Accounting and Program Audit Team
Log # 3
By: Sally Ren
Each week in class we have lectures and each lecture there are
different topics to be covered. How the class works is we have
different teams that work on the main objective, which is to
improve and further advance the GLOBE initiative. Then we have
class where we learn about the different aspects of microfinance in
hopes that we get inspired and we can incorporate what we have
learned to our group tasks. This week the topic discussed was on
ethics.
In all of my business classes there have been discussions about
ethics. Ethics is something that is very important not just for
businesses but also for life. Ethics should be essential for a not
for profit company. However most of the time human nature gets in
the way and greed takes over.
In the case of microfinance the balance of ethics is thrown off
when the banks charge high interest or activities that we would
consider suspicious especially when it comes to the poor. The
reason why the banks might get away with this is because the people
whom are in poverty still need that money. Now this creates a huge
issue because people will see that as something negative that is a
result of microfinance. This sometimes will weigh more in the minds
of the people than all the positives that come from
microfinance.
I think for Dr. Sama to give this lecture was very important
because as students we should be exposed to all different angles of
microfinance. Also personally for myself, I understand why anyone
would have negative thoughts of microfinance after this lecture.
Prior to this class I knew that microfinance would help the poor by
giving them small loans with which they could start their business.
But like everything else, nothing is perfect. So those individuals
or organizations that take advantage of the poor exist because they
do exactly what Muhammad Yunus says “The concept of socially
responsible business is built on good intentions. But some
corporate leaders misuse the concept to produce selfish benefits
for their companies. Their philosophy: Make as much money as you
can, even if you exploit the poor to do so – but then donate a tiny
portion of the profits for social causes or create a foundation to
do things that will promote your business interest. And then be
sure to publicize how generous you are!” This is very true
and equally upsetting. Poor ethics happen because regulations of
certain areas are limited. How can you control corrupt business
when the government for example is corrupt?
Issues would be solved if people weren’t selfish and could
visualize the bigger picture. In this case tons of people would be
eradicated from poverty. To the people who are not directly
involved a solution is often time easily seen but the challenge is
the journey to get there.
Finance and Risk Assessment Team
Log # 3
By: Daniel O’Boyle
The class this week discussed a topic, which to this point I was
not aware existed in the realm of microfinance. We discussed
the ethics of microfinance, and whether the industry on the whole
was helping or hindering poverty relief. Prior to this class,
I would have never questioned the fact that microfinance is helpful
in relieving poverty.
I am still relatively new to microfinance, but thus far, I had
heard nothing but good things. I thought that I was a part of
something that was universally guaranteed to help those living in
poverty. Therefore, I was immediately concerned and
interested in hearing how people could possibly claim negative
effects of the work of microfinance. This lecture was a good
way to help remove the “rose colored glasses” with which I had been
viewing microfinance.
I have now learned that there are those who express concerns with
the way that microfinance is structured. I have also
discovered that I may in fact agree in part with some of these
concerns. It is important to keep in mind that the leaders in
microfinance have never expressed the belief that the emerging
industry is the sole panacea for the problems of all of the
impoverished peoples of the world. One of the leading
arguments that microfinance is not the ultimate solution to help
people move out of poverty is the idea that microfinance only helps
the “well-off poor.” The foundation for this belief is that
it only benefits those with education and access to certain
resources. At first glance, this may make sense because most
of these loans are used to start businesses. When I hear the
phrase “start a business,” before this class, I would have imagined
all of the complexities and costs that could be encountered with
starting a Fortune 500 multinational corporation. It turns
out that many of our borrowers have a more realistic approach to
building businesses than I do. Many of the best microfinance
endeavors have been when the borrower was an artisan or a
baker. These are businesses that require more passion and
dedication than conventional education. In addition, many
MFIs provide some sort of training to their borrowers, which will
help their business be better equipped to succeed and pay their
loans back.
Microfinance is designed to help those that want to help
themselves. It is not simply a handout, rather it is an
opportunity.
The discovery of problems in microfinance has been an essential
part in leading me to form and maintain a well-informed opinion on
microfinance. I would not be able to play an effective role
in the industry if I neglected to acknowledge troubles and focused
solely on the positive work that can be accomplished through
microfinance. These problems have done the opposite of
discouraging me. I am now more eager to help improve the
perception of microfinance, as well as the actions of the
MFIS.
Marketing and Fundraising Team
Log # 3
By: Tiffany Yeung
This week in GLOBE we learned about the Jamii Bora Bank. The Jamii
Bora Bank is a commercial bank located in Kenya, it is the largest
microfinance institution in Kenya. The word Jamii Bora
translates to good families in Swahili. The mission of the Jamii
Bora Bank is to assist their members out of poverty and build a
better life for themselves and their families. The Jamii Bora Bank
relates closely to what we stand for in GLOBE. What makes the Jamii
Bora Bank unique is the way they give out their loans. In order to
receive a loan from the Jamii Bora Bank, a borrower must first save
up half the amount that they want to borrow. By doing so, borrowers
learn how to save/conserve money and become more self-sufficient.
