Free Essay

Mohammad Yunus

In: Historical Events

Submitted By jdjanz
Words 429
Pages 2
Mohammad Yunus
I found the lecture by Muhammad Yunus to be very interesting. At first I was wondering why an economist and bank owner was given the Nobel Prize for Peace and not Economics. Through the address he made, it became more apparent as to why he an industry like Grameen Bank received such recognition. By making a clear connection between poverty and the prospect of peace, Grameen Bank is fighting poverty and promoting peace. As long as people are in poverty, they suffer from anger, frustration, and hostilities that make it impossible to sustain peace in their society. With poverty all around Yunus, he couldn’t ignore it anymore, he couldn’t teach about the adverse effects of poverty in an economic system while people living within walking distance of the university knew nothing other than poverty. Since he created the Grameen Bank in 1974, it has given loans to over seven million people in over seventy three thousand Bengali villages. The bank gives out thirty thousand scholarships and approved thirteen thousand student loans, a number which increases by over seven thousand every year. An offshoot from the bank is Grameen Phone, a company committed to spreading the rise of technology and communication across all of Bangladesh. Companies like Grameen Bank and Grameen Phone are some of what Yunus likes to call social businesses. These social businesses operate much like a traditional business except they make no profit for their investors. That is not to say these companies are charities, all investors make their money back, but take no dividends. All profits are reinvested back into the company and are used to expand the business. The true purpose of these businesses would be to lift people out of poverty. These companies would grant individuals the ability to start their own businesses. These companies would form together to create a new global market with a new stock exchange. They would have their own sets of regulations and reporting agencies and publications. Taking companies to this new place of business and creating new businesses in formula will help us to eliminate poverty in the future, according to Yunus. Working together; people and social companies, we can give everyone a fair chance to unleash their energy and creativity.
Yunus implies that social businesses could transfer partial or full ownership to the poor.
He also implies that there needs to be fairness between the capitalistic markets and the social markets
Yunus implies that rich countries will be more likely to take up the cause of social businesses because of the challenge they present.

Similar Documents

Free Essay

Microlending

...and that support is not warranted. Microcredit is pretty typical of the micro approach to aid and is greatly supported by William Easterly. This is the type of program that very literally delivers aid in small amounts in hopes of accomplishing the great feat that is ending poverty. Although the amount of initial aid is small, the incentive it offers can lead to a successful social program. If an individual is given the opportunity to receive a loan, then there is an incentive that if one works hard and is successful, they have the chance to no longer live in poverty. Again, this is the type of aid that Easterly supports in his writings and theories as far as international aid goes. I personally believe that William Easterly and Mohammad Yunus are on the right track when it comes to sticking by microlending. The pros greatly outweigh the cons, and the benefits can be so significant that it would be silly and juvenile to write off a project with so much potential this early on in the game. While I understand where Dean Karlan is coming from when he says that “Microcredit is not transformational” [Bennett, 2009], I do think given time and trial it has the potential to be. And—thus far—statistics prove that it is doing almost no harm. With a 98% repayment rate [Bennett, 2009], why not give the people and the microlending program a chance to be successful and a chance to take initiative. Overall, so many professionals...

Words: 432 - Pages: 2

Free Essay

Micro Finance

...PHIL 2050-006 4/21/2011 MicroFinance Microfinancing is a system that provides small loans to some of the poorest communities in underdeveloped countries all over the world. The ultimate goal of microfinancing is to help the poor pull themselves out of poverty. In America, people typically use loan money to increase their assets. These assets could consist of a starting a business or making an investment with the expectation of gaining a return; they do not typically use the money to purchase the basic necessities of life. However, in underdeveloped countries, residents take out loans through the concept of microfinancing to get through their everyday life. My thesis states that there is a common misconception that Microfinancing Institutions (MFIs) only loan money to poor people in order for them to start a micro enterprise (also known as a small business). With this misconception, people do not acknowledge the fact that they live a significantly different lifestyle than those in underdeveloped countries. In this paper, I argue that despite the lack of increased income that an investment may bring, (to someone in a developed country), microfinance is very beneficial to the poor by providing the ability to maintain financial stability. MFI’s are beneficial to those in underdeveloped countries in three ways: maintaining basic needs, paying for health and family emergencies, and empowering women. A major problem in understanding the financial impact of these...

