Enter Muhammad Yunus, the Grameen Bank and microlending.
This Saturday, FDL will host a book salon with Muhammad Yunus to discuss "Creating a World Without Poverty." The Book Salon will begin at 5 pm ET/2 pm PT 6 pm ET/3 pm PT, and I hope that everyone will join in the conversation,which promises to be enlightening and inspirational. Mr. Yunus has been a hero of mine for some time, and I hope to convey below why he should be one of yours as well.
Mr. Yunus was the Nobel Peace Prize winner in 2006, and his initiatives are truly life-changing for so many people around the world. So often, you read something like that and it seems like hyperbole but, in the case of Mr. Yunus, it is simply truth. For women, especially, who have struggled with their families in poverty, microlending is nothing short of a miracle that lifts up their potential, and gives them the dynamic power to change their own lives -- and those of their children and communities -- for the better.
Prior to Saturday's book salon, I wanted to give a brief introduction for everyone to the work that Grameen Bank has done. Microlending has rippled out across aide to the world's poor, and has transformed the system from one of temporary stop-gap measures and dependency to a lifetime of hope and empowerment for so many. Mr. Yunus' new book takes the discussion even further to the concept of "social capitolism," wherein the power of individuals is coupled with corporations willing to harness their assets and power for the greater good for all of us. It is an amazing read, and a conversation well worth having for all of us.
-- Business Week gives an overview of the microlending program.
-- National Geographic profiles Muhammad Yunus.
Working as a young economics professor at Bangladesh's University of Chittagong, Yunus lent the equivalent of U.S. $27 from his own pocket to 42 women in the village of Jobra who had a small business making bamboo furniture.
Since then, the bank he founded has made an estimated 5.7 billion dollars in loans to more than six million people in Bangladesh, 96 percent of them women.
Anyone can qualify for the loans, which average about U.S. $200.
Think about that for a moment: $200 American dollars can help change someone's life and that of their family.
-- The Nobel committee has two wonderful interviews with Mr. Yunus on their website.
-- FRONTLINE/World has done an entire series on social entrepreneurs worldwide that is well worth some exploration. I am especially impressed with this piece on microlending in Uganda and its impact there. PBS also has a short profile of Muhammad Yunus.
-- The ONE Campaign has a fantastic compilation of information on organizations and efforts to combat poverty worldwide.
To want to help others is exemplary. To find a way to do so that makes a real difference in their lives for years to come is extraordinary. But to do so in a way that makes it possible for any of us to help...and keep helping? That is a miracle.
Please join us this Saturday at 5 pm ET/2 pm PT 6 pm ET/3 pm PT for a discussion with Muhammad Yunus on Creating A World Without Poverty. It promises to be extraordinary for all of us.
(YouTube above is a speech given by Muhammad Yunus at the Skoll Forum in 2007.)
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Christy!
A Nobelist! That is awesome!
I told them downstairs about the post; now to read.
Looking forward to this Christy.
Thank you for arranging it.
Have also been a long-time fan of Yunus.
Yep. Exciting, isn’t it?
Another pre-liveblog assignment: Compare & contrast micro lending to subprime mortgages.
What a great inspiration! I found about Grameen through FDL and I’m very grateful about that.
It was Bev, our Book Salon miracle worker who arranged this one. She deserves all the thanks for the work it took to set this up. I’m beyond thrilled to be able to host it, though, his work truly been a miracle for so many people who wouldn’t have had this sort of hand up otherwise.
Good number of people making money from microloans and nobels. The folks getting into it as well, Branson and all.
OT:
Missing Emails cover:
9-11
PlameGate
FitzGate
Iraq War II
and about 64 other items of ill-repute
I don’t know if you have had a chance to read this book as yet, but I’d love your take on his theories on social businesses versus social entrepreneurship and/or capitalism. I love the potential…but I have to say that my cynical side is skeptical that large groups of people woudl buy into a complex, new paradigm based on helping others for the long term as opposed to a short term, immediate gain and run.
