Job Training - Microfinance, American Style

A few months ago I had a conversation where I was told that we do have microfinance in the US:  we have introductory credit cards, wherein anyone can get a few hundred bucks to do with what they will.

I have no doubt this is true: compared to other countries, we do have access to capital in the US.  But I know that microfinance works not because 16 year olds (or the marginally employed) have money shoved at them, but because along with the funding comes knowledge and social support.  In fact, Yunus was so successful with microfinance because the funds were given to women (who had entire families to take care of) and to no less than five people at a time.

Further, and more importantly, the lending system required adoption of a specific community standards, which I show below (and note the emphasis on health).  So the first point to make is that we do not actually have formalized microcredit here in the United States, we have the equivalent of financial drug abuse, where naive people are "hooked" on capital by way of unsecured debt. 

In particular, what we have been remiss in providing is adequate access to "social behavior training." Let's say you're 30 and you come from a chaotic background, realize you've made some poor decisions in your life and you want to behave and fit into a middle class lifestyle.  Well, exactly, how do you learn how to do that?   How do you find out what values you need to adopt in order to make the bridge, if you want to do so?  How do you keep from feeling alienated while you try?

I have recently had lunch at a place in San Mateo that trains ex-inmates in how to work in a restaurant. Though I know of other endeavors that are like this (and places like Goodwill have existed for a long time), here's yet another which came across my inbox and prompted this post: ReliaTech, providing in-house computer service to non-profits and small businesses.  Skilled labor; knowledge work.

In a related vein, Van Jones, who made his reputation in economic justice and has migrated upstream problem-space wise, now having taken up the torch for expanding the economy in order to create jobs - and in particular, local jobs for unskilled-to-skilled labor. He points out that conversion to alternative energy sources can be a boon to the economy in part because it will be a stabilizing force.  Those very people who are most vulnerable, and most desperate due to the mortgage lending crisis are likely to be stabilized by a growth in this economic sector.

So the point of this meandering Monday post is that there appears to be a growing emphasis on the introduction of social retraining along with financial capitalization, and that this is a closer approximation to the successful formula introduced by Yunus. (Prosper's "groups" is an online attempt at this mechanism.)

No further ado, here are the 16 Decisions from Grameen Bank.

1. We shall follow and advance the four principles of Grameen Bank: Discipline, Unity, Courage and Hard work – in all walks of our lives.
2. Prosperity we shall bring to our families.
3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.
4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.
5. During the plantation seasons, we shall plant as many seedlings as possible.
6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health.
7. We shall educate our children and ensure that they can earn to pay for their education.
8. We shall always keep our children and the environment clean.
9. We shall build and use pit-latrines.
10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum.
11. We shall not take any dowry at our sons' weddings, neither shall we
    give any dowry at our daughter's wedding. We shall keep our centre free
    from the curse of dowry. We shall not practice child marriage.
12. We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.
13. We shall collectively undertake bigger investments for higher incomes.
14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.
15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.
16. We shall take part in all social activities collectively.