Words: 1469 - Pages: 6

Free Essay

Grameen Bank

...Aprajita Kalra MBA/MIA ’04 Columbia Business School Columbia University School of International and Public Affairs Qiulin Zhang MPA ’04 Columbia University School of International and Public Affairs This paper was written as part of the course Emerging Financial Markets taught by David O. Beim, professor of professional practice, at Columbia Business School in fall 2003. The authors are grateful for his invaluable feedback. © 2004 by The Trustees of Columbia University in the City of New York. All rights reserved. CHAZEN WEB JOURNAL OF INTERNATIONAL BUSINESS SPRING 2004 www.gsb.columbia.edu/chazenjournal * Corresponding author (EMainsah04@gsb.columbia.edu). Executive Summary In the early 1970s, Professor Muhammad Yunus envisioned a means of alleviating poverty by circumventing the major impediment to lending to the poorest in society—the need for collateral. He tested this instinct in an experiment in 1976, when he lent about $27 to 42 women in an ordinary Bangladeshi village. Just 30 years later, Grameen Bank has more than 3.2 million borrowers (95 percent of whom are women), 1,178 branches, services in 41,000 villages and assets of more than $3 billion. This paper explores Grameen Bank’s origins, structure, culture, performance and efforts to expand and broaden the microfinance agenda. The authors evaluate Grameen’s success in implementing Yunus’s vision in the light of various challenges and conclude that the short-run effects of microcredit have been...

Words: 10917 - Pages: 44

Free Essay

Live Case Study - Grameen Koota

...“Yunus has changed, not his followers”. This is with this sentence that Grameen Koota’s managers synthetized the model of their microfinance organisation. Indeed, they argued right from the beginning that Grameen Koota was strictly following the Grameen methodology, as it had been conceived in its early days. Grameen Koota was then born to deliver, in a cost-effective and sustainable manner, affordable credit to the poor in Bangalore, making it possible for them to borrow money without being required any documentation, collaterals and transaction history. The purpose of this report will be to analyse how Grameen Koota institution integrates in the Indian framework of microfinance and financial inclusion. One knows the microfinance context in India has soon been dominated by Self-Help-Groups. Usually formed by 20 members, they work as a micro-bank which collect members’ savings and grant them loans. Many cultural and operational differences can be observed with the Grameen model where groups are ruled quite strictly by a MFO: savings are compulsory, loans are granted according to an inflexible logic and reimbursement are highly scheduled. Even though the Grameen classic model has seen the necessity to adapt itself – with the Grameen II model in 2001 – and in spite of India SHGs tradition, to what extent Grameen Koota strictly replicates the original Bengali Grameen model? Have the organization been inspired by Indian microfinance legacy? Is Grameen Koota model replicable? ...

Words: 4098 - Pages: 17

Premium Essay

Sks Microfinance

...International Center for Business Research Issue: Volume 2 – Apr 2013; Link: icbr.net/0204.37 Case Study Of SKS Microfinance Ltd.: India’s Lone Microfinance Company in the Stock Market Devendra Prasad Pandey1  1 MGCG University, Chitrakoot, Satna, MP, India Abstract: Started as an NGO in 1988, SKS is today a for-profit NBFC regulated by the Reserve Bank of India. As of January 31, 2013 it has 48 lakh members associated with 1307 branches. It has disbursed 26195 crore as of September 2012. SKS Microfinance operates across 17 states in the country, including Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Gujarat, Kerala, Punjab and Delhi. In August 2010, SKS completed an IPO that from the global financial perspective was a great success: it was 13 times oversubscribed, and the company's valuation reached the top of the offer band price (which initially listed the value of the company at $1.5 billion), and the share price rose 13% on its first day of trading and rose 29% within four weeks of the IPO. In the process, SKS raised $348 million in fresh capital that, in theory, was supposed to help further grow the business and allow SKS to serve more people with financial services and microcredit than it reached before the IPO. Shares of SKS Microfinance rose by over eight per cent in early trade, after the company reported a net profit of Rs 1.2 crore for the third...