Thank you Bev!!!
i want to do this…saw a program on
PBS
I have seen several programs and articles on Mr Yanis and his micro-banking. It is truly an enabling endeavor for those in need in third world countries. The repayment rate, if I remember right is close to 99%. Just a little better rate than the sub-prime mess we have here. I look forward to the book salon on Saturday. Great catch Christy and the book salon crew!
I seem to remember that the first time I ever heard of this program was through President Clinton’s Global Initiative last year, I think. It is a perfect example of how cheap it actually is to keep people alive, and how totally neglectful it is for us not to try to help. Sure beats the cost of tanks and missiles.
No, I haven’t read it. Too many books, too little time. But it is certainly a sbject of interest. So perhaps I should add B&N to my errand list tomorrow & see how far I can get.
Economists have done a lot of work on altruism, with which I am not familiar either. I think the (respectable part of the profession, as opposed to the R part of the profession) is working on tools to analyze the phenomenon. I have a fried who might be familiar with that body of work. I’ll see if she knows of a summary article that might be accessible.
this is the program that moved me so much
http://www.pbs.org/frontlinewo.....uganda601/
Hi, Christy! And kudos to Bev for making it happen! I’ve already got it written in my calendar to attend.
Christy, in the ‘long run’ (however ‘long’ or ’short’ as ‘time’ we may have left to get ‘it’ right, what other choice have we?
Without fundamental cahnges to the ’system’ and the myths which impel it our chances of survival especially say for ‘Peanut’ or my daughters, what else may we pursue but a more human and humane economy?
The time of the ‘divine right’ of money is either about over, or our medieval mind-set (really!) will make our childrens’ future both tenuous and perilous.
As I’m reading this, I’m wondering if my not really in-depth knowledge of all things econ is making me miss something. I’ve done quite a bit of reading on social entrepreneurship, but this is different on several levels. And I’m worried I’m missing something. (More research time, ahoy!)
I watched that program also and was very impressed by the use of the internet and those who would invest/loan small amounts of money to those in Uganda. Very impressive indeed!
Christy, I could never say thank you often enough! Thanks to Bev too!
i will look into doing this…it will be my small contribution
This is so timely. Tomorrow begins a new semester of composition and I’ve chosen the words “individualism, community, responsibility” to examine from various angles. One assignment is to analyze the website for Kiva, which could be interesting for the web design types, the business types, and the political science types.
I’ve been thinking a lot about small acts and small things. Our life is a summation of small acts, even while we idealize the grand gesture. These small acts for us may end up being the grand gesture in the lives of others. How dare we not do them?
oh well said
Sub prime lending was a bait and switch scheme to screw poor people and a way to create bundled financial instruments to gin up and make money from thin air. The banks got caught making shit up and the poor folks who couldn’t afford the rip off rates get to lose their homes.
Nothing to do with micro loans. They are low cost and not the least bit predatory and were offered to women who were excluded from any form of traditional credit.
Good catch ms Smith!
Bev rocks.
i include the 4 legged models also
This is not ’small’ wisdom, but the essence of wisdom itself.
Very well said!
I’m a bit of a Kiva addict. I mostly lend to women doing some sort of textile work (my mother was a seamstress). I had a student addicted to Kiva who was a mechanic and couldn’t resist anyone trying to work with automotive repairs. My daughter diverted her impulsive spending habit to impulsive lending on Kiva; she works for geographical distribution (she was the one that got our family all involved). How many families can say that they are invested in an orchard in Azerbaijan?
The sub-prime I alluded to was pure snark sorry if you misunderstood that.
this program of micro-lending is truly worthy of our attention!
Muhammad Yunus has done much on his own but his story had inspired others to look for things they can do themselves. His work had created a growth industry in micro lending. It is amazing.
