Microcredit

Like a typical Belizean, I love to lament. I hope for better days, but I have no real concrete solutions. So, I've been challenging myself to think about tangible actions that the country can make. Hopefully, this blog will be one of many.

If we solve our economic problems, we'll solve our social problems too. There is a direct link between the GDP per capita of a country and it's level of happiness and level of crime & violence. Notwithstanding the diluting effect of HIV/AIDS and prevalence of drug usage, which lowers economic development.

So, we need jobs in Belize. It's highly unlikely that we'll attract a big company to start a manufacturing plant here. They've been here before, and they've left. The country benefits in the form of salary of employees and business tax, which the government collects. Though labour in Belize is cheap, it's not cheap enough. These big businesses are looking for the lowest costs so that they can maximize their profits. Why pay a worker $1.50 American an hour here when they can pay $0.50 an hour, or less, in India? And institute 12 hours work days? Which Belizean do you know would work under such conditions? Our labour laws protect us.

Since we can't attract outside investors, without guaranteeing them 15% profit on their investments {or more}, or arranging to neglect business tax {an incentive some countries make}, we should look at smaller scale ideas.

Enter microcredit. Microcredit offers the poor training and small loans to start small business. These are the people who have no collateral, so they are ineligible to banks and credit unions. In business, this is one of the most high risk investments of all. Nothing but honor are preventing the loanees from taking the money and never returning. The loanees are supposed to pay back their loans, and the money circles as the creditor loans it to another poor person.

This incenvtive is a great hit in South East Asia. In Bangladesh, where the incentive started, $5 billion has been distributed to $7 million women. Many of them single mothers. I don't have to spell out the benefits to the nation because of microcredit.

Now, I'm not exactly sure what the original parameters of the failed DFC were, but I'll guarantee you this, they loaned money to the wrong people for the wrong reasons. Microfinance is the way to go in Belize. With strict parameters and mandatory training. Training is key... in literacy, basic math skills, and accounting... for this idea to work.

Now, as to where we'll get the money to finance such a scheme, I have no idea. We're facing a multi-million dollar budget shortfall. Again. I'd suggest that successful businesses can help to provide the capital. Or the Government can set aside 30% of collected business tax.

You help the poor and you help the most vulnerable of this nation. Tell me, isn't that the very definition of democracy?

Rubber Boots

“Eventually, all things merge into one, and a river runs through it. The river was cut by the world's great flood and runs over rocks from the basement of time. On some of the rocks are timeless raindrops. Under the rocks are the words..”

I believe a lot of the problems we face in our nation can be fixed with an attitude change. Maybe I'm an optimist. Our parents constantly lament about the way things used to be; it's within our generation that radical change have been occurring. But are these parents not the ones who raised and socialized us? Did they not plant a seed, and are now alarmed at the growth of the weed? We need realistic dramatic action.

A human being with no fear is out of control. When we have no fear, we act on our most basic selfish animalistic instinct, with no regard for the other members of our society. By nature, we're a communal species; we have to have the well-being of our fellow man at heart for success and peace. As Belizeans, this used to be true. Now it is not.

There is no fear. A commuter has no fear, so she throws garbage out the window of a bus. A child has no fear, so he curses and back-chats the teacher. An adolescent has no fear, so he robs the Chiney around the corner. A gangsta has no fear, so he shoots his enemies out of beef. A politician has no fear, so he pours the national coffers into his pocket. There is no fear in our country.

Now me, I'm afraid. My mother put the fear of God into me... I fear, therefore I respect, the written laws of Belize, and the unwritten laws of common decency.

So put the fear into the little ones growing up now; talk to a child, and if necessary, discipline him or her. Remember the lessons you learned and home and in school and act accordingly. Clean your yard. Cut your grass. Don't litter. These little actions, my friends, they'll seep up like capillary action! It all starts in the little things.

Don't forget charity. Help people, when you can, if you can. Have a heart for the human condition. Don't forget your fellow man, and most of all, the generations to come. How then, my friends, can we as a people fail and be miserable? Without this attitude change, our Jewel will lose its sparkle. And I know none of us want that.

What about made in Belize

"Seven years ago Belize imported three hundred and sixty two million dollars in goods from the USA. Today that number has increased by one hundred million"

I was reading the transcript of the news this weekend and this statement jumped out and smacked me across the face. $ 462, 000, 000. 00. That's a lot!

It brought to mind an old conversation I had with my father years ago about entrepreneurship. My father taught me that entreprenuership was the key to economic success. Sure, we, as a nation, could import most anything we could ever desire. In this global village ruled by personal desire, self gratification, greed, and capitilism, the sky is the limit. Hell, for $20 million, even a flight in space is up for grabs. But when we do for ourselves, by ourselves, we improve ourselves. Which is exactly how these big countries got the point of security that they are now. {and by stealing the natural resources of other countries for hundreds of years, but I won't go down that path today}

Taking an analytical view of economic trade from Belize's standpoint, let me outline the steps to get Heinz Ketchup or Nike Air sneakers to our favorite country. First, we must buy foreign currency - at a lost, might I add. After the sales transaction, we must then ship these things to our shores, increasing our carbon footprint in the world, whilst shouldering the ever-increasing cost of fuel. After various taxes for... I don't know what, the consumer then has the joy of purchasing the item. Which may remain on the shelf for years... expire... but never ever go on sale.

Why import things that we can produce for ourselves in Belize? Self-sufficiency is the path we should walk to our development. The global market is so prone to fluxuations. When a needle falls on a sweat shop in China, we feel the reprucussions here for a long time. Making things for ourselves in our own country protects us from the global tides, that storm sometimes for reasons that economist find out only after the fact.

Buy Belizean goods... if you have a little idea for a business, start small and don't stop. Try your best. Believe in Belize and let's try to keep some of that $462, 000, 000.00 here within our own shores. America certainly doesn't need it, and we do.

Let's start a dialouge... looking forward to your comments.