We have already been in India for a whole month(!) and it seems to me that we are fitting in quite nicely. The people of Bagar have been so incredibly welcoming, and the staff at GDL/Indicorps have been very helpful and supportive as we acclamate to our new surroundings. At first adjusting was a bit difficult- we were, after all, introduced to India in 125 degree heat. Now, as the rains are coming and as our Hindi improves, it seems strange that we only have four more weeks yet. Interning at GDL has proved to be quite rewarding and challenging, with nary a coffee-fetching errand in sight. I am working full-time at Mobile Naukri as a marketing/business development intern. Mobile Naukri is a service that connects rural job-seekers to employment opportunities. There exists a serious market failure in India, where job-seekers and employers are completely unaware of each other. An industry paradigm that encourages expensive HR consultancies, bribes, and personal connections perpetuates a system of unemployment, particularly with rural youth.
In my first weeks in Bagar, I began to read Muhammad Yunus' "Creating a World Without Poverty." Yunus is a Bangladeshi economist, pioneer of microfinance, Nobel Prize winner and all around awesome person. He created Grameen Bank in his home country, which is an innovative banking program that gives small loans to poor people (mainly women), enabling them to launch businesses, lift themselves and their families out of poverty, and control their economic destiny. Microfinance institutions are popping up around the developing world now, and all are replicated on the fundamental ideas of Grameen Bank. In "Creating a World," Yunus goes beyond this one institution and explores the idea of a 'social business.' Recognizing the importance of capitalism and globalization in today's economy, Yunus builds on the notion of profit-maximizing businesses (PMBs)that are owned by shareholders. He proposes a new kind of business, social business, which entrepreneurs set up "not to achieve limited personal gain but to pursue specific social goals... Operated in accordance with management principles just like a traditional PMB, a social business aims for full cost recovery, or more, even as it concetrates on creating products or services that provide a social benefit. It pursues this goal by charging a price or fee for the products or services it creates."
Mobile Naukri, is in accordance with Yunus' definition of a social business. What I find most interesting about Mobile Naukri is that it is in no way charity work. Yunus points out that NGOs and charity work are only band-aids for real problems, are painfully dependent on outside funding, and don't look at the poor as individual actors. While charities and NGOs obviously do good work, they are not a plausible long-term solution for eradicating poverty. A social business, on the other hand, gives the poor specific tools to gain economic power. At Mobile Naukri, we provide a gateway service in which rural job-seekers, who have limited or no internet access, can get in contact with local and national businesses searching for employees. Because Mobile Naukri is still in its pilot phase, we don't ask our job-seekers to pay a fee for our services; starting in July, job-seekers will pay a fee of Rs. 500 (about $10). Over time, we hope that our enterprise will make profits, allowing us to recycle the money into expanding our business across other locations in India.
Yunus notes that like any capitalist PMB, social businesses will have/need shareholders who buy stock in the company. Social businesses would have to compete for these shareholders, ameliorating their ideas, increasing their productivity, and in turn, benefitting the poor. These shareholders will buy stock in the businesses they find most likely to succeed, and will most likely make back their money, allowing them to reinvest it in the same or different social businesses. Shareholders can be big-name, rich philanthropists, or, they can be the very people who have benefitted from said social business. At Grameen Bank, for example, many of the shareholders are women who have taken out loans from the bank to start their own business. Not only does this add to the financial security of a social business, it instills a sense of pride and hope in the participants. At Mobile Naukri, I have learned that many unemployed rural job-seekers suffer from a lack of direction, hopelessness and frustration. Imagine if they were able to get a job through our services, succeed at their post, and turn around to invest their hard-earned money into our business! Of course, we still have a ways to go before this can become a reality, but the concrete emergence of social businesses as a viable solution to eradicating unemployment amongst the poor is reassuring that we can, in fact, create a world without poverty.
Namaste,
Sarah