I would like you to read all of this information I will provide to you. Make an educated decision upon the subject and help draft up ideas that could
make this system even better.
Muhammad Yunus (Bangla: মুহাম্মদ ইউনুস, pronounced Muhammôd Iunus) (born 28 June 1940) is a Bangladeshi banker and
economist. He previously was a professor of economics where he developed the concept of microcredit. These loans are given to entrepreneurs too poor
to qualify for traditional bank loans. Yunus is also the founder of Grameen Bank. In 2006, Yunus and the bank were jointly awarded the Nobel Peace
Prize, "for their efforts to create economic and social development from below." Yunus himself has received several other national and international
honors. He is the author of Banker to the Poor and a founding board member of Grameen America and Grameen Foundation. In early 2007 Yunus showed
interest in launching a political party in Bangladesh named Nagorik Shakti (Citizen Power), but later discarded the plan. He is one of the founding
members of Global Elders. Yunus also serves on the board of directors of the United Nations Foundation, a public charity created in 1998 with
entrepreneur and philanthropist Ted Turner’s historic $1 billion gift to support United Nations causes. The UN Foundation builds and implements
public-private partnerships to address the world’s most pressing problems, and broadens support for the UN.
Muhammad Yunus was awarded the 2006 Nobel Peace Prize, along with Grameen Bank, for their efforts to create economic and social development. In the
prize announcement The Norwegian Nobel Committee mentioned:
Muhammad Yunus at the Grand Hotel in Oslo, NorwayMuhammad Yunus has shown himself to be a leader who has managed to translate visions into practical
action for the benefit of millions of people, not only in Bangladesh, but also in many other countries. Loans to poor people without any financial
security had appeared to be an impossible idea. From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank,
developed micro-credit into an ever more important instrument in the struggle against poverty.
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 furniture 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, thus vastly improving Bangladesh's ability to export and import as it did in the past, resulting in a
greater form of globalization and economic status.
Dr. Akhtar Hameed Khan, founder of the Pakistan Academy for Rural Development (now Bangladesh Academy for Rural Development), is credited alongside
Yunus for pioneering the idea. From his experience at Jobra, Yunus, an admirer of Dr. Hameed, realized that the creation of an institution was needed
to lend to those who had nothing. While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to
high repayment risks, Yunus believed that given the chance the poor will repay the borrowed money and hence microcredit could be a viable business
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 1 October 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. As of July 2007, Grameen Bank has issued US$ 6.38 billion to 7.4 million borrowers. 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.
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. 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). 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, as well as Grameen Telecom, which
has a stake in Grameenphone (GP), biggest private sector phone company in Bangladesh. 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.
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. 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. For his work with the Grameen Bank, Yunus was named an Ashoka: Innovators for the Public Global Academy Member in 2001.
Microcredit is the extension of very small loans (microloans) to those in poverty designed to spur entrepreneurship. These individuals lack
collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to
traditional credit. Microcredit is a part of microfinance, which is the provision of a wider range of financial services to the very poor.
Microcredit is a financial innovation that is generally considered to have originated with the Grameen Bank in Bangladesh. In that country, it has
successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases,
begin to build wealth and exit poverty. Due to the success of microcredit, many in the traditional banking industry have begun to
realize that these microcredit borrowers should more correctly be categorized as pre-bankable; thus, microcredit is increasingly gaining
credibility in the mainstream finance industry, and many traditional large finance organizations are contemplating microcredit
projects as a source of future growth, even though almost everyone in larger development organizations discounted the likelihood of success of
microcredit when it was begun. The United Nations declared 2005 the International Year of Microcredit.
These were developed by Prof. Muhammad Yunus at the World Economic Forum in Davos, January 2009
*Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which
threaten people and society; not profit maximization
*Financial and economic sustainability
*Investors get back their investment amount only. No dividend is given beyond investment money
*When investment amount is paid back, company profit stays with the company for expansion and improvement
*Workforce gets market wage with better working conditions
*…do it with joy
If we were to impliment an economy that includes Microcredit as part of a traditional economic system inside capitalism we could help to aleviate
poverty and would not have a need for a welfare state. It would create a system where the only people who do not get what they need is because they
are too lazy to work. It would create a system where everyone could create their own business, which would lead to a more equal economy, less income
inequality, less poverty, more innovation and less monopolistic control over the economy by big corporations.
Which would lead to the only necessary need for government would be to protect people and maybe essential things such as roads, police, fire
department, defense, etc...