1. “ The fact that the poor are alive is clear proof of their ability .” -Muhammad Yunus A l l e v i a t i ng Poverty (Please look at the notes below for we do not believe in choking slides with text) Thank You
2. Born 1940 Bathua, Hathazari, Chittagong, Bangladesh Muslim family Moved to city Passed matriculation exam as 16 th of 39,000 students Studied at Chittagong College then Dhaka University Research assistant, Lecturer, Professor Scholarship to USA Obtained PhD in economics Returned to Bangladesh after war in 1971 Appointed to government’s Planning Commissions Found job boring Famine of 1974 Established various rural economic programmes
3. Economic PhD Experience with similar projects Willingness to help poor Secured loan from Janata bank Then secured loans from various other banks Visit to poorest people in Jobra Gave $27 to a group of women Saw potential in small loans
4. Small loans to poor Encourage poor to start small businesses Thought up by Muhammad Yunus Can eventually provide for themselves Return to poverty cycle
5. December 11 2011 Issued over USD 11.4 billion To over 8.3 billion borrowers Success of ‘microcredit’ inspired similar efforts Over hundred countries, mainly developing Even USA Muhammad Yunus has been awarded many accolades Including Nobel Peace Prize 2006
Muhammad Yunus was born in 1940 in the village of Bathua of the sub-district Hathazari in the district of Chittagong in Bangladesh to a Muslim family. He moved to the city of Chittagong for his primary and secondary school education. For his matriculation exam, he came in 16 th of 39,000 students in East Pakistan. Muhammad Yunus then proceeded to study at Chittagong College followed by Dhaka University where he took up his Bachelor and Master Degree in economics. Following his studies, he took up positions such as research assistant, lecturer and professor of economics. Muhammad Yunus was offered a Fullbright scholarship to study in USA, specifically the Vanderbilt University where he obtained his PhD in economics. After the Bangladesh Liberation War in 1971, Muhammad Yunus returned to Bangladesh where he was appointed to the government’s Planning Commissions. However, he found his job mundane and soon quit. Muhammad Yunus got involved in poverty reduction after the bad famine Bangladesh faced in 1974 and began establishing various rural economic programmes.
Muhammad Yunus could have only started his venture because of his economic background. As mentioned, he had a PhD in economics and also had experience with similar projects because of his involvement in poverty reduction which also proves that he had a willingness to help the poor. In 1976, Muhammad Yunus also paid a visit to the poorest people in the village of Jobra. There he realised the potential of small loans given to these poor people when he gave $27 to a group of 42 women who after repaying the loans, still made profit. Muhammad Yunus was then succesful to secure loans from Janata bank, a bank owned by the government and proceeded to secure loans from other banks which they would break up into smaller amounts to loan to the poor
The whole concept of loaning to the poor is called microcredit and was actually thought up by Muhammad Yunus. These loans will encourage the poor to start up small businesses and go beyond donations in the sense that the poor will be essentially forced to repay loans, meaning they will spend their money wisely instead of a donation that they may squander over a few days. Loans will eventually allow the poor to provide for themselves when they have successfully started their small business which goes back to the quote on the first slide. The banks were initially wary of the poor’s ability to repay loans, but Muhammad Yunus had faith in their ability and as you will see, his faith was not misplaced.
The impact of what Muhammad Yunus has done is very obvious. As of 11 th December 2011, Grameen Bank has issued over 11.4 billion USD to over 8.3 billion borrowers. Also, the success of Muhammad Yunus’ Grameen Bank has inspired similar efforts in over a hundred countries. These countries are mainly developing countries, but there are microcredit programmes even in the United States. Personally, Muhammad Yunus has been awarded various accolades, including the Nobel Peace Prize in 2006. And rightly so, for what Muhammad Yunus has done has definitely gone a long way to helping the lives of many.