Banker to the poor

Muhammad Yunus, an economist and a winner of 2006 Nobel Peace Prize, believes that “economic theories provide answers to economic problems of all type” (p.4) and “we can create a poverty-free world (xvii).” This book is about his first-hand experience of the Grameen Bank in Bangladesh.

In 1979 Professor Yunus proposed to a bank to make tiny loans (around HK$2) to the poor people.  So that they could get out of loan sharks and earn a decent living. 

The followings were some of the replies from the managers (p.77-78). What do you think?

• The poor need to be trained before they can undertake any income-generating activity.
• Credit alone is useless, it must be packaged with training, marketing, transportation facilities, technology, education.
• The poor cannot save.
• Credit to poor will only be a burden to them as they cannot repay it.
• Credit may help temporarily, but it won’t do anything in the long run.

The Grameen Bank is a revolutionary idea. It lends out thousands of tiny, short-term loans to the poorest of the poor. It stresses on trust and keeps rules and documents to its minimum. Its staff goes from door to door to help the borrowers to set up their small enterprises and unfold their full potential.

In his book, Professor Yunus shares with you his vision and a sustainable solution to pull the disadvantaged people out of poverty.

Yunus, H. (2003). Banker to the poor. London: Aurum Press Ltd.