How to help the 3rd World. Lessons learnt from a Nobel winner
darkcrow
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http://news.bbc.co.uk/1/hi/business/6047364.stm
The award of the Nobel Peace Prize to Bangladeshi economist Professor Muhammad Yunus has focused the attention of the world on the microcredit scheme he pioneered.
So what are microcredits?
They are very small loans, typically less than $100 (£54), made to the rural poor in developing countries who normally do not qualify for traditional banking credit.
This is often the only way they can establish a business and lift themselves out of poverty.
Professor Yunus founded his Grameen Bank in 1976 during a devastating famine in Bangladesh.
Today it has 6.6 million borrowers of whom 97% are women.
This focus on female borrowers in a society where women are frequently forced to take responsibility for their entire family is one of the characteristics that caught the Nobel Committee's attention.
Grameen, which means village, is an idea that has spread to more than 40 countries including Sri Lanka where women's banks were already a familiar concept.
How do microcredits work?
Grameen transactions take place at the village level, usually in a local hall or temple.
Typically a Grameen borrower will use a loan to buy tools and equipment to set up on their own.
As the microcredit idea has grown the Grameen organisation has extended into foundations dedicated to fisheries and irrigation.
By avoiding both employers and unscrupulous local money lenders the Grameen loan aims to break a circle of exploitation that frequently condemns rural villagers to lives of poverty.
The Nobel Committee cited how his Grameen Bank aids the poor "to bring about their own development".
And the concept of extending loans to a largely female client base has also been credited with reducing domestic violence by giving women a previously unattainable degree of independence.
So it's worry free money then?
Not quite. Critics argue that the Grameen idea is in danger of being oversold.
And because the loans are often repaid by villagers banding together in loan clubs, this has led to accusations that some of the poor can come under peer pressure to repay the money they owe when times are tough.
Grameen Bank has also survived accusations that it lacked adequate funds, though Professor Yunus was adamant that his bank could repay all of the money it raised from the commercial sector.
Despite some concerns, Professor Yunus and his ideas have attracted a growing band of advocates, including the former US President Bill Clinton and his wife Hillary.
END
http://news.bbc.co.uk/1/hi/world/europe/6047020.stm?ls
Muhammad Yunus of Bangladesh and the Grameen Bank have been jointly awarded the 2006 Nobel Peace Prize.
Mr Yunus, an economist, founded the bank, which is one of the pioneers of micro-credit lending schemes for the poor, especially women, in Bangladesh.
Mr Yunus, 66, said he would use the 10m Swedish kronor ($1.35m, £730,000) prize money to "find more innovative ways" to help the poor launch businesses.
He said he was delighted at the news and proud of the bank's achievement.
"I'm very very happy. It's a great honour for us and for Bangladesh. It's a recognition of our work," he told the BBC Bengali service.
"As a Bangladeshi, I'm proud that we have given something to the world. Our work has now been recognised by the whole world. "
Surprise choice
The winners were revealed by the Nobel committee chairman, Ole Danbolt Mjoes, in Oslo.
MUHAMMAD YUNUS
Bangladeshi economist
Founded concept of micro-credit
Started Grameen Bank in 1976
Profile: Muhammad Yunus
Q&A: What is microfinance?
Changing scope of prize
Text: Peace prize citation
Mr Mjoes said Mr Yunus had shown himself to be a leader who had managed to translate visions into practical action for the benefit of millions of people.
He and the bank were being honoured "for their efforts to create economic and social development from below", Mr Mjoes said.
He said the bank's work in creating opportunities for large numbers of people to get out of poverty created the conditions for sustainable peace.
"Development such as this is useful in human rights and democracy," said Mr Mjoes.
The BBC's Lars Bevanger in Oslo says this year's winner caught most there by surprise.
Many commentators had expected an award to someone involved in peace talks, our correspondent says.
He says in awarding this prize to an economist, the Nobel Committee has again shown itself willing to widen the scope of the prestigious prize.
HAVE YOUR SAY
The Nobel committee are to be congratulated on not picking the over-hyped
FF, Gloucestershire
Send us your comments
Mr Yunus set up the bank in 1976 with just $27 from his own pocket. Thirty years on, the bank has 6.6 million borrowers, of which 97% are women, according to the Grameen website.
