KIPP and the Grameen Bank
I have recently read two inspirational biographies about social reforms in two different societies. The first was “Work Hard. Be Nice,” which is about the Knowledge is Power Program (KIPP) charter schools. Started by Dave Levin and Mike Feinberg fifteen years ago, KIPP has grown from one classroom of Hispanic 4th graders in Houston, Texas to 66 schools in 15 states around the nation. The pupils of the KIPP schools have consistently increased their test scores and have routinely outperformed other students from more traditional backgrounds. The KIPP students are usually low-income minority students from impoverished neighborhoods and have been abandoned by the U.S. educational system.
The second book I read was titled “Banker to the Poor,” which is an autobiography by a Nobel Peace Prize winner, Muhammad Yunus, and is based on the creation of his Grameen Bank in Bangladesh. Originally conceived in 1976, Grameen specialized in lending small sums of money to the poorest individuals in Bangladesh in order for them to start their own businesses with the end goal of helping people break the generational cycle of poverty. Although Yunus was told by established banks within the region that his proposal could not work, Yunus has grown Grameen to have over 7.84 million borrowers and has given out $8 billion since its inception. Grameen currently has a 98% repayment rate, which outperforms most traditional banks. Furthermore, Grameen’s borrowers are 97% women in a country where women’s rights are severely lacking.
Obstacles of Social Change
When comparing the inspirational stories of KIPP and Grameen, there were two main obstacles that both organizations faced that troubled me and therefore, provide us an opportunity for learning and development. The first is the high level of resistance the leaders faced when attempting to implement positive change within the system. The administrators of the system were comfortable with the status quo and had deeply formed negative opinions about people who were not financially well off. Over time, those implicit attitudes carried by the system administrators transformed into social laws and life truths. Whether it was the belief that poor kids could not learn or poor people would not pay back loans without collateral, these thoughts were systematically rooted within the social system.
What disturbed me more than the beliefs of the administrators were the negative thoughts that the students’ families and Bangladeshi women believed about themselves. Yunus gave multiple examples of how many of the Bangladeshi women would not even speak to him about applying for a loan because they were content with the current social structure. The women would say things like, “My husband handles the money and has always handled the money. I have never touched money and I don’t want to start now!” In reality, however, the men were doing a poor job of managing the finances.
Our minds have been conditioned to believe in a very narrow scope on what is possible and what is not possible, which is one of the main causes of oppression. This type of mental oppression is not only caused when one group enforces their will upon another group. It also occurs when people are compromised by the systems in which they interact and therefore, people begin to develop a warped sense of what is possible due to the memory decay over time. The second case is usually inadvertent, but has negative consequences none the less.
To illustrate, let’s take an example from The Chapelle Show, a comedy skit television show created by Dave Chappelle. There was a segment called “Charlie Murphy True Hollywood Stories” where Charlie would relive old stories from the 1980’s that he had from hanging out with his brother, the comedian and actor, Eddie Murphy. Charlie told a story about when Rick James came over to Eddie’s house inebriated to hang out. When Rick James arrived, he sat on Eddie’s newly purchased white sofa and rubbed his muddy shoes all over it just to irritate Eddie. Now, imagine one of your friends coming over your house in the rain and as he/she was rushing in to avoid getting wet, he muddied up your carpet. The motives of the individuals in the above examples are different, however, you are left with the same result . . . a messy house.
The Perpetual Cycle of the Oppression Machine
In the beginning, outside forces fuel the oppression machine, but after a while, it becomes self-sustaining. There are many facets that help the machine to work smoothly. The first component is the individual in perceived power and authority that benefits from keeping the status quo. The religious leaders who told the Bangladeshi women that they would go to hell if they borrowed money from the Grameen bank fit into this category. The democratic political leaders who told Barack Obama to wait his turn to run for the U.S. Presidency behind Hillary Clinton also come to mind. They gain their power by inducing fear into others and they abuse power for selfish ambitions. Although powerful, this group only encompasses a small percentage of the oppression process.
