essay on grameen bank

• Social Sciences
• _Social Work
• _Psychology
• _Political Science
• _Human Rights
• _Criminology
• _NGO Programs
• _Social Theories
• _Social Services
• _Social Problems
• _Social Legislation
• __Business Research
• __Social Research
• _Evening Masters
• _Competitive Exams
• _University Admission
• _Public-Health
• _Demography
• __Disadvantaged Groups
• Climate Change
• _Disaster Management
• _Environmental Science
• _Jobs Circular
• _Internships
• _Scholarships
• Miscellaneous
• __Relationships

Grameen Bank: History, Objectives, Principles, and Activities

Introduction to grameen bank.

Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and creating a banking system based on mutual trust, accountability, participation and creativity. GB provides cred t to the poorest of the poor in rural Bangladesh without any collateral. At GB, credit is a cost-effective weapon to fight poverty. It serves as a catalyst in the overall development of the poor socio-economic conditions kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of "Grameen Bank" and its Managing Director, reasoned that if the financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people  with their millions of small pursuits can add up to create the biggest development wonder."  

{tocify} $title={ Table of Contents }

As of October 2011, it has 8.349 million borrowers, 97 percent of women. With 2,565 branches, GB provides services in 81,379 villages, covering more than 9  percent of the total villages in Bangladesh. Grameen Bank's positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies, including the World Bank, the International Food Research Policy Institute (IFPRI) and the Bangladesh Institute of Devdecentralisedies (BIDS).

History of Grameen Bank

Muhammad Yunus earned a doctorate in economics from Vanderbilt University in the United States. He was inspired during the Bangladesh famine of 1974 to ma e a small loan of USBank's a group of 42 families as start-up money so that they could make items for sale without the burdens of high interest under predatory lending. Yunus believed that making such loans available to a larger population could stimulate businesses and reduce the widespread rural poverty in Bangladesh.

Yunus developed the principles of the Grameen Bank (literally, "and of the Villages" in Bengali) from his research and experience. He began to expand microcredit as a research project and the Rural Economics Project at the Bangladesh's University of Chittagong to test his method for providing credit and banking services to the rural poor. In 1976, the village of Jobra and other villages near the University of Chittagong became the first area eligible for service from Grameen Bank. Proving success, the Bank project, with support from Bangladesh Bank, was extended in 1979 to the Tangail District (to the north of the capital, Dhaka). The Bank's success continued, and its services were extended to other districts of Bangladesh.

On October 2, 1983, the project was authorised and established as an independent bank by a Bangladeshi government ordinance. Bankers Ron Grzywinski and Mary Houghton of ShoreBank, a community development bank in Chicago, helped Yunus with the official incorporation of the Bank under a grant from the Ford Foundation. The Bank's repayment rate suffered from the economic disruption following the 1998 flood in Bangladesh, but it recovered in the subsequent years. By the beginning ng of 2005, the Bank had loaned over USD 4.7 billion, and by the end of 2008, USD 7.6 bill to the poor.

The Bank continues to expand across the nation. By 2006, Grameen Bank branches numbered over 2,100. Its success has inspired similar projects in more than 40 countries worldwide, including a World Bank initiative to finance Grameen-type schemes.

The Bank has gained its funding from different sources, and the main contributors have shifted over time. In the initial years, donor agencies provided the bulk of capital at low rates" By the mid-1990s, the Bank started to get most of its funding from the Central Bank of Bangladesh. More recently, Grameen "has started bond sales as a source of finance. The bonds are implicitly subsidised, as they are guaranteed by the Bangladesh Government, and they are still sold above the bank rate. In 2013, the Bangladesh parliament passed the 'Grameen Bank Act', which replaced the Grameen Bank Ordinance, 198authorisinging the government to make rules for any aspect of the running of the Bank.

The Bank is also engaged in social business and entrepreneurship fields. In 2009, the Grameen Creative Lab collaborated with the Yunus Centre to create the Global Social Business Summit. The meeting has become the primary platform for social businesses worldwide to foster discussions, actions and collaborations to develop practical solutions to the most pressing problems plaguing the world.

Mission and Objectives o  Grameen Bank

"By providing comprehensive financial services, empowering the poor to realise their potential and break out of the vicious cycle of poverty."

§    Extend banking facilities to poor men and women;

§    Eliminate the exploitation of the poor by money lenders;

§   Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh;

§    Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organisational format that they can understand and manage by themselves; and

§   Reverse the age-old vicious circle of "low income, low saving & low investment" into a virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income".

Methodology/Credit Delivery System of Grameen Bank

Grameen Bank Credit Delivery means taking credit to the very poor in their villages using the essential elements of the Grameen credit delivery system.  Grameen Bank's credit delivery system has the following features: 

1. There is an exclusive focus on the poorest of the poor.

2. Borrowers are organised into small homogeneous groups.

3. Special loan conditionalities are particularly suitable for the poor.

4. Simultaneous undertaking of a social development agenda addressing the basic needs of the clientele.

5. Design and development of organisation and management systems capable of delivering programme resources to targeted clientele.

6. Expansion of loan portfolio to meet diverse development needs of the poor.

Principles of Grameen Bank

There are two principles of Grameen Bank, such as the Bank going to the poor a d  Loan without Collateral to the poor.

The Bank goes to the Poor.

Basically, Grameen Bank exclusively focuses on the poorest of the poor. They set the priority assigned to women to ensure/meet the diverse socio-economic development needs of the poor. They clearly establish the eligibility criteria for selecting targeted clientele and adopt practical measures to screen out those who do not meet them. They investigate the client's problems or complexity and then set priority to Grameen credit and make borrowers organised into small homogeneous groups. The emphasis from the outset is to organisationally strengthen the Grameen clientele to acquire the capacity to plan and implement micro-level development decisions. The centres are functionally linked to the Grameen Bank, whose field workers have weekly centre meetings.

They make the  design and development of organisation and management systems capable of delivering programme resources to targeted clientele. The system has evolved gradually through a structured learning process that involves trials, errors and continuous adjustments. A significant requirement to operationalise the strategy is the special training needed to develop highly motivated staff. The decision-making and operational authority are gradually decentralised, and administrative functions are delegated at the zonal levels downwards.

