and others that hold other occupations or social status, often help out with Grameen programs and other impoverished people. The Grameen ideas can be considered a 'self-help' service, because one of their biggest contributions is giving people in need the resources they need to help themselves.
The excerpts from the book prompted me to think about if a Grameen-inspired program would experience similar success in areas of Kentucky, such as Appalachia, that are experiencing poverty on a large scale. After brief research, I found that some micro-credit programs do exist in Appalachia (arc.gov), but I had not heard of their methods or progress. We briefly discussed this topic in class, and I still believe that it would be harder to start a micro-credit program in an already developed nation and have it experience success comparable to that of the Grameen Programs. For this reason, I think that it would benefit other developing nations, such as those in Africa or Southeast Asia, to follow the Grameen structures, but on the other hand, a new plan should be applied to help those in already developed nations that are in poverty.
A quote of Yunus that I found interesting was in Creating a World Without Poverty, page 115: "I am opposed to giveaways and handouts. They take away initiative and responsibility from people. If people know that things can be received 'free', they tend to spend their energy and skill chasing the 'free' things rather than using the same energy and skill to accomplish things on their own. Handouts encourage dependence rather than self-help and confidence." This quote led me to believe that Yunus' ideology differ from philanthropy. Philanthropy is defined as 'altruistic concern for human welfare and advancement, usually manifested by donations of money, property, or work...'. Although Yunus' idea may have initially manifested itself as philanthropic, his new stresses on turning Grameen programs into social businesses have caused the programs to shift away from philanthropy. The programs needed some sort of philanthropy to get up and running, but because Yunus is intent on getting Grameen programs to a point of self-sufficiency, they are no longer reliant on donations, and therefore, philanthropy does not apply.
Service, on the other hand, still connects to Grameen programs. Two commonly used definitions of service include the use of service to describe a product, or output, of a company, and also, service can also be defined as an helpful activity, or aid. The first definition of 'service' clearly applies because a majority of Grameen programs provide services to people of the community. This would include, for example, Grameen Cybernet, Grameen Phone, and Grameen Telecom. The second definition of 'service' still apply because more fortunate people, such as graduating students, Yunus himself, and others that hold other occupations or social status, often help out with Grameen programs and other impoverished people. The Grameen ideas can be considered a 'self-help' service, because one of their biggest contributions is giving people in need the resources they need to help themselves.
Wednesday, January 13, 2010
Anticipation!!!
After hearing everyone tell stories of their past experiences in Belize, I realized how different it will be than what I expected. Looking at the photo album made me realize that this experience is going to be awesome and unlike anything I've done before. The trip seems so surreal and I can't believe that in about a month and a half I'll be doing the things that the "Team Belize alums" were talking about. This trip can't come soon enough!!
Saturday, January 9, 2010
Blog 1
In this class, I would like to learn about the Belizean culture and also the history of the country. Currently, I don't know much about the country, but I love to travel and learn about other countries and their customs. I think this class will give me the opportunity to see Belize while learning about something that I am interested in - micro-finance programs. When on this trip, I want to gain experience with micro-finance programs at work, and also give the people of Belize the ability to help themselves. Although I have read about the success of micro-credit, I feel like the hands-on experience I will gain through this trip will be invaluable. Lastly, this semester, I want to be able to develop relationships with my classmates and instructors. Because the class comes from various backgrounds and areas of study, I think that we can learn a lot from each other and be able to understand things differently than what we normally would.
My main concern involves traveling in a large group. The largest group I have traveled with overseas has been with my family of 6 people. Also, I have allergies, so I am somewhat concerned that my allergies will flare up while on the trip. I don't want to get sick and have to spend the trip indoors! This is also my first service trip, so I think that seeing another country from this standpoint, rather than that of a tourist, will be interesting, but I am not quite sure what to expect.
Some questions I have include: Will we be able to contact our families when in Belize? What will happen in case of a medical emergency? How many micro-loans will we be funding and how many people will we be able to support/work with? When looking at years past, how does this trip compare with funding, people attending, time spent working with BEST, etc?
This year, I will be able to make a unique contribution to Team Belize. Being an Economics major, I have taken International Trade and Finance, where my teacher, Dr. Durso, stressed the writings of Muhammad Yunus and the success of the micro-credit programs through Grameen Bank. I also feel that I will be able to apply some of the concepts I have studied in my economics courses to the project and in turn get a greater experience from the trip. Also, I am a very hard worker and I enjoy helping people. Because I am considering Micro-finance as my specialization for my major, I am completely interested in this service learning trip, and I can't wait to get there!
I expect others to be equally devoted to this project and willing to work hard while keeping our purpose in mind. Although it will be awesome to experience the culture and sight-see, our first priority is to help the people of Belize help themselves. Also, everyone will have a unique point of view or opinion, so I hope that other Team Belize members are open to other's ideas as well as open to sharing their own.
My main concern involves traveling in a large group. The largest group I have traveled with overseas has been with my family of 6 people. Also, I have allergies, so I am somewhat concerned that my allergies will flare up while on the trip. I don't want to get sick and have to spend the trip indoors! This is also my first service trip, so I think that seeing another country from this standpoint, rather than that of a tourist, will be interesting, but I am not quite sure what to expect.
Some questions I have include: Will we be able to contact our families when in Belize? What will happen in case of a medical emergency? How many micro-loans will we be funding and how many people will we be able to support/work with? When looking at years past, how does this trip compare with funding, people attending, time spent working with BEST, etc?
This year, I will be able to make a unique contribution to Team Belize. Being an Economics major, I have taken International Trade and Finance, where my teacher, Dr. Durso, stressed the writings of Muhammad Yunus and the success of the micro-credit programs through Grameen Bank. I also feel that I will be able to apply some of the concepts I have studied in my economics courses to the project and in turn get a greater experience from the trip. Also, I am a very hard worker and I enjoy helping people. Because I am considering Micro-finance as my specialization for my major, I am completely interested in this service learning trip, and I can't wait to get there!
I expect others to be equally devoted to this project and willing to work hard while keeping our purpose in mind. Although it will be awesome to experience the culture and sight-see, our first priority is to help the people of Belize help themselves. Also, everyone will have a unique point of view or opinion, so I hope that other Team Belize members are open to other's ideas as well as open to sharing their own.
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