The second component is the individual who understands change is needed but does nothing. There are three reasons this individual does not pursue change. The first reason is that the individual is afraid of what might happen to him if he upsets the status quo of society. The second reason is that the will to doubt is lacking because he/she assumes that societal conventions must have a firm foundation since these conventions have been followed by so many people over a long period of time. The third reason is that the individual may not see himself as a pioneer of change.
The third component of the oppression machine is not a type of person, but systems based upon faulty assumptions. This happens when tools originally designed to solve a certain problem transform into the actual end goal. An example of this phenomenon is the importance of collateral in the Grameen Bank case. Having collateral from a borrower is a great way to guarantee a loan, but it is not the end goal. The end goal is to have the borrower pay you back. Often, when we find a solution that works relatively well and we think our job is done. Therefore, we stop searching for better solutions. Over time, the needs of the system changes and we are stuck with the outdated solutions.
When we combine all of these forces, we create a super villain of social stagnation that wreaks havoc on progress. In my mind, I picture it in Capitan Planet like style, except he does not come out and save the day. Instead, a villain is revealed and ruins it.
Remedies for Social Stagnation
Although the problem may seem bleak, all is not lost. Each and every one of us has the power to break these mental bonds in order to achieve personal greatness and make major changes in society. There are five key traits that I noticed while reading about the Grameen Bank, KIPP, and many other organizations who have revolutionized systems for the better.
Trait 1: Passion for Progress and a Vision of a Better Future.
Individuals who lead great movements almost always have a deep passion for the work in which they are involved. In Yunus’ case, he could not imagine living in a world where society would not loan $40 to 27 women to help them break the cycle of poverty. Levin and Feinberg’s passion was to help students learn this same concept, especially those students in which society had already abandoned. All of us have things that we are passionate about. It is much easier to align our future to the items in which we are passionate, than to contort ourselves to fit in an area in which we are unable to fit. Could you imagine Michael Jordan not as a basketball player? Warren Buffett not as an investor? Martin Luther King not as a voice of a movement? Albert Einstein not as a scientist? Think about what motivates you and align your life towards those goals.
Trait 2: Question Underlying Assumptions
The leaders I have studied questioned underlying assumptions about how things HAD to work and experimented with new ideas that differed from the status quo. As mentioned earlier about the third component of the oppression machine, tools that were used to implement end goals actually became the ultimate goals themselves.
The characteristic above happens in all types of business and social movements. Underlying assumptions are perceived not as assumptions, but as facts of life. Therefore, it is more difficult to identify and challenge them. Some of the myths that I commonly hear when I advise people on entrepreneurship: “It takes money to make money,” “Adding more people will make the project go faster.” “All customers are created equal.” “Profit is all that matters in business.” Most of the things that I mentioned here are half-truths, but have one or more fatal flaws in them.
It is easy to become complacent when we find a solution that is better than our current situation. I urge you not to become too hasty with the discovery process because there could be better solutions right up the horizon. Evaluating all of your options and not hastily implementing the option that looks to be the best fit at first glance is critically important. If Yunus would have succumbed to the status quo of banks, then the strategy of using social peer pressure among poor borrowers would have never been discovered.
Trait 3: Set High Expectations for the Entire System
Yunus and the KIPP founders set high expectations for themselves as well as everyone else who was involved in the process. This is important for two reasons. First, expectations are the source of reference in which success is measured. If you continuously work towards reaching lofty goals, chances are you will make more significant progress compared to mediocre goals. An old saying that illustrates this point is “if you shoot for the starts, you will at least hit the moon.”
Second, high expectations are needed throughout the entire system because a failure in one part of the system leads to the entire system not reaching its potential. You often see innovative companies working with their suppliers to improve the entire system of manufacturing their product. It would be easier for the company to focus solely on issues within their walls, but what type of real improvements would be made if they did that? The same principle is applied whether you are talking about educating kids or giving micro loans to poor people. If the entire system is not effectively moving towards the same goal, then progress will be slowed.