Instead of the poor coming to the bank, Grameen Bank carries its services to the comfort zones of their doorsteps. It explains why the Bank’s members consist primarily of women who usually shy away from the glare of a conventional bank with branches located away from the poor life. All banking transactions except loan disbursements are done in the meetings of the borrowers at the village level centres organised by the Bank’s centre manager.

The mode of operation of Grameen Bank is as follows. A bank branch is set up with a branch manager and several centre managers and covers an area of about 15 to 22 villages. The manager and the workers start by visiting villages to familiarise themselves with the local milieu in which they will be operating, identify the prospective clientele, and explain the purpose, functions, and mode of operation of the bank to the local population. Groups of five prospective borrowers are formed; only two are eligible for and receive a loan in the first stage. The group is observed for a month to see if the members conform to the bank's rules. Only if the first two borrowers begin to repay the principal plus interest over six weeks do the other group members become eligible for a loan. Because of these restrictions, there is substantial group pressure to keep individual records clear. In this sense, the collective responsibility of the group serves as the collateral on loan.

Loan without Collateral

Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and creating a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh without any collateral. At GB, credit is a cost-effective weapon to fight poverty. It serves as a catalyst in the overall development of the poor socio-economic conditions who have been kept outside the banking orbit because they are poor and hence not bankable. Professor Muhammad Yunus, the founder of “Grameen Bank,” reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, “these millions of small people with their millions of small pursuits can add up to create the biggest development wonder.”

As of December 2015, it has 8.81 million borrowers, 97 percent of women. With 2,568 branches, GB provides services in 81,392 villages, covering more than 97 percent of the total villages in Bangladesh.

The Bank does not work for profit alone, as demonstrated by the zero or subsidised interest rates for the disadvantaged segments of the people. Nevertheless, the Bank continues to achieve significant operating and net profits growth. During the year, the Bank earned a profit of BDT 24 million and declared a 30% cash dividend for the year. The bank has also created a Dividend Equalization Fund to cushion against adverse situations weighing down on the bank’s profit due to natural or manmade calamities. It ensures a fair degree of stability in the rates of dividends payable to the shareholders over the years. It serves as an incentive for the shareholders to sustain their enthusiasm to carry GB’s goals to empower the poor. Payment of attractive dividends inspires shareholders to relentlessly work toward supporting the momentum that has been a hallmark of GB’s performance year after year. What is more significant is that the Bank’s borrowers are its shareholders and the government.

The underlying premise of Grameen is that, to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants need access to credit, without which they cannot be expected to launch their own enterprises, however small these may be. In defiance of the traditional rural banking postulate whereby “no collateral (in this case, land) means no credit”, the Grameen Bank experiment set out to prove – successfully – that lending to the poor is not an impossible proposition; on the contrary, it allows landless peasants to purchase their own tools, equipment, or other necessary means of production and embark on income-generating ventures which will enable them to escape from the vicious cycle of “low income, low savings, low investment, low income”. In other words, the banker’s confidence rests upon the will and capacity of the borrowers to succeed in their undertakings.

As Grameen Bank provides loans to their clientele without any collateral, especially the poor, disadvantaged groups, downtrodden groups, remaining vulnerable situations and Loans are small, but sufficient to finance the micro-enterprises undertaken by borrowers: rice-husking, machine repairing, purchase of rickshaws, buying of milk cows, goats, cloth, pottery etc. The interest rate on all loans is 16 percent. The repayment rate on loans is currently – 95 per cent – due to group pressure and self-interest, as well as the motivation of borrowers.

Conditions to collateral-free loan

The collateral-free loan system focuses on some conditionalities:

1.   Loans are given without any collateral 2.   Loans repayable in weekly instalments spread over a year 3.   Eligibility for a subsequent loan depends upon repayment of the first loan 4. Individual, self-chosen, quick income-generating activities that employ the skills that borrowers already posses 5.   Close supervision of credit by the group as well as the bank staff 6.   Stress on credit discipline and peer support solidarity. 7. Special safeguards through savings minimises the risks that the poor confront 8. Transparency in all bank transactions, most of which take place at centre meetings.

9 Major Programmes of Grameen Bank

Service at the door steps of the poor.

Instead of the poor coming to the Bank, Grameen Bank carries its services to the comfort zones of their doorsteps. It explains why the Bank's members consist primarily of women who usually shy away from the glare of a conventional bank with branches located away from where the poor live. All banking transactions except loan disbursements are done in the meetings of the borrowers at the village level centres organised by the Bank's centre manager.

Housing for the poor

A shelter over the head, food and clothing are the three most essential needs of mankinRealisinging the importance of the shelter, GB introduced a housing loan programme in 1984 to enable its borrowers to build a modest shelter over their heads. The ownership of a house infuses people with a sense of pride, security and self-respect that, in turn, provides a stepping stone to achieving economic prosperity and improved social status. The ceiling for a housing loan is BDT 25,000 for constructing a simple tin-roof house. The average size of the loan is BDT 13,065 (USD 169) per borrower. The interest rate is 8 per cent per annum, repayable over five years. In 2015, housing loans amounting to BDT 5.59 million (USD 0.07 million) were provided to build 363 houses. It brings the total number of homes built with the housing loans to 697,152 since inception.

Scholarships for the children of Grameen members

 Grameen Bank offers scholarships to the children of Grameen members to ease their financial constraints for payment of school dues the purchase of books and stationery. At least 50% of the scholarship money must go to the girls and the remaining 50% to both boys and girls based on overall performance. About 26,000 children at various levels of school education were awarded scholarships during the year under review.   It brings the aggregate number of students since the programme's inception to 266,805 up to December 2015, involving an amount of BDT 445.28 million (USD 5.65 million).

Higher Education Loans

Grameen Bank did not want to leave the children of the members in the lurch after finishing their school level studies. So it introduced the Higher Education Loan programme in 1997 to open opportunities for talented children of its borrowers to pursue higher education in medicine, engineering, agriculture and other higher education programmes at the graduate (with honours) and postgraduate levels. The loans are intended to cover all expenses incurred by the students from the beginning to the end of the study period. The loans cover admission fees, course fees, stationery, food and accommodation and other related expenses. By the end of the year under review, 53,357 students pursuing courses in disciplines were provided loans.

