grameen bank - arber hoxhallari
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Grameen Bank - Arber HoxhallariTRANSCRIPT
A small experiment begunin Bangladesh has turned into a major new concept in eradicating poverty…
Microcredit is one of the most successful and sustainable solutions in the fight to eliminate world poverty. It has a proven structure and an impressive track record.
The profit generated from these businesses helps to provide dignity and hope for a brighter future for the entrepreneur's family.
How microcredit works
HowGrameen Bank
works
Bank goes to the village
5 women =
collateral
Spin off
System of Peer collateral
How Grameen Bank works
By Mohammed YunusScientific AmericanNovember 1999
Better education
Better b
irth
control
Gen
der
impa
ctP
olitical involvem
ent
Work against dowry
Spinoff
21
5 3
4
Objectives of Grameen Bank trainings
Discover individual role in the organization and the global community
Arouse curiosity
Encourage responsibility of self-motivated learning
Stimulate interest on the subject of Microfinancing
Learn and share with others
Start with the problem rather than the solution: a credit system must be based on a survey of the social background
rather than on a pre-established banking technique.
Adopt a progressive attitude: development is a long-term process which depends on the aspirations and commitment
of the economic operators.
Make sure that the credit system serves the poor, and not vice-versa: credit officers visit the villages, enabling them to
get to know the borrowers.
Lean on solidarity groups: small informal groups consisting of co-opted members coming from the same background and
trusting each other.
Associate savings with credit without it being necessarily a prerequisite.
Invest in human resources: training leaders will provide them with real development ethics based on creativity,
understanding and respect for the rural environment.
Method of action
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Grameen America
Grameen America has assembled a top management team, including Chairman of the Board Professor Muhammad Yunus, to lead the organization’s efforts to help break the cycle of poverty through microfinance in disadvantaged U.S. communities.Grameen America began its operations in New York City in January 2008 and is working to reach sustainability and toexpand its services to all individuals with a dream to run a business.
www.grameenamerica.com
Microfinance is not without its critics. Some argue that people can quickly sink into a cycle of debt, with many lenders charging exorbitant rates of interest.
The control women have over their microloans decreases over time
Repayments are generally due on loans from the first week after they are taken out, which does not give the borrower enough time to establish any form of income-earning enterprise.
Because field officers are judged on repayment rates, they sometimes use coercive and even violent tactics to collect instalments on the microcredit loans.
Critics of Microcredit
By James Melik Reporter, Business Daily, BBC World Service
In India, microlenders cannot accept deposits due to local banking regulations. These cash-strapped microlenders have to turn to local banks or rely on government grants.
This source of capital is usually unstable, insufficient or
too expensive
Despite the bank’s success in Bangladesh, little success has been achieved in exporting the Grameen Bank Model to other poverty-stricken areas
Difficulties of exporting the model
By James Melik Reporter, Business Daily, BBC World Service
Thank You!
Arber Hoxhallari