BuzzFlash Reviews

BUZZFLASH REVIEWS

Bookseller (UK):

"The influential economist and winner of the 2006 Nobel Peace Prize outlines his vision for a new business model that combines the power of of free markets with the quest for a more humane world. Includes stories of companies that are already doing social business."

Publishers Weekly:

"Infused with entrepreneurial spirit and the excitement of a worthy challenge, this book is the opposite of pessimistic recitals of intractable poverty's horrors."

An online reviewer:

This is one of those books that is so worth your time and money. Don't confuse the authors suggestion that with wise planning and micro loans which he won the Nobel Prize for, we will make the world a place where everyone owns a car, lives in a big house and is as materialistic as we Americans.

No. What he writes about is how we can make it so that every person and their family can have the basics of human life and dignity so they lack for none of the necessities of life. Like clean water, decent housing and health care, and educational choices so they are literate and able to do better where they live.

I also like the challenges to big business to stop using people and giving them things they don't need which are unhealthy, but have am ethical corporate mindset where you strive to help people have clean water, food and none of the inferior goods that sadly we Americans are known for.

About the author:

Muhammad Yunus, a native of Bangladesh, was educated at Dhaka University and was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.

From the publisher:

In the last two decades, free markets have swept the globe, bringing with them enormous potential for positive change. But traditional capitalism cannot solve problems like inequality and poverty, because it is hampered by a narrow view of human nature in which people are one-dimensional beings concerned only with profit.

In fact, human beings have many other drives and passions, including the spiritual, the social, and the altruistic. Welcome to the world of social business, where the creative vision of the entrepreneur is applied to today's most serious problems: feeding the poor, housing the homeless, healing the sick, and protecting the planet.

Creating a World Without Poverty tells the stories of some of the earliest examples of social businesses, including Yunus's own Grameen Bank. It reveals the next phase in a hopeful economic and social revolution that is already under way�and in the worldwide effort to eliminate poverty by unleashing the productive energy of every human being.

More background:

A little bit of explanation about this ingenious financing mechanism for individuals at the lowest tier of the economic latter. "Many, but not all, microcredit projects also retain its emphasis on lending specifically to women. More than 94% of Grameen loans have gone to women, who suffer disproportionately from poverty and who are more likely than men to devote their earnings to their families." From Wikipedia:

In 1976, during visits to the poorest households in the village of Jobra near Chittagong University, Yunus discovered that very small loans could make a disproportionate difference to a poor person. Jobra women who made bamboo furnitures had to take out usurious loans for buying bamboo, to pay their profits to the moneylenders. His first loan, consisting of USD 27.00 from his own pocket, was made to 42 women in the village, who made a net profit of BDT 0.50 (USD 0.02) each on the loan[2]

The concept of providing credit to the poor as a tool of poverty reduction was not unique. Dr. Akhtar Hameed Khan, founder of Pakistan Academy for Rural Development (now Bangladesh Academy for Rural Development), is credited for pioneering the idea.[9] From his experience at Jobra, Yunus, an admirer of Dr. Hameed[9], realized that the creation of an institution was needed to lend to those who had nothing.[10] While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to high repayment risks[11], Yunus believed that given the chance the poor will repay the borrowed money and hence microcredit could be a viable business model.

Yunus finally succeeded in securing a loan from the government Janata Bank to lend it to the poor in Jobra in December 1976. The institution continued to operate by securing loans from other banks for its projects. By 1982, the bank had 28,000 members. On October 1, 1983, the pilot project began operations as a full-fledged bank and was renamed the Grameen Bank (Village Bank) to make loans to poor Bangladeshis. Yunus and his colleagues encountered everything from violent radical leftists to the conservative clergy who told women that they would be denied a Muslim burial if they borrowed money from the Grameen Bank.[3] As of July 2007, Grameen Bank has issued US$ 6.38 billion to 7.4 million borrowers.[12] To ensure repayment, the bank uses a system of "solidarity groups". These small informal groups apply together for loans and its members act as co-guarantors of repayment and support one another's efforts at economic self-advancement.[7]

The Grameen Bank started to diversify in the late 1980s when it started attending to unutilized or underutilized fishing ponds, as well as irrigation pumps like deep tubewells.[13] In 1989, these diversified interests started growing into separate organizations, as the fisheries project became Grameen Motsho (Grameen Fisheries Foundation) and the irrigation project became Grameen Krishi (Grameen Agriculture Foundation).[13] Over time, the Grameen initiative has grown into a multi-faceted group of profitable and non-profit ventures, including major projects like Grameen Trust and Grameen Fund, which runs equity projects like Grameen Software Limited, Grameen CyberNet Limited, and Grameen Knitwear Limited,[14] as well as Grameen Telecom, which has a stake in Grameenphone (GP), biggest private sector phone company in Bangladesh.[15]. The Village Phone (Polli Phone) project of GP has brought cell-phone ownership to 260,000 rural poor in over 50,000 villages since the beginning of the project in March 1997.[16]

The success of the Grameen model of microfinancing has inspired similar efforts in a hundred countries throughout the developing world and even in industrialized nations, including the United States.

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