Dr. Muhammad Yunus:
Dr.Muhammad Yunus from Bangladesh was awarded the 2006 Nobel Peace Prize, along with his Grameen Bank, for their efforts to create economic and social development.Muhammad Yunus was the first Bangladeshi and third Bengali to ever get a Nobel Prize.
In the prize announcement The Norwegian Nobel Committee mentioned:
Muhammad Yunus has shown himself to be a leader who has managed to translate visions into practical action for the benefit of millions of people, not only in Bangladesh, but also in many other countries. Loans to poor people without any financial security had appeared to be an impossible idea. From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty.
Muhammad Yunus(born June 28, 1940) is a Bangladeshi banker and economist.In the history of his educational background,he enrolled in the department of economics at Dhaka University and completed his BA in 1960 and MA in 1961.Following his graduation, Yunus joined the Bureau of Economics as a research assistant to the economical researches of Professor Nurul Islam and Rehman Sobhan.Later he was appointed as a lecturer in economics in Chittagong College in 1961.During that time he also set up a profitable packaging factory on the side.He was offered a Fulbright scholarship in 1965 to study in the United States. He obtained his Ph.D. in economics from Vanderbilt University in the United States through the graduate program in Economic Development in 1969.From 1969 to 1972, Yunus was an assistant professor of economics at Middle Tennessee State University in Murfreesboro, TN.
A former professor of economics, he is famous for his successful application of the concept of microcredit, the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. Yunus is also the founder of Grameen Bank.
After receiving the news of the important award, Yunus announced that he would use part of his share of the $1.4 million award money to create a company to make low-cost, high-nutrition food for the poor; while the rest would go toward setting up an eye hospital for the poor in Bangladesh.
Former U.S. president Bill Clinton was a vocal advocate for the awarding of the Nobel Prize to Muhammed Yunus. He expressed this in Rolling Stone magazine[21] as well as in his autobiography My Life.In a speech given at University of California, Berkeley in 2002, President Clinton described Dr. Yunus as "a man who long ago should have won the Nobel Prize [and] I’ll keep saying that until they finally give it to him."
Yunus himself has received several other national and international honors. He is the author of Banker to the Poor and a founding board member of Grameen Foundation.He is one of the founding members of Global Elders.He has won a number of other awards, including the Ramon Magsaysay Award,the World Food Prize and the Sydney Peace Prize.Additionally, Dr. Yunus has been awarded 26 honorary doctorate degrees, and 15 special awards.Bangladesh government brought out a commemorative stamp to honor his Nobel Award.
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History Grameen Bank:
In 1976, during visits to the poorest households in the village of Jobra near Chittagong University, Yunus discovered that very small loans could make a disproportionate difference to a poor person. Jobra women who made bamboo furnitures had to take out usurious loans for buying bamboo, to pay their profits to the moneylenders. His first loan, consisting of USD 27.00 from his own pocket, was made to 42 women in the village, who made a net profit of BDT 0.50 (USD 0.02) each on the loan.
The concept of providing credit to the poor as a tool of poverty reduction was not unique. Dr. Akhtar Hameed Khan, founder of Pakistan Academy for Rural Development (now Bangladesh Academy for Rural Development), is credited for pioneering the idea.However, from his experience at Jobra Yunus, an admirer of Dr. Hamid, realized that an institution is needed to be created to lend to those who had nothing.While, traditional banks were not interested in making tiny loans at reasonable interest rates to poor people, because of high repayment risks, Yunus believed that given the chance the poor will repay the borrowed money and hence microcredit could be a viable business model.
Yunus finally succeeded in securing a loan from the government Janata Bank to lend it to the poor in Jobra in December 1976. The institution continued to operate by securing loans from other banks for its projects. By 1982, the bank had 28,000 members. On October 1, 1983, the pilot project began operations as a full-fledged bank and was renamed the Grameen Bank (Village Bank) to make loans to poor Bangladeshis. Yunus and his colleagues encountered everything from violent radical leftists to the conservative clergy who told women that they would be denied a Muslim burial if they borrowed money from the Grameen Bank.As of July 2007, Grameen Bank has issued US$ 6.38 billion to 7.4 million borrowers.To ensure repayment, the bank uses a system of "solidarity groups". These small informal groups apply together for loans and its members act as co-guarantors of repayment and support one another’s efforts at economic self-advancement.
The Grameen Bank started to diversify in the late 1980s when it started attending to unutilized or underutilized fishing ponds, as well as irrigation pumps like deep tubewells.In 1989, these diversified interests started growing into separate organizations, as the fisheries project became Grameen Motsho (Grameen Fisheries Foundation) and the irrigation project became Grameen Krishi (Grameen Agriculture Foundation).Over time, the Grameen initiative has grown into a multi-faceted group of profitable and non-profit ventures, including major projects like Grameen Trust and Grameen Fund, which runs equity projects like Grameen Software Limited, Grameen CyberNet Limited, and Grameen Knitwear Limited,[14] as well as Grameen Telecom, which has a stake in Grameenphone (GP), biggest private sector phone company in Bangladesh.The Village Phone (Polli Phone) project of GP has brought cell-phone ownership to 260,000 rural poor in over 50,000 villages since the beginning of the project in March 1997.
The success of the Grameen model of microfinancing has inspired similar efforts in a hundred countries throughout the developing world and even in industrialized nations, including the United States.Many, but not all, microcredit projects also retain its emphasis on lending specifically to women. More than 94% of Grameen loans have gone to women, who suffer disproportionately from poverty and who are more likely than men to devote their earnings to their families.For his work with the Grameen Bank, Yunus was named an Ashoka: Innovators for the Public Global Academy Member in 2001.