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Microcredit for the Poor: Muhammad Yunus

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Microcredit Presentation about where it all began: Muhammad Yunus
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Microcredit Presentation Produced By Marty Jenkins Respectful Dialogue Programs [email protected]
Transcript
Page 1: Microcredit for the Poor: Muhammad Yunus

Microcredit Presentation

Produced By Marty Jenkins

Respectful Dialogue Programs

[email protected]

805-964-2550

Updated August 2009

Page 2: Microcredit for the Poor: Muhammad Yunus

Muhammad Yunus

Page 3: Microcredit for the Poor: Muhammad Yunus

Muhammad Yunus

• 69 years old – born 1940

• Born in Chittagong, Bangladesh

• Third child in family of 13 – 5 died young

• Father a Jeweler and Devout Muslim

• Mother – Compassionate – Cared about poor

• Doctor in Economics - Vanderbilt University

• Wife – Physics professor

• Daughter – Metropolitan Opera Singer

Page 4: Microcredit for the Poor: Muhammad Yunus

Bangladesh

• Surrounded by India• 150 million people – one half of U.S.• Size of Florida• Densest population in world

– 35 times denser than U.S.

• Poorest large country in the world• Major draughts and major monsoons• Corrupt government

Page 5: Microcredit for the Poor: Muhammad Yunus

Bangladesh

Page 6: Microcredit for the Poor: Muhammad Yunus

Chittagong

Page 7: Microcredit for the Poor: Muhammad Yunus

How it all started

• People dying from famine

• Visit Village & Interviewed Villagers

• Loaned 42 Villagers a total of $27

• Villagers made bamboo furniture

• Villagers paid back loans

Page 8: Microcredit for the Poor: Muhammad Yunus

Grameen Bank

• 95% owned by depositors• 9 of 12 Board Members are Poor Borrowers• Loaned $8 Billion to 8 Million Members (as of 7/09)

• Normal Loan - $50 - $300• Typical Loan Repayment Time – 1 year• Paid back in weekly installments• 98+% Repaid• 64% of members have moved out of poverty• 28,000 employees

Page 9: Microcredit for the Poor: Muhammad Yunus

Mosammat

Taslima

Begum

Nobel Peace Prize

We must address the root causes of terrorism to end it for all time to come. I believe that putting resources into improving the lives of the poor people is a better strategy than spending it on guns.”

Muhammad Yunus

“I believe terrorism cannot be won over by military action. Terrorism must be condemned in the strongest language. We must stand solidly against it, and find all the means to end it. Muhammad

Yunus

Page 10: Microcredit for the Poor: Muhammad Yunus

• To achieve lasting peace – poverty must be overcome

• Awarded to Muhammad Yunus & Grameen Bank

• $1.4 million split between Yunus and Bank

• Yunus winnings split between Eye Hospital for Poor and Healthy Food Manufacturing Plant for the Poor (Grameen Danone).

Nobel Peace Prize

Page 11: Microcredit for the Poor: Muhammad Yunus

Microcredit• Loans to create businesses - income• Small loans – typically $50 - $300

• Reasonable interest rates – 15% to 20%

• To the poorest of the poor-typically families earning less than $1 per day

• No collateral – honor system• No written agreement• Mainly to women – 97%

• Mainly to illiterate – 75% to those who can not read or write

Page 12: Microcredit for the Poor: Muhammad Yunus

How Microcredit Works

• Banker goes to village on bicycle/foot• Villagers form groups of five entrepreneurs• Villagers taught how to handle money• Villagers choose business• Loans to first two villagers• Group meets with banker weekly• Payments made weekly

Page 13: Microcredit for the Poor: Muhammad Yunus

How Grameen Bank DefinesOut of Poverty

1. The family lives in a house worth at least $375 or a house with a tin roof, and each member of the family is able to sleep on bed instead of on the floor.

2. Family members drink pure water of tube-wells, boiled water or water purified by using alum, arsenic-free, purifying tablets or pitcher filters.

Page 14: Microcredit for the Poor: Muhammad Yunus

Out of Poverty

3. All children in the family over six years of age are all going to school or finished primary school.

4. Minimum weekly loan payment $3

5. Family uses sanitary latrine.

Page 15: Microcredit for the Poor: Muhammad Yunus

Out of Poverty

6. Family members have adequate clothing for every day use, warm clothing for winter, such as shawls, sweaters, blankets, etc, and mosquito-nets to protect themselves from mosquitoes.

7. Family has sources of additional income, such as vegetable garden, fruit-bearing trees, etc, so that they are able to fall back on these sources of income when they need additional money.

Page 16: Microcredit for the Poor: Muhammad Yunus

Out of Poverty

8. The borrower maintains an average annual balance of $70 in her savings accounts.

9. Family experiences no difficulty in having three square meals a day throughout the year, i. e. no member of the family goes hungry any time of the year.

10. Family can take care of the health. If any member of the family falls ill, family can afford to take all necessary steps to seek adequate healthcare.

Page 17: Microcredit for the Poor: Muhammad Yunus

Hand Up vs Hand Out

• Charity is not the answer to poverty

• Charity helps poverty continue

• Charity creates dependency & takes away

individual initiative to break out of poverty.

• Unleashing the energy & creativity in each

human being is the answer to poverty

• Microcredit unleashes that energy

Page 18: Microcredit for the Poor: Muhammad Yunus
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Grameen Bank

16 Decisions

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1.

We shall follow and advance the four principles of Grameen Bank --- Discipline, Unity, Courage and Hard work – in all

walks of our lives.

Page 25: Microcredit for the Poor: Muhammad Yunus

2.

Prosperity we shall bring to our families.       

Page 26: Microcredit for the Poor: Muhammad Yunus

3.

We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.

Page 27: Microcredit for the Poor: Muhammad Yunus

5.

We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.

Page 28: Microcredit for the Poor: Muhammad Yunus

6.

During the plantation seasons, we shall plant as many seedlings as possible.

Page 29: Microcredit for the Poor: Muhammad Yunus

7.

We shall plan to keep our families small. We shall minimize our expenditures.

We shall look after our health.

Page 30: Microcredit for the Poor: Muhammad Yunus

7.

We shall educate our children and ensure that they can earn to pay for their education.

Page 31: Microcredit for the Poor: Muhammad Yunus

8.

We shall always keep our children and the environment clean.

Page 32: Microcredit for the Poor: Muhammad Yunus

9.

We shall build and use pit-latrines.

Page 33: Microcredit for the Poor: Muhammad Yunus

10.

We shall drink water from tubewells. If it is not available,

we shall boil water or use alum

Page 34: Microcredit for the Poor: Muhammad Yunus

11.

We shall not take any dowry at our sons' weddings,neither shall we give any dowry at our daughters wedding.

We shall keep our centre free from the curse of dowry. We shall not practice child marriage.

Page 35: Microcredit for the Poor: Muhammad Yunus

12.

We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.

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13.

We shall collectively undertake bigger Investments for higher incomes.

Page 37: Microcredit for the Poor: Muhammad Yunus

14.

We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.

Page 38: Microcredit for the Poor: Muhammad Yunus

15.

If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.

Page 39: Microcredit for the Poor: Muhammad Yunus

16.

We shall take part in all social activities collectively.

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Phone Ladies

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Phone Ladies

$250 Investment/Loan

• Cell Phone

• Antenna

• Cable

• Charger

• Prepaid Minutes

Page 43: Microcredit for the Poor: Muhammad Yunus

Presentation Created By

Marty Jenkins

Respectful Dialogue Programs

[email protected]


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