This is a great way for Jamii Bora to decrease their default rates
since the borrowers already have some money saved up that they
could use to pay back.
After learning about the Jamii Bora Bank, professor Sama showed us
a video of a woman named Joyce who benefited from the Jamii Bora
Bank. Before borrowing money from the Jamii Bora Bank Joyce was
living in poverty and had close to nothing to her name. With the
help of Jamii Bora Joyce was able to open her own restaurant,
employ 62 people, feed those less fortunate in her community, and
became an inspiration to others. One thing that really stuck out to
me was when Dr. Sama said that Joyce considered herself wealthy.
Although she is not wealthy in our eyes or in our country, she
considers herself wealthy compared to those around her and what she
used to have. It made me reconsider what the word wealthy really
meant to me and society as a whole. As Americans we take so much
that we have for granted. If we are not living extravagantly or
over the top we are not considered “wealthy”, but people like Joyce
who are so humble have a much deeper appreciation for life and what
she has even if it’s minimalistic to us. After hearing about
Joyce’s inspirational story it made me rethink how privileged I am
to have an education and an opportunity to make something of
myself. I know that Joyce’s story will be one of the many
inspirational stories I learn about in GLOBE. I hope that I will
have the opportunity to help someone in need like Joyce in the
future so that their story can be an inspiration to someone
else.
Technology and Communications Team
Log # 3
By: Patrick Diamitani
A very inspiring professor told me recently that if I combined time
management with organization, it could bode well for me with my
potential. I greatly appreciated that and it has since led me to
think about a quote that has been reoccurring more and more
within my collective life theme: “luck=preparation + opportunity.”
Keeping the emphasis on preparation, but not forgetting the
opportunity, it then brings me again to a quote one of my uncle’s
mentioned at a family function: “a true business man will see an
opportunity and take it without needing prompting.” All of these
attributes and scenarios; preparation, time management,
opportunity, organization; they occur when someone has the focus of
mind to take words of wisdom such as this and apply it to their
lives.
But not everyone has this luxury. You’re 31 years old, but you feel
like 50. You have 3 kids and you should’ve had a 4th but he died
from what should’ve been a treatable ailment. You live with no
water, little food and a makeshift property that’s half mud, half
stone, and worth less money than a midwestern farmer’s pigpen. You
live in the worst of poverty, you have no clear vision of hope, let
alone opportunity, and it takes all of your energy to not give up
hope and die. Where is the “luck” there? Or has it abandoned the
love for our pleading brother and instead took up vacation with our
“classier” friends out west? Does the world and all of it’s
advantages find no mercy for those who live barely above dirt, only
to go back 6 feet below? Do our politics and our fancy words
condemning the use of our country’s money to help prevent a death
on a plot of land a further distance away from your own blind us
from seeing the distraught eyes and the faces yearning for hope?
Does the greed of man evoke so powerful a presence in the men and
women whose nations need charity the most that only an ironical
fate would serve the reality of those who are victimized by the
authorities that can break down the veils of oppression? Or maybe,
we do want to help, men and women, boys and girls, dictators,
presidents and assemblypersons. But maybe, just maybe, the
real problem is not our lack of caring, our self-righteousness or
our corrupt governments; maybe, the true issue is that we’ve come
to think of poverty as an academic issue. We’ve distanced ourselves
with the “burden” of easing it’s pain and we’ve thrown ourselves
into the midst of small donations of time or money that doesn’t
inconvenience ourselves when all a person living in poverty really
needs is a foundation to build on, relief from their debts, the
weight and pressure of food, shelter and health for their families
lifting on their shoulders, a kind smile, a motivational nudge but
most of all guidance and structure to embark on a path they have
never dreamed of going on, a life, where they are free. A life
where they are like you and me.
I think that we make poverty too textbook. I think the real
solution is to take every instance of poverty as it is, a
case-by-case scenario, which can be helped by our knowledge,
experiences and even mistakes. But most importantly, with our love
to delve our whole lives into the efforts, knowing that the person
next to us has the heart to do the same if we’re brave enough to
take the next step. I’ll make no mistake, I’m not that man of
shining courage embracing the journey of truly finding a world
without poverty, full of joy, peace, acceptance and forgiveness
(because the last two will be the only ways we can truly erase
poverty, unleash stereotypes, put down our weapons and anger and
come together), but maybe, just maybe, if I pray long and hard
about it, I’ll dip my toe in the water, and that will make the
world jump in.
That’s my log, so good night. When you’re head hits the pillow, be
grateful.