Book Review: Banker to the Poor
I finished reading Banker to the Poor (Micro-Lending and the Battle Against World Poverty) by Muhammad Yunus (Nobel Peace Prize winner) a couple weeks ago, it makes for fantastic reading primarily because it is told from a first person’s perspective and discusses the initial start of micro-lending (where Yunus was shocked to learn that the poverty of 42 families in a neighbouring village was due to a predatory loan of USD 27) , the subsequent formation of Grameen Bank, the many cultural problems they faced and the creative solutions they came up with.
I am sorely reminded of Archimedes Doric speech of Syracuse : “Give me a place to stand and with a lever I will move the whole world.” And so Muhammad Yunus did with his brilliant insight that the poor don’t need a hand out, they just need opportunities to break away from the cycle of poverty. Some Wikipedia facts in Bangladesh:
- Total loans distributed amounts to US$ 5.72 billion
- Total number of borrowers is 6.67 million, and 97% of those are women
- Loan recovery rate is 98.85% (I believe Malaysia had a repayment rate of 100%!)
Required reading for all and sundry!