Muhammad Yunus and Grameen Bank

Muhammad Yunus and Grameen hope were awarded the Nobel wild pansy Prize for 2006 for their efforts in creating economic and mixer development for the masses below.The Chairman of the Nobel commissioning said in his prize announcement speech that beggary is reduced if cock-a-hoop groups of people work towards it, and microfinance is one such(prenominal) method. Muhammad Yunus is one person who had the leadership and the survey and took an initiative to translated those visions into practical action, and benefitted people in Bangladesh and other countries. He launch the bringing close together to slip by loans to execrable people who had no financial security. Muhammad Yunus was shedn the award because he established a model for many other organizations to follow.He had the vision that every man, no matter how light, has some talent indoors him that he stand pursue for his throw economic uplift. This is especially true for the women in the society who deserve to get an fitting opportunity to men to acquire the demand finances to pursue their talents. Microcredit is one of the methods that Muhammad Yunus conceit could help in the erosion of pauperism from the world. (Cozyinhel, 2006)Muhammad Yunus gave a speech about the microfinance revolution. In this video, he talks about how he came up with the motif of microfinance. He explained how when Bangladesh was formed, it face up a lot of problems, economy was skid down and famines struck too. He was an economics teacher at that time and he felt terrible for not creation able to use all that he teaches to help the people of his country. He wanted to remove people from this frustration and paroxysm and the one thing that caught his attention most(prenominal) was the ruthlessness of the bullion imparters in a small village.He researched into how many people in the village actually went to these silver wreakers for silver and found out how less they borrowed. He realized how entrenched t he money modify clay was in the roots and this guide him to the solution that he came up with. He thought that if he gives the mere measurement of money to people from his own pocket, they roll in the hay return that to the money lender and they leave behind be reconcile. So the basic conceit he had in mind was to free the people from the money lenders.He did this initially as a onetime action and by and by wanted to expand this into a dogmatic system. He then thought of an idea to go to a bank and consider them to lend that amount to the villagers, which blatantly refused to lend money to the poor people because they were not credit worthy. He then win over them to allow him to be the guarantor and lend money to the poor.This was agreed upon and he kept growing this system. He is of the opinion that during the intact process, all he did was to struggle against expectations (Calit2ube, 2007).He was to a fault of the opinion that banking system was unjust because it ex cluded the poor and the women, so he decided to wander his maximum focus on impart money to the women. Again at this point, he faced a struggle of mindset because women themselves were scared and unwilling to take the money and use it to create something. But he said that this was not the voice of the muliebrity but the voice of fear and if worked upon patiently, these fears can be removed. Ultimately, they started lending to women and the impact on the families was much stronger than lending to men.Keeping this in mind, Grameen commit thusly started lending 97% to women however Grameen Bank was owned by these poor women, who were the shareholders and on the Board of Directors, and it worked for the poor women too. Grameen Bank went to the poor, the women and the rurals. They worked on the philosophy, The less you have, the more beautiful a borrower you are for the Bank (Calit2ube, 2007).He thus started a system that was then established all over the world. Muhammad Yunus is of the opinion that scantness is not created by the poor people, it is created by the system, by our mindsets and by our institutions. Microfinance modifyd people to metamorphose their lives, it gave a mere 15$ to enable people to move away from a begging position to a dignified position.In an interview with Charlie Rose, Muhammad Yunus said that the system was to give money to poor people without confirmative and a guarantee. The existing financial system served to only top one trinity people who have a spacious amount of money and lent money to those who had money to give you collateral.They decided to give money to those who have no money to start with. It worked so well and expand all over the world because on that point always was a crying fatality for it and nobody had ever paid attention to it (Rose, 2007). He has a strong time that such a system if large exponentially can eradicate poverty from this world because poverty is artificially set in the society and onc e that set out is removed, it can be eliminated.