1、,Banker to The Poor By: Muhammad Yunus,Group I,Agenda,Overview Author Book Ethical Issues Critique Personal Perspective Recommendation,Author,An economist from Bangladesh Chairman of the economics department at Chittagong University Inventor of Micro-credits Founder of Grameen Bank Noble Peace Prize
2、 Winner Aspires to create social business,Book Overview,An autobiography about his life and how he formed the Grameen Bank What influenced him? His concept of micro lending Importance of working women Growth and challenges for the bank And what it has achieved till date,Continued,Most essential deca
3、de was 1970s Bangladesh won its independence But left the country in Famine Millions of people needed to be rehabilitated Yunus was stricken by the amount of poverty He desperately wanted to change it. He initiated projects to aid the farmers,Differentiating Poorest from the Poor,Farmers were not th
4、e poorest Poorest of the poor had No land Food Clothes Source of income Mostly women with kids If not helped, they would die,A New Form of Bank,Sufiya Begum The inspiration for Grameen Bank Loan sharks Ate up the profit in terms of huge interest Birth of Grameen Bank Grant small loans at decent inte
5、rest rate Without any collateral Mostly for women Based on trust and good faith,Grameen Bank Success,In 1976 Only a small single hut Students work as volunteers Number of borrowers = 42 women According to the book, it has now 1,181 branches 11,777 employees Total Loans given $174.78 billion 98% repa
6、id 95% borrowers are women Over 250 institutions around the world operate micro-credit programs based on Grameen,Ethical Issues,Inequality Women treated unfairly Regular Banks not allowing poor people to borrow No collateral Illiterate Moral rights vs. religious rights (women) i.e. women are not all
7、owed to work outside,Ethical Issues Contd.,Multilateral Aid Institutions Aiding countries with the biggest price tag Move up the promotion ladder Corrupted officials Government, suppliers, consultants Corporate Social Responsibility All businesses want money No one wants the betterment of society,Cr
8、itique,Book Quality mostly focuses on micro-credit and the Grameen Bank well-written a subtle arrogance exists quality is derived from the content,Critique Contd.,His points: Well argued and effective Uses individual examples Uses statistics to better grasp the context Contribution to the field It “
9、is” the field to micro lending Relations with World leaders ensure field development,Critique Contd.,Raises the question of whether micro-lending is applicable in first world countries. In a sense his goal is the opposite of “trickle down theory” Gives “short shrift” to issues such as GDP and overpo
10、pulation,Personal Prospective,Establishment of the Bank Utilitarianism Competition Ownership of the Bank,Establishment of the Bank,The government bears responsibility for its failure to keep the market fair.,Government,Utilitarianism,An action is right if it tends to produce, the greatest amount of
11、good for the greatest number of people.,Competition,Competition tends to produce efficiency in the market and benefits the general consumer by resulting in a variety of goods at the best prices.,Ownership,Government control would not be good for banks development,Possible Improvements,Explaining how
12、 his theory negates traditional economic theory Is micro lending “one size fits all”? More technical and less optimistic approach Include organizational structure and balance sheets Is it possible for normal banks to micro lend? If so? How?,Thank You Question or Comments,References,Picture of Mr. Yunus (slide 3) http:/ Title Page http:/ Book pic http:/covers.openlibrary.org/w/id/1468840-L.jpg,
