Banker To The Poor
-
Upload
hemantkatiyar -
Category
Education
-
view
1.155 -
download
4
description
Transcript of Banker To The Poor
“BANKER TO THE POOR”[Micro-Lending and the Battle Against World Poverty]
An Autobiography of ‘Muhammad Yunus’
Policy of Presentation
Father of Micro-Lending
About the Author
Awards to the Muhammad Yunus
Purpose of the Book
About Grameen Bank
Learning’s of the Group
Why Others should Read this Book
Critics
1940, Chittagong, India, (Now
Bangladesh)
Third of fourteen Children ( Five of them
died in infancy)
BA & MA (Economics) at Dhaka University
Ph. D ( Economics) from Vanderbilt
University ( USA)
In 1972, Head-of-Department (Eco) of
Chittagong University
In 1983, Founder & MD of Grameen Bank
In 2006, Nobel Peace Prize
About Author
(Professional Life / Balance Sheet)
Idiot Box
About Author
(Personal Life / Profit & Loss Account)
1st Marriage Account (1970) Amount (Wife): Vera Forostenko Interest (Kid): Monica ( March 7, 1977) Repayment : No, Divorced ( Dec. 1977) Account Place: USA
2nd Marriage Account ( April, 1980) Amount (Wife): Afrozi Interest (Kid): Deena Afrozi Yunus ( 24 January 1986)
Repayment : Yes, Now No divorce Account Place: Bangladesh
Teacher & Researcher in Adv. Physics @ University of Manchester
Muhammad’s Role Model
‘Poverty is a Result of Mismanagement of Resources
“Muhammad was influenced by his mother’s love for helping
the poor, and her willingness to share whatever the family had
with the less fortunate. This had a lasting effect on him”
Muhammad’s Objective
Social Revolution
Muhammad Yunus had following objectives
behind set up Grameen bank
To provide credit facilities to as many low
income and unemployed people
As possible, to improve the quality of their lives
And, to give them the opportunity to live with
dignity.
Recognition
Nobel Peace Prize in 2006 with joint of Grameen Bank
He has received more than seventy-seven (77) awards for his contribution to society & mankind
Australia @ 1998: Sydney Peace Prize, by the Sydney Peace Foundation
Jordan @ 2000: King Hussein Humanitarian Leadership Award, by King Hussein Foundation
UK @ 2003: World Technology Network Award
Conti……
A Bona fide Visionary
Spain @ 2005:Foundation of Justice
USA @ 2006: Global Citizen of the Year Award, by Patel Foundation for Global Understanding
Germany @ 2007: Vision Award by Global Economic Network
Purpose of Book
“To tell the story of Grameen bank to every one and to motivate people to join those who believe in the possibility of creating poverty free world and have decided to work for it.”
MF and SB: two approaches successfully tested by Yunus
Microfinance and Social Business combine technical and social innovation and use the strengths of the market economy for the benefit of the fight against poverty.
MF and SB follow a business model to ensure their sustainability and development, but their core mission is social.
Beyond the techniques used, the goal of MF and SB is to give back their dignity to poor people
In contact with reality, innovative solutions have been invented that need to be adapted to local conditions.
Address the risk of mission drift – Paris appeal for Responsible Finance.
The Poor in Bangladesh before Yunus
Credit is a Powerful Weapon
Did not have enough life survival things to feed his/her family
Poor in Bangladesh involved in Small Business—i.e., Entrepreneurs
Outside of the Formal Banking SystemNo Access to Loans or CreditNo Collateral
What is Grameen
It’s not people who aren’t credit worthy. It’s bank that aren’t people worthy
Grameen is a Self-help organization, is not a bank. Grameen is all about personal and economic development, and where is development there is change. People improves their lives, their lives change, and suddenly the situation is fluid. The change which occurs is not a victory over another person, but over the confidence of abject poverty. And , Improving one’s living standard is intrinsic to the process of change.
-Muhammad Yunus
Vision and Mission of Grameen Bank
Unknowingly, He Believe in KISS Formula
MissionTo inculcate the sprit of savings access loans and utilize the Money a sustainable basis
VisionA strong microfinance institute ready to take on the challenges of every day life for all members mainly improvement of their well being
Introduction to Micro-Lending: History
Sufia Begum Khatun, 26 Dollars
How did all start?
