Muhammad Yunus is an Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he developed the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. In 2006 Yunus and Grameen Bank received the Nobel Peace Prize "for their efforts through microcredit to create economic and social development from below". Yunus has received several other national and international honours. He was awarded the U.S. Congressional Gold Medal in 2010, and presented with it at a ceremony at the U.S. Capitol on 17 April 2013.
In 2012, he became Chancellor of Glasgow Caledonian University in Scotland. He is a member of the advisory board at Shahjalal University of Science and Technology. Previously, he was a professor of economics at Chittagong University in Bangladesh. He published several books related to his finance work. He is a founding board member of Grameen America and Grameen Foundation, which support microcredit.
Yunus also serves on the board of directors of the United Nations Foundation, a public charity created in 1998 by American philanthropist Ted Turner’s $1 billion gift to support UN causes.
Grameen Bank :
The Grameen Bank is a community development bank started in Bangladesh. They give small loans (known as microcredit or "grameencredit" )
to poor people without asking for money before the loan is given. The
word "Grameen", is made of the word "gram" or "village", and means "of
the village". The system of this bank is based on the idea that the poor
have skills but have no chance to use their skills without some money.
The bank also controls some businesses, such as fabric, telephone and
energy companies. Most of the banks loans go to women.
The Grameen Bank was started 1976 when Professor Muhammad Yunus, a Fulbright scholar and Professor at University of Chittagong, researched how to provide banking for the rural
poor. In October 1983, the Grameen Bank Project was made into an
independent bank by the government. The group and its first member, Muhammad Yunus, were awarded the Nobel Peace Prize in 2006.
Some people have said the banks prices are too expensive and put
people in a debt-trap. Some have also said that the bank would not work
if people did not give donations. At the same time, it is often seen as a success story in microfinance and as the guide for other groups around the world.
How the bank works
There is solidarity lending in over 43 countries. Each borrower must
belong to a five-member group, the group does not need to give a
guarantee for a loan. The loan is made to only one person but the whole
group is to make sure that the money is repaid. Each member has to pay
for their own loan but if they have problems the group may help them pay
because the group would not get any more loans from Grameen if all the
groups loans were not paid.
Grameen Bank does not take people to court if they cannot pay, the system works on trust only.Solidarity groups agree with Grameen to save enough for extra payments in case they cannot pay every time.
Not many women in India can have loans from big banks so 97% of Grameens loans go to women.Women get treated very badly in some countries and groups, such as the World Bank are researching to know if small loans are helping women around the world. Over 98 percent of Grameens loans have been paid back but the Wall
Street Journal says that 20% of the loans took more than a year longer
than the time agreed to pay the loan back. Grameen says that more than half of its borrowers in Bangladesh (close
to 50 million) now: have all children of school age in school, all
household members eating three meals a day, a clean toilet, a rainproof
house, clean drinking water and can pay 300 taka-a-week (around 4 USD) towards their loans
QUOTE : The key to ending extreme poverty is to enable the
poorest of the poor to get their foot on the ladder of development. The
ladder of development hovers overhead, and the poorest of the poor are
stuck beneath it. They lack the minimum amount of capital necessary to
get a foothold, and therefore need a boost up to the first rung. "
Jeffrey D. Sachs
Thanks for reading...!!! :)
The process of working through details of a problem to reach a solution. Problem solving may include mathematical or systematic operations and can be a gauge of an individual's critical thinking skills.
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