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April 22nd 2008 marks the 38th anniversary of Earth Day.  Started in 1970 in the US as a way to demonstrate public concern for the environment, Earth Day has become an international celebration.  It is the only holiday unconnected to a single religion, person, culture, or country and serves as a platform by which citizens of the world can come together united in a common cause that we all can agree on: the protection of our shared home.

John C. Whitikar  has an excellent article that sheds insight into the forces that came together to cause the first Earth Day.  He served as president Nixon’s Cabinet Secretary and relates what happened to cause the creation of the EPA (Environmental Protection Agency) in the US as a result of the first Earth Day celebration.  At that time in the US there were few laws specifically pertaining to the environment.  Businesses were given free reign to push the economy forward and little thought was giving to industrial by-products such as waste water, smoke, car and factory emissions, or types of pesticides and fertilizers used.  All was considered appropriate if it helped to enrich America.  Then a ground swell of public opinion, fanned by scientific research and increasing awareness by the news media, began to make people realize that pushing America forward could not be the only priority, especially if it led to such a lower quality of life and the pollution of their homes.

Balancing economic growth and environmental protection has long been a difficult task for not only the US, but for every country.  Public opinion polls show that most people are concerned about the environment, and most report they are willing to pay a little higher taxes if it means it will protect the environment.  However, everyone also wants an increased standard of living.  We all want to provide a better life for our children and provide them with the opportunities that we never had.  Unfortunately we can’t have both of these at the highest possible level.  We can’t have the highest possible economic growth while still creating the greenest and most pristine earth imaginable.  A balance must be struck between the two, and that is where the arguments begin.  Some would favor a greener earth and reduced economic growth while others feel that for them economic growth is currently slightly more important than creating more environmental regulations.   Both sides agree that both are important, but the balance between them is frequently argued.  This disagreement extends beyond people to cities, regions, organizations, governments, political parties, states, countries, and continents.  Each has a different experience with their surrounding environment and each is in a different stage of economic growth and so each has their own opinion about what the perfect mix is and how to achieve it.

One thing that is commonly agreed upon is that it will take more than just one action to solve the problem.  There is no one law to enact or no one action that will result in all types of pollution being cleaned up and all people benefiting economically.  It will take a variety of actions across many areas to more our world in the right direction.  Actions that have the power to both lift people economically and also protect the environment are especially helpful as they serve a dual purpose and benefit everyone. This is precisely what microfinance is able to do.  By providing people with small loans they are able to enrich their own life as well as their family’s without the bad environmental effects opening a large factory might have.  Often they are even able to begin environmentally helpful businesses such as farming local food, starting recycling facilities, harvesting wild medicinal plants, or creating jobs where they can work from home.  This is why we stay committed to the principles of microfinance. It has been proven to be an effective way to create economic gains and also to provide green jobs that can benefit the earth at the same time.

If you know of a micro-entrepreneur who’s been able to start a green business because of a micro-loan then please comment below and tell us about it, or post it in our forum to begin discussing it with other members.

On the second day of the recent Davos World Economic Forum Bill Gates called on corporate executives to pair two seemingly incompatible forces. A company’s need to earn revenue with an individual’s interest in the welfare of others. He acknowledged this idea would likely be received with skepticism at first but would eventually be accepted as people become more aware of successful projects with these two aims. Prior to his complete departure from the Microsoft giant that has earned him billions he announced a new venture with Dell computers to join Bono’s Product Red campaign. Certain Dell computers with Window’s Vista pre-installed will result in $60-80 being donated to help fight AIDS in Africa and has resulted in over 2 million people receiving AIDS drugs.

Many times he referenced how important it was to extend low-cost wireless networks into developing countries. He sees these efforts as being capable of being the impetus to vast economic and social changes. “There are billions of people who need the great inventions of the computer age,” he asserted. “Breakthroughs change lives only where people can afford to buy them.” Despite these assertions, Microsoft currently has no announced plans for any type of fee-reduced versions of its software and remains a target of many advocating for changes in software pricing structures. High prices result in the 3rd world being priced out of the market for software and leads to rampant piracy in many countries.
His assertion that “Once you get a country bootstrapped, it’s amazing what happens” can be seen in microcosm through the effects of microlending’s proliferation. Through the expansion of low-cost high speed internet connections and the booming internet cafe business in once remote villages has brought millions of new users into interaction with each other. Technology’s ability to easily and cheaply connect people from such great distances has contributed to the growing social venture movement across the world. It has enabled computer users to learn about people they would otherwise never be able to meet, empathize with their disparate situation, and motivated them to take action to reach out.

Although Bill Gates is not presenting a new bold idea that was previously unknown, his endorsement brings with it welcome recognition to the many who have been laboring with the same visions. Nicholas Negroponte’s attempt at provide one laptop per child, the Muhammed Yunas venture into cell phones for poor rural villagers, and the Tata Group’s new $2500 USD car are all success stories that Bill Gates is calling on CEO’s to wake up and take notice of. They show that a company earning money need not preclude its ability to radically change peoples’ lives for the better.

Do you know of examples of companies doing this in China, if so please write a comment

N.B. It doesn’t matter which country the company HQ is in.
More on Davos 2008 here