Integrating Microfinance with Education

Came across a very interesting article from freedom from hunger. 

Since quite some time I have been thinking to work on a similar service delivery model integrating all the four basic development components – Finance, Education, Health & Environment…together . Most of the development efforts concentrate and specilize on either of these or a couple of these at max. and there is hardly any conscious integeration of all the four components,  which, I believe really drags down the potential impact/outcome.. While a conscious integration of all these four components may bring about a compunded and meaningful impact of development efforts worldwide.. I wish come up with something concrete on this which will reque quite a bit of time and effort from my side but I sure intend to come up with something on this in future ..

The integration of non-financial services, such as education, with microfinance can be accomplished in a variety of ways. Three types of integration include:

Linked
Services can be provided by two independent organizations, if good-quality financial and non-financial service providers are operating in the same service area (actually or potentially) and are willing and able to serve the same clients. In this linked services model, the financial service provider does not directly provide non-financial services; it partners with a non-financial service provider.

In the provision of health services, for example, a financial services organization may form a strategic alliance with a local health clinic and allow health care professionals to participate in the regular group meetings to attend to the health needs of group members and their families.

This linked services model is particularly appropriate when the expertise or infrastructure required to deliver the non-financial service is quite different from that needed for financial services. A potential disadvantage of linkage is that the microfinance institution (MFI) does not have control over the quality of the partner’s services. Tension also may arise as each organization competes for the time and attention of the clients.

Parallel
A more integrated approach is the delivery of parallel services by two programs of the same organization. An organization committed to providing multiple services could create two distinct programs with separate, specialized personnel who share the same organizational name and, perhaps, the same physical and administrative infrastructure. Using the example of health services again, an organization might elect to run parallel programs employing specialized health educators and care providers to offer health services to their clients while employing separate banking staff for financial services.

This parallel services model has a clear division of staff functions, yet quality control is in the hands of the single overarching organization. This model places a larger financial and management burden on the organization than either the linked services model or the Credit with Education service model. There is also some risk of duplicating services that may already be present in the area.

Credit with Education
The third option is to fully integrate financial and non-financial service delivery. The same staff of the same organization provides multiple services to the same clientele. In the case of health, credit officers would also provide health education services to their village bank clients.

This Credit with Education model reduces costs of delivering two or more different services, since it only requires one set of staff members to provide two different services. Also, most or all of the costs can be covered by revenues from credit operations, since the staff are already in the field to provide support for village banks (in effect, credit operations are cross-subsidizing the additional service(s). However, in fully integrated programs, field staff must learn to wear multiple hats and perform services that, at times, require different sets of skills. Also, the scope of the services is mostly limited to education and facilitation activities that can occur during a weekly village bank meeting. In the health services example, it is possible for loan officers to deliver a health education curriculum, but they probably would not be able to provide health care.

Credit with Education is the best-known example of the credit with education model of integration. It combines microfinance services and health, nutrition, and business education into a single service for women in poor, rural areas of the developing world. This type of integration of group-based poverty lending and nonformal adult education has been reaching marginalized families and communities around the world for more than a decade.

 

If you think Education is expensive Try Ignorance – Derek Bok

And, what can be a better example to that than India. I am sure Mr. Bok would have had
India in mind while quoting this …We have been trying that a lot since generations and it seems that now we are just starting to realize it – at least to some extent. And that is why I believe we can see a small but powerful wave of new generation education reformists rising in our country trying to play their part.. Will briefly introduce some of them later. 

Also, at this point, please allow me, to make it clear that though the usage of terms in the quote seem to imply only about financial repercussions and I am not exactly sure about what Mr. Bok. meant when he quoted it ..But I’d like to see it on a bit broader and deeper level. Let me elaborate a little bit on this.. Education is Expensive – It is for sure expensive in financial terms but it is also expensive in terms of the amount of dedication and perseverance and thus time it expects us to put in, the passion and love  (a dangerous word though but have to use it) it requires from us from whatever little we have. That is how it becomes expensive.  To take an example, Siddharth left his family, kids, palaces, his whole kingdom and all the luxuries in the world just to understand ..What the hell is goin on ? that was the cost he was ready to pay and paid it ..and we all know what happened than…including that he was kicked out of
India .. 

