Monday, July 18, 2011

Muhammad Yunus hopes to still do something for Bangladesh

Muhammad Yunus may have been ousted from the Grameen Bank but he is still keeping busy. Yunus still works to promote social business throughout the world including the launch of new institutes in Glasgow and Paris. His heart still is in Bangladesh as he seeks to still develop new social businesses for that country to help alleviate poverty.

The Guardian was able to obtain an interview with Yunus, one of the very few he has given since being ousted from his Grameen Bank by the government of Bangladesh. Writer Madeleine Bunting says that Yunus is still trying to be graceful even though he doesn't understand why the government started a smear campaign against him.
"I'm not hurt by the vilification in the press; I'm disappointed and I'm worried. I don't want to see an organisation which has come all this way and brought so much good to the country and brought power to the people, come to this. Many people are angry but anger doesn't solve anything," he says.

"I want to calm things down. If we are prepared, we can do damage control."

This is his first interview since the crisis broke early this year. Yunus is refusing to talk to the Bangladeshi media for fear of further inflaming the controversy, and he is adamant that he will not be drawn into speculating as to why the government has forced his recent resignation. He simply says: "I can't see the purpose, I can't see what the country gains, what the government gains."

There is certainly a lot to lose. Any bank depends on confidence and the last few months have been turbulent for Grameen's 22,000 employees and 8.36 million borrowers, 97% of whom are women. So far, repayment rates on the millions of small loans are holding steady and borrowers are not withdrawing deposits – either could bring the bank to collapse. Yunus's calmness in London is all about steadying the confidence of his Bangladeshi audience. As one of the most efficient and stable economic institutions in a desperately poor country, there are many who are hoping he will succeed and that Grameen will weather this storm.

"We never said microfinance was a silver bullet," he insists. "Or why would I bother to create 50 other companies ranging from agriculture to telecommunications? Job creation is the solution to poverty. Loans should only be given to fund enterprises. They mustn't ever be used for 'consumption smoothing' or how can people pay back the loans? It has to be about income generation."

"When microfinance spread across the world, some people abused it. Some went berserk. In my opinion, if there is any personal profit involved, it should not be called microfinance, which should be totally devoted to the benefit of poor people. People used the respect for microfinance. In every country where there was microfinance they needed proper regulatory authorities to oversee the sector and legislation to define it. I knew that the sector was crippled by an inadequate legal framework."

Yunus recognises there was some "overbilling" of microfinance, but sees that as part of the way you win donors' interest in a project. He certainly used powerful rhetoric to urge on efforts in tackling poverty. But beyond that he is unapologetic. He didn't oversell it; when he talked of putting poverty in a museum it was a "hope", he says, it was not a plan. And he is emphatic: "Microfinance does reduce poverty. Look at the people who have joined Grameen. It's the most intensively researched organisation in the world."

No comments: