Muhammad Yunus: Working out with People Worldwide out of Poverty: [email protected] (http://knowledge.wharton.upenn.edu/article.cfm?articleid=2243)
Muhammad Yunus: Lifting People Throughout the world out of Poverty
Printed: May 27, 2009 in [email protected]
What began which has a loan of $27 to 42 women in a small community 33 years ago has grown to a global microcredit movement that has changed the lives of millions of the indegent around the world. Muhammad Yunus, president and taking care of director of Bangladesh's Grameen Bank, was the guest speaker at Wharton's MBA beginning on May seventeen and the recipient of an honorary doctor of laws level during the University of Pennsylvania's commencement on May 18. Yunus spoke with [email protected] about his success, challenges and upcoming pursuits.
An edited version of the transcript follows.
[email protected]: Each of our guest today is Muhammad Yunus, success of the 2006 Nobel Peacefulness Prize and founder with the microcredit motion -based within the idea of making very small loans to the world's poorest persons, thereby giving them the opportunity to raise themselves and the families out of low income. Thank you for signing up for us.
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Yunus: Thank you.
[email protected]: People often associate good works and worthwhile causes with non-profit institutions. However you have emphasized that your model is a for-profit 1, not a non-profit one. Can you briefly describe that unit and inform us why the distinction is indeed important to you? Yunus: We are not aiming to create a non-profit. That has not been our intention. Our intention was to convince the bankers to loan money to poor people, thus my have difficulty was constantly with the lenders. Initially, We offered myself as a guarantor, and then took the money through the bank and gave that to people. So that it was an extension of the bank's activities. When we saw it turned out working well and the financial institutions were not while enthusiastic even as were, we thought could be we should possess a separate financial institution created for this purpose. Finally we mixed dough in 1983 -- known as Grameen Traditional bank or the " village lender. " Therefore we became a lender because it is a bank's activity. We loan money for the poor. Persons sometimes label us since an NGO. We have to clarify that we are not an NGO. It's not really that we are belittling NGOs.... I'm simply stating that individuals get baffled, thinking that because we work with the poor, we have to be an NGO. My answer is, no, our company is a traditional bank and it is possessed by the poor people. The owners of the financial institution are the debtors of the traditional bank. That's the differentiation that we want to make, to explain what we will be.
[email protected]: Grameen Bank is growing dramatically since the time that you just founded it. I've browse that you now have operations much more than 90 countries, in addition to seven million debtors in Bangladesh alone. But your success with Grameen has led to a lot of other people going into the microcredit area. A few of them are business banks. Some are funded simply by venture capitalists. How features that altered the microcredit model, and may you clarify some of the problems that have come up as a result of that?
Yunus: Just a little clarification: We work -- or at least the main idea has been in business -- in almost all the countries worldwide. So now is actually not directly to say 95 countries. [email protected]: So you're even more effective!
Yunus: At least the idea is that really spread. Whether or not they are big or small -- successful or not -В В AllВ materialsВ copyrightВ ofВ theВ WhartonВ SchoolВ ofВ theВ UniversityВ ofВ Pennsylvania. В В В В В В В В В В В В В В В В В В В В PageВ 1В ofВ 10В
Muhammad Yunus: Lifting People Worldwide away of Lower income: [email protected] (http://knowledge.wharton.upenn.edu/article.cfm?articleid=2243)
there are presences in all those countries. Now, we are almost eight , 000, 000 borrowers within Grameen Traditional bank itself. By doing so,...