Green Microfinance Promoting Green Enterprise Development Dr Kazi

Green Microfinance Promoting Green Enterprise Development Dr. Kazi Abdur Rouf Social Economy Centre Fifth Annual ANSER Conference Sir Wilfrid Laurier University & University of Waterloo, Ontario, Canada. May 29 - June 1, 2012.

Objectives of the study • To study the operational practices of Canadian and Bangladeshi MFIs • In the area of women empowerment, poverty alleviation and community organizing To compare and contrasting of Grameen Shokti credit systems (Bangladesh) with Alterna Savings credit programs (Canada) • • To compare microfinance programs and their success/failure in these two countries • To explore which green microfinance is adopted in both countries

Green micro-credit • Green microcredit programs target micro-business owners • Engaging them in green micro-businesses • Promotes mini-cooperatives in the neighborhoods • Assist them in becoming economically self-sufficient through selfemployment • Help marginalized women entrepreneurs in their empowerment • Promote community-based local living green economy

Why Green Programs: Corporate pollution destroy environment (environmental catastrophe) • Corporate wastes and petrochemicals • • • An economics of waste and destruction Goods travel increased 20% between 1980 -2000 More packaging waste Top five oil giants profited $80 billion alone in 2008 One rule market economy Toxic products, poisoning products (Pesticides) Factory emissions are spread in the air and water $1. 18 trillion costs of carbon emissions in just one year Hazardous plants instead clean technology Destroy of forests, agro forestry and farmland

Continue • Water waste: Produce one pound beef U S uses 12, 000 gallons of water • 16 pounds of grain and soy feed for one pound beef production • Atmospheric carbon increased 40% -consequences greenhouse effect • Indoor air pollutions are increasing • Unhealthy industrial food distribution • More process foods, the less nutrition, more salt, fat and sugar, but more profit • 40% of the calories US and Canada children eat are nutritionally empty • One third of grain (most of our soya) to livestock

Continue-3 • Chemical fertilizers, hybrid seeds and chemical agriculture destroyed the soil fertility • Causes increasing of human illness and sufferings • Increasing Cancer and other diseases • Children are suffering from asthma and other diseases • Birds and animals are dying • 47 billion metric tons of carbon/year, but earth has been absorbing 50% • Corporations hold major brunt responsibility for environmental pollution: • Fossil fuel: oil, gas and coal), carbon disrupting the environment • However, Germany gets 16% of its electricity from renewable energy • 35% achieved within ten years • Cooperatives of Danish own 20% wind power

Continue • Destroy ecological harmony • Coals impact costs Americans about one-third of a trillion dollars a year • Destroy social ecology • Destroy cooperatives • Extreme power inequalities, exploitation, injustice and poverty

Green energy • One of three sources –wind, solar, bio-energy –could meet current electricity needs in the world • Wind, solar, geothermal, bio-energy and hydropower-has the technical power to provide more than sixteen times the electricity the USA needs

Micro credit needs control • Microcredit is a well known tool to address the issue of poverty • Sustainable people-centered green micro-lending program is urgent • If MFI’s are not controlled, they could involved in practicing unsafe and un-ecofriendly business financing • Effect could be unable to promote sustainable business development • Hence Green micro lending is very crucial for environmental development • To increasing the poor’s standard of living/quality of life

Research data collection • The researcher visited and studied Grameen Shokti’s Renewable Energy Project in Bangladesh in 2008 • An internship at Alterna Savings’ Community Micro Loan Funds in Toronto in 2007 -2008 • Reviewed green micro credit literatures • Participatory observations • Institutional Ethnography to study these organizations

Micro-finance institutions in Canada • Alterna Savings Toronto • Community Loan Funds Ottawa • Riverdale Community Loan Funds, Toronto • Vancity Community Banking, Vancouver • Four Corners, Vancouver • Mikiwizzi first Nations Community Development, Toronto • Rise Me Up Toronto

Alterana Savings Toronto As of December 2007, • Total active loans were 122 • Amounted to $567, 574 • Repayment rate 91 percent Loans are for businesses • • • Computer training courses Webpage designing, computer repairing and photographing Childcare, ESL learning centers, printing and grass cutting Restaurants/catering businesses Trimming grasses, cleaning services Shoe repair, tailoring and hair cutting

Grameen Shokti (GS) as of 2010 • GS is a giant in renewable energy market-based action programs in Bangladesh • Supplies affordable Solar Home Systems (SHS) to people in credit • Provides training on improved cooking stoves ( ICS), SHS and supply accessories • GS has expanded its activities to 40, 000 villages in Bangladesh • Builds bio-gas plants in the villages • Uses cow slurry, an organic fertilizer, uses for crop production

Grameen Shakti as of 2011 • Total employees is 7200 who are mostly engineers • Total unit offices is 710 • Divisional offices is 15 • Regional offices is 68 • Grameen Technological Centers is 20 • Installed 170, 000 SHS’s and 6700 ICS’s • Build 1580 biogas plants throughout Bangladesh

Results • Within the two sample cases, micro credits are positive to green development • Green microcredit-programs target micro business owners • GS supplies SHS, ICS accessories and offers training to promote green micro enterprises • Grameen in-house other organizations are involved in green development in Bangladesh too • Grameen Agricultural Foundation • Grameen Mostsha Foundation • Grameen Danone • Grameen Health • Grameen Hybrid Social Businesses

Recommendations • Canadian micro-lending organizations do not streamline enough funds for micro lending • Environment Canada can allocate resources and budgets to GMFIs • Grameen Shakti should publish its activities to share with the world • Environment Bangladesh could support NGOs for green development • Extend integrated support from public and private collaboration to promote GMFI’s and mini-cooperatives

Recommendations -continue • From Privately government to publicly accountable government • Corporations monopolized free market to freedom of al to participate n the market • From separateness to connectedness (givers/receivers) & mutual accountability • Create co-create capacity

Questions Thanks