Saturday, October 14, 2006

Microcredit

Ok, you might not be interested in money but this is something else entirely.
Thirty years ago, one man made a $27 loan to 42 villagers in Bangladesh at a time when the country was struck by famine. This was the beginning of a movement that spread across countries as far and rich as the US. Mr. Yunus, then teacher of Economics in a nearby town, was awarded the Nobel Peace Prize for his pioneering work.
What makes this so exciting is the sheer simplicity and brilliance of his idea. He always believed in people: ".... people have the drive and creativity to build small businesses with loans as small as $12" He created a bank (the Grameen Bank) which has dedicated itself to helping the poorest of the poor.
The effects of his work are far-reaching. In a largely Muslim-dominated society (in Bangladesh, where he started), he loaned to women, which empowered them. Through women's efforts, children got better education and were able to get out of the cycle of poverty.

I first heard of his work through 60 Minutes, years ago, but he has been on the talk circuit with no less than ex-President Bill Clinton (also fighting poverty).

His bank loans to beggars:
All we are doing is telling beggars that, well, since you go house to house begging, would you like to take some merchandise with you, some cookies, some candy, something?” he asked a crowd that hooted with delight at this clever notion.
“A typical loan for a beggar is something like $12,” he said. “With $12, she has a basket of merchandise she carries around and goes house to house.”
“Today, we have more than 80,000 beggars in the program,” he said. “Many of them have already quit begging completely.”

Read more at: http://www.nytimes.com/2006/10/14/world/asia/14nobel.html?pagewanted=2&th&emc=th

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