> Posted by Val Ng
The Weissberg professorship in international studies at Beloit College was established in 1999 to provide a one-week on-campus residency each year for an individual who has made an important contribution to international understanding. It is designed to enrich the global perspective at Beloit College and allows for an extended period of exchange and interaction with respected active ‘players’ on the international stage as they examine some of the key issues of our time. The Weissberg professorship is underwritten and supported by Marvin Weissberg, a business leader and Beloit College parent.
Beloit College celebrates the 10th anniversary of the Weissberg Chair Program this year with Elisabeth Rhyne, managing director of the Center for Financial Inclusion at ACCION International. In class visits, public lectures and conference panels, Dr. Rhyne will be addressing the issue of Microfinance and its changing role in social and economic development.
I am Val Ng, a student at Beloit. All week, I will be posting discussion topics from Dr. Rhyne’s presentations as a way to promote an interactive exchange of ideas, and everyone’s comments, thoughts and feelings are welcome (and wanted!)
Some of the questions we might discuss include:
- What is the tension between microfinance as a social development strategy and microfinance as a business? What are the challenges that come along with this transition?
- Is it acceptable to make profit from the poor?
- Is there still social value in microfinance as a business?
- What is the impact of the financial sector crisis on microfinance?
- How have consumer protection principles (or lack thereof) affected the current situation?
For information on the Weissberg Chair click here.
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March 25, 2009 at 9:07 am
Report from Beloit: The Career Panel «
[...] Chair Program. Elisabeth Rhyne is this year’s Marvin Weissberg Chair. Read Val’s first post here. Categories Select Category Beyond Codes Center for Financial Inclusion Client Product [...]
March 27, 2009 at 3:28 pm
Blaine Fleener
First of all just like everyone else I would like to thank you for taking the time to speak to our class. I found your talk with us to be very realistic, especially I am fascinated on how you area of work seems to be a system that attempts to make helping the poor profitable, something which I fully support since it makes people more willing to participate in such endeavors. I also enjoyed that you realize the potential negatives associated with micro-finance as a profit organization compared to a non-profit organization.
March 26, 2009 at 12:27 pm
Alex McDonald
First I want to say thank you for taking time out of your life to come vist us here at Beloit College. I would also like to say that the talk you gave to our class on what it is you do, and how that relates to education was very interesting. I also really liked the comparisons between the impoverished people here in America vs. impoverished people in Africa for example. I really agree with how you said the poor people here in America are a result of the system. After thinking and reflecting on that I feel that this is very true. I just really enjoyed learning about what it is you do, and how you help so many people. Thank you. Alex McDonald
March 26, 2009 at 12:48 pm
Matthew Ruddle
I agree with Alex – thank you for taking the time to visit our class. It was very interesting to hear your perspectives on how finances really influence schools and education; especially your example of the relationship you talked about between Equity Bank and schools in Kenya, how it is mutually rewarding for both parties. I had never considered that aspect before. I was surprised at the high interest rates for micro-finance; I had the idea in my head that micro-finance was almost a kind of charitable handout, but obviously that is not the case, as money needs to be made for both parties.
I found your discussion of child-labor interesting, and the debate that it creates within the micro-finance world when those situations arise.
I had never heard of Tooley before, so I will be sure to find out more about him the the schools he works with.
March 26, 2009 at 3:19 pm
Sally Jaffray
I agree with Alex and Matthiew- thank you so much for coming into our class! It was very interesting to hear about Micro finance- especially because I didn’t know that much about it prior to this week. I really liked how you talked about how it relates to Education and the problems associated with doing this, like child labor and making sure you give money to the right people. I think it’s good that it’s more productive than just giving them money. I think it’s fantastic that you help so many people with your work! I found your visit to our class very interesting and inspiring. Thank you!
March 29, 2009 at 11:42 am
Joshua Hall
Beth,
Thanks so much for a great week. As an economics teacher, I especially liked your focus on the the fact that there is not necessarily a disconnect between doing well for oneself and doing well for others.