Nursing Education loans for the female children of Grameen Bank borrowers

To assist the children of Grameen Bank borrowers in securing jobs at home and abroad, it lends money for study in a 3-year Diploma in Nursing and Midwifery course in the international standard Grameen Caledonian College of Nursing. 294 students have enrolled for this course. 175 students have already successfully completed the course. Of them 114 have secured jobs in different hospitals and clinics, 6 have gone for higher training at Glasgow Caledonian University, Scotland. In contrast, 31 students have enrolled in B.Sc. level courses in nursing in Bangladesh.

Micro-enterprise Loans                   

Grameen Bank has steered many poor to cross over the poverty line. The Bank continues to stand by them to help them reach even higher echelons of prosperity. The Bank provides larger loans, called micro-enterprise loans, to these fast-moving members. There is no restriction on the loan size. So far, 7,221,574 members have availed of micro-enterprise loans. BDT 249.59 billion (USD 3,363.11 million) has been disbursed under this category of loans. Average loan size is BDT 34,563 (USD 439). The maximum size of a single loan taken so far is BDT 4.0 million (USD 51,606) for fish feed, poultry feed, fish cultivation and fish business. The other major activities financed are grocery shops, pharmacies, dairy farms, auto-rickshaw for transportation and stone businesses for construction. This programme has initiated a silent revolution in rural Bangladesh by encouraging leadership, entrepreneurial qualities, and self-employment opportunities.

Village Phones

Grameen Bank provided loans to 1,630,351 borrowers up to 2015 to buy mobile phones and offer telecommunication services in nearly half of the villages of Bangladesh. It is also generating revenue for GrameenPhone, the largest telephone company in the country. Village phones use 2.22 per cent of the air-time of the company, while their number is only 1.89 per cent of the total telephone subscribers of the company.

Beggars as Members

Beggars are the hardest to reach under the conventional poverty alleviation programme. To capture this elusive group, Grameen Bank contrived Grameen Bank Annual report 2015, page 1 0 an innovative scheme in 2002 called Struggling Members Programme. Over 109,000 beggars have joined the programme. The total amount disbursed stands today at BDT 176.14 million. BDT 149.20 million (85% of the amount disbursed) has already been repaid. GB is happy to note that 16,905 beggars have left begging and are making a living as door-to-door salespersons. Among them, 9,029 beggars have joined Grameen Bank groups as mainstream borrowers.

The Grameen Generalized System

This system was introduced in 2000 to overcome the financial constraints of the borrowers to tide over the bad days that seriously impair their capacity to repay their bank loans. The system is simple and customer-friendly, providing leeway to the member to remain in the Bank's mainstream rather than opting out of the Bank. The Grameen has four essential windows for lending money--basic loan, housing loan, higher education loan and struggling members (beggars) loan programme. A basic loan is converted into a flexible or rescheduled loan if the borrower finds it difficult to pay the weekly instalments. A flexible loan reduces the instalment size to a tolerable level. At the end of 2015, nearly 7 per cent of the borrowers were on flexible loans. A flexible loan is not an independent loan. It is only a temporary detour from the primary loan. The borrower tries their best to return to the basic loan. If a borrower fails to repay the primary loan and is unwilling to go into a flexible loan, s/he is reckoned as a defaulter. In that event, 100 per cent provision is made against their outstanding dues. If a Flexible loan is not paid back in two years, it is considered overdue; it is entirely written off after three years. The recovery rate of Basic Loans is close to one hundred per cent.

What is Micro-credit?

Micro-credit is a small loan given to the poor to develop their living standards. This small amount of loan can help people to come out of the cycle of poverty by generating income. Defining micro-credit, it is a - “Financial service where small amounts of money (usually around $50- $150) are loaned to poor people for use as a capital to start or expand small businesses”. It is amazing how does a little amount of money gives strength to the poor to start a business and helping to break out of the vicious cycle of poverty. This small amount of loan or financial support to the needy people helps to encourage the setting up of free businesses. In another way, it is a financial innovation system that comes from the Grameen banking system or procedure that is based on trust and collateral-free and opposite to the conventional banking system. In order to get a loan, people go to the traditional bank, but Grameen Bank approaches rootless or landless people’s doorsteps. Incredibly, any bank can allocate or sanction loans to rootless or vulnerable people without a guarantee. This loan giving approach placed Grameen Bank in a unique position in micro-finance and approaches beyond the boundaries.

Application of Microcredit

Grameen Bank is founded on the principle that loans are better than charity to interrupt poverty: they offer people the opportunity to take initiatives in business or agriculture, which provide earnings and enable them to pay off their debt.

The bank is founded on the belief that people have endless potential, and unleashing their creativity and initiative helps them end poverty. Grameen has offered credit to classes of people formerly underserved: the poor, women, illiterate, and unemployed people. Access to credit is based on reasonable terms, such as the group lending system and weekly-instalment payments, with reasonably long terms of loans, enabling the poor to build on their existing skills to earn better income in each cycle of loans.

Grameen's objective has been to promote financial independence among the poor. Yunus encourages all borrowers to become savers so that their local capital can be converted into new loans to others. Since 1995, Grameen has funded 90 percent of its loans with interest income and deposits collected, aligning the interests of its new borrowers and depositor-shareholders. Grameen converts deposits made in villages into loans for the needier in the villages (Yunus and Jolis 1998).

It targets the poorest of the poor, with a particular emphasis on women, who receive 95 percent of the bank’s loans. Women traditionally had less access to financial alternatives than ordinary credit lines and incomes. They were seen to have an inequitable share of power in household decision making. Yunus and others have found that lending to women generates considerable secondary effects, including empowerment of a marginalized segment of society (Yunus and Jolis 1998), who share betterment of income with their children, unlike many men. Yunus claims that in 2004, women still have difficulty getting loans; they comprise less than 1 percent of borrowers from commercial banks (Yunus 2004). The interest rates charged by microfinance institutes including Grameen Bank is high compared to that of traditional banks; Grameen's interest (reducing balance basis) on its main credit product is about 20%.

