Microlending programs in a developed nation, such as the United States, are meant to work essentially the same as programs in a developing nation. As Yunus points out in Banker to the Poor, there is a substantial number of low-income individuals who can benefit from a microloan here in the United States. However, the way an entrepreneur develops his or her business with a microloan in Belize is much different than the way a loan recipient would develop a business in the United States. For example, the American entrepreneurs Yunus mentions in Banker to the Poor all operate their businesses out of their homes. In Belize, it is extremely plausible for a microloan to pay for the construction of a new building from which to operate a new business. In the U.S., constructing a building from which to run a business would require much more capital than a microloan would be able to provide.
Another key difference between microlending in a developing nation and in the United States is the level of competition experienced by entrepreneurs. Big business has become so dominant in the United States that it has become increasingly more challenging for a small business to prosper. For example, an entrepreneur who receives a microloan in the U.S. to start his or her own business, whether it be selling food or making clothes, will face tremendous competition from already well established businesses that can sell essentially the same product at a very low cost. In Belize, an entrepreneur beginning a business will face some competition, however, they are not competing against corporations that are the caliber of a Wal-Mart or similar company.
In conclusion, mircolending programs can succeed in the United States, as there are a number of successful impoverished individuals who have received microcredit. I believe it is much more difficult to have success in the United States than in Belize, but it can still be done.
Monday, March 22, 2010
Monday, March 15, 2010
Entry 4: career aspirations
As a finance major, microlending in Belize directly fits into my field of study. Seeing microlending in action on two trips to Belize has been nothing short of inspiring; I will never forget these experiences or the important lessons that they have taught me. I am still undecided on a career at this point, but after being involved with microlending in Belize, I know that ultimately I would like my career to be centered on helping people. I do not know what the future has in store for me, but I plan to use my degree to help others who have not been blessed in the same ways that I have. I still have two years to decide upon a specific career, but I have a feeling I could end up working for a not for profit organization. Working for a nonprofit would allow me to get personal satisfaction from my career in a way that will be beneficial to others. The selected readings from Rich Christians in an Age of Hunger really got me thinking about how ultimately we should all strive to shy away from a lavishing lifestyle in order to do good for others. The readings focused on the true, but often neglected idea that in the end, we cannot take anything with us when we leave this world. Currently, I do not give this idea enough thought, but when it comes time for me to select a career I am optimistic that I will have my experiences from Belize in the back of my mind to steer me in the right direction.
Monday, February 22, 2010
Entry 3: Thoughts on Service
Coming from a family with strong Catholic beliefs, service has always been an integral aspect of my faith. I realize that I am extremely lucky to have been born into such a comfortable environment and given every opportunity to succeed in life. Because of these opportunities that have been presented to me, I feel it is truly my responsibility and the responsibility of the more fortunate to give as much help to people in life situations they have absolutely no control over. I feel that lending help to those in need is one of the most important things I can do with my life. It is my duty to provide support for those who have not been given the blessings that I frequently take for granted.
The Belize microlending project fits in perfectly with my beliefs. By being involved in the project I believe that I am making an enormous difference in the lives of the loan recipients. I view microcredit as a slightly different kind of service than what I would normally consider. Because the loans are to be repaid, microcredit acts differently than charity; however, one can easily see that through the high success rates of microlending that this project helps loan recipients more than if they were just simply given a donation. Improving the livelihood of the loan recipients is the ultimate goal with this project, and I believe that goal has and will continue to be accomplished. Microlending in Belize is a particularly unique project because it allows us to help those who we would normally not have the opportunity of reaching.
The Belize microlending project fits in perfectly with my beliefs. By being involved in the project I believe that I am making an enormous difference in the lives of the loan recipients. I view microcredit as a slightly different kind of service than what I would normally consider. Because the loans are to be repaid, microcredit acts differently than charity; however, one can easily see that through the high success rates of microlending that this project helps loan recipients more than if they were just simply given a donation. Improving the livelihood of the loan recipients is the ultimate goal with this project, and I believe that goal has and will continue to be accomplished. Microlending in Belize is a particularly unique project because it allows us to help those who we would normally not have the opportunity of reaching.
