Micro-finance pioneer criticises others for exploiting the poor 4

Finance | Vibeka Mair | 24 Nov 2011

Mohammed Yunus, Nobel Peace Prize-winner and founder of micro-finance, has criticised micro-finance lenders who make big profits out of their lending, saying that micro-credit should not be about rich people making money out of the poor.

Yunus, who was speaking today at the Good Deals conference, said if people wanted to make money, they shouldn’t call it micro-credit.

“Micro-finance became very popular,” he said. “And people were making profits out of the poor. I was critical of this.”

Talking about his micro-credit scheme in Bangladesh that especially helped women in the country and led to 20,000 beggars becoming small sellers, Yunus said it had brought dignity and self-reliance to people.

“Grameen Bank is now worth $15bn with 97 per cent of loans repaid and the 8.3 million borrowers have $1bn in savings.”

Bangladesh is on track to meet the first target, set out in the United Nations Millennium Development Goals, on ending poverty and hunger by 2015.

Yunus said social finance was not about making money, calling it selfless business, where you just get your money back over time. Yunus also said the Bangladeshi government wanted to be seen to be a part of micro-finance as it wanted to be seen to be helping poor women in Bangladesh, to win their votes.

Yunus was forced by the Bangladeshi government to step down from Grameen Bank, which he founded, due to a rule that no-one over 60 can run a government-owned bank.

“It is insane and doesn’t make sense as we are independent,” he said.

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Adrian @ World Vision Micro Loans
World Vision Micro Loans
10 Jan 2012

I praise the work of Mohammed Yunus. He created micro finance to assist the poor people of the world to become self-suffienct - and not to put them into further debt - or even new debt as the case may be. Lets hope this can be managed properly before its too late and micro finance becomes a word associated with debt.

[Reply]

Anupam Hayaet
1 Dec 2011

Sir, you can be accused in the same terms! Isn't your wealth and fame built on poor beggars' money?

[Reply]

Morgan Phillips
Trustee / Volunteer
Friends of Nowder
24 Nov 2011

I love the phrase 'Selfless Business', it is so unambiguous especially compared to 'social business', 'social entrepreneurship' etc whose meanings have been warped so badly already. Makes me think about 'Sustainable Development'; is it time for 'Selfless Development'?

[Reply]

Alex Swallow
Development and Communications Officer
The National Benevolent Fund for the Aged
24 Nov 2011

What an inspirational man who has improved the lives of so many. Charity should be about helping people to help themselves, not either simply doing things for people or trying to make money out of them.

[Reply]

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