Dr. Jaime Alip, founder of CARD MRI, and Ms. Sayaka Kankolongo, president of WELgee, discuss social innovation in Japan and the Philippines

SPF’s Peacebuilding Program welcomed Dr. Jaime Aristotle B. Alip, founder and chairman emeritus of the Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI), a microfinance institution in the Philippines, and Ms. Sayaka Watanabe Kankolongo, president of WELgee, a nonprofit organization that supports refugee employment in Japan, for an event at the foundation titled “Conversation with world-acclaimed social entrepreneurs – Philippines’ CARD MRI and WELgee's Initiatives.” The event included remarks by both speakers, followed by a panel discussion moderated by  Mr. Tetsuo Kato, president of the REEP Foundation.
 
SPF Executive Director Itsu Adachi in opening remarks set the stage for the event's discussions, noting that both organizations play a critical role in supporting social innovation. "The work of CARD MRI and WELgee shows us that supporting those who are socially and economically marginalized on the ground by providing them with the economic and employment support that they need could in turn lead to changes around access to finance and acceptance of refugees," he explained. "This could ultimately lead to institutional changes and social transformation."

“My vision was to establish a bank that was owned and established by the poor and landless in the Philippines. That was a very crazy idea,” said Dr. Alip when reflecting on his journey to establish CARD MRI. After being rejected by numerous funding agencies, he came to Japan in the 1980s and received his first round of funding.
 
Now nearly 40 years later, CARD MRI has grown into a constellation of 26 companies that are almost completely owned by the clients and have the shared goal of poverty eradication. In addition to serving 9.37 million borrowers in the Philippines, CARD MRI also offers a range of financial products and services, SME loans, and tailored microfinance services including Shariah-based microfinance. Health services, microinsurance, education, and other non-financial services are also available.

CARD MRI is also notable for its high repayment rate for loans. Dr. Alip attributes this to the fact that the loan recipients become part owners of the company, which motivates them to support the success of the institution itself. He also emphasized that women in particular play a critical role not only in this high rate of repayment, but also in supporting change in society due to their emphasis on supporting their families.

“When you give loans to poor women, you bring dignity. Then, they work hard to show they will be successful in their businesses,” he explained “The moment you give loans to women, they’re able to create income generating opportunities for business, and if they have income, the first priority of the women is to support children – food for children, education, clothing, housing amenities for the family.”

“WELgee wants to build a society where people can create a future together, regardless of their background,” said Ms. Kankolongo, who was inspired to establish WELgee in Japan after spending time working with an NPO in Bangladesh. WELgee, a combination of the words “welcome” and “refugee,” matches refugees in Japan with Japanese companies to provide them job opportunities in their area of expertise and boost the labor force in Japan.

Many refugees initially come to Japan because they happened to receive this short-term visa relatively quickly. However, the process for obtaining permission to settle in the country can take years, causing refugees to become isolated in society as they wait. This uncertainty can be exacerbated by the difficulty in securing stable employment, as many Japanese companies may be wary of hiring people with pending refugee status.

WELgee aims to take on this challenge, and has successfully helped 40 people find jobs, including 13 who were able to acquire a stable visa that allowed them to bring spouses and family to Japan.

Through these efforts, Ms. Kankolongo seeks not only to improve the lives and livelihoods of the refugees themselves, but also to build a more inclusive and resilient society and economy in Japan. Integrating refugees into society “could lead to innovation within Japanese business organizations and the mindset of Japanese employees within the organization could change and corporate values could be enhanced by having refugees as part of their organization,” she explained.

During the panel discussion in the second half of the event, both Dr. Alip and Ms. Kankolongo reflected on shared challenges and opportunities in the case of the Philippines and Japan.
 
Dr. Alip pointed out that the Philippines also had the experience of becoming home to many refugees after the Vietnam War. At that time, many refugees received loans and were able to become entrepreneurs, with one example being the integration of Vietnamese restaurants into local communities.

“Financing is very powerful. When you have loans, the financial capital, and convert this to income generating projects, that has the power to bring in more income," he said. "That is what brings about empowerment. It’s economic empowerment."

Dr. Alip also proposed in the case of WELgee’s work in Japan, perhaps fees could be collected from the companies that benefit from hiring refugee workers, which then could be used to provide funding for future refugees, creating a self-sustaining cycle of economic empowerment.
 
Ms. Kankolongo agreed that this type of self-sustaining and mutual help mechanism proposed by Dr. Alip could be something to explore in the future, particularly due to domestic resistance to using public funds to support refugees. She also took note of the importance of ownership being a central aspect of Dr. Alip’s work, which she would like to keep in mind moving forward.