Monday, February 8, 2010
Entry 2: Responding to Yunus
Yunus’ groundbreaking concept of lending small loans to the poor has been extremely successful in the fight to eradicate poverty. Yunus’ passion for helping the poor has been nothing short of inspiring. His resilience stood out the most to me as he never stopped when faced with tremendous adversity. Because he never gave up in the process of establishing Grameen Bank, millions of families have been helped via microcredit. It amazes me that this one idea has been able to reach so many people across the globe from micro-credit projects influenced by what Muhammad Yunus began in Bangladesh.
I believe Yunus’ ideology is somewhat connected between both philanthropy and service. Microlending can be looked at as a philanthropic act because its purpose is to promote human welfare. However, when I look at the term philanthropy I also think of a gift of charity or a donation. Micro-credit is definitely not in the same category as charitable giving or donations because the funds dispersed are to be paid back, with interest. The idea behind micro-credit is summed up with the Chinese proverb: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” I can see microlending as separate from service because it helps people by providing them capital to be used for income generating businesses. Loan recipients must work extremely hard to get business moving, and, in the end, their failure or success rests on their shoulders. However, to begin a replication program I would say that it does require service from those working behind the scenes to get the program up and running.
I concur with Yunus that the predicament with charitable giving is that there are “billions of dollars for Third World development, but none for dozens of good micro-credit programs” (p. 163). While there is nothing wrong with aid being sent to Third World countries, more support needs to be shown for the organizations that will help to “end poverty for many and reduce its severity for others” (p. 171).
I believe Yunus’ ideology is somewhat connected between both philanthropy and service. Microlending can be looked at as a philanthropic act because its purpose is to promote human welfare. However, when I look at the term philanthropy I also think of a gift of charity or a donation. Micro-credit is definitely not in the same category as charitable giving or donations because the funds dispersed are to be paid back, with interest. The idea behind micro-credit is summed up with the Chinese proverb: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” I can see microlending as separate from service because it helps people by providing them capital to be used for income generating businesses. Loan recipients must work extremely hard to get business moving, and, in the end, their failure or success rests on their shoulders. However, to begin a replication program I would say that it does require service from those working behind the scenes to get the program up and running.
I concur with Yunus that the predicament with charitable giving is that there are “billions of dollars for Third World development, but none for dozens of good micro-credit programs” (p. 163). While there is nothing wrong with aid being sent to Third World countries, more support needs to be shown for the organizations that will help to “end poverty for many and reduce its severity for others” (p. 171).
Monday, January 11, 2010
entry 1
I am very excited for this year’s excursion to Belize and to form the same bonds with this year’s group that I had with the ’09 crew. This year’s experience will be unique from last year’s because of the classroom setup behind Team Belize 2010. I am confident that the course will allow each participant a wonderful opportunity to discover how microcredit can eradicate poverty by encouraging entrepreneurship. I am also certain that prior to our spring break voyage we will all have a good sense of the country, the culture, and its citizens. On the trip, I am hopeful that we will be able to visit with some of the loan recipients from the past year. I believe seeing what one recipient has been able to accomplish with their loan will prove to be inspiring to the group. Meeting new clients is another aspect of the trip I am particularly looking forward to. One of my favorite experiences from last year was getting in the hands on work that was extremely helpful to a new client.
Because this is my second year of working with team Belize, I bring my past Belizean experience to the table. For those that have not been, I can be an excellent source of information in regard to the country itself or the microlending process. My strong work ethic and compatible demeanor will prove to be essential qualities within the group. I am hopeful that we will quickly be able to establish the camaraderie that was shared amongst last year’s team, so that when it is time to go on the trip we will already feel connected to the group.
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