#OpenBadges – Micro-credentials: what can we learn from micro-credits?

“The best way to find out if you can trust somebody is to trust them.”
― Ernest Hemingway

Are micro-credentials a disruptive innovation, just as micro-credits (micro-loans) were thought to be a few years ago? To answer this question we should first find out what can be qualified as a disruptive innovation? According to Wikipedia:

A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology.

Open Badges are creating a new market, the market of Open Credentials (micro-credentials are just one type of Open Credentials) and establishing a new currency, or more precisely reinvigorating one of the oldest currencies ever: trust.

Trust has many properties. First, it’s free and when offered, it enriches both the giver and the recipient. And when the recipients of trust get richer (with trust), their increased wealth can trickle back to those who initiallyoffered their trust. While it might still need the philosophers’ stone (link) to be transmuted into gold, trust can nevertheless be transformed into real cash as one experiences when applying for a loan. Con artists and banks* also know how to make cash out of trust!

For the poorest, things are different. One of the few assets they cannot be totally deprived of is trust. Thanks to the Nobel Prize winning Grameen Bank (link) founded by Muhammad Yunus, they now have the power to convert trust into micro-loans.

Grameen Bank is owned by the borrowers and it is based on trust. It does not require any collateral from its borrowers. Since the bank does not wish to take any borrower to the court of law in case of non-repayment, it does not require the borrowers to sign any legal instrument.

Were micro-credits transformative?

What lessons could the Open Badge practitioners learn from the Grameen Bank and the many micro-credit organisations that have been spawned since its creation? Can we draw a parallel between micro-credits and micro-credentials in terms of empowerment and potential social transformation? Could Open Badges create the conditions for the emergence of a new economy?

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