Words: 6840 - Pages: 28

Premium Essay

Non- Participation in Microfinance Institution: a Case Study in Bangladesh”

...“Factors Affecting Non- participation in Microfinance Institution: A Case Study in Bangladesh” [pic] Principles of Banking & Insurance Sec - D Submitted to: Mohammad A. Ashraf Assistant Professor Submitted by: Name: ID# Khaled Md. Masum 111081125 Jesika Haque 111081042 Ismat Jerin Chetona 111083068 Date of Submission: 27/12/2010 Letter of Transmittal 27th December, 2010 Mohammad A. Ashraf Assistant Professor School Of Business, United International University Dhanmondi, Road # 8/A (Old 15) Dhaka 1209, Bangladesh. Subject: Request to accept the report on “Factors Affecting Non- participation in Microfinance Institution” Dear Sir, With due respect and humble submission, we are the student of BBA and we are submitting the report on “Factors Affecting Non- participation in Microfinance Institution: A Case Study in Bangladesh”. It gives us immense pleasure to inform you that we have completed our report under your kind hearted direct supervision. Now, we have placed the report before you for your approval. We hope our report will satisfy you. Sincerely yours, Khalad Md. Masum 111081125 Jesika Haque 111081042 Ismat Jerin Chetona 111083068 Student Declaration This is to inform that the term on “Factors Affecting Non- participation in Microfinance Institution: A Case Study in Bangladesh” has been prepared in the...

Words: 2628 - Pages: 11

Free Essay

Social Business of Dr. Yunus

...& LLB Programme From: Muhammad Fazlur Rabb Tanvir Assistant Professor, School of Business, Metropolitan University, Sylhet. 10 October 2012 Social Business (Source: Yunus Talks on Social Business with British Council team, The Daily Star, Wednesday, 10 October 2012) Introduction: Social business, as the term is commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves humanity's most pressing needs. A number of organizations with which he is involved actively promote and incubate social businesses. (http://en.wikipedia.org/wiki/Social_business) In Yunus' definition, a social business is a non-loss, non-dividend company designed to address a social objective within the highly regulated marketplace of today. It is distinct from a non-profit because the business should seek to generate a modest profit but this will be used to expand the company’s reach, improve the product or service or in other ways to subsidise the social mission. In fact a wider definition of social business is possible, including any business which has a social rather than financial objective. Prototype: In Yunus’ book Creating a World without Poverty—Social Business and the Future of Capitalism, two different types of social businesses are proposed: ▪ A Type I social business focuses...

Words: 11062 - Pages: 45

Free Essay

Group Project

...Course: Act 202 Topic: A Master Budget for local Store (Dokan) Date of submission: 7th December 2015 Submitted to: Mohammed Sarwar Rakebder School of business Department of finance and accounting Submitted by: Name | ID | Md Ali AShraf | 1030207030 | | | | | Master Budget for a local tea store (Dokan) Prepared by Ashraf, rafi, mehedi, abrar TABLE OF CONTENTS Serial No. | Title | Page no. | 1. | Letter of submission | 5 | 2. | (Executive Summary) | 5-7 | 3. | Introduction | 7 | 4. | Nature of the business | 8 | 5. | Primary Product | 8 | 6. | Locations | 9 | 7. | Master Budget | 10 | 8. | Reference | 11-14 | 9. | (Appendix) | 14 | LETTER OF SUBMISSION Date : Mohammad Sarwar Rekabder Instructor of ACT 202 School of Business & Economics (SBE) Northsouth University Subject: Submission of the report analysis and master budget of Masum tea stall. Dear sir, We are very delighted to submit of our Report analysis and master budget of Masum tea stall which is situated at Mog Bazar in Dhaka city.as part of the BBA student. We completed this report which is worthwhile experience for us as it was in such an enjoyable work has enriched both our knowledge and experience. We believe that this report will meet your approval. If further information is required. We will be glad to provide that any time of your convenience. Your kind advice will encourage us to do further research in future. Yours sincerely ...

