Poverty
Content:
 Introduction to poverty
 History of poverty
 Impact of poverty
 Credits
Introduction of social entrepeneur
 Muhammad Yunus is a Bangladeshi social

entrepreneur, banker, economist and civil soc...
Introduction to social entrepreneur
Grameen Bank (GB) has reversed conventional banking practice by removing
the need for ...
History of social entrepreneur
 In 1974, Professor Muhammad Yunus, a Bangladeshi economist from

Chittagong University, l...
History of social entrepreneur


The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus,
Hea...
Impact of social entrepreneur
 Grameen has had very high payback rates—over

98 percent. However, according to the Wall S...
Impact of social entrepreneur
Grameen Bank is owned by the borrowers of the bank, most of whom are poor
women. Of the tota...
Credits


http://www.occupy.com/sites/default/files/hungerpoverty.jpg (slide 1)



http://thewaterproject.org/images/pov...
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Poverty

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Poverty

  1. 1. Poverty
  2. 2. Content:  Introduction to poverty  History of poverty  Impact of poverty  Credits
  3. 3. Introduction of social entrepeneur  Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize in 2006. Yunus founded the Grameen Bank and pioneered the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans.
  4. 4. Introduction to social entrepreneur 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. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all 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. Professor Muhammad Yunus, the founder of "Grameen Bank" and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder."  As of October, 2011, it has 8.349 million borrowers, 97 percent of whom are women. With 2,565 branches, GB provides services in 81,379 villages, covering more than 97 percent of the total villages in Bangladesh.  Grameen Bank's positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies including the World Bank, the International Food Research Policy Institute (IFPRI) and the Bangladesh Institute of Development Studies (BIDS). 
  5. 5. History of social entrepreneur  In 1974, Professor Muhammad Yunus, a Bangladeshi economist from Chittagong University, led his students on a field trip to a poor village. They interviewed a woman who made bamboo stools, and they learnt that she had to borrow the equivalent of 15p to buy raw bamboo for each stool made. After repaying the middleman, sometimes at rates as high as 10% a week, she was left with only a penny profit margin. Had she been able to borrow at more advantageous rates, she would have been able to amass an economic cushion and raise herself above subsistence level. He approached local banks, convincing them what those people most needed was simply a tiny amount of money, as little as one dollar per person. The reception was not warm. The bankers question him about the reliability of the people. Finally, Yunus took out the loans by himself, despite repeated warnings that the recipients were so poor and the amounts so small that they might just never return. Nevertheless, the scheme worked. The tiny loans were repaid. Soon, Yunus expanded to several villages, then to the whole district and finally, to five districts.
  6. 6. History of social entrepreneur  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; -bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves; and reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income". The action research demonstrated its strength in Jobra (a village adjacent to Chittagong University) and some of the neighboring villages during 1976-1979. With the sponsorship of the central bank of the country and support of the nationalized commercial banks, the project was extended to Tangail district (a district north of Dhaka, the capital city of Bangladesh) in 1979. With the success in Tangail, the project was extended to several other districts in the country. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government.
  7. 7. Impact of social entrepreneur  Grameen has had very high payback rates—over 98 percent. However, according to the Wall Street Journal, in 2001 a fifth of the bank's loans were more than a year overdue.[26] Grameen says that more than half of its borrowers in Bangladesh (close to 50 million) have risen out of acute poverty thanks to their loan, as measured by such standards as having all children of school age in school, all household members eating three meals a day, a sanitary toilet, a rainproof house, clean drinking water, and the ability to repay a 300 taka-a-week (around 4 USD) loan.[
  8. 8. Impact of social entrepreneur Grameen Bank is owned by the borrowers of the bank, most of whom are poor women. Of the total equity of the bank, the borrowers own 94%, and the remaining 6% is owned by the Government of Bangladesh.[24]  The bank grew significantly between 2003-2007. As of October 2007, the total borrowers of the bank number 7.34 million, and 97% of those are women.[24] The number of borrowers has more than doubled since 2003, when the bank had 3.12 million members.[35] Similar growth can be observed in the number of villages covered. As of October 2007, the Bank has a staff of more than 24,703 employees; its 2,468 branches provide services to 80,257 villages,[24] up from the 43,681 villages covered in 2003.[35]  The bank has distributed Tk 684.13 billion (USD 11.35 billion) in loans, out of which Tk 610.81 billion (USD 10.11 billion) has been repaid.[36] The bank claims a loan recovery rate of 96.67%,[36] up from the 95% recovery rate claimed in 1998.[36] David Roodman has critiqued the accounting practices that Grameen used to determine this rate.[26]  The global number of potential micro-borrowers is estimated to be 1 billion, with a total loan demand of $250 billion. The present microfinance model is serving 100 million people with $25 billion of loans.[37] The Grameen Bank is 95% owned by the local poor and 5% by the government. 
  9. 9. Credits  http://www.occupy.com/sites/default/files/hungerpoverty.jpg (slide 1)  http://thewaterproject.org/images/poverty_top.jpg (slide 1)  http://www.daintreehour.com/images/poverty-mandela.jpg (slide 1)  http://womenandpovertywsu.files.wordpress.com/2013/12/poverty2-1obfthd1.jpg (slide 2)  http://www.newerapolitics.org/uploads/1/3/2/0/13202651/3168474_orig.jpg (slide 2)  http://www.sustainingcommunities.org/wp-content/uploads/2011/12/african-child-collecting-water.jpg (slide 2)  http://www.grameen.com/index.php?option=com_content&task=view&id=16&Itemid=112 (slide ¾)  http://www.thirdworldtraveler.com/IMF_WB/Grameen_50YIE.html (slide 5)  http://en.wikipedia.org/wiki/Grameen_Bank (slide 7/8)

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