Grameen has diversified the types of loans it makes. It supports hand-powered wells and loans to support the enterprises of Grameen members' immediate relatives. It has been found that seasonal agricultural loans and lease-to-own agreements for equipment and livestock help the poor establish better agriculture. The bank has set a new goal: to make each of its branch locations free of poverty, as defined by benchmarks such as having adequate food and access to clean water and latrines.

Grameen Bank is best known for its system of solidarity lending. The Bank also incorporates a set of values embodied in Bangladesh by the Sixteen Decisions. At every branch of Grameen Bank, the borrowers recite these Decisions and vow to follow them. As a result of the Sixteen Decisions, Grameen borrowers have been encouraged to adopt positive social habits. One such habit includes educating children by sending them to school. Since the Grameen Bank embraced the Sixteen Decisions, almost all Grameen borrowers have their school-age children enrolled in regular classes. This in turn helps bring about social change and educate the next generation.

Solidarity lending is a cornerstone of microcredit, and the system is now used in more than 43 countries. Although each borrower must belong to a five-member group, the group is not required to give any guarantee for a loan to its members. Repayment responsibility rests solely on the individual borrower. The group and the centre oversee that everyone behaves responsibly and none gets into a repayment problem. No formal joint liability exists, i.e. group members are not obliged to pay on behalf of a defaulting member. But, in practice, the group members often contribute the defaulted amount with an intention to collect the money from the defaulted member at a later time. Such behaviour is encouraged because Grameen does not extend further credit to a group in which a member defaults.

No legal instrument (no written contract) is made between Grameen Bank and its borrowers; the system works based on trust. To supplement the lending, Grameen Bank requires the borrowing members to save very small amounts regularly in a number of funds, designated for emergencies, the group, etc. These savings help serve as insurance against contingencies.

In a country in which few women may take out loans from large commercial banks, Grameen has focused on women borrowers; 97% of its members are women. While a World Bank study has concluded that women's access to microcredit empowers them through greater access to resources and control over decision making, some other economists argue that the relationship between microcredit and women's empowerment is less straightforward.

In other areas, Grameen has had very high payback rates—over 98 percent. However, according to the Wall Street Journal, in 2001 a fifth of the bank's loans were more than a year overdue. Grameen says that more than half of its borrowers in Bangladesh (close to 50 million) have risen out of acute poverty thanks to their loans, as measured by such standards as having all children of school age in school, all household members eating three meals a day, a sanitary toilet, a rainproof house, clean drinking water, and the ability to repay a 300 taka-a-week (around 4 USD) loan.

Criticism of Micro-credit Programme

Some analysts have suggested that microcredit can bring communities into debt from which they cannot escape. Researchers have noted instances when microloans from the Grameen Bank were linked to exploitation and pressures on poor families to sell their belongings, leading in extreme cases to humiliation and ultimately suicide.

The Mises Institute's Jeffrey Tucker suggests that microcredit banks depend on subsidies in order to operate, thus acting as another example of welfare. Yunus believes that he is working against the subsidized economy, giving borrowers the opportunity to create businesses. Some of Tucker's criticism is based on his interpretation of Grameen's "16 decisions," seen as indoctrination, without considering what they mean in the context of poor, illiterate peasants.

Maulana Ibrahim, an imam in Bangladesh, spoke out against the Grameen Bank in 1993 for fostering "un-Islamic ways." He alleged that the lenders' pledge required women to say they would not obey their husbands and would not live in poverty anymore.

The Norwegian documentary, Caught in Micro Debt, said that Grameen evaded taxes. The Spanish documentary, Microcredit, also suggested this. The accusation is based on the unauthorised transfer of approximately US$100 million, donated by The Norwegian Agency for Development Cooperation (NORAD), from one Grameen entity to another in 1996, before the expiry of the Grameen Bank's tax exemption.

Yunus denies that this is tax evasion:

“There is no question of tax evasion here. The Government has provided organizations with opportunities; we have made use of these opportunities with aim of benefitting our shareholders who are the rural poor women of Bangladesh.”

David Roodman and Jonathan Morduch question the statistical validity of studies of microcredit's effects on poverty, noting the complexity of the situations involved. Yoolim Lee and Ruth David discuss how microfinance and the Grameen model in South India have in recent years been distorted by venture capitalism and profit-makers. In some cases, poor rural families have suffered debt spirals, harassment by microfinance debt collectors, and in some cases suicide.

Post a Comment

Contact form.

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

The Grameen Bank Model: Corporate Success and Fulfilment of Its Social Objectives

Related Papers

Kabir Hassan

Global Disclosure of Economics and Business

Mohammed Thanvir Ahmed Chowdhury

Generally, it is held that, Women economic participation is positively related to their status. It is assumed that participation changes woman’s power relationship and hence her status in the family, and thus a woman having no such access will have relatively low power and status. Relatively argued, women experience hunger and poverty in much more intensive ways than men. If one of the family members has to starve, it is an unwritten law that it has to be the mother. That is why women were targeted in the center point of micro credit program. However, the stagnation in the impact of micro credit on income may have serious implication for the success of micro finance institution and their long term sustainability and therefore the question deserves serious attention from researchers. The above concerns are related mostly to the long term impact of micro credit. Thereby we were intended to see the structures which dictate dependence press on these women. And if the gains they have mad...

Journal ijmr.net.in(UGC Approved)

The poor need fair access to finance to empower them to help themselves. Since conventional banking makes lending decisions based on a borrower's existing assets (collateral), those who have nothing get nothing. 50 percent of the population of Bangladesh lives on less than USD 1 per day. If they needed money, they traditionally had to turn to local money lenders who charged extremely high interest rates and frequently entrapped the borrowers .the main aim of this study is to focus on the contribution of the Bangladesh Grameen Bank towards the poverty eradication in Bangladesh.

