Nobel Peace For Have Nots
Palash Biswas
(contact: Palash Biswas, c/o Mrs arati Roy, Gosto Kanan, Sodepur,
Kolkata - 700110, India, Phone: 033-2565-9551-residencde)
Without any sinificant media hype Bangladeshi real life economist and banker
Mohammad Yunus and the Grameen Bank founded by him were today awarded the Nobel
Peace Prize for pioneering their work in helping millions, especially women,
in the country overcome poverty through a system of small-scale loans,micro
credit,the extension of small loans to benefit poor entrepreneurs.The Nobel
Committee said Yunus and the bank he founded had used the innovative program to
create economic and social development from below. Women have been some of
the biggest beneficiaries of microcredit, which provides small loans to
entrepreneurs too poor to qualify for traditional bank loans.
>From Adam Smith, the father of economics, economists tend to support the
>ruling capitalist class and always are associated with establishment and
>system. Muhammad Yunus is incomparably the most honoured social activist of
>our era and he does not identitify himself with the ruling elite economists.He
>could have been established himself in the developed part of the globe and
>could have preached poverty eliminination with theories, papers and surveys.
>But he used applied economics a tool of class mobilisation of the most
>neglected underclasses of an underdeveloped country like Bangladesh. No doubt
>, we the unfortunate Indians miss an economist like him as we are quite
>habitual to expect the great Indian brain drain flow towards West. Yunus has
>received so many awards that prize-givers vie not to be left behind.It is
>difficult to believe that Yunus started as a student and teacher of economics,
>for although economists believe they work to make the world a richer place,
>they do not have much time for doing good. In 1974, while surveying the famine
>sick villages Ynus declared that those villagers belonged to his family. He
>never denied the responsibilty of his family liabilities.Recently, Grameen
>Bank floated a mutual fund to enable its clients to invest in the stock
>market. But its focus is on women, and on women who do not have the
>opportunities that money or urban life bring. It would give Reserve Bank a
>fit, but the women borrowers own 94 per cent of the Grameen Banks equity; and
>99 per cent of them repay their loans. What began as an academic research
>project with a practical testing ground in the poverty-stricken villages
>around Chittagong in Bangladesh grew into a successful story of social
>entrepreneurship which changed the way economists and policy-makers thought
>about the eradication of poverty.
The BBC's Lars Bevanger in Oslo said this year's winner caught most there by
surprise. Many commentators had expected an award to someone involved in peace
talks.
Mr Yunus, 66, said he would use the 10m Swedish kronor ($1.35m, £730,000) prize
money to find more innovative ways to help the poor launch businesses. He
said he was delighted at the news and proud of the banks achievement.
The Nobel Committee cited how his Grameen Bank aids the poor to bring about
their own development. And the concept of extending loans to a largely female
client base has also been credited with reducing domestic violence by giving
women a previously unattainable degree of independence.
Before Yunus, Tagore and Sen were the two Bengalis who won the Nobel. Some
include Mother Teresa in the list as she lived and worked in Calcutta. Mother
teresa from Kolkata also won Nobel Peace.
The largest Bengali Daily from Kolkata published the news with a screaming
headline emphasising unnecessarily on the achievement of Dr Amartya sen that
dr. Yunus gets Nobel after Aramrtya. Firstly Sen get the Nobel Memorial prize
for economics, which is not considered a nobel prize at all by some quarters.
Dr Subodh Chandra Roy has authored a book on this topic and is already engaged
with leagal fight with the group publishing the headline. Secondly, Sen hes
written so many things and said a little more , but he is nowhere ,in no sense
involved seriosly with an agenda of poverty elimination. While Yunus got a
nobel peace for his Grameen Bnak, directly involved in poverty eliminination.
His microcredit modelis adopted by more than hundred countries including the
leader of unipolar globe, the superpower armed with globalisation, IMF and
World Bank, United States ofamerica. Bengalies all over the world have regained
the lost memories and sentiments of Bengali Nationality. The history of getting
Nobel by Rabindra Nath Tagore and Mother Teresa is being read aloud.
