Blog 5

Microlending in the United States vs developing country...

Personally I do not believe this type of program would have the same success in the United States like it has had in Belize and other developing countries. And if it did, it would not last nearly as long or be nearly as effective.

Many poor people in the US have brought it upon themselves as lazy individuals, to be in the position they are in. Of course there are also many poor people in the US that have had unfortunate circumstances. They may not have had the resources in their family upbringing, or someone to guide them in the right direction for success. However, in the grand scheme of things this is a major issue when talking about microlending in the United States. It seemed to me like the poor Belizean people were responsible and committed to working hard to pay back their loans, and I feel like some people in the US would try to cheat the system. The microlending program would not be successful in my opinion also, because there is such a vast population to try and reach those that really need, deserve, and are responsible enough to carry through with a business. There are always going to be someone that goes against the rules.

People in the US seem much more greedy than those of developing countries. We would demand more structure and discipline from the clients and it would not be as personal. Belize has a well-organized program, but it is not as nearly as complicated as the US would make it. Yunnus' wanted this program to be passed with a simple hand-shake and he wanted it to be personalized, but if the US were to start up the program it would have an entirely different composition. We would want more and more from the clients and the program and there would be higher standards for the clients. It would not be personal because they would want the program to expand and we would compete with those around us. There comes a time when they will lose the meaning and purpose behind the program and be too focused on the profit/money. There probably would not be a system that filters the loans back into the program.
Also, it is much harder to survive or thrive in a business here than in a developing country because there is more competition. In Belize, we saw much more of a need for small businesses that were individually owned because there is not as much development.
The US is so developed that it would be too hard for someone to start a business and be successful. There is not a demand for small shops because we are surrounded by a variety and a surplus of shops. It is not like Belize where you have a shop every now and then...we have too many shops to keep track of, with the same shop 5 minutes away from the next. The grocery store that we built for the woman and her family was the only one around for a couple miles maybe.
The US doesn't know how to be personal in a good way the majority of the time. They know how to be personal when they want money...and that's why this program in the US would fail.