Muhammad Yunus:Banker to the Poor

Microfinance and the Grameen Bank

Check-In

Can someone quickly summarize what you’ve learned about Yunus/Grameen Bank/Microfinance so far? How did it get started and how does it work?

The Chapter 58 Trust

My experience in GhanaGroup LoansEducation and Savings AccountsChallenges and ResultsMicro-Insurance

Effectiveness

“The elephant in the room is the question: If microfinance doesn’t accomplish anything positive, then why are 128 million poor families busy taking loans? Should we assume that poor people simply don’t know what’s in their best interest? Or do we need to look more deeply into the way poor people survive?”What is most effective about microfinance?What does this mean in terms of Leadership

from a Development perspective? (Partridge)

Microfinance vs. Traditional Banks

Traditional banks won’t make loans to the poorest of the poor...why?

What other development theories have we learned about that partially explain this?

What did Yunus have to say about the role that governments should play in microfinance?

Rates and Efficiency

“Grameen rates are, in fact, considered low among microlenders, whose administrative costs are far higher than that of traditional banks.” Why do you think their administrative costs are higher?

Do you think there is cause for concern about organizational efficiency? Why or why not?

Borrowers

Why do you think the Grameen Bank focuses almost solely on women?

Food for Thoughtwith Mr. Bahlke

“Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty,” the Nobel Committee said in its citation. “Microcredit is one such means. Development from below also serves to advance democracy and human rights.”