On the field in Jobara village (near to Chittagong) with his college students, Prof. Yunus saw that even poor people and women need loans. They can have activities and can repay. Therefore, he set up financial institutions with a social mission. Listen to the needs and constraints of the excluded & offer them adapted financial tools to empower themselves (solidarity groups).
Working Principal of Grameen Bank
Bicycle
“Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.”
How to Finance to Rural Poor
In 1978, He attended a seminar, which was organized by Central bank US experts view: Lending to the poor setting up
interest rate at a higher level. Yunus View: If you lend to farmers, they would
borrow regardless of what interest you charge.
“I would pay formers a negative interest rate. I would lend them 100 taka, and if a
former returned 90 to me, then I would forgive for repayment of the 10 taka. The real problem with lending to formers is getting the principal back, not interest
rate. “
Grameen Bank Lending Model
No Legal Instruments & No Collateral
Group: 5 Members ( Self-formed and group approved all loans request)
Center : 4 to 8 Groups Center Meeting : Weekly Center Manger : Grameen Bank Employee Center Chief : A member ( Female) Loan request & Saving Deposit : At centre Loan Distribution : At Bank Branch If one member default, then no more loan to group Group members collectively responsible for loan Training program also available
The Repayment Mechanism
No Judiciary in seeking repayment of loans
One year loansEqual weekly installmentsRepayment starts one week after the
loanInterest rate of 20%Repayments amount to 2% per week
for fifty weeksInterest payment amounts to 2 taka per
week for a 1000 taka loanContribute to the Group Fund = 5% of
Loan AmountMember = Savers + Borrowers
Why Lend to Women rather than to Men
94 % borrowers of Grameen Bank
Bangladesh is gender-baised. Credit given to women brought faster
changes in house hold than men. Given the smallest opportunity, women
putted extra effort to get out from poverty.
Destitute women adapted quicker and better to self-help process than men.
Women have more self-exploration and self-discover attitude than men
Grameen Bank Workers
Age: Not more than 27 years / Qualification: PG with B grade.
Women MenRecruited Locally Recruited
Nationally
At a time when they finished their
studies
No such type of Condition Involved
Either are waiting to be married
Does not matter about marital
status
Preference to those, whose
husband is Jobless
No such type of condition involved
16 Decisions
We shall follow and advance the four principles of Grameen Bank- Discipline, Unity, Courage and Hard work – in all walks of out lives
Prosperity we shall bring to our families We shall not live in Rundown houses. We
shall repair our houses and work towards constructing new houses at the earliest
We shall grow Vegetables all the year round. We shall eat plenty of them and sell the surplus
During the Plantation seasons, we shall plant as many seedlings as possible
Conti…
We shall plan to keep our Families small. We shall minimize our expenditures. We shall look after our health We shall Educate our children and ensure that they can earn to pay for their education We shall always keep our children and the Environment clean. We shall build and use pit-latrines We shall Drink water from tubewells. If it is not available, we shall boil water or use alum We shall not take any Dowry at our sons' weddings, neither shall we give any dowry at our daughters wedding. We shall not practice child marriage
Conti…
We shall not inflict any Injustice on anyone, neither shall we allow anyone to do so. We shall collectively undertake Bigger Investments for higher incomes. We shall always be ready to Help Each Other. If anyone is in difficulty, we shall all help him or her. If we come to know of any breach of Discipline in any centre, we shall all go there and help restore discipline. We shall take part in all Social Activities collectively.