There is a section of the book where he talks about the way that Grameen does the intial loan interview, how it is structured to empower the person seeking to obtain the loan by scripting it so that the loan officer emphasizes how much belief they have in the person seeking the loan. Contrasting that with the hat in hand way that most folks apply for a loan here? It’s no wonder they have a much higher success rate in loans being repaid…
it restores your faith in the human race,that there are caring people still left in me first America
I have been following micro-lending for a little while, and its something I guess I needed to be reminded of. How something small in size can have a large positive effect on the lives of so many. It gets me dreaming of the what ifs.
i am so looking foward to this book salon,more than any other
From such dreams we shall fashion the future. Otherwise we, collectively shall someday lament, ‘if only ….’.
One of my favorite things to do on those days when I’m convinced of the depravity of mankind is to look through the online catalog for Heifer International. I love the thought of helping a family get on its feet, and knowing that they will pay it forward to some other family in need as well.
What an amazing gift…
I wouldn’t doubt that’s how they do that. Also, the doors slammed in faces when you’re up to your ears in medical debts and don’t make enough money to pay them back. (and are avoiding filing for bankruptcy for all it’s worth!)
It drives me nuts. Because i have a history of paying back my loans–but i can’t get one to save my life right now because my earnings are so measly. I bet that’ll change once i land a job with better pay. Once you start earning more money, they come begging to you.
I’m just glad that someone else is helping those in far more need than i am, and we get to speak with him come saturday.
Yes!!!
This was to have been in response, Christy ‘ to your comment @ 37.
All of the children and young folks I know who have been introduced to this idea of giving an animal to a another family respond so positively and happily.
Excellent, Christy, and Bev, and Jane!
Organizations and initiatives like this, Kiva,Heifer International, Habitat for Humanity and countless others that toil at good works, often in obscurity, give hope that we can move beyond the barbaric greed and selfishness that seems to control the globe these days.
What was it Dubya’s favorite philosopher said? Oh, yeah, “whatsoever ye do for the least of my brethren, ye do unto me….”
Works a lot better for me than a fur-lined robe on the way to a Saudi horse ranch worn by a pompous ass.
Children grasp that, intuitively, I think. Because animals are an easy thing to see as a gift for someone else that would make them happy when you are four like The Peanut is. But I also love that you can give trees for an orchard or something else along those lines.
Microlending gives that same ability, just with other more tangible things beyond livestock or crops. The thought of what an impact a single cell phone can have on a village with no real means of contact otherwise is amazing. You can open up the world for these people for so little. The simplicity of the idea really is sheer genius.
Some friends of mine started a microfinance organization and they just landed their first deal in Central America. They’re starting to get press down there and some of the family businesses have already been started. Exciting stuff!
I told them about this chat coming up, so hopefully we’ll have a few more FDL regulars out of it!
http://www.envestfund.org/
We actually have a Habitat for Humanity house going up on our block. I’m really excited about it. A local trade school has had students working on it for a while now, but I saw them bringing in some cabinets the other day, so I’m hoping they are getting close to finishing. The weather has been icky, so there hasn’t been anyone outside to ask the past week or so.
Too often the loan process here is adversarial and the lender is the overseer whereas he is a partner with recognition that a business plan will change. The interviews I have seen with him are great.
But there are now micro lender programs in the us (larger than 200) and they seems to be working pretty well. I like the networks of small private lender too. People are rethinking how to make the best use of their charitable dollars.
I love that this is such a flexible concept — that it can be changed on the fly if the events on the ground show that change is necessary. In the book, he talks about the restrictions in regular loans as well as the larger bureucratic ones via the IMF and such, and how bogged down in bureaucratic morass things get, even when a project clearly needs modifications. This allows the aide to go directly to the person who most needs its benefits and cuts out all the middlemen entirely. I love that.
And I love the idea of a social business set up with the yardstick of what good it does for a community and its sustainability as the measure of success, and not how much profit it can squeeze around the margins. Fascinating concept that is going to make for some great discussions.
