Issue date: 2/27/08 Section: News

Media Credit: Jamey Davidsmeyer Former member of the World Bank, Dr. Ira Lieberman, speaks to audience members after a lecture on microfinance Tuesday evening in the Old Main Room of the Bone Student Center.

As part of the Stevenson Center's second annual Hoon Mok Chung Memorial Lecture, Dr. Ira Lieberman spoke to a standing room only crowd in the Old Main room of the Bone Student Center on Tuesday evening.

For the past 30 years, Dr. Lieberman has worked in the private sector of finance, with the World Bank, and in the not-for-profit sector.

Since 1995, Dr. Lieberman has been deeply involved in microfinance, which was the topic of his lecture.

The lecture was set up in order to honor Dr. Hoon Mok Chung, a professor at ISU from 1971 to 1979 who went on to become president of the Import-Export Bank of Korea, advisor to two presidents of the Republic of Korea and executive director of the Asian Development Bank.

Since 2005, the year Dr. Chung passed away, the Stevenson Center has hosted this event annually to honor his legacy as a mentor and colleague.

Frank Beck of the Stevenson Center opened the evening's events by voicing how glad he was that this event to honor Dr. Chung has finally arrived. Afterwards, President Al Bowman introduced Dr. Lieberman.

Dr. Lieberman began his speech by expressing how stunned he was by the turnout, no matter what the coercion or incentive to show up. He went on to share a personal story about his relationship with Dr. Chung, describing his personality and spirit.

In his lecture, "The Commercialization of Microfinance Is Here to Stay - Is it an Unmixed Blessing?" he outlined microfinance by giving background information about it, the evolution from not-for-profit to commercialized microfinance, the pros and cons of such a system and a brief summary and conclusion.

In the hour that his lecture lasted, Dr. Lieberman addressed a wide range of ideas and concerns about microfinance.

He defined microfinance as business seeking to provide for those who do not have access to the most basic financial needs. Those most affected, he said, were the 1 billion or so, living on one dollar a day or less.

In his lecture he defined the growth that microfinance has undergone since 1995, when he began to work extensively in the field. He then developed the way in which commercialization has changed the industry and the way in which money is loaned out.

In addressing the pros and cons, Dr. Lieberman described what most critics would consider the largest problem behind microfinance: high interest rates and how these institutions must charge such rates to turn a profit.

He explained his belief that the industry would "self-regulate" itself in order to combat exploitation of developing countries.

Following his speech, Dr. Lieberman entertained questions from the audience and graciously answered the questions in detail, providing insightful answers for several members of the audience.

Melissa Hoebbel of the Stevenson Center explained that there are many more events planned in honor of Dr. Chung.

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