Journal of Socio-economics

International Journal of Social Economics

Kabir Hasan

Examines critically the Grameen Bank (GB) experience in Bangladesh in order to understand the essential elements of its operations. Reports that this unique financial institution developed the important factors needed to help the poor and that GB has replaced physical collateral requirements with group responsibility. States that by organizing poor people into groups, it has created the social and financial conditions enabling them to receive loans; it has demonstrated that the poor are bankable, capable of making good business decisions in utilizing their loans and repaying them on time. Explains that GB showed the possibility to develop a viable and self‐reliant credit programme for the poor. Concludes that the GB approach also proves that financial intermediation is a viable device to fight poverty, and an excellent vehicle for community development.

Valentina Hartarska

Journal of Social and Development Sciences

Shah Jalal Uddin

HABIBU SANI

The Journal of Comparative Asian Development

Manjula Kumara Wanniarachchige , Munim Barai

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Grameen Bank’s Socially Responsible Innovation Report

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Innovation is the primary activity facilitating economic development and productivity. It refers to the creative process by which individuals, groups, or organizations generate and implement new ideas into finished goods or services that contribute to dynamic economic growth (Kogabayev and Maziliauskas 2017). The outcomes of innovation often include increased employment opportunities, improved productivity, higher profits, and reduced cost of doing business. Notably, innovation is never a one-off process, instead, it is an ongoing and cumulative phenomenon joining individuals and organizations to a common goal. It results in the continuous improvement of existing technologies, business processes, and decision approaches. At the core of an innovative approach to business are a creative mind, an in-depth understanding of current challenges, and a profound and unmistakable entrepreneurial vision. The innovator develops the new idea into a finished product or service through an implementation process. Over time, the individual improves his or her work and the final product through further development.

“Social innovation” is similar to “general innovation” in that it also transforms simple and creative ideas into finished products or services. However, unlike “ordinary innovation,” “social innovation” focuses on creating products and services that give communities high value (Oeij et al . 2019). In addition to this, social innovation empowers people and drives change that leads to sustainable inclusion. Because it offers practical, reliable, efficient, and sustainable solutions to communal problems, most people, including experts, consider social innovation a noble undertaking inspired by altruism and a humanist ideal. Most social innovators do what they do for the greater good of the community; they are less interested in making profits than helping people improve their health and economic circumstances. Indeed, some social innovators start as activists, while others create new technologies or repurpose the existing ones to improve people’s livelihoods. Since social innovation happens for the greater good of the weaker and vulnerable people, its aim is not to produce profits for private individuals.

Environmentally and socially responsible innovation is essential for businesses’ sustainable performance. It achieves this by giving entrepreneurs the ideas on utilizing available resources without wasting them as this could lead to depletion and the eventual closing down of business. When entrepreneurs are socially and environmentally innovative, they ensure that their companies do not pollute the environment or take advantage of weaker community members (Wittmayer et al . 2019). Instead, they create a system that allows for environmental conservation and equitable sharing of natural resources, making people feel contented and obliged to support the business, leading to its sustainability.

Some businesses and non-profit organizations worldwide have addressed a social or environmental issue innovatively, leading to sustainability and profitability. One such institution is the Grameen Bank, established by Muhammad Yunus in Bangladesh in 1983 (Iqbal, Nisha, and Rifat 2020). It is a community development and microfinance bank specializing in the provision of small loans to individuals who are too poor to qualify for loans from traditional banks. Most commercial banks worldwide have difficult conditions that individuals have to meet before they can secure a loan. For instance, they have to demonstrate an ability to repay the loan by showing they have been undertaking large financial transactions through their banks. Secondly, the applicant has to have some form of security or collateral, including guarantors, before getting the requested amount. Grameen Bank came with a different model to this traditional approach. Its founder believed that even the world’s poorest could effectively manage their finances and grow if financial institutions gave them sustainable conditions.

Following the Grameen Bank’s success, many other entrepreneurs worldwide implemented the same idea, having realized it was possible to make a tidy profit lending to the poor. The vast adoption of Muhammad Yunus’ model around the world illustrates the innovativeness of his initial idea. Notably, the Grameen Bank’s innovative aspect is creating a system that allows them to lend money to the poor at a reduced risk (Chowdhury and Somani 2020). For Grameen, this innovative system is the realization that, in addition to not having money, poor people also lack access to information and resources that privileged individuals have. Thus, the bank creates and implements tools that address poverty’s interconnected roots in a sustainable and scalable way. Therefore, the bank extends loans to the poor and follows them up with information to help these individuals manage their finances and overcome poverty. The approach has worked seamlessly, allowing Grameen Bank to grow and achieve profitability.

The Grameen Bank’s social aspect focuses on the world’s poor, a majority of whom cannot transform their economic prospects without help. The bank targets the poor and marginalized with both financial assistance and information to help them grow. The bank may also extend other resources to these individuals whenever possible. Specifically, Grameen Bank gives poor women and farmers a better way to manage finances and grow crop income. The bank believes that economically disadvantaged people have enough willpower to overcome their circumstances if they access financial insights (Faizah and Husaeni 2019). Grameen Bank also uses technology as a change tool that is designed to be scalable and sustainable and remains data-driven, evidence-based, and human-centered at its core. Not surprisingly, this organization is among a few social institutions that have achieved both sustainability and profitability. The bank has remained true to its mission and vision and is always in touch with the people to understand their needs and fund their financial growth.

The Grameen Bank has continued to register impeccable performance on the social, economic, and environmental dimensions. Socially, Grameen Bank is performing well; it has transformed many Bangladeshis by offering them financial advice and microloans to grow themselves. Economically, the bank has become profitable and currently employs more than 20,000 people in more than 2,000 branches in Bangladesh (Bhuiyan et al . 2017). Environmentally, the bank has helped smallholder farmers improve crop production and income generation by connecting them with advanced and approved farming technologies. Perhaps, the main challenge that the company faces in its work is meeting the needs of a growing customer base. Almost all poor Bangladeshis now depend on the bank for economic development. Unfortunately, Grameen Bank has limited resources and cannot offer its services to all the people who deserve them. Over the years, it has tried to increase its community outreach by opening more branches across the country, but this strategy is yet to fulfill all potential customers’ needs.

An alternative way to reach more people is by establishing new partnerships in Bangladesh and other parts of the world where poor people lack access to finances and information reside. The collaboration between Grameen Bank and other financial institutions, government organizations, or non-profit organizations will go a long way in increasing the program’s effectiveness and reach. The main challenge with partnerships is that it can be expensive and hard to coordinate the concerted effort. However, with enough commitment and support from world governments, it would be easy to expand Grameen Bank to reach all poor people.

