Muhammad Yunus and Grameen Bank Essay

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Grameen Bank starts with the belief that credit should be accepted as a human right, and builds a system where one who does not possess anything gets the highest priority in getting a loan. Grameen methodology is not based on assessing the material possession of a person; it is based on the potential of a person. Grameen believes that all human beings, including the poorest, are endowed with endless potential. The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. Yunus is a Revolutionary banker. A Men who had lend billions of dollars to millions of poor people without any collateral. Credit is a basic human right. More than half the population of the world does not qualify to take a loan from a financial institution.. He believed that the doors of the banks should be made available to the poor people for financial service. Banks thought they are not credit worthy. This project started in a very humble way in a poor village without any collectable and guarantee. And it worked.

Grameen allowed the poor to be an actor in the free market and to enjoy some of its fruits to try to come out of poverty. You see this is not a charity where NGOs give money to the poor and this helps for a little while, until the charity stops. Then they are helpless again. Gramen bank gives them the Loan to do some for themselves and improve their lives to lead a better life. Not only do they create a better life for themselves but they are able to create employment for other in the area as well. For example nuijahan is a mid-aged woman she is a literally begging money from people before she joined the grameen foundation. When she joined grameen they gave her lessons on how to make handy crafts and loaned her $50 for buying a sewing machine to start a little handy craft business. She started making profit and she repaid the money on installments and later on she took out a bigger loan to buy 2 more sewing machines and employed 2 other women’s. Not only did she create income for herself but she has made employment opportunities for 2 other persons.This is just one of they story from millions of borrowers.
Grameen bank has also made womens more independent by allowing them to provide for themselves. Women in Bangladesh village area often hold a low position of status. They are dependent on their husbands for access to money and the external world, are restricted from interacting with others or taking employment, are frequently beaten by their husbands, and can even be "returned" if their husbands decide they no longer make a good wife. The Grameen Bank strengthens the role of women, giving them money, social interactions, decision-making authority, and a sense of self-possession. This changing role of women also lowered fertility because the women are less dependent upon their children for their sense of security, they have control over decision making for their own lives, and because they grow confidence in themselves and their futures to plan for the future, including using contraception to help plan the growth of their own families. You see Men’s in Bangladesh in the rural area is very dominant. They make all they decisions and does not care for the wife’s opinion. They believe since they are main income earners they make all the
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