Mr Yunus is expected to pick up the award and prize money during a ceremony in Oslo in December.
The award of the Nobel Peace Prize to Bangladeshi economist Professor Muhammad Yunus has focused the attention of the world on the microcredit scheme he pioneered.
So what are microcredits?
They are very small loans, typically less than $100 (£54), made to the rural poor in developing countries who normally do not qualify for traditional banking credit.
This is often the only way they can establish a business and lift themselves out of poverty.
Professor Yunus founded his Grameen Bank in 1976 during a devastating famine in Bangladesh.
Today it has 6.6 million borrowers of whom 97% are women.
This focus on female borrowers in a society where women are frequently forced to take responsibility for their entire family is one of the characteristics that caught the Nobel Committee's attention.
Grameen, which means village, is an idea that has spread to more than 40 countries including Sri Lanka where women's banks were already a familiar concept.
How do microcredits work?
Grameen transactions take place at the village level, usually in a local hall or temple.
Typically a Grameen borrower will use a loan to buy tools and equipment to set up on their own.
As the microcredit idea has grown the Grameen organisation has extended into foundations dedicated to fisheries and irrigation.
By avoiding both employers and unscrupulous local money lenders the Grameen loan aims to break a circle of exploitation that frequently condemns rural villagers to lives of poverty.
The Nobel Committee cited how his Grameen Bank aids the poor "to bring about their own development".
And the concept of extending loans to a largely female client base has also been credited with reducing domestic violence by giving women a previously unattainable degree of independence.
So it's worry free money then?
Not quite. Critics argue that the Grameen idea is in danger of being oversold.
And because the loans are often repaid by villagers banding together in loan clubs, this has led to accusations that some of the poor can come under peer pressure to repay the money they owe when times are tough.
Grameen Bank has also survived accusations that it lacked adequate funds, though Professor Yunus was adamant that his bank could repay all of the money it raised from the commercial sector.
Despite some concerns, Professor Yunus and his ideas have attracted a growing band of advocates, including the former US President Bill Clinton and his wife Hillary.
END
http://news.bbc.co.uk/1/hi/world/europe/6047020.stm?ls
Muhammad Yunus of Bangladesh and the Grameen Bank have been jointly awarded the 2006 Nobel Peace Prize.
Mr Yunus, an economist, founded the bank, which is one of the pioneers of micro-credit lending schemes for the poor, especially women, in Bangladesh.
Mr Yunus, 66, said he would use the 10m Swedish kronor ($1.35m, £730,000) prize money to "find more innovative ways" to help the poor launch businesses.
He said he was delighted at the news and proud of the bank's achievement.
"I'm very very happy. It's a great honour for us and for Bangladesh. It's a recognition of our work," he told the BBC Bengali service.
"As a Bangladeshi, I'm proud that we have given something to the world. Our work has now been recognised by the whole world. "
Surprise choice
The winners were revealed by the Nobel committee chairman, Ole Danbolt Mjoes, in Oslo.
MUHAMMAD YUNUS
Bangladeshi economist
Founded concept of micro-credit
Started Grameen Bank in 1976
Profile: Muhammad Yunus
Q&A: What is microfinance?
Changing scope of prize
Text: Peace prize citation
Mr Mjoes said Mr Yunus had shown himself to be a leader who had managed to translate visions into practical action for the benefit of millions of people.
He and the bank were being honoured "for their efforts to create economic and social development from below", Mr Mjoes said.
He said the bank's work in creating opportunities for large numbers of people to get out of poverty created the conditions for sustainable peace.
"Development such as this is useful in human rights and democracy," said Mr Mjoes.
The BBC's Lars Bevanger in Oslo says this year's winner caught most there by surprise.
Many commentators had expected an award to someone involved in peace talks, our correspondent says.
He says in awarding this prize to an economist, the Nobel Committee has again shown itself willing to widen the scope of the prestigious prize.
HAVE YOUR SAY
The Nobel committee are to be congratulated on not picking the over-hyped
FF, Gloucestershire
Send us your comments
Mr Yunus set up the bank in 1976 with just $27 from his own pocket. Thirty years on, the bank has 6.6 million borrowers, of which 97% are women, according to the Grameen website.
Mr Yunus is expected to pick up the award and prize money during a ceremony in Oslo in December.
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