Christy, if most American could have it put to them, as you have just done, they would probably respond quite favorably. Were our ‘Foreign
Aid’ notions premised upon such principles, few Americans would object and the rest of the world would breathe a sigh of relief, and then hope would flourish. Very well, and meaningfully said!
I’m a KIVA fan. The concept is straightfoward and simple in itts implementation. Even with my limited income, you can invest within your means and make a difference.
What is interesting is how some of these businesses grow and add employees. You are starting to see a multiplier effect. This is all comming from the bottom up. You are growing a local economy for the local community.
Mr. ReddHedd and I have been on a “Nothing But Nets” kick of late. The group buys mosquito netting that can help to prevent malaria for an entire family. When you look at the statistics of how many children die every year from malaria, and how 10 bucks can prevent that for an entire family? We couldn’t resist giving. And then giving some more.
It’s another one of those incredibly simple yet all the more brilliant for it sorts of concepts. Honestly, when you think about it in terms of saving the lives of someone’s children, how can you not, we said…
I love the way that works in terms of multiplying outward for the common good. When you think about the angerand despair that so often go hand and hand with poverty — the very issues that can spark someone’s involvement in terrorism, for example, in parts of Pakistan, Afghanistan and Saudi Arabia. Just being able to give someone some hope that they could do, could be something better makes such an enormous difference in their lives and for their families.
Habitat’s a powerful force around Fargo-Moorhead, partners with the local homebuilders’ association and Concordia College (Moorhead). Operates a resale store of home materials. Recently completed a twin home for two families.
Community coming together–this is the best of what we can be. Too bad they weren’t put in charge after Katrina. People would be in homes instead of toxic trailers.
Yunus explains a ’social business’ as a business that operates to achieve a SOCIAL goal. Not something you’re likely to hear from ExxonMobil. (Okay, you might hear it, but why would you believe it from Exxon or Chevron…?)
It’s the economic stability of the Grameen ’social business’ model that I find especially intriguing. There’s nothing radical or overly complex about it — it sounds very much like a thriving ecosystem where niches develop, are exploited, and open up new opportunities, and that process continues in a manageable fashion.
Yunus expands the potential of capitalism to generate productive activity and shared wealth. In a socially responsible fashion. Ingenius.
I like that very much, and will suggest that to the extended family.
Great idea. How can we (all) not … Talk about an ‘investment’!!
Last night, I took to the floor of the House of Representatives and outlined our case as to why this Congress must hold immediate hearings on Rep. Kucinichs Articles of Impeachment.
I didnt do it alone: I was armed with nearly 200,000 signatures of support from you and so many others. Please watch the video of this speech and forward it to as many people as possible. I’ve posted it on the front page of www.WexlerWantsHearings.com
This morning, I delivered letters to all of my colleagues in the House of Representatives, urging them to support Cheney Impeachment Hearings. You can read a copy of both the letter to my colleagues as well as the letter to Chairman Conyers I am asking them to sign at:
http://www.wexlerforcongress.c.....ItemID=230
Additionally, I have delivered to my colleagues in the Judiciary Committee a list of names who have signed up at www.WexlerWantsHearings.com. We now have almost 200,000 patriotic Americans dedicated to this cause.
We are beginning to make some progress. I have urged the Democratic Leadership to enforce the subpoenas being ignored by Harriet Miers and White House Chief of Staff Joshua Bolten by holding them in contempt of Congress.
This fight is not over. You must continue the pressure on your representatives and the media, or Congress will take no notice. That would be a historic mistake one we must prevent Congress from making.
We stand at a critical juncture in our efforts. Forget all of those arguments that it is too late or that we have run out of time. You cant run the clock out on our Constitution. Those of us dedicated to this fight Rep. Dennis Kucinich, the online community, and millions of patriotic Americans will keep the pressure on.
I will be furiously lobbying my fellow members of Congress to get behind these efforts and sign onto my letter to Chairman Conyers.
Please continue to spread the word and help deliver accountability to the corrupt Bush-Cheney administration.
With great respect,
Congressman Robert Wexler
Maybe, dare we hope?