Just wanted to share this information with forum members


Muhammad Yunus and his revolutionary Grameen (Village) banking system is estimated to have extended credit to more than seven million of the world's poor, most of them in Bangladesh, one of the poorest nations in the world. The vast majority of the beneficiaries are women. Mr Yunus came up with the idea in 1976 while professor of economics at Chittagong University in southern Bangladesh.

The first loans he issued had a value of $27 (£14.50). Their recipients were 42 women from the village of Jobra, near the university. The women had relied until then on local money-lenders who charged high interest rates. The conventional banking system had been reluctant to give credit to those who were too poor to provide any form of guarantee. The success of Mr Yunus' scheme exceeded all expectations and has been copied in developing countries around the world. His "micro-finance" initiative reaches out to people shunned by conventional banking systems - people so poor they have no collateral to guarantee a loan, should they be unable to repay it. Mr Yunus' has tried to tranform the vicious circle of "low-income, low saving and low investment" into a virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income". As a result, even beggars have been able to borrow money under his scheme

Muhammad Yunus has shown himself to be a leader who has managed to translate visions into practical action for the benefit of millions of people, not only in Bangladesh, but also in many other countries. Loans to poor people without any financial security had appeared to be an impossible idea. From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty. Grameen Bank has been a source of ideas and models for the many institutions in the field of micro-credit that have sprung up around the world.

Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development

Micro-credit has proved to be an important liberating force in societies where women in particular have to struggle against repressive social and economic conditions. Economic growth and political democracy can not achieve their full potential unless the female half of humanity participates on an equal footing with the male.

Yunus's long-term vision is to eliminate poverty in the world. That vision can not be realised by means of micro-credit alone. But Muhammad Yunus and Grameen Bank have shown that, in the continuing efforts to achieve it, micro-credit must play a major part.

Quotes By Mr Yunus

-"Poverty in the world is an artificial creation; it does not belong to human civilization. We can change it."

-"Poor people are not asking for charity; charity is not a solution for poverty."

-"Only thing we need to do soon, redesign our institution and policies. People can change their own life provided they got the right kind of institutional support."

--Dr. Muhammad Yunus

@ GoodOmen!!


Please check the Micro credit and Micro Finance practices in Pakistan, RSPs and NGOs are using these methodologies for poverty eradication. Get the success ratio of their programms and impact of poors.

Infact, M. Yunas did creative efforts in Bangladesh that not only focuses on Credit but now there is Greeman Phone and other innovations have been implemented successfull.

Micro credit in some situations is SIN, it does more harm then good. Please check those as well.

KASHAF Foundation, Khushali Bank and other institutions are providing Credit now, but there is new and latest approaches i.e

Entreprise Development:-

This the latest trend used in the development sector as an advance version linked to Micro finance, rather only based on micro credit.

I think a hoalistic package of micro finance with entreprise development should be offered, that will create greater impact.

Providing only micro credit will increase the depth and severity of poverty and poor often used to sell their critical assets and that leads of migration and other social evils.

AA

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AA

"It is better to light a candle than curse the darkness".
"Achieve excellence to become a dear or dire of the world"
"Failure is the world, don't known to me"