Words: 1154 - Pages: 5

Free Essay

Term Paper on Grameen Phone

...LETTER OF TRANSMITTAL July28, 2012 To, Rezaul Karim Lecturer Department of Finance and Banking Carmichael College, Rangpur Subject: Submission of Assignment on “ Service rendering quality of Grameenphone ” Dear Sir, I would like to take this opportunity to thank you for the guidance and support you have provided me during the course of this report. Without your help, this report would have been impossible to complete. With deep gratitude, I also acknowledge the help provided by Mr. Shariful Huq, Customer Development Manager Grameen phone Ltd. To prepare the report I collected what I believe to be most relevant information to make my report as analytical and reliable as possible. I have concentrated my best effort to achieve the objectives of the report and hope that my endeavor will serve the purpose. The practical knowledge and experience gathered during report preparation will immeasurably help in my future professional life. I request you to excuse me for any mistake that may occur in the report despite of our best effort. I would really appreciate it you enlighten me with your thoughts and views regarding the report. Also, if you wish to enquire about an aspect of my report, I would gladly answer your queries. Thank you again for your support and patience. Yours Sincerely Md. Saju Eslam Roll No: 8368435 Reg. No: Session: 2012-2013 BBA (Hon’s) 2nd Year Department...

Words: 6916 - Pages: 28

Free Essay

Islamic Finance

...supports some of the theoretical assertions. The case studies, however, reveal that Islamic MFIs have not yet tapped some of the sources of funds, nor have they used the variety of financial instruments in their operations. 1 ?. INTRODUCTION With the failure of experimenting in top-down (trickle down) development policies for a few decades to alleviate poverty in most developing countries, financing microenterprises is considered a “new paradigm” for bringing about development and eradicating absolute poverty. 1 Though the importance of developing small-scale enterprises has been discussed for a long time, the innovative poverty focused group-based financing of microentrepreneurs is a relatively new concept. Pioneered by Professor Muhammed Yunus of Grameen ∗ Economist, Islamic Research and Training Institute, Islamic Development Bank. I gratefully acknowledge the assistance and support of the following in conducting the field survey on Islamic microfinance institutions in Bangladesh: Shah Abdul Hannan and...

Words: 14577 - Pages: 59

Free Essay

Review of Listening to the Grasshoppers

...“So, is there life after democracy?” -Arundhati Roy Arundhati Roy starts her collection of essays ”Listening to the grasshoppers” with a remarkable and intriguing question that makes us stick with her way of thinking and look forward to startling revelations throughout the book. To her the democracy that’s been lauded as the largest democracy of the world, is a hoax, a sham. She draws reference in the earlier part of the book to the tagline in one of the posters of a Kashmiri protestant stating ‘Democracy without Justice = Demon-Crazy’, skilfully setting the tone for the detailed description of the ‘cunning, Brahmanical, intricate, bureaucratic, file-bound and apply-through-proper-channels’ style of governance. “Right now we’re sipping from a poisoned chalice- a flawed democracy laced with religious facism. Pure arsenic” The raw description and writing by Roy is the blatant truth or at least her version of the truth of the failure of India’s democracy. She sounds the warning bugle of the rise of the so called Hindu nationalism that’s trying to cast Islam as our national enemy. The most important example that she puts forward to support her claims is the massacre of perhaps 2000 muslims in Gujarat in 2002, in which the state government was allegedly complicit. She provides a shocking analysis of the riots of Gujarat and the fact of it being orchestrated by Hindu nationalist stalwart, Mr. Narendra Modi. In three nifty articles, she cuts open all the questioning method the police...

Words: 584 - Pages: 3

Free Essay

Annual Report

...This is Grameenphone November 11, 1996 Awarded operating license in Bangladesh by the Ministry of Posts and Telecommunications. March 26, 1997 Launched its service on the Independence Day of Bangladesh. November 11, 2009 Successfully listed on the Stock Exchanges in Bangladesh. After fifteen years of operation More than 35 million subscribers and around 87 thousand Shareholders as of December 2011 are now empowered under a single network and touched by the magic of closeness. Annual Report 2011 02/03 More than 35 Million subscribers History & Grameenphone Milestones 2010 Launched New Tariff Plan, ‘MobiCash’ Financial Service Brand, Ekota for SME, Baadhon Package, Mobile Application Development Contest & Network Campaign; Reached 29.97 Million Subscribers 2008 Introduced BlackBerry Service; 2011 Launched ‘My zone’- location based discount on usage, Micro SIM cards for iPhone, Spondon Package with 1-sec pulse; Grameenphone Branded Handset (C200, QWERTY handset ‘Q100’ and Android Handset ‘Crystal’), Customer Experience Lab, eCare solution; Completed swapping of 7,272 nos. of BTS; Reached 36.5 Million Subscribers 2009 Listed on Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.; Launched Internet Modem, Special Olympic Regional Talent Hunt, Stay Green Campaign, Internet Package P5 & P6, Grameenphone Branded Handset & Studyline; Reached 21 Million Subscribers Commissioned Brand Positioning & ...

