Microcredit guru Yunus in telecom deal to wire up the poor

from INQ7

HONG KONG--Nobel Laureate Professor Muhammad Yunus has teamed up with some of the world's largest telecom firms to leverage communications technology to help alleviate poverty, he announced Sunday.

Yunus' successful Grameen microcredit bank, which has helped provide small business loans to millions of poor his native Bangladesh, said linking impoverished communities to the hi-tech world was vital.

"It has become a fast track for getting out of poverty," Yunus said of his Grameen projects that have so far brought mobile phones and Internet links to villages in Bangladesh.

Under a new partnership with telecom firms, including American giants Cisco Systems and Qualcomm, the scheme will be extended into other countries throughout the developing world.

Services and hardware will be offered at cut price rates in the same way as Yunus' Grameen bank offers small loans at low interest rates to stimulate entrepreneurship.

Since 1976, Grameen Bank has leant billions of dollars in collateral-free small business loans to 7 million poor Bangladeshis, mostly women.

The idea behind it is that many people are held back from productive lives for lack of small amounts of start-up capital. The bank's success contributed to Yunus being awarded the Nobel Peace Prize in October.

The tie-up was announced at the opening of the International Telecommunications Union's (ITU) trade show, World Telecom 2006, which will be held in Hong Kong throughout this week.

ITU is backing the scheme, which will see villages linked to the net and other international networks via telecenters.

Cisco vice-president Tae Yoo said access to network connections would bring opportunities to poor communities.

"It could offer farmers access to online information on crop strategies," said Yoo. "It will also allow us to give the resources to the entrepreneurs who can best address the different issues to which information and communication technology can best be applied."

Qualcomm senior director for government affairs in Southeast Asia, Shawn Covell, said giving villages access to technology was empowering.

"If you empower individuals, then that empowers the community, the region and the country," Covell said.