A learning opportunity

TO THOSE who know him, perhaps it is no mystery anymore that SyCip Gorres Velayo & Co. (SGV & Co.) cofounder Washington Z. SyCip is a staunch supporter of education. Five years following the success of the Zero Dropout Program, the nonagenarian still breaks out into a lengthy yet fervent monologue when asked about it.

Otherwise known as the Zero Dropout Education Scheme (Zero Dropout), the program aims to send the poorest of the poor children to school and minimize dropout rates through providing loans to their parents. It was fully initiated and funded by Mr. SyCip along with the help of the Center for Agriculture and Rural Development, Inc. (CARD, Inc.) in 2011. Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI) is a leading microfinance organization in the Philippines.

In a recent interview with the business icon divulged the little details of the program’s beginnings with seemingly more enthusiasm than ever. Mr. SyCip shared that he approached dear friend and CARD, Inc. founder Dr. Jaime Aristotle B. Alip to ask if the latter had anything lined up for education.

“I have to admit that I don’t know how to approach the people from very poor families that are in way remote provinces,” said Mr. SyCip. “‘Would you like to try if I provide the funds?’ I asked because I know that they have access to the bottom group.”

Mr. Alip agreed to bring CARD, Inc. into the education side at the cost of administering funds to underprivileged families and giving the children a chance to attend school.

On the other hand, Mr. SyCip believes that his personal policies have shifted over the decades. “When I was at SGV, my responsibility is leadership of the firm. When I retired from SGV, I took a look — What are some of the problems of the nation?” he explained.

“I was shocked to learn about the number of illiterates. People who could not read and write. My guess is there must be about five million of them. So I started concentrating on that and see what kind of program I can start.”

By the end of 2015, the Zero Dropout Program had reached out to over 200,000 children that would otherwise not be in elementary school. Mr. SyCip added that although public schools in the Philippines may not be of the highest standards, at least the program banishes illiteracy from these kids so that they have a fighting chance in life.

Mr. Sycip also explained CARD, Inc.’s basic philosophy of collecting, giving, and dispensing money, which adheres to a structure that favors the problems of the bottom group. Since 2001, the institution has consistently sustained a near perfect repayment rate, contributing to its financial viability as per global microfinance standards. It now has over 1,400 offices nationwide.

Even at 95 years old, life is still a series of learning opportunities for Mr. SyCip. Considering the high repayment rate of CARD, Inc., he said he realized that the poor are more honest than the rich.

“You don’t walk into a marble-floored premise to borrow money. People get together weekly and there, you present why you want to borrow money. You tell the group what you are going to do with the money. If you fool around with that money, everyone knows,” added Mr. SyCip.

“Why is CARD MRI so successful? Because they know the problems of the poor,” he said.