Sunday, May 15, 2005

Grameen Bank

I dont know if anyone posted on this before but here goes anyway. I have been interested in this topic for several years now.
Grameen Bank
Provides credit to the poorest of the poor in rural Bangladesh without any collateral. At Grameen Bank, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic.
Muhammad Yunus (the founder) " one day poverty can be placed in museums"

I think Aiesec leaders should be saying "one day wars can be placed in the museum for good"


sakit said...

Good eye, dturk.

Put it simply, people in developing regions lack credit. But they have ideas and ability to do business - only if they had some funding.

Again, they don't have credit. But what do they have? - friends, networks, TRUST. MFI (Microfinance Institutions) loan out money based on collective-credit (your friendship is collateral) and make sure that the group is responsible for paying back the loan within a time frame.

It's not a hand-out. You have to earn it. There is ownership and it drives more fudning and business. It's brilliant.

There was a Business Week article on microfinance the other day, and you can invest in MFIs (usually the min. amt of US$100K). As the nomadlife alumni start earning $$$ in the real world, I wonder if it would be a good idea to make a pool for such funding.

We can leverage with our network. Anybody with more thoughts on this/microfinance?

Anuj said...

Yes... he is one of the most motivating speakers I have ever heard. There is an excellent interview with him on tape in the AIESEC learning TOOL... definatetly worth checking out