When I fall into the trap of setting low expectations for myself, it usually has to do with one reason and that is self-confidence. It is natural for us as humans to feel a little scared when we have tried something before and have failed at the task. However, we need to realize that there is a high level of failure when we shoot for high goals and separate ourselves from the majority of the population.
Trait 4: Create a Culture around Positive Thinking and Achievement
Creating a strong and positive culture within an organization is the most powerful way to influence change. Business school professors often talk about how creating a strong culture is the least expensive and most effective means to influence a team to act in a desired way. A strong culture allows individuals in an organization to manage themselves instead of including another level of institutional management. The ridicule and praise, acceptance and rejection of our fellow beings can do more to effect change than any other source.
The effects of a positive culture are not only useful in the business world, but also in any type of situation where people interact with each other on a consistent basis. Instead of ignoring or denying the power that humans have over one another, we should leverage this power to make positive changes within communities. Yunus accomplished this with the Grameen Bank by only making loans to teams of women, instead of individuals. A loan was only approved if the whole team agreed upon the concept. Furthermore, the entire team was responsible if someone in the group defaulted. Imagine what type of commitment from the borrowers that this policy helped to achieve.
To create a positive culture that makes social change, it is important that we encourage one another and praise the accomplishments of the people in the group. Furthermore, it is important that the group holds members accountable for behaviors that are counterproductive to positive change. The term culture on a group level can be equated to habits on an individual level. Therefore, as a member of a movement, make sure to focus on practicing positive habits in your life.
Trait 5: Take Action
Legendary Hollywood super agent Swifty Lazar said, “Sometimes I wake up in the morning and there’s nothing doing, so I decide to make something happen by lunch.” Having plans are great, but they will be inconsequential until steps are taken to actualize those plans. The discipline to take action is developed over time and is a painful process. At times, I can be one of the biggest procrastinators I know. However, I am at my best when I consistently working towards the goals I have laid out for myself.
Two obstacles usually get in the way when creating positive change. First, we can feel overwhelmed when tackling a major project. We think to ourselves “There is no way that I will ever be able to complete my goal. It’s just too big!” Then, you don’t even start. I’ve been there before many times. It takes a mental mind shift to overcome this obstacle. Many goals and purposes in life do not have an end point, but we are conditioned to think one exists. For example, if your mission is to alleviate world poverty, do not expect to do this by yourself and do not be surprised if the goal is not met in 15 years. Working towards your goal is about the journey, not reaching the end point. Enjoy the journey to the fullest. Also, break your goals down into bite-sized objectives that are more easily managed. This tactic helps me jump start a project and allows me the momentum needed to continue strong throughout the journey.
Secondly, you should be prepared for negative feedback, especially from those who have a vested interest in the status quo. When I started the Great Black Speakers Bureau, I had to face larger competitors who told me that I needed much more experience before I could ever reach their plateau. The best thing to do is listen carefully for real concerns that may actually derail you, try to correct those things, and keep pushing forward as planned. Most of the time, however, you will find the concerns that arise “for your own protection” are based out of a particular fare from the other party. If you are already moving, rarely do most people try to stop you.
Conclusion
There has been no other time in history when an individual can make as much social change around the world as he/she can now. What is needed is for people to have a mental mind shift into believing that they can achieve greatness. This is not an easy task, especially for a society that often pushes the status quo and conditions people to think a certain way about themselves. However, unlocking the benefits of a strong mindset and suppressing negative conditioning can exponentially make the world a better place. Muhammad Yunus and the KIPP founders are not the only ones who can create positive change. Each and every one of us has the same type of potential waiting to be unleashed. The question is “Are we bold enough to unleash it?” I am confident that we are bold enough. I am also confident the generations of the future will soon be leading the world and will leave the world a better place for the future!
