Originally Posted by aariz

History of government interference

Even as he tirelessly pushed forward this remarkable revolution on behalf of the world’s poor, Yunus has encountered difficulties in dealing with his own government

For years the government of Bangladesh has argued against high interest rates — which are part and parcel of the microfinance system because they permit it to cover intense administrative costs and to develop sustainably — as a way to bring down Professor Yunus. Recently, an excuse was served on a silver platter to government officials.

A Norwegian documentary accused Yunus of improperly diverting funds in 1996 that had been donated by the country’s aid agency. Bangladeshi Prime Minister Sheikh Hasina promptly used the opportunity given by this documentary to assert that Dr. Yunus treated the Grameen Bank as his “personal property” and claimed that he was “sucking blood from the poor.”

As a result, on March 2 Yunus, who at 70 is full of youthful energy combined with sagacity, was relieved of his duties as managing director of the Grameen Bank on the legal basis that he was beyond the mandatory retirement age of 60. This is morally reprehensible. Clearly, the more likely reason was Yunus’ criticism of the government in recent years and his 2007 bid to start a political party.


undoubtedly, Mr. younis was engaged in social business, symbolizes for millions of people today the best chance to create “a world without poverty.” In Pakistan, Kashaf micro finance Bank is operational. But its network is limited. HANDS and other NGO are also playing in role in social business. Recently, the funding from abroad is being used in flood hit areas that has shifted the attention of the social entrepreneurs towards construction rather than chalking out poverty alleviation programs.