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J. A. Roy Bodden writes: I have long advocated that the most practical and risk-free solution to assisting the poor in the Cayman Islands is the establishment of a system of micro-industries modelled on what Muhammad Yunus has done in Bangladesh. In this model, borrowers are advanced small sums of up to $5,000 to set up cottage industries such as producing jams, jellies and other preserves, investing in small agri-industry projects, and the making of uniforms for schools and the uniformed services.
The strength of this organisation is that the loan holders are organised into support groups based upon the principles established in Alcoholics Anonymous and other similar self-help groups. At these meetings, the clients discuss challenges experienced and support one another by crafting strategies to overcome the challenges. Today, the Grameen Bank is the only bank in the world with a loan repayment rate of over ninety-eight per cent.
I have detailed this strategy in my book, From Guard House to the Glass House, including showing correspondence I held with then-Governor John Owen on how finance for such a venture could be accessed. I also recall suggesting the matter to my then-UDP colleagues. At that time Muhammad Yunus was in Jamaica and I suggested that the Caymanian officialdom seek an audience with him in an effort to explore the possibility of setting up micro-industry financing in these islands. Regrettably, my suggestion was not taken. And the rest, they say, is history.
I also believe that we have wasted another glorious opportunity by not establishing a Sovereign Wealth Fund. This could have reasonably been achieved during all those years when the islands were awash in money. Just imagine how well off we would have been now if a few million dollars were consistently tucked away annually during all those years!
The suggestion was laughed at and my colleague and I were reminded that we were “defunct school teachers” and “that anyone who was successful remained in their profession”. The sad thing about that is the author of that statement was a lawyer, but if an edict had been pronounced for the execution of lawyers and that man was executed, someone would have been in trouble for hanging an innocent man.
Today as I reflect on what could have been, I realise that there is knowledge and then there is applied knowledge. I realise, too, that in the Cayman Islands many progressive and positive ideas are spurned because their authors are either the wrong colour, the wrong nationality or come from a humble background.
As I reflect on lost opportunities, it is difficult for me not to conclude that many of the so-called “heroes” of the people were at the right place at the right time and not because of any intellectual acumen they possess. And so, like Sisyphus, we in the Cayman Islands are doomed to keep rolling the stone up the hill only to eventually lose control and have to repeat the exercise.
The solution to addressing the challenge of the poor does not lie in “quick fix” solutions but in genuine and well thought out policies. Finally, I give Minister Saunders credit. At least he is conscientious in his attempts to bring dignity to the sufferers.
This comment was posted in response to the CNS article:
Home equity loans may help elderly living in poverty
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