my experience at - reserve bank of fiji by mr...my experience at jitendra singh chief manager...
TRANSCRIPT
Presentation to the
National Microfinance Workshop
4 November 2009
My experience atMy experience at
Jitendra Singh
Chief Manager (Economics)
Reserve Bank of Fiji
My experience atMy experience at
OutlineOutline
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
4. Lessons for Fiji4. Lessons for Fiji
OutlineOutline
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
4. Lessons for Fiji4. Lessons for Fiji
• Originated in 1976 in Jobra;
founded by Prof. Md. Yunus
• research project to examine the
possibility of designing a credit
delivery system to provide banking
services targeted at the rural poor
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
services targeted at the rural poor
• Extended to several districts
thereafter
• In October 1983, became an
independent bank
• Owned by borrowers (90%) and
Govt. of Bangladesh (10%)
• 97% of borrowers are women (also shareholders)
• 100% loans financed from deposits (no donor
money); give US$100m loan every month
• US$19.5 million profit in 2008
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
• 98% recovery rate
• Interest Rates
• 20% for income generating loans,
• 8% for housing loans,
• 5% for student loans, and
• 0% (interest-free) loans for Struggling Members
• Deposit interest rates (8.5 – 12%)
What makes GB different from conventional Banks?
• Credit is accepted as a human right!
• Objective not to maximise profit, but bring financial services to the poor
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
services to the poor
• One who does not possess anything gets the highest priority
• Based on potential, rather than achievement
• Located close to the poor; GB goes to the poor (to the
doorstep), rather than the poor going to the bank
• GB takes on more admin work, rather than the poor
What makes GB different from conventional Banks?
• no collateral; no legal instrument between the lender and borrower; just good database on every borrower (7.95 million of them)
• GB actively assists borrowers to meet repayments - loan
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
• GB actively assists borrowers to meet repayments - loan repayments are easily rescheduled
• helps families of borrowers with building their pension funds
• In case of death of borrower, built-in insurance system clears the debt fully
• encourages borrowers to adopt some goals in social, educational, health areas (16 goals) – brings about improvements in other aspects of life
Struggling Members Programme
• Started in 2002; Includes disabled, blind and retarded people
• 112,000 joined the program (almost 17% have left begging now)
Basic features:
• 1) They make up their own rules
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
• 1) They make up their own rules
• 2) All loans are interest-free, can be very long term, with very small installments
• 3) Members are covered under life/loan insurance programmes
• 4) Groups/Centres are encouraged to become patrons of the beggar members
• 5) Each member receives an identity badge with GrameenBanklogo
• 6) Members are not required to give up begging, but are encouraged to take up an additional income-generating activities
OutlineOutline
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
4. Lessons for Fiji4. Lessons for Fiji
2. What I saw and learnt2. What I saw and learnt
ABSOLUTELY GENUINE and PASSIONATE
in their desire to help the poor!
• Objective: not to maximise profit, but bring financial
services to the poor
• They lessen the burden of accessing financial services
• Will work very closely with the poor to help them up
• Will do their best not to let the poor fail; ensure their
self-esteem is not affected
• Support borrowers’ families – sustainable method of
keeping people out of poverty – database is critical
2. What I saw and learnt2. What I saw and learnt
1) Grameen Phone Ltd
2) Grameen Telecom
3) Grameen Communications
4) Grameen Cybernet Ltd
11) Grameen Shikkha (Education)
12) Grameen Capital Mngmt Ltd.
13) Grameen Business Promotion
14) Grameen Trust
Much bigger than we thought!
4) Grameen Cybernet Ltd
5) Grameen Solutions Ltd
6) Grameen Information Highways Ltd
7) Grameen Bitek Ltd
8) Grameen Uddog (Enterprise)
9) Grameen Shamogree (Products)
10) Grameen Knitwear Ltd
15) Grameen Health Care Trust
16) Grameen Health Care Service
17) Grameen Danone Food Ltd
18) Grameen Veolia Water Ltd
19) Grameen Shakti
20) Grameen Kalyan
21) Grameen Motsho (Fisheries) Fn.
2. What I saw and learnt2. What I saw and learnt
GRAMEEN CLINICS
48 Grameen Clinics (GCs)
GRAMEEN CLINICS
48 Grameen Clinics (GCs)
MICRO-INSURANCE
PROGRAM
MICRO-INSURANCE
PROGRAMGRAMEEN EYE GRAMEEN EYE
48 Grameen Clinics (GCs)
have been established
across Bangladesh that
include a laboratory and
pharmacy, and satellite
camps along with
community health
outreach, and emergency
services.