Words: 63466 - Pages: 254

Premium Essay

Success of Microfinance in Bangladesh: Its Determinants, Impacts & Challenges

...Success of Microfinance in Bangladesh: Its Determinants, Impacts & Challenges Chapter- One Introduction 1.1 Introduction: In recent years, microcredit, in its wider dimension known as microfinance, has become a much favored intervention for poverty alleviation in the developing countries and least development countries. There is scarcely a poor country and development oriented donor agency (multilateral, bilateral and private) not involved in the promotion (in one form or other) of a microfinance program. Microfinance programs claim many achievements as its impact and an outside observer cannot but wonder at the range of diversity of the benefits claimed. Although Bangladesh has huge potential for development, it is, for various socio-economic reasons, among the poorest countries in the world. About half of the country's population lives below the poverty line with 80% in the rural areas. The burden of poverty falls disproportionately on women, who constitute half of the total population. Logically, therefore, poverty alleviation and creation of rural employment are top priorities in the development agenda of the government of Bangladesh (GOB) which has adopted a broad based approach to poverty alleviation, emphasizing macroeconomic stability, economic liberalization, and support for a number of government agencies and non-government organizations (NGOs). Substantial progress has been made in implementing the microcredit program (MCP), and the scope for its efficient...

Words: 21504 - Pages: 87

Free Essay

Swot Analysis of Grameenphone

...1 SWOT Analysis of Grameenphone Ltd. Abstract: Grameenphone widely known as GP, is the leading telecommunications service provider inBangladesh. With more than 32 million subscribers (as of June 2011), Grameenphone is the largestcellular operator in the country. It is a joint venture enterprise between Telenor and Grameen TelecomCorporation, a non-profit sister concern of the internationally acclaimed microfinance organization andcommunity development bank Grameen Bank. Grameenphone was the first company to introduceGSM technology in Bangladesh. It also established the first 24-hour Call Center to support itssubscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordabletelephony to the entire population of Bangladesh. From the SWOT analysis we are trying to know thecompany’s strategic position as well as Strengths, Weaknesses, Opportunities, and Threats. 1.   STRENGTHSGood Ownership Structure: Grameenphone has the best ownership structure in thetelecommunication industry in Bangladesh. Telenor is one of the largest companies,which is operating in different countries around the world. Again, in Bangladesh,Grameen Bank is one of the largest NGO, which has the sound communication allover the country. It is a joint venture enterprise between Telenor (55.8%), the largesttelecommunications service provider in Norway with mobile phone operations in 12other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sisterconcern of the internationally...

Words: 1419 - Pages: 6

Free Essay

Enterpreneurial Leadership

...nonsense attitude. Top business leaders like Martha Stewart are known for five major business principles. The first business principle is to pursue your purpose with passion. Martha’s life is centered on MSLO. The second principle is to practice solid values. Her company is about quality products for an improved lifestyle at great value. The third principle is to lead with your heart as well as your head. Martha view people as a commodity. The fourth principle is to establish connected relationships. She remained loyal to Kmart ant even helped them emerge from Chapter 11. The fifth principle is to demonstrate self-discipline. Martha has an unwavering focus on her products and consumer demands. Social-Oriented Entrepreneurial Muhammad Yunus was born on June 28, 1940 in the village of Nathua, in Hathzari, Chittagong. His biggest influence was his mother, Sufia Khatun, who always helped any poor that knocked on the door. This inspired him to commit himself to eradication of poverty in which led to the establishment of Grameen Bank. The word Grameen stands for village...

Words: 765 - Pages: 4