So, now after putting in so much of our resources, what can we expect from it: See I generally don’t like talking about things in a businesslike way ..but I have come to realize that this is best way (and probably the only way) most of us understand most of the things … 

I learnt my first lesson on this from my dad. I used to read some weird books …during my graduation ..I still do ..which have nothing to do with my education or job or success in normal terms …and used to spend quite a considerable time on it ..and whenever my dad finds me reading all that stuff(instead of reading the books on my curriculum or business books on strategies and how to be a good manager and all…) he got very curious about the whole thing …and used to ask  me a very pertinent question ..why do you read all these things?  My response would be that I read it because I like it . I love reading these books …to this he used to get more surprised and will ask another question ..but what exactly do you think you would get out of it ? well, well, well, I said there you are … I was caught …I normally say (I still say it) I am not sure ..if I would  really get anything out of it …then he says ..if that is the case, my son ..than what is the point in reading all this and wasting your time …And the way he says all this makes me  realize that we both are from different planets. So, I use my last weapon to convince him. dad we don’t do everything because we would get something in return … We do something’s because we just love doing it … and then comes the time ..when, he wonders about me ..(Probably, he thinks that I hope the babies were not exchanged in the hospital. and he’s really my son..) and I wonder .. If I am right or he is right…On the contrary, Had I said that reading all that stuff will make me a Guru within the next five years and then I will be rolling out on a Rolls Royce giving speeches to millions of idiots around the world ..he would have been happier..Krishna Baba ki Jay ..u know …But can’t say that.. 

Coming back to the point, The least we can expect is Financial returns – (skills and abilities) which is nonetheless important but it is just one of the important things and never the most important thing… what are the other things then….I believe that we as a society shall atleast ensure that every child comes out of the system with an understanding of or at least a real & deep urge or search for finding/understanding these things. (pls. don’t ask me how..rather, tell me how) 
·   Who we are ? The most baffling puzzle of all times, Who am I?

·   Purpose of our life in general and his/her in specific

·   Understanding the nature of one’s relationship with the world. 

Well I believe this is too much to ask for what we have so far been able to achieve on those fronts, but the least we can expect our education is to keep our genuine curiosity or say passion alive for searching all this… and to say in other words… Developing a love for learning and understanding…not with an aim of getting anything in return but just pure love… (Now, here, I must admit that I am talking about what I have not yet completely experienced  …but I understand this because I have experienced the pain of loving (at least pretending to) anything and anyone with the hope of getting something in return.. I mean to say that If one is educated for the sole purpose of earning and nothing else and even if his is highly successful at that, I am sure that sooner or later that person will realize (if one is lucky enough to have his conscience alive till that time) that it was a costly affair no matter how much money one has accumulated and even donated S/he will repent. That’s the fate of it. That’s the fate of a body without a soul/life in it. it stinks – sooner or later… 

I understand that some thoughts mentioned above are fragmented and not very well linked ..but this was just the stuff straight out of my mind at this point without much editing and filtering …Thanks for bearing with me .

 

 

Lincoln’s Letter to his Son’s Teacher

This letter was written by Abraham Lincoln to the Headmaster of his Son’s school.. It is still relavant..probably more relevant for most of us not only the children…

 

He will have to learn, I know,
that all men are not just,
all men are not true.
But teach him also that
for every scoundrel there is a hero;
that for every selfish Politician,
there is a dedicated leader…
Teach him for every enemy there is a friend,

Steer him away from envy,
if you can,
teach him the secret of
quiet laughter.

Let him learn early that
the bullies are the easiest to lick…
Teach him, if you can,
the wonder of books…
But also give him quiet time
to ponder the eternal mystery of birds in the sky,
bees in the sun,
and the flowers on a green hillside.

In the school teach him
it is far honourable to fail
than to cheat…
Teach him to have faith
in his own ideas,
even if everyone tells him
they are wrong…
Teach him to be gentle
with gentle people,
and tough with the tough.

Try to give my son
the strength not to follow the crowd
when everyone is getting on the band wagon…
Teach him to listen to all men…
but teach him also to filter
all he hears on a screen of truth,
and take only the good
that comes through.

Teach him if you can,
how to laugh when he is sad…
Teach him there is no shame in tears,
Teach him to scoff at cynics
and to beware of too much sweetness…
Teach him to sell his brawn
and brain to the highest bidders
but never to put a price-tag
on his heart and soul.

Teach him to close his ears
to a howling mob
and to stand and fight
if he thinks he’s right.
Treat him gently,
but do not cuddle him,
because only the test
of fire makes fine steel.

Let him have the courage
to be impatient…
let him have the patience to be brave.
Teach him always
to have sublime faith in himself,
because then he will have
sublime faith in mankind.

This is a big order,
but see what you can do…
He is such a fine little fellow,
my son!

~ Abraham Lincoln