48 Grameen Clinics (GCs)
have been established
across Bangladesh that
include a laboratory and
pharmacy, and satellite
camps along with
community health
outreach, and emergency
services.
PROGRAM
A vital component of
these health programs is
the accompanying micro-
health insurance scheme
to encourage positive
health seeking practices.
PROGRAM
A vital component of
these health programs is
the accompanying micro-
health insurance scheme
to encourage positive
health seeking practices.
GRAMEEN EYE
HOSPITAL
Opened in 2008, the
first Grameen Eye
Hospital is modeled
after the successful
Aravind eye hospitals in
India. These targeted to
perform 50,000 eye
examinations and
10,000 cataract
operations per year.
GRAMEEN EYE
HOSPITAL
Opened in 2008, the
first Grameen Eye
Hospital is modeled
after the successful
Aravind eye hospitals in
India. These targeted to
perform 50,000 eye
examinations and
10,000 cataract
operations per year.
Journey Towards Green Energy Revolution
Our mission is to
empower the rural
people with access to
Green Energy and
income.income.
We envisage a future
where rural households
of Bangladesh would
have access to
environment friendly
and pollution free
energy at affordable
costs.
Journey Towards Green Energy Revolution
Journey Towards Green Energy Revolution
Journey Towards Green Energy Revolution
Journey Towards Green Energy Revolution
Journey Towards Green Energy Revolution
Journey Towards Green Energy Revolution
OutlineOutline
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
4. Lessons for Fiji4. Lessons for Fiji
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
• A completely new way to use
the creative vibrancy of business
to tackle social problems…
• Currently….• Currently….
“We will do the socially
responsible thing as long as it
doesn’t prevent us from making
the largest possible profit”
Source: Creating a World Without Poverty, Prof. M Yunus, 2008.
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
• Not to achieve limited personal gain, but to pursue
specific social goals (but run as a business)
• Cause-driven, rather than profit driven, with potential to
act as a change agent for the world
• Businesses recover investment and then re-invest all • Businesses recover investment and then re-invest all
profits in the business thereafter
• Examples:
• Nutritious food products for poor children
• Health insurance policies that provide
affordable medical care to the poor
• Renewable energy to those without electricity
• Waste management companies
Source: Creating a World Without Poverty, Prof. M Yunus, 2008.
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
Social Business:
BASF Grameen Ltd.
Grameen Danone Foods has
placed social and environmental
concerns at the heart of its
business model. Although theBASF SE and Grameen
Healthcare Trust establish the
Joint Venture BASF Grameen
Ltd. in Bangladesh. The
purpose of the company is to
improve the health and
business opportunities of the
poor of Bangladesh. BASF is
the first DAX30 company and
the first chemical company in
the world to set up a social
business with Grameen.
business model. Although the
company has to be profitable –
profits from the first plants are
needed to finance the
construction of new plants – the
success of the project will above
all be judged on non-financial
criteria: the number of direct and
indirect jobs created (milk
producers, small wholesalers,
door to door sellers),
improvements to children's
health, protection of the
environment etc.
GSL is continuously creating
partnerships with industry
leaders to innovate and create
Business and Information and
Technology solutions that are
affordable and sustainable.
GSL offers business services,
management consulting,
software development,
business and technology
process and service
outsourcing.
OutlineOutline
1. About 1. About GrameenGrameen Bank (GB)Bank (GB)
2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt2. What I saw and learnt
3. The concept of ‘Social Business’3. The concept of ‘Social Business’
4. Lessons for Fiji4. Lessons for Fiji
4. Lessons for Fiji4. Lessons for Fiji
• As a country, we need to be more passionate
about helping the poor
• “The poor will always need money – demand can
be created!!” (Prof. Yunus)be created!!” (Prof. Yunus)
• Don’t let financial illiteracy affect financial access
• Use role models in awareness programmes
• Manage Failures – allow experimentation
• Social Business. An idea for Budget 2010?
Finally…Finally…
“Do not
measure our
progress by
how much we
have have
achieved, but
rather by
how far we
still have to
go”
Prof. Md. Yunus
August 2009