Wednesday, September 02, 2009

IIPM News - In debt of microcredit

There are a handful people in this world who invest their time and effort in transforming lives through selfless single-mindedness. One of them is the recipient of the prestigious Grameen Foundation Humanitarian Award (2009), Marshall Saunders, a key ally in the microfinance movement towards eradication of poverty. In an interview with Spriha Srivastava, Saunders talks about his Mohammed Yunus-inspired microcredit initiatives in Mexico

How did you get drawn to philanthropy and micro-finance?

In 1988, I took a seminar where I opened myself to letting myself think about things and being touched by circumstances of other people and the world… all that I had avoided before. It became essential for me to do whatever I could to help my fellow human beings. Microcredit seemed to be the most powerful idea that I could find, and so I threw my heart and soul into it for the next two decades.

How did you get associated with Md Yunus?

I read about Dr. Yunus in 1989 and thought that the idea he was writing about was the most powerful and exciting idea that I had ever heard of. I read everything that I could find about him and then one morning I called him. It was the beginning of a two-decade long friendship. I don’t see him much but he is one of my heroes.

How difficult is it to deal with people when it almost always requires changing their mindset and introducing them to something new?

I have interviewed women who told me that their husband would not allow them to take a loan. And I have spoken to men who told our staff to leave their wives alone. But once the woman begins to generate an income and help with expenses, it’s welcome by all members of the family. In Mexico, many of our borrowers have been abandoned by their husbands. And many of them have children and have never been married. They have been in a relationship which they call “free association”, which doesn’t seem to work very well for the women.

In regard to micro-finance, how is the situation in India different from other countries?

My work in India did not involve going to the field and meeting people. I spent only two days in rural India talking to the poor. Only one time did I go to the field in Andhra Pradesh, and though it’s bad enough in rural Mexico, the women I met there were poorer and seemingly in more desperate circumstances than the women in rural Mexico.

What kind of progress – in terms of people being open to the idea of micro-finance and efforts in eradication of poverty – have you seen in India? How does it compare with other countries?

It’s obvious to me by the success of the microcredit programs in India that the idea is well-received. I was also impressed by the educational level of the bank workers in the programs that I saw. Many had advanced degrees in economics, sociology and NGO Administration. In Mexico, “Grameen de la Frontera” can only find high school graduates for this kind of work. So I guess having a social conscience has penetrated to more young people in India than in Mexico.

How would you rate the current propensity for philanthropy?

I believe that “sensate” is a good word to describe the vast majority of people today who could be philanthropists, that is to say those who have substantial money with which they could make a contribution. Many are chasing after the latest and biggest house, car, vacation, sumptuous dinner, etc. Those are fleeting experiences and the real joy in life is in contribution and creating a just, peaceful and sustainable world.

You’ve been committed to this cause for 20 years. What keeps you motivated? What roadblocks have you encountered?

The thing that kept me motivated has been visiting the women who receive the loans. When the money is in her hands, she sees a new possibility for herself, and especially for her children. That inspires me. It hasn’t always been easy though. The difficulties have been with managing people and, of course, the occasional scare regarding whether or not we would have sufficient money to fulfill our loan obligations to the poor women who were counting on us.

Now, what kind of change do you dream to bring about?

Ahh. This is the last epoch of my life… I am 70 now! But I do expect to see a major shift in humanity. I expect that there will be a breakthrough of enormous proportions and we will begin to see ourselves as one. I am building a national and, hopefully, international network of citizen teams that will lobby to create the political will in our governments for a stable and sustainable climate. This includes empowering ordinary people like me to actively exercise our personal and political power. It’s called Citizens Climate Lobby. www.citizensclimatelobby.org

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative