One of the great things I’ve found about staying on the HQ side of things is that my day to day experiences may not be “as exciting” (read: I’m in Ottawa) but I do have the fortune to attend fantastic events.
The International Development Research Centre is 40 years old this year and are holding a year-long anniversary celebration. While most people face a mountain full of “Over the Hill mugs” and surprise parties at their 40th, IDRC is running a lecture series. Yesterday I got to see Mohammed Yunis, of Grameen Bank or Nobel Prize fame.
He is an incredibly engaging speaker that inspires many to work for social change. His views on the banking industry are spot on and he has incredible vision for the world of business and industry. I was however left questioning a few things.
A few questions from the audience were left unanswered. The first being: Was there any backlash from some elements of the community against the bank? Yunis talked at length about Loan Sharking, and how that activity drew him to develop an alternative method of loans for the poor. However once loans could be obtained from a safe, less invasive source, what happened to the loan sharks? I have not managed to find any information on this but I’d be interested to find out whether this happened – and if so how was it mediated. Secondly, the money was put primarily in the hands of women who had never had the opportunity to control finances before. This is incredibly empowering, but must have been equally disempowering for men. What was done to address any backlash in the community regarding this? Nowadays if an organisation employs gender mainstreaming into its programming, women’s empowerment projects such as microfinance would include an element of engagement with men, so that threat is reduced. However, was this done initially?
The second question was regarding the role of Cooperatives in microfinance. The answer was essentially – yeah I guess there is a role there – which is not incorrect. I was disappointed in this because so much time was spent explaining many elements of the bank and of Yunis’ Social Business model, but an opportunity to highlight what I can see is an important tool to further empower and develop communities was not highlighted as well. So much of the presentation was about teaching, and I felt an opportunity was lost.
Major questions, such as how does Microfinance and Social Business account for economies of scale. Essentially, how do you make sure you are not flooding the market with tailors rather than building industry? Moreover, how does your goal of “cutting out the middle man” (he uses the example of Shea butter and L’Oreal) affect price inflation in a state? Finally, Yunis has, what seems like an interesting take on welfare systems in western states. It comes across as if he believes that they are a system to be abused and that they can be replaced with social business and microcredit. If this is the case I would be interested in hearing what his views are on safety nets for those who are in between jobs, or those with mental illness.
The lecture was still fantastic and microfinance has still revolutionised economic recovery programming. Definitely worth a viewing. All of the lectures in the series are recorded and can be found here.
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