Sunday 18 August 2013

The Dream is now a Reality!!






Sustainable societies are more important than sustainable construction.
Sustainable humans can provide for themselves, stand on their own two feet.
But there are many people today who live in extreme poverty, with no opportunity to lead sustainable lives. These people we must help first. At the start of the millennium a goal was set to halve the number of poverty-stricken people by 2015. A great effort is required if we want to achieve a sustainable world.                                            
- Muhammad Yunus   



     Muhammad Yunus is a great nonconformist personality who has been instrumental as a banker, economist and has received a Noble peace prize.



A brief introduction of Dr. Muhammad Yunus:-
-           Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient.
-           Muhammad Yunus was born in 28th June, 1940 in the village of Bathua, in Hathazari,         Chittagong, the business centre of what was then Eastern Bengal.
-            Inspired by his mother to help the poor, he committed himself to eradicating poverty.
-            Professor Yunus studied in Dhaka University and later received a Ph.D. economics from    Vanderbilt in 1969 and became an assistant professor at Middle Tennessee University the    following  year.
-           He served as an instrumental member in International Advisory Group for the Fourth World  Conference on Women, Global Commission of Women's Health, the Advisory Council for Sustainable Economic Development and the UN Expert Group on Women and Finance.
-          He came up with the concept of micro-credit and micro – finance.
-          In 2006 Yunus and Grameen Bank received the Nobel Peace Prize "for their efforts through  microcredit.


The four pillar on which Grameen bank is established:




Conventional Banks
Grameen Banks
Cater to rich –“more you have, more you get”
Cater to poor with a little or no money
More than 99% of the borrowers are men
97% of the borrowers are women out of a total 8 million borrowers
Collateral is needed by talking loans
Collateral is not needed
Rich own the banks
Borrowers are the owners of the bank



  • The sole aim behind the  foundation of Graameen Bank is to 'give to the poor, uneducated, women of Bangladesh
  • The simple belief that anyone can do the thing when the opportunity is given and this belief paid off well hen children who were given small education loans to finish primary education began entering World -class universities. 
  • The function of Grameen Bank is very Unorthodox compared to conventional bank and that is one of the reason of its success

Genesis of  Grameen Bank:-
The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University  of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor.



Objectives of Grameen Bank:-
-          The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives:
-          Extend banking facilities to poor men and women;
-          Eliminate the exploitation of the poor by money lenders;
-          Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh;
-          Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves;
-          To reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more s avings, more investment, more income".





Achievements of Grameen Bank:-
The United Nations has declared 2005 the “International Year of Microcredit.” This counts as an achievement for Muhammad Yunus. With his Grameen Bank in Bangladesh, the economics professor spurns social, political, and economic prejudice and shows how to help the poorest of the poor: by lending them a few dollars and requiring them to pay back their microcredit. Yunus’ concept has been copied in over a hundred countries, producing lasting improvement around the world. At the Holcim Forum, Muhammad Yunus impressed the international audience with his lively lecture and with his charisma. As a member of the Advisory Board, Yunus will help shape the future of the Holcim Foundation for Sustainable Construction – and help shape the definition of sustainable construction.
Muhammad Yunus spoke plain English at the Holcim Forum: “People are not poor because they are stupid or lazy. People are poor because they have no financial structures to help them! Poverty is a structural problem, not a personal problem.”




Working of Grameen Bank:-
The mode of operation of Grameen Bank is as follows:-
 A bank branch is set up with a branch manager and a number of center managers and covers an area of about 15 to 22 villages. The manager and the workers start by visiting villages to familiarize themselves with the local milieu in which they will be operating and identify the prospective clientele, as well as explain the purpose, the functions, and the mode of operation of the bank to the local population. Groups of five prospective borrowers are formed; in the first stage, only two of them are eligible for, and receive, a loan. The group is observed for a month to see if the members are conforming to the rules of the bank. Only if the first two borrowers begin to repay the principal plus interest over a period of six weeks, do the other members of the group become eligible themselves for a loan. Because of these restrictions, there is substantial group pressure to keep individual records clear. In this sense, the collective responsibility of the group serves as the collateral on the loan.








Highlights of the operation:-
Of the total equity of the bank, 94 % is owned by borrowers and 6 % by Government of Bangladesh. It has more than 8 million borrowers of which 97 % are women. The bank has a loan recovery rate of 96.67 %.

 Grameen Bank is a reality which was dreamt by this great personality, the dream to eradicate poverty, the dream to provide opportunities, the dream of their development and above all the dream to make their dreams come true.

“One day our grandchildren will go to museums to see what poverty was like.”
-Muhammad Yunus



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