RESEARCH PAPER-Farzana

RESEARCH PAPER-Farzana - Rahman Farzana Rahman Mr Bradley...

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Rahman Farzana Rahman Mr. Bradley Beachy EG 102 November 16, 2011 Microcredit by Dr. Yunus: True Success, or Fake Hype? It is the firm conviction of Muhammad Yunus, the father of microcredit and winner of the Nobel peace Prize, that poverty can be eradicated and put away in museums once and for all. As Nina Gera, the author of “Banker to the Poor” puts it, the bottom line of Yunus’s belief is that “poverty does not belong in a civilized human society. It belongs in museums” (173). This is what motivated this stalwart to establish the Grameen Bank in Bangladesh, the pioneer in the field of micro-finance for the poor. Today Grameen Bank can boast that it provides 2.5 billion dollars of micro-loans to over two million rural poor in the country. Alike Bangladesh, the direct micro-financing system of Dr. Yunus is now operating in full pace in seven countries and became the center of the world’s attention when Grameen Bank along with its founder Yunus won the Nobel Peace Prize in 2006. After being in operation for more than two decades, the act of Grameen Bank has just become famous specially through winning the Nobel Prize. As it is drawing the attention of more and more people in the recent years, it has also become the topic of detailed discussion, and an issue for much analysis. The more it is being discussed, more interesting it is becoming as people are not only looking for the story of its success but also trying to prove that this system of Yunus is not really what it claims to be and neither it is worth of the Nobel Prize.
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Rahman In recent years, the idea of giving small loans to poor became the darling of the development world, hailed as the long elusive formula to propel even the most destitute into better lives. Many developed countries like the United States are also analyzing various prospect of this system with keen interest as the noisy interest rate fight has even attracted Congressional scrutiny, with the House Financial Services Committee holding hearings this year with the focus on whether some microcredit institutions are scamming the poor (MacFarquahar). Micro-credit recently had some backlashes in its origin as well. Bangladeshi economists R. Molla, Md. Alam and Abdul Wahid ran a servey and detailed analysis on micro financing activities in the country, and In the book named “Questioning Bangladesh’s Microcredit”- the Bangladeshi authors claimed to find disappointing result of microcredit in changing the fate of its clients (113). In this paper, I claim the success of Yunus’s Microcredit as a true success, and demonstrate what it is capable of doing. After giving a brief history and explaining how this system works, and then describing the successes of it through helping the poor, I show how the purpose and potentiality of microcredit benefits the world. I consider how microcredit has become a help and boost for poor women in their fight to overthrow poverty so that their communities really become enriched. Decades ago, during the 1970’s as a young economics professor who faced an agonizing
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RESEARCH PAPER-Farzana - Rahman Farzana Rahman Mr Bradley...

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