Just thought you might find the following interesting. Amartya Sen is not only
the first Indian to win the Economics Prize it is the first time that work on
poverty has gained this kind of international recognition (compared to fancy
theoretical shenanigans!) .But may we dare to cite any instance of an
interferance of Sen to change the economic system. Yes, Yunus has done it.
Hence, please don`t compare Yunus with Sen.
Mr Yunus set up the bank in 1976 with just $27 from his own pocket. Thirty
years on, the bank has 6.6 million borrowers, of which 97% are women, according
to the Grameen website. Mr Yunus is expected to pick up the award and prize
money during a ceremony in Oslo in December. The award of the Nobel Peace
Prize to Bangladeshi economist Professor Muhammad Yunus has focused the
attention of the world on the microcredit scheme he pioneered.
Returning from the US, Yunus was shaken by the 1974 famine and headed to the
villages to see what he could do.He found the regions women in severe debt to
extortionate moneylenders. His initial goal was to persuade a bank manager to
give villagers regular credit, but the banker said that was impossible without
a guarantee.Yunus set out to prove him wrong and never looked back. Grameen
Bank has lent $5.72 billion since it began. Of this, $5.07 billion has been
repaid.Today the bank is 94 per cent owned by the rural poor it serves and 6
per cent by the government.Grameen Bank claims to have 6.6 million borrowers,
97 percent of whom are women, and provides services in more than 70,000
villages in Bangladesh.
At GB, credit is a cost effective weapon to fight poverty and it serves as a
catalyst in the overall development of socio-economic conditions of the poor
who have been kept outside the banking orbit on the ground that they are poor
and hence not bankable, the committee said.
"We congratulate Muhammad Yunus for his achievement,"Prime Minister Khaleda Zia
said, a view shared by her rival Sheikh Hasina.
The relevance of Dr Yunus and his unique attempt, high Bank interest rates,
cooperative movement in India with alarming facts, Achievement of Left ruling
the other part of Bengal and sensex related economies of this sub continent
must be analysed while we congratulate Dr Yunus. We should also not forget that
Muhammad Yunus of Bangladesh and the Grameen Bank have been jointly awarded the
2006 Nobel Peace Prize. Mr Yunus, an economist, founded the bank, which is one
of the pioneers of micro-credit lending schemes for the poor, especially women,
in Bangladesh. The role played by the bank is very significant as we see the
collapsing cooperative movement in India and particularly the ways adopted by
West Bengal communist government for capitalist development forgetting all the
achievement of land reforms and the entire rural sector.
Bangladesh is one of the worlds most densely populated countries, with its
people crammed into a delta of rivers that empties into the Bay of
Bengal.Formerly East Pakistan, Bangladesh came into being only in 1971, when
the two parts of Pakistan split after a bitter civil war which drew in
neighbouring India. Bangladesh spent 15 years under military rule and, although
democracy was restored in 1990, the political scene remains volatile.Hemmed in
by water, the capital Dhaka is expanding skywards . Poverty is deep and
widespread; almost half of the population live on less than one dollar a day.
However, Bangladesh has reduced population growth and improved health and
education. The economy of the country is run mostly by Bangladesh aid club.
Japan is the most prominent aid giving country for Bangladesh. the country is
sharply divided in two groups- Haves and Not Haves. Middle class is
disappeared. The not haves consist of the ninety percent of the population.The
major employer is agriculture, but it is unable to meet the demand for jobs.
Thus many Bangladeshis - in common with citizens from other countries in the
region - seek work abroad, sometimes illegally. The country is trying to
diversify its economy, with industrial development a priority. Overseas
investors have pumped money into manufacturing and the energy sector.
Political tensions have spilled over into violence; hundreds of people have
been killed in recent years. Attacks have targeted opposition rallies and
public gatherings. Senior opposition figures have also been targeted. Concern
has grown about religious extremism in the traditionally moderate and tolerant
country, which found apparent form in a string of bomb attacks in August 2005.
The government, which long denied that it had a problem with militants, has
outlawed two fringe Islamic organisations. Bangladesh has been criticised for
its human rights record, with particular concern about assaults on women and
allegations that police use torture against those in custody.