Reference List

Bhuiyan, A. B. et al. (2017) ‘The experiences of the Grameen and Islami Bank microfinance on the poverty alleviation in Bangladesh’, Journal of Islamic Economics, Banking and Finance , 13(3), pp. 64-81. Web.

Chowdhury, T. A. and Somani, S. (2020) ‘Performance evaluation and impact of Grameen Bank on social development and women empowerment in Bangladesh.’ International Journal of Social and Administrative Sciences , 5 (1), 54-73. Web.

Faizah, S. I. and Husaeni, U. A. (2019) ‘Economic empowerment for poor women using Grameen Bank model in Indonesia.’ KnE Social Sciences , 3(13), 880-913.

Iqbal, M., Nisha, N. and Rifat, A. (2020) ‘A comparative integration study of performance metrics in microfinance: Grameen Bank vs. Cooperative Bank.’ International Journal of Information Systems in the Service Sector (IJISSS) , 12(3), pp. 55-73.

Kogabayev, T. and Maziliauskas, A. (2017) ‘The definition and classification of innovation.’ HOLISTICA–Journal of Business and Public Administration , 8(1), pp. 59-72.

Oeij, P. R. et al. (2019) ‘Understanding social innovation as an innovation process: applying the innovation journey model.’ Journal of Business Research , 101, pp. 243-254.

Wittmayer, J. M. et al. (2019) ‘Narratives of change: how social innovation initiatives construct societal transformation.’ Futures , 112(2019).

• Social Entrepreneurship and Successful Entrepreneur
• Micro-Credit Analysis in Several Developing Countries
• Economic Development of Bangladesh
• Sadara Company's Digital Transformation
• What’s Your Digital Business Model?: AYTB Case
• Gillette: A Situation Analysis
• Survivors of the Google Share Crash: The Rise of Motorola and LG
• Southwest Airlines Firm's Business Optimization
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2022, August 25). Grameen Bank's Socially Responsible Innovation. https://ivypanda.com/essays/grameen-banks-socially-responsible-innovation/

"Grameen Bank's Socially Responsible Innovation." IvyPanda , 25 Aug. 2022, ivypanda.com/essays/grameen-banks-socially-responsible-innovation/.

IvyPanda . (2022) 'Grameen Bank's Socially Responsible Innovation'. 25 August.

IvyPanda . 2022. "Grameen Bank's Socially Responsible Innovation." August 25, 2022. https://ivypanda.com/essays/grameen-banks-socially-responsible-innovation/.

1. IvyPanda . "Grameen Bank's Socially Responsible Innovation." August 25, 2022. https://ivypanda.com/essays/grameen-banks-socially-responsible-innovation/.

Bibliography

IvyPanda . "Grameen Bank's Socially Responsible Innovation." August 25, 2022. https://ivypanda.com/essays/grameen-banks-socially-responsible-innovation/.

About Stanford GSB

• The Leadership
• Dean’s Updates
• School News & History
• Commencement
• Business, Government & Society
• Centers & Institutes
• Center for Entrepreneurial Studies
• Center for Social Innovation
• Stanford Seed

About the Experience

• Learning at Stanford GSB
• Experiential Learning
• Guest Speakers
• Entrepreneurship
• Social Innovation
• Communication
• Life at Stanford GSB
• Collaborative Environment
• Activities & Organizations
• Student Services
• Housing Options
• International Students

Full-Time Degree Programs

• Why Stanford MBA
• Academic Experience
• Financial Aid
• Why Stanford MSx
• Research Fellows Program
• See All Programs

Non-Degree & Certificate Programs

• Executive Education
• Stanford Executive Program
• Programs for Organizations
• The Difference
• Online Programs
• Stanford LEAD
• Seed Transformation Program
• Aspire Program
• Seed Spark Program
• Faculty Profiles
• Academic Areas
• Awards & Honors
• Conferences

Faculty Research

• Publications
• Working Papers
• Case Studies

Research Hub

• Research Labs & Initiatives
• Business Library
• Data, Analytics & Research Computing
• Behavioral Lab

Research Labs

• Cities, Housing & Society Lab
• Golub Capital Social Impact Lab

Research Initiatives

• Corporate Governance Research Initiative
• Corporations and Society Initiative
• Policy and Innovation Initiative
• Rapid Decarbonization Initiative
• Stanford Latino Entrepreneurship Initiative
• Value Chain Innovation Initiative
• Venture Capital Initiative
• Career & Success
• Climate & Sustainability
• Corporate Governance
• Culture & Society
• Finance & Investing
• Government & Politics
• Leadership & Management
• Markets and Trade
• Operations & Logistics
• Opportunity & Access
• Technology & AI
• Opinion & Analysis
• Email Newsletter

Welcome, Alumni

• Communities
• Digital Communities & Tools
• Regional Chapters
• Women’s Programs
• Identity Chapters
• Find Your Reunion
• Career Resources
• Job Search Resources
• Career & Life Transitions
• Programs & Services
• Career Video Library
• Alumni Education
• Research Resources
• Volunteering
• Alumni News
• Class Notes
• Alumni Voices
• Contact Alumni Relations
• Upcoming Events

