Creating a world without poverty -Muhammad yunus and Grameen Bank

                    "The challenge is to innovate business models and apply them to produce desired social results cost-effectively and efficiently"

We were asked to watch a video – which is a speech of Muhammad yunus  about grameen bank . It was an extraordinary speech about social business to help the poor . As yunus says “The poor must have a chance to participate in decision-making that affects their lives”

           Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. . 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. The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives:

• extend banking facilities to poor men and women
•   eliminate the exploitation of the poor by money lenders;
• create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh        
  

With the above data we could discuss about the 2 type of approaches in banking . The traditional banking and grameen bank . The objectives of the two banks is different . Traditional banks are of profit motive but grameen bank has got a motive for its own to help the poor . Grameen bank’s approach to the people attracted a lot of people to take loans . Grameen bank has given the option of taking the poor as the stake holders of the bank . As discussed in the above posts Management objective of the grameen bank was to reduce poverty in all terms and they were successful in doing so .

Learning : Sometimes we have to go in a different way to achieve the objectives of the business . Approaches depend of the objectives and goals of the business .

                              I wish Grameen bank could help more poor in the future and achieve their goal of creating a world without poverty .