Reaction Blog 2

I think it's interesting that Yunus' ideas focus less on charity and more on fixing the root infrastructure issues relating to poverty. There is an important difference between what Yunus began at the Grameen bank and the work that charities do. Both provide an essential service, but one is more lasting, while the other is temporary. I have spent a lot of time doing charitable work in high school and college, and it can sometimes be very disheartening to think that all that hard work is doing nothing to break the cycle of poverty. For this reason I find Yunus' ideology and work with impoverished populations particularly interesting.
Yunus' ideas encompass characteristics of both service and philanthropy while remaining essentially distinct from either. Microlending is not pure philanthropy, because it does not revolve around donation. The loans are always meant to be paid back, which is an extremely important part of the system. Through the attention of loan officers, loan recipients learn to better manage money, and function successfully in their own economy. Just as important as the loan money is the self sufficiency and personal dignity that is always preserved. Additionally, microlending is not pure service because it requires work and cooperation on the part of the loan recipient as well. The loans are not gifts, but rather are always meant to be paid back. Thus the loan recipients must work to use the loan money to earn enough to pay back the loan with interest which, while bettering the loan recipient's standard of living, is entirely dependent upon his or her own work and input.
However, while the concepts behind microlending are essentially disparate from philanthropy and service, they bear some of the same ideologies and core characteristics. While essentially different from pure donation philanthropy, microlending does involve the giving of money in order to better the human condition. The fact that the money is eventually returned helps the cycle to renew itself using the same amount of money to help more and more people. This sustainability factor adds an interesting twist to microlending, though its intent is still shared with philanthropy. Additionally, microlending does involve the taking on of a certain degree of risk by lending agents. Lending money to people with no collateral is an unconventional idea that requires the cooperation of banks and other lending agents. This is where the service aspect comes in, our microlending program in Belize is funded by donations, and we are going down as volunteers. There is a strong motivation throughout the program to use what we have to help the people around us. That is the very definition of service, which makes microlending a unique sort of paradox.