Admission Events & Information Sessions

• MBA Program
• MSx Program
• PhD Program
• Alumni Events
• All Other Events
• Operations, Information & Technology
• Organizational Behavior
• Political Economy
• Classical Liberalism
• The Eddie Lunch
• Accounting Summer Camp
• Videos, Code & Data
• California Econometrics Conference
• California Quantitative Marketing PhD Conference
• California School Conference
• China India Insights Conference
• Homo economicus, Evolving
• Political Economics (2023–24)
• Scaling Geologic Storage of CO2 (2023–24)
• A Resilient Pacific: Building Connections, Envisioning Solutions
• Adaptation and Innovation
• Changing Climate
• Civil Society
• Climate Impact Summit
• Climate Science
• Corporate Carbon Disclosures
• Earth’s Seafloor
• Environmental Justice
• Operations and Information Technology
• Organizations
• Sustainability Reporting and Control
• Taking the Pulse of the Planet
• Urban Infrastructure
• Watershed Restoration
• Junior Faculty Workshop on Financial Regulation and Banking
• Ken Singleton Celebration
• Marketing Camp
• Quantitative Marketing PhD Alumni Conference
• Presentations
• Theory and Inference in Accounting Research
• Stanford Closer Look Series
• Quick Guides
• Core Concepts
• Journal Articles
• Glossary of Terms
• Faculty & Staff
• Researchers & Students
• Research Approach
• Charitable Giving
• Financial Health
• Government Services
• Workers & Careers
• Short Course
• Adaptive & Iterative Experimentation
• Incentive Design
• Social Sciences & Behavioral Nudges
• Bandit Experiment Application
• Conferences & Events
• Get Involved
• Reading Materials
• Teaching & Curriculum
• Energy Entrepreneurship
• Faculty & Affiliates
• SOLE Report
• Responsible Supply Chains
• Current Study Usage
• Pre-Registration Information
• Participate in a Study