March 30, 2009 at 11:25 am
Eric Frenkil
Since Elisabeth Rhyne spoke at so many events, I was able to attend six events/panels/presentations throughout the week (benefit of a small school with a little nudging from my professor who was also coordinating the events). Thank you for coming to Beloit College!
3/24 – Elisabeth came to our African International Relations class. She spoke about starting ACCION’s programs in Africa – Zimbabwe, the Horn, and in West Africa.
3/25 – The next day, I was able to join Elisabeth for lunch with a few other students and learned about how senior leadership in organizations like ACCION respond to student requests to get an internship – what works and what doesn’t. It was nice to have some time to speak informally and get an insider scoop on how I can get connected with organizations like ACCION.
By chance, Elisabeth came to my Comparative Politics class only ten minutes later, giving an overview of ACCION’s work and sharing a few stories about the challenges along the way (i.e. a four year process to launch programs in Nigeria).
3/27 – The feature lecture discussed how microcredit emerged from traditional loan systems and expands access to financial resources. Rhyne focused heavily on ensuring that the microfinance industry “maintains a soul” as it transitions into the for-profit sector. She also spoke about a Rockafeller Center study on double and even triple bottom line investing (for profit, for social advancement, and for environmental sustainability).
3/28 – The first panel was called “Progress and Challenges in Microfinance.” Paul Christensen, Karol Boudreaux, and Elisabeth Rhyne looked at the limits of microfinance, most notably that (while there are plenty of local success stories) we have yet to see an entire nation transformed by microfinance.
The second panel, “New Directions in Microfinance,” included Stephen Sellers, Sally Merrill, and Warner Woodworth. They spoke about the technology that may enable microfinance to expand into rural, sparsely-populated areas (where it is most needed) and other initiatives that have grown out of microfinance over the past twenty years.
Overall I learned: that for-profit business models can substantially expand non-profit sector programs, that even major organizations handle internships through informal requests, and that microfinance insiders see their work as a facilitator in reducing poverty instead of a miracle that expects to end it. Elisabeth promoted ACCION and the benefits of microfinance institutions, but she also stressed that microfinance has received disproportionate attention compared with other forms of development and social entrepreneurship.
Along the way, she cited a few examples where traditionally non-profit programs have been turned into sustainable business models to provide services where funding would not otherwise be possible (i.e. an agricultural school where the produce funds the school). I wonder if this is the next big idea in social entrepreneurship.
March 30, 2009 at 12:35 pm
Ashley Rosenbaum
Ms. Rhyne…thanks for your visit…i know our class didnt seem very lively but it WAS an interesting talk. I am not into business and ect because i have a hard time with it but your talk simplified some of the concepts. I always knew there was a link between education and business and I am glad someone is doing something about the lack of resources.
March 31, 2009 at 10:40 am
Sarah Reed
I greatly appreciate the opportunity provided to this past week to learn a great deal about micro finance. I was lucky to hear Beth speak on many subjects throughout the week. I was particularly interested in the commercialization of many MFIs and what it could mean for expansion to reach more people, particularly in rural areas. Beth discussed the difficulty of establishment due to low population density and irregularity of agricultural endeavors in rural areas and I wonder about the possibilities for innovation that open up with increased funds from profits. One of the panelists, as well as Beth, did discuss technology as a way to decrease transaction costs to make services available in rural areas.
As far as the debate for or against the commercialization of MFIs, it seems to me that as long as innovations are being made to expand the reach and positive effects of these institutions, we should take advantage of investors response to incentives.
Thank you for the opportunity to learn about these development endeavors!
March 31, 2009 at 3:56 pm
Gus Graves
Beth,
I heard a talk about micro loans in high school and it was nice to hear that they have grown stronger today. I thought it was interesting how creative some of the women got with their businesses (taking the oil from the hair) and how functional they were. I wonder how this system could work in the United States’ poorer areas, like south-side Chicago, and if the program would be successful. Maybe there could be an experiment for this? Thank you so much for talking to my education class about the program and good luck.