Systems that work

Is it possible to create a sustainable system that works everywhere in the world? I am lucky enough to know two of them and recently I realized that they have striking resemblance.  They are Village saving and lending group (VSL) and Toastmasters (TM).

Since Muhammad Yunus’ winning of Nobel Peace Prize in 2006, the microcredit has been known to the world as panacea for the global poverty.  Surprisingly, yet there is no published study that proves it does lift people out of poverty. Still arguments are going on around this theme and people are wondering why Bangladesh, a country replete with microcredit, still remains poor.

For me, microcredit does work, but not for everybody. True, there are cases such as Kiva.org, in which people can directly lend entrepreneurs in the developing countries via internet and withdraw their loan whenever they wish. The repayment rate reaches almost 99%. The great success of Kiva entrepreneurs, however, is not in the money they receive but rather in the international attention and technical support. Actually these entrepreneurs are not there alone; all belong to local or international NGOs called microfinance institution (MFI) and receive constant guidance and supervision from them.  It means if these NGOs withdraw, the program will most likely to cease.

By nature, Microcredit demands engagement and commitment of outer institutions, making the system not so sustainable. If people do not succeed, in many occasions, that is because these MFIs did not provide proper support.  In fact there are numerous cases reported about people who wind up in more debt. Here in Colombia I’ve met many such people.

The village saving and lending program (VSL) is emerging as alternative for the problem caused by microcredit.  While in microcredit the loan usually comes from donors, in VSL there is no external monetary input except initial training.  A group of people (less than 20) save by themselves (0.5~2 dollars per week), accumulate asset and lend each other.  However insignificant it might seem, this money satisfies urgent needs, fosters solidarity and empowers people tremendously.  No negative impact has been detected from this methodology and it has been working equally well in Africa, Asia and Latin America for the last 20 years.  

The beauty of this program is in its impact in changing mindset of people; People start making decisions about their own lives and many invest money for education of their children or of themselves. They learn that dream is attainable as long as they make plan and make efforts. Here there is no need for the external agents constantly keeping eyes on. It works and multiplies by itself.

Toastmasters has much in common with saving groups.   They equally promote collective leadership, discipline, punctuality and respect for each other. Group saving helps people learn saving skills while Toastmasters help with speech skills. Both groups meet regularly and all members must contribute; In saving group people must save and in Toastmasters people must perform. Both keep rules and regulations agreed by members. In both groups, if you invest little, you end up reaping little, but if you put your time and passion, your constant growth is guaranteed.

In saving groups people help each other economically, and in Toastmasters with encouragement and advice.  In saving groups people become creative diversifying their income generating activities while in Toastmasters, people become creative to deliver their messages more effectively. Saving groups work well in many countries just like Toastmasters do. Saving group multiplies by itself mostly by people who believe in its value, so does Toastmasters. Both keep growing and spreading fast. Most importantly both groups help people appreciate others more and often produce lasting friendship.

I think the world is designed for people to be together and help each other. Alone, it is more difficult to grow.  I cheer and encourage all Toastmasters out there that you are in the right track for a constant growth.  Keep it up!

Everytime you take responsibility FOR someone,you take responsibility FROM them, creating dependency & weakening them. -Rick Warren

Truth Matters

A month ago I was in San Andres island where a youth conference was held under Colombian government’s program: prevention of teenage pregnancy. The conference started with a “cultural show”. A group of 20 teenage girls wearing glittering tight short pants and tank tops with belly buttons exposed, started dancing to Regueton. Regueton is a very popular music in Latin America with its violent, pornographic motions and lyrics. I was extremely uncomfortable and felt like leaving the place. I couldn’t believe that it was presented with the name of culture. That night I asked one of facilitators of the event how come such sensual dance could be allowed to present in front of the first lady and over 200 young participants. She said “I know. I think it is a bit too much, but it is the culture of this island. All cultures deserve some respect, no?” I became speechless.

In today’s society we are educated to be politically correct. We are taught to respect and treat all cultures on equal basis. But is that true? Lawrence Harrison said “Culture is a set of values and attitudes that guide the actions of individuals and the interaction of people within a society.” we should never swallow anything and everything uncritically.

Working in the development field for over 12 years, I am increasingly confident that what determines the state of development of a country is its culture. There is a culture we should wholeheartedly embrace but certainly there is a culture we must reject.

Colombia is by far the most exciting country I’ve ever been in. I was curious how a country blessed with vast territory, rich and fertile soil and brilliant people can be struggling against chronic poverty and insecurity. There are many factors combined but it is said that it has much to do with people’s acceptance to what’s happening around.

Among problems Colombia is facing, there are FARC & ELN guerrillas, paramilitaries, world 2^nd largest displaced population, narco trafficking, family disintegration, prostitution, drug addiction, kidnapping, bombing and schools to train paid murderers. What I found striking, in particular, is that there are parents who sell their daughters for prostitution in excuse of poverty. Also I heard about a mother who said to her son smoking marihuana that it is better that you do it at home not outside. It is widely accepted for married men to have extramarital relationships, thus the father’s day called El Día de Perro. I was told about a sicario, paid murderer, going to church to pray for the success prior to the job. As long as it promises quick and easy money, people do not mind, regardless it is morally, ethically sound or not. This constant lowering bar on ethical issues, I am sure, must have a lot to do with the current situation of Colombia.

Korea has gone through a different history.  Although Korean war left Korea one of the poorest countries in the world, we rose strong mostly because we had a great visionary leader who was committed to the long term development of country, and had strong support from good role models like US and Japan.

As the country gets affluent, however, South Korean started indulging in pleasures gradually throwing away long held moral values. We started considering our brothers and sisters in the North as nuisance and covered our eyes and ears about the famine and horror going on there. Even a group of sympathizers of North Korean regime rose in power in disguise of sunshine policy. We had two presidents who enthusiastically, secretly collaborated with evil Kim Jong Il. People didn’t mind it and even admired them because it was fashionable to be leftists. As long as the economy was fine, everything was OK. At some point North Korea was no longer our enemy.

Then, a month ago a South Korean ship sank attacked by the N.Korea and people were suddenly reminded that we were in truce, technically at war. All of sudden people are paying attention to what 20,000 North Korean defectors have been telling about what’s going on across the border and finally casting suspicious eyes to the inner enemies in the South.

Truth matters, not culture. Nothing is relative. There is clear division between what’s right and what’s wrong. If we deny the existence of evil, stop calling it evil and think everything is relative and conditional, evil will flourish. If we fail to stand against evil and stay indifferent and compromised, sooner or later we will be the victims. This is why we should be awake and constantly guard against what’s going on around us. We just cannot remain uninfluenced.

Poland has great legacy of serving the truth over the history producing a number of prominent figures, among whom John Paul II. I personally felt purified living in Poland and sincerely hope Poland will keep on moving its moral and spiritual bar higher and continue to inspire the world, which is getting increasingly lost in the politically correct relativism.    .