Grameen Bank

• Priorities for the GSB's Future
• See the Current DEI Report
• Supporting Data
• Research & Insights
• Share Your Thoughts
• Search Fund Primer
• Affiliated Faculty
• Faculty Advisors
• Louis W. Foster Resource Center
• Defining Social Innovation
• Impact Compass
• Global Health Innovation Insights
• Faculty Affiliates
• Student Awards & Certificates
• Changemakers
• Dean Jonathan Levin
• Dean Garth Saloner
• Dean Robert Joss
• Dean Michael Spence
• Dean Robert Jaedicke
• Dean Rene McPherson
• Dean Arjay Miller
• Dean Ernest Arbuckle
• Dean Jacob Hugh Jackson
• Dean Willard Hotchkiss
• Faculty in Memoriam
• Stanford GSB Firsts
• Certificate & Award Recipients
• Teaching Approach
• Analysis and Measurement of Impact
• The Corporate Entrepreneur: Startup in a Grown-Up Enterprise
• Data-Driven Impact
• Designing Experiments for Impact
• Digital Business Transformation
• The Founder’s Right Hand
• Marketing for Measurable Change
• Product Management
• Public Policy Lab: Financial Challenges Facing US Cities
• Public Policy Lab: Homelessness in California
• Lab Features
• Curricular Integration
• View From The Top
• Formation of New Ventures
• Managing Growing Enterprises
• Startup Garage
• Explore Beyond the Classroom
• Stanford Venture Studio
• Summer Program
• Workshops & Events
• The Five Lenses of Entrepreneurship
• Leadership Labs
• Executive Challenge
• Arbuckle Leadership Fellows Program
• Selection Process
• Training Schedule
• Time Commitment
• Learning Expectations
• Post-Training Opportunities
• Who Should Apply
• Introductory T-Groups
• Leadership for Society Program
• Certificate
• 2023 Awardees
• 2022 Awardees
• 2021 Awardees
• 2020 Awardees
• 2019 Awardees
• 2018 Awardees
• Social Management Immersion Fund
• Stanford Impact Founder Fellowships and Prizes
• Stanford Impact Leader Prizes
• Social Entrepreneurship
• Stanford GSB Impact Fund
• Economic Development
• Energy & Environment
• Stanford GSB Residences
• Environmental Leadership
• Stanford GSB Artwork
• A Closer Look
• California & the Bay Area
• Voices of Stanford GSB
• Business & Beneficial Technology
• Business & Sustainability
• Business & Free Markets
• Business, Government, and Society Forum
• Second Year
• Global Experiences
• JD/MBA Joint Degree
• MA Education/MBA Joint Degree
• MD/MBA Dual Degree
• MPP/MBA Joint Degree
• MS Computer Science/MBA Joint Degree
• MS Electrical Engineering/MBA Joint Degree
• MS Environment and Resources (E-IPER)/MBA Joint Degree
• Academic Calendar
• Clubs & Activities
• LGBTQ+ Students
• Military Veterans
• Minorities & People of Color
• Partners & Families
• Students with Disabilities
• Student Support
• Residential Life
• Student Voices
• MBA Alumni Voices
• A Week in the Life
• Career Support
• Employment Outcomes
• Cost of Attendance
• Knight-Hennessy Scholars Program
• Yellow Ribbon Program
• BOLD Fellows Fund
• Application Process
• Loan Forgiveness
• Contact the Financial Aid Office
• Evaluation Criteria
• GMAT & GRE
• English Language Proficiency
• Personal Information, Activities & Awards
• Professional Experience
• Letters of Recommendation
• Optional Short Answer Questions
• Application Fee
• Reapplication
• Deferred Enrollment
• Joint & Dual Degrees
• Entering Class Profile
• Event Schedule
• Ambassadors
• New & Noteworthy
• Ask a Question
• See Why Stanford MSx
• Is MSx Right for You?
• MSx Stories
• Leadership Development
• Career Advancement
• Career Change
• How You Will Learn
• Admission Events
• Personal Information
• Information for Recommenders
• GMAT, GRE & EA
• English Proficiency Tests
• After You’re Admitted
• Daycare, Schools & Camps
• U.S. Citizens and Permanent Residents
• Requirements
• Requirements: Behavioral
• Requirements: Quantitative
• Requirements: Macro
• Requirements: Micro
• Annual Evaluations
• Field Examination
• Research Activities
• Research Papers
• Dissertation
• Oral Examination
• Current Students
• Education & CV
• International Applicants
• Statement of Purpose
• Reapplicants
• Application Fee Waiver
• Deadline & Decisions
• Job Market Candidates
• Academic Placements
• Stay in Touch
• Faculty Mentors
• Current Fellows
• Standard Track
• Fellowship & Benefits
• Group Enrollment
• Program Formats
• Developing a Program
• Diversity & Inclusion
• Strategic Transformation
• Program Experience
• Contact Client Services
• Campus Experience
• Live Online Experience
• Silicon Valley & Bay Area
• Digital Credentials
• Faculty Spotlights
• Participant Spotlights
• Eligibility
• International Participants
• Stanford Ignite
• Frequently Asked Questions
• Founding Donors
• Location Information
• Participant Profile
• Network Membership
• Program Impact
• Collaborators
• Entrepreneur Profiles
• Company Spotlights
• Seed Transformation Network
• Responsibilities
• Current Coaches
• How to Apply
• Meet the Consultants
• Meet the Interns
• Intern Profiles
• Collaborate
• Research Library
• News & Insights
• Program Contacts
• Databases & Datasets
• Research Guides
• Consultations
• Research Workshops
• Career Research
• Research Data Services
• Course Reserves
• Course Research Guides
• Material Loan Periods
• Fines & Other Charges
• Document Delivery
• Interlibrary Loan
• Equipment Checkout
• Print & Scan
• MBA & MSx Students
• PhD Students
• Other Stanford Students
• Faculty Assistants
• Research Assistants
• Stanford GSB Alumni
• Telling Our Story
• Staff Directory
• Site Registration
• Alumni Directory
• Alumni Email
• Privacy Settings & My Profile
• Success Stories
• The Story of Circles
• Support Women’s Circles
• Stanford Women on Boards Initiative
• Alumnae Spotlights
• Insights & Research
• Industry & Professional
• Entrepreneurial Commitment Group
• Recent Alumni
• Half-Century Club
• Fall Reunions
• Spring Reunions
• MBA 25th Reunion
• Half-Century Club Reunion
• Faculty Lectures
• Ernest C. Arbuckle Award
• Alison Elliott Exceptional Achievement Award
• ENCORE Award
• Excellence in Leadership Award
• John W. Gardner Volunteer Leadership Award
• Robert K. Jaedicke Faculty Award
• Jack McDonald Military Service Appreciation Award
• Jerry I. Porras Latino Leadership Award
• Tapestry Award
• Student & Alumni Events
• Executive Recruiters
• Interviewing
• Land the Perfect Job with LinkedIn
• Negotiating
• Elevator Pitch
• Email Best Practices
• Resumes & Cover Letters
• Self-Assessment
• Whitney Birdwell Ball
• Margaret Brooks
• Bryn Panee Burkhart
• Margaret Chan
• Ricki Frankel
• Peter Gandolfo
• Cindy W. Greig
• Natalie Guillen
• Carly Janson
• Sloan Klein
• Sherri Appel Lassila
• Stuart Meyer
• Tanisha Parrish
• Virginia Roberson
• Philippe Taieb
• Michael Takagawa
• Terra Winston
• Johanna Wise
• Debbie Wolter
• Rebecca Zucker
• Complimentary Coaching
• Changing Careers
• Work-Life Integration
• Career Breaks
• Flexible Work
• Encore Careers
• Join a Board
• D&B Hoovers
• Data Axle (ReferenceUSA)
• EBSCO Business Source
• Global Newsstream
• Market Share Reporter
• ProQuest One Business
• Student Clubs
• Entrepreneurial Students
• Stanford GSB Trust
• Alumni Community
• How to Volunteer
• Springboard Sessions
• Consulting Projects
• 2020 – 2029
• 2010 – 2019
• 2000 – 2009
• 1990 – 1999
• 1980 – 1989
• 1970 – 1979
• 1960 – 1969
• 1950 – 1959
• 1940 – 1949
• Service Areas
• ACT History
• ACT Awards Celebration
• ACT Governance Structure
• Building Leadership for ACT
• Individual Leadership Positions
• Leadership Role Overview
• Purpose of the ACT Management Board
• Contact ACT
• Business & Nonprofit Communities
• Reunion Volunteers
• Ways to Give
• Fiscal Year Report
• Business School Fund Leadership Council
• Planned Giving Options
• Planned Giving Benefits
• Planned Gifts and Reunions
• Legacy Partners
• Giving News & Stories
• Giving Deadlines
• Development Staff
• Submit Class Notes
• Class Secretaries
• Board of Directors
• Health Care
• Sustainability
• Class Takeaways
• All Else Equal: Making Better Decisions
• If/Then: Business, Leadership, Society
• Grit & Growth
• Think Fast, Talk Smart
• Spring 2022
• Spring 2021
• Autumn 2020
• Summer 2020
• Winter 2020
• In the Media
• For Journalists
• DCI Fellows
• Other Auditors
• Academic Calendar & Deadlines
• Course Materials
• Entrepreneurial Resources
• Campus Drive Grove
• Campus Drive Lawn
• CEMEX Auditorium
• King Community Court
• Seawell Family Boardroom
• Stanford GSB Bowl
• Stanford Investors Common
• Town Square
• Vidalakis Courtyard
• Vidalakis Dining Hall
• Catering Services
• Policies & Guidelines
• Reservations
• Contact Faculty Recruiting
• Lecturer Positions
• Postdoctoral Positions
• Accommodations
• CMC-Managed Interviews
• Recruiter-Managed Interviews
• Virtual Interviews
• Campus & Virtual
• Search for Candidates
• Think Globally
• Recruiting Calendar
• Recruiting Policies
• Full-Time Employment
• Summer Employment
• Entrepreneurial Summer Program
• Global Management Immersion Experience
• Social-Purpose Summer Internships
• Process Overview
• Project Types
• Client Eligibility Criteria
• Client Screening
• ACT Leadership
• Social Innovation & Nonprofit Management Resources
• Develop Your Organization’s Talent
• Centers & Initiatives
• Student Fellowships

This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser. To learn more about cookies, click here .

• Undergraduate
• High School
• Architecture
• American History
• Asian History
• Antique Literature
• American Literature
• Asian Literature
• Classic English Literature
• World Literature
• Creative Writing
• Linguistics
• Criminal Justice
• Legal Issues
• Anthropology
• Archaeology
• Political Science
• World Affairs
• African-American Studies
• East European Studies
• Latin-American Studies
• Native-American Studies
• West European Studies
• Family and Consumer Science
• Social Issues
• Women and Gender Studies
• Social Work
• Natural Sciences
• Pharmacology
• Earth science
• Agriculture
• Agricultural Studies
• Computer Science
• IT Management
• Mathematics
• Investments
• Engineering and Technology
• Engineering
• Aeronautics
• Medicine and Health
• Alternative Medicine
• