Microcredit Presentation Produced By Marty Jenkins Respectful Dialogue Programs [email_address] 805-964-2550 Updated August 2009

Muhammad Yunus

Muhammad Yunus 69 years old – born 1940 Born in Chittagong, Bangladesh Third child in family of 13 – 5 died young Father a Jeweler and Devout Muslim Mother – Compassionate – Cared about poor Doctor in Economics - Vanderbilt University Wife – Physics professor Daughter – Metropolitan Opera Singer

69 years old – born 1940

Born in Chittagong, Bangladesh

Third child in family of 13 – 5 died young

Father a Jeweler and Devout Muslim

Mother – Compassionate – Cared about poor

Doctor in Economics - Vanderbilt University

Wife – Physics professor

Daughter – Metropolitan Opera Singer

Bangladesh Surrounded by India 150 million people – one half of U.S. Size of Florida Densest population in world 35 times denser than U.S. Poorest large country in the world Major draughts and major monsoons Corrupt government

Surrounded by India

150 million people – one half of U.S.

Size of Florida

Densest population in world

35 times denser than U.S.

Poorest large country in the world

Major draughts and major monsoons

Corrupt government

Bangladesh

Chittagong

How it all started People dying from famine Visit Village & Interviewed Villagers Loaned 42 Villagers a total of $27 Villagers made bamboo furniture Villagers paid back loans

People dying from famine

Visit Village & Interviewed Villagers

Loaned 42 Villagers a total of $27

Villagers made bamboo furniture

Villagers paid back loans

Grameen Bank 95% owned by depositors 9 of 12 Board Members are Poor Borrowers Loaned $8 Billion to 8 Million Members (as of 7/09) Normal Loan - $50 - $300 Typical Loan Repayment Time – 1 year Paid back in weekly installments 98+% Repaid 64% of members have moved out of poverty 28,000 employees

95% owned by depositors

9 of 12 Board Members are Poor Borrowers

Loaned $8 Billion to 8 Million Members (as of 7/09)

Normal Loan - $50 - $300

Typical Loan Repayment Time – 1 year

Paid back in weekly installments

98+% Repaid

64% of members have moved out of poverty

28,000 employees

Nobel Peace Prize Mosammat Taslima Begum We must address the root causes of terrorism to end it for all time to come. I believe that putting resources into improving the lives of the poor people is a better strategy than spending it on guns.” Muhammad Yunus “ I believe terrorism cannot be won over by military action. Terrorism must be condemned in the strongest language. We must stand solidly against it, and find all the means to end it. Muhammad Yunus

Nobel Peace Prize To achieve lasting peace – poverty must be overcome Awarded to Muhammad Yunus & Grameen Bank $1.4 million split between Yunus and Bank Yunus winnings split between Eye Hospital for Poor and Healthy Food Manufacturing Plant for the Poor (Grameen Danone).

To achieve lasting peace – poverty must be overcome

Awarded to Muhammad Yunus & Grameen Bank

$1.4 million split between Yunus and Bank

Yunus winnings split between Eye Hospital for Poor and Healthy Food Manufacturing Plant for the Poor (Grameen Danone).

Microcredit Loans to create businesses - income Small loans – typically $50 - $300 Reasonable interest rates – 15% to 20% To the poorest of the poor- typically families earning less than $1 per day No collateral – honor system No written agreement Mainly to women – 97% Mainly to illiterate – 75% to those who can not read or write

Loans to create businesses - income

Small loans – typically $50 - $300

Reasonable interest rates – 15% to 20%

To the poorest of the poor- typically families earning less than $1 per day

No collateral – honor system

No written agreement

Mainly to women – 97%

Mainly to illiterate – 75% to those who can not read or write

How Microcredit Works Banker goes to village on bicycle/foot Villagers form groups of five entrepreneurs Villagers taught how to handle money Villagers choose business Loans to first two villagers Group meets with banker weekly Payments made weekly

Banker goes to village on bicycle/foot

Villagers form groups of five entrepreneurs

Villagers taught how to handle money

Villagers choose business

Loans to first two villagers

Group meets with banker weekly

Payments made weekly

How Grameen Bank Defines Out of Poverty The family lives in a house worth at least $375 or a house with a tin roof, and each member of the family is able to sleep on bed instead of on the floor. Family members drink pure water of tube-wells, boiled water or water purified by using alum, arsenic-free, purifying tablets or pitcher filters.

The family lives in a house worth at least $375 or a house with a tin roof, and each member of the family is able to sleep on bed instead of on the floor.

Family members drink pure water of tube-wells, boiled water or water purified by using alum, arsenic-free, purifying tablets or pitcher filters.

Out of Poverty All children in the family over six years of age are all going to school or finished primary school. Minimum weekly loan payment $3 Family uses sanitary latrine.

All children in the family over six years of age are all going to school or finished primary school.

Minimum weekly loan payment $3

Family uses sanitary latrine.

Out of Poverty Family members have adequate clothing for every day use, warm clothing for winter, such as shawls, sweaters, blankets, etc, and mosquito-nets to protect themselves from mosquitoes. Family has sources of additional income , such as vegetable garden, fruit-bearing trees, etc, so that they are able to fall back on these sources of income when they need additional money.

Family members have adequate clothing for every day use, warm clothing for winter, such as shawls, sweaters, blankets, etc, and mosquito-nets to protect themselves from mosquitoes.

Family has sources of additional income , such as vegetable garden, fruit-bearing trees, etc, so that they are able to fall back on these sources of income when they need additional money.

Out of Poverty The borrower maintains an average annual balance of $70 in her savings accounts. Family experiences no difficulty in having three square meals a day throughout the year, i. e. no member of the family goes hungry any time of the year. Family can take care of the health . If any member of the family falls ill, family can afford to take all necessary steps to seek adequate healthcare.

The borrower maintains an average annual balance of $70 in her savings accounts.

Family experiences no difficulty in having three square meals a day throughout the year, i. e. no member of the family goes hungry any time of the year.

Family can take care of the health . If any member of the family falls ill, family can afford to take all necessary steps to seek adequate healthcare.

Hand Up vs Hand Out Charity is not the answer to poverty Charity helps poverty continue Charity creates dependency & takes away individual initiative to break out of poverty. Unleashing the energy & creativity in each human being is the answer to poverty Microcredit unleashes that energy

Charity is not the answer to poverty

Charity helps poverty continue

Charity creates dependency & takes away individual initiative to break out of poverty.

Unleashing the energy & creativity in each human being is the answer to poverty

Microcredit unleashes that energy

Grameen Bank 16 Decisions

1. We shall follow and advance the four principles of Grameen Bank --- Discipline, Unity, Courage and Hard work – in all walks of our lives.

2. Prosperity we shall bring to our families.

3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.

5. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.

6. During the plantation seasons, we shall plant as many seedlings as possible.

7. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health.

7. We shall educate our children and ensure that they can earn to pay for their education.

8. We shall always keep our children and the environment clean.

9. We shall build and use pit-latrines.

10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum

11. We shall not take any dowry at our sons' weddings, neither shall we give any dowry at our daughters wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage.

12. We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.

13. We shall collectively undertake bigger Investments for higher incomes.

14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.

15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.

16. We shall take part in all social activities collectively.

Phone Ladies

Phone Ladies $250 Investment/Loan Cell Phone Antenna Cable Charger Prepaid Minutes

$250 Investment/Loan

Cell Phone

Antenna

Cable

Charger

Prepaid Minutes

Presentation Created By Marty Jenkins Respectful Dialogue Programs [email_address]