Grameen Bank, How Muhammad Yunus Inspires the World to Solve Poverty

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Grameen Bank, How Muhammad Yunus Inspires The World to Solve Poverty Written by Gatot Haryadi

Introduction
Poverty is number one of the world problem. United Nation set “End Poverty and Hunger” as number one in Millennium Development Goal that should achieve in 2015. Grameen Bank is Bank that operates in Bangladesh since 1976 focusing giving loan to the poor. When other bank reluctant to give loan to the poor, Grameen Bank did it very well. Until now Grameen Bank has 8.35 million borrower, 96 percent is woman and Loan recovery rate is 96.67 percent. Grameen Bank has a great contribution to reduce poverty in Bangladesh. According to a recent Grameen internal survey, 68 per cent of Grameen borrowers' families of Grameen borrowers have crossed the poverty line. The remaining families are moving steadily towards the poverty line from below. What Grameen Bank did has inspiring people around the world to do the same in their country. According to Micro Credit Summit Campaign report, in December 31, 2010, number of Micro Finance Institutions already reach 3.652 institutions, has over 205 million clients. 137 million of who were among the poorest when they took their first loan. Of these poorest clients, 82.3 percent, or 113 million, are women.

Muhamad Yunus, Founder of Grameen Bank.
When we are talking of Grameen Bank, its identical with the founder, Muhammad Yunus. Muhammad Yunus was born in 28th June, 1940 in Chittagong Bangladesh. Before he founded Grameen Bank, Muhamad Yunus was lecturer at Chittagong University. In students field trip to the a poor village, Prof Yunus is interview a woman who made a bamboo stools. The woman said that she borrowed 15p to buy raw bamboo material for each stool made. The rate is so high, so she was left with a penny profit margin. Prof Yunus get his own pocket money to lend the woman with small interest and its work. He go to the bank ask bank to lend the money to the poor, but the bank said, they are not credit worthy. Then Prof Yunus propose him as guarantor for the lending. The scheme is work in several village, but the bank still didn’t believe will work. Then Prof Yunus decide Grameen Bank that focus to give lending to the poor family.

How Grameen bank Works?
When Grameen Bank give a loan to its customer, they have methodology as follow : 1. There is an exclusive focus on the poorest of the poor 2. Borrowers are organized into small homogeneous groups. 3. Special loan conditionality’s which are particularly suitable for the poor 4. Simultaneous undertaking of a social development agenda addressing basic needs of the clientele. 5. Design and development of organization and management systems capable of delivering programme resources to targeted clientele 6. Expansion of loan portfolio to meet diverse development needs of the poor. The other that interesting in Grameen Bank is 16 Decisions. 16 Decisions is like a pledge of Grameen Bank borrowers to get out from poverty. The 16 Decision are : 1. We shall follow and advance the four principles of Grameen Bank --- Discipline, Unity, Courage and Hard work – in all walks of out lives. 2. Prosperity we shall bring to our families

3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest 4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus 5. During the plantation seasons, we shall plant as many seedlings as possible. 6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health 7. We shall educate our children and ensure that they can earn to pay for their education 8. We shall always keep our children and the environment clean 9. We shall build and use pit-latrines

10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum. 11. We shall not take any dowry at our sons' weddings,...
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