The low-lying country is vulnerable to flooding and cyclones and it stands to
be badly affected by predicted rises in sea levels.
Here Grameen bank has 2226 branches from which the micro credit scheme is run.
Bank credit without security is quite unthinkable in this subcontinent. In
India, we celebrated the centenary of cooperative movement recently. In our
nationa lplans and budgets rural development has been always a priority. India
is basically a agririan country and inspite of boasting of great achievement of
cooperative movement we could neither manage bank credit for the havenots
without security nor we could help the poor peasnats to sustain themselves . We
see the suicide incidents headings almost daily in the newspapers and just feel
sympathetic. Moreover, in India poverty elimination has been always on top in
political agenda. In mid term elections of 1971, Mrs Indira Gandhi introduced
first the sloganGARIBI HATAO, SAMAJBAD LAO. With Bangladesh liberated Mrs
Gandhi romped homewith landslide majority. Banks were nationalised for socilist
innovation. After four decades, unfortunately we see that the political agenda
was never put on action. With globalisation, the nationalised banks as well as
the multinational ones adopt a credit policy suiting the Haves only. Bank
loans are available for the affluent classses. Nationwide branches of State
Bank of India also failed to help the underclasses.Globalisation has introduced
a new credit policy which promote consumption of consumer goods and helps a
little to enhance productivity and production system. Sensex has bacome the
index of national economy and growth. Small savings and PF interests decline
mercylessly. And it seems, sooner or later India goes the Bangladesh ways
dividing itself vertically between Haves and Not Haves.We could not pass the
womans reservation Bill in the parliament while the general condition of woman
in Bangladesh , socially, economically and religiously , is very poor in
coparision to Indian women. In these adverse circumstances no less than ninty
four percent of creditholders are women.
Inspired by him, India, which has given him several awards, also introduced the
micro-finance concept. Travelling in Europe, Prime Minister Manmohan Singh
congratulated his personal friend and an outstanding South Asian.
It comes to me as no surprise. I rejoice in his achievement, Singh said.
After India attained Independence in August, 1947, cooperatives assumed a great
significance in poverty removal and faster socio-economic growth. With the
advent of the planning process, cooperatives became an integral part of the
Five Year Plans. As a result, they emerged as a distinct segment in our
national economy.In the First Five Year Plan, it was specifically stated that
the success of the Plan would be judged, among other things, by the extent it
was implemented through cooperative organisations.
Dr Manmohan Singh should know what happened to our cooperative and nationalised
banking secotors as both failed to launch micro credit system at any level. The
honourable Prime minister and an economist engaged with World Bank and IMF
should know well that Professor Yunus has always emphasized the distinction
between the Grameen Banks concept of micro-credit and other prevailing forms
of small-quantum credit obtainable in rural areas, including that from the
informal money-lender and other traditional informal groups, or groups sharing
a common economic activity as livelihood. According to him, the Grameen Bank
model focuses on credit as a human right, and is targeted to help poor families
help themselves, especially women. Each borrower would have to belong to a
group. There are obligatory as well as voluntary savings programmes that
borrowers must participate in.
Fellow Nobel winner Amartya Sen told The Telegraph from Harvard: I am
absolutely delighted
. (He) has made a big difference in Bangladesh and will be
making a big difference across the world
. Yunus is a visionary person. He is
someone who can convert constructive vision into social reality - Amartya Sen
Hundreds of friends and admirers gathered at Yunuss Dhaka home to greet him
with flowers and garlands.
No wonder that the Grameen Bank is one of the most widely emulated institutions
in the world. Not least in India, where a couple of hundred rural banks were
started. But here, the experience was less exhilarating. Many borrowers did not
repay; defaults were so serious that almost half of the rural banks went
bankrupt and were merged with the others weakening the latter.Indian banking
and cooperative, both sectors face alarming crisis as it defends the stronger
and neglects the poor. Even Panchayati Raj and its successful record in states
like Bengal, could not help this. Cooperative system Is near total failure in
Eastern India including Bengal, Orrissa, Assam and Bihar.
So what are microcredits?
They are very small loans, typically less than $100 (£54), made to the rural
poor in developing countries who normally do not qualify for traditional
banking credit. This is often the only way they can establish a business and
lift themselves out of poverty.
Professor Yunus founded his Grameen Bank in 1976 during a devastating famine in
Bangladesh.
Today it has 6.6 million borrowers of whom 97% are women. This focus on female
borrowers in a society where women are frequently forced to take responsibility
for their entire family is one of the characteristics that caught the Nobel
Committees attention. Grameen, which means village, is an idea that has spread
to more than 40 countries including Sri Lanka where womens banks were already
a familiar concept.
Yunus could not bear the plight of people starving in the famine of 1974 in
Bangladesh, and took students to a village to find an economic solution for the
crisis. They tried various things, but the one that worked was small loans to a
group of village women. It was lending with a difference. Unlike conventional
bank lending, it was unsecured; instead, Yunus invented a new collateral,
namely the solidarity of poor women. They together guaranteed the loan of each;
if one failed to pay, the others did for her. They not only promised to repay,
but collectively insured the loans they took. The poor often help out their
neighbours; Yunus used their modest but routine generosity to make lending to
them viable. He confined his generosity to the poors only whereas we see this
generosity is always endowed with the higher income group in India by Indian
banking system. The default on the part of heavywieghts tendto cause pauses
like failure in the system itself. It happend to be the same story in the
cooperative movement, nevertheless.
How do microcredits work?
Grameen transactions take place at the village level, usually in a local hall
or temple. Typically a Grameen borrower will use a loan to buy tools and
equipment to set up on their own. As the microcredit idea has grown the Grameen
organisation has extended into foundations dedicated to fisheries and
irrigation.
By avoiding both employers and unscrupulous local money lenders the Grameen
loan aims to break a circle of exploitation that frequently condemns rural
villagers to lives of poverty.
And because the loans are often repaid by villagers banding together in loan
clubs, this has led to accusations that some of the poor can come under peer
pressure to repay the money they owe when times are tough. Grameen Bank has
also survived accusations that it lacked adequate funds, though Professor Yunus
was adamant that his bank could repay all of the money it raised from the
commercial sector.
Despite some concerns, Professor Yunus and his ideas have attracted a growing
band of advocates, including the former US President Bill Clinton and his wife
Hillary
Recently, Grameen Bank floated a mutual fund to enable its clients to invest in
the stock market. But its focus is on women, and on women who do not have the
opportunities that money or urban life bring. It would give Reserve Bank a fit,
but the women borrowers own 94 per cent of the Grameen Banks equity; and 99
per cent of them repay their loans.
Im very very happy. Its a great honour for us and for Bangladesh. Its a
recognition of our work, Yunus told the BBC Bengali service. As a
Bangladeshi, Im proud that we have given something to the world. Our work has
now been recognised by the whole world. The 66-year-old Yunus, the first
Bangladeshi to win a Nobel prize, said: I think this is a wonderful
recognition of our efforts at Grameen Bank, and for all the women who work for
us and who have made Grameen Bank a success. I am proud of the whole country,
a beaming Mr Yunus told reporters at his home here. The award will inspire him
to complete his future plans, said the economist whose Grameen Bank was
honoured with Indias Gandhi Peace Prize in 2000. The prize includes 10 million
Swedish kronor ($1.4 million). Mr Yunus said he would invest the cash into his
financing offers for the poor. Announcing the award, the Nobel Committee in
Oslo said it was given for efforts by Mr Yunus and the bank to create economic
and social development from below. Across cultures and civilisations, Mr
Yunus and Grameen Bank have shown that even the poorest of the poor can work to
bring about their own development, the Nobel Committee said in its citation.
Mr Yunus first learnt about winning the prize from a Norwegian TV station,
which called him to say he might get the award and then told him to hold the
telephone line. Soon after, a voice from the other end confirmed he had won the
Nobel Peace Prize. Asked why the Nobel Foundation had given him the peace prize
and not the one for economics, Mr Yunus said: Economics and peace is directly
linked. Unrest in many parts of the world is linked to economics. Mr Yunus
was rumoured to be in the running for the Nobel prize in economics for the past
three years. 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.
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