Grameen Bank Success Story
250 Institutes Around the World Operate on Grameen Bank Concept
In 1976Only a small single hutStudents work as volunteersNumber of borrowers = 42 women
According to the book, it has now1,181 branches & 11,777 employeesTotal Loans given $174.78 billion 2.4 Million Families in Rural Bangladesh have
been served98% repaid95% borrowers are women
A Comparison with Conventional Banks
Govt. Banks Means Charity Organization for Rich
Conventional Banks Grameen BankPeople should come to
the bankThe Bank should go to the
people
Staff members work in-side the bank
Staff members work out-side the bank
Success of bank measured by the repayment rate
Success measured by the less miserable and difficult
lives of our borrowers
No visits at borrowers home
Weekly and monthly visit at borrowers home
Here, Credit means Interest
Grameen means Credit means Trust
Even single penny loan has legal cover
All millions of dollars loans have no legal cover
10 % repayment rate 98 % repayment rate
Against the Mind-SetShariah Law: According to this law, ban on the charging
the interest rate on lending. And, this law can not apply to Grameen bank, where a borrower is also the owner of the bank
Rumors that spread against the Grameen Bank Project Will convert you to Christianity Will steal your House and Property Will run away with your money Is a part of international smuggling ring Wants to destroy Islam by taking women out of Purdah Managers always run behind women
because they have some evil design
CHITTAGOANG
DHAKA
TANGAIL
Map of Grameen Bank’s Zones
Birth of Grameen Separate Corporate Entity
In 1982, He met with Mr. Muhith in BRDA during future option for Grameen Bank Project
In new Govt. Mr. Muhith became finance ministerMr. Muhith took proposal directly to the president
after facing strong opposition from the all chief-ecxecutives of Govt. owned bank in a central bank meeting
And end of September 1983, president had signed the proclamation and Grameen bank was born
First working day of Grameen bank was October 2, 1983.
Hierarchical Structure of Grameen Bank
Zones
Areas
Branches
Centers
GroupsZonal Manager & Zonal Office Has to be
done Actual Operations
Ownership Structure of Grameen Bank
Muhith told to Yunus this only one way to get Bank
Yunus Wante
d
Muhith
Reserved
President
Approved
In 1985
Borrowers
60 % 40 % 40 % 75 %
Government 40 % 60 % 60 % 25 %
Learning’s of Group
Change the Attitude of People, They will Change the Country
The strength of women is far greater than our imagination
Fortune @ bottom of pyramid Small is BigWork life BalanceWorst situation could be turn in to better
situation Utilitarianism :An action is right if it tends
to produce, the greatest amount of good for the greatest number of people.
Smile Girls Smile
Why Others should be Read this Book
From Social Perspective Muhammad Yunus has faith "If you have given tools to the people, and they use with their natural abilities and their curiosity, they will develop things in ways that will surprise you very much beyond what you might have expected”
From Business Perspective“Today, The brand Grameen has 4 profit companies and 13 organization. It is all result of strong social image of brand Grameen. Unlike many other companies, brand Grameen totally concern about human well-being rather than making profit”
The Grameen Family of Companies
In Bangladesh, Grameen is Like as TATA
For Profit Grameen Bank……………………………………………1983Gonoshasthyaya Grameen
Textile………………………..1995Grameen Cyber net……………………………………….1996Grameen Phone …………………………………………..1996
Not for ProfitGrameen bank also has 13 non profit organizations,
which were been opened from 1989 to 1998
Critique Book Quality
mostly focuses on micro-credit and the Grameen Bank
well-written quality is derived from the content
His points: Well argued and effective Uses individual examples Uses statistics to better grasp the context
Contribution to the field It “is” the field to micro lending Relations with World leaders ensure field
development Negative atitude towards Govt. banks and its
employees
A Special Request to Our Friends
“There is one thing [I don’t like about Grameen] . I used to enjoy beating my wife. But the Group came to me and
argued with me and shouted at me. Who gave them the right to shout at me? The borrowing group threatened they
will get really mean if I beat my wife again”( Husband of borrower to Muhammad Yunus )
“Hence, Keep your Life Partner away from this book, because. Immediate after from reading this book, she
will be able to get an idea, how to get more money from you. Eventually, You will lose control over your
Life Partner”(This information from the side of MALE social well
being community)
Stake Holders in this Presentation
Thank You all my Classmates for Paying Attention
Muhammad YunusAlan Jolis
Anant Kumar ChaudharyHemant Singh Katiyar
Manish SinghShailesh Kumar Agrawal
And, Poorer of Bangladesh and Grameen Bank Staff
Sufia Begum Khatun & Jobra Village
I strongly believe that we can create a poverty-free world, if we want to.... In that kind of world, [the] only place you can see poverty is in the museum. When school children will be on a tour of the poverty museum, they will be horrified to see the misery and indignity of human beings. They will blame their forefathers for tolerating this inhuman condition to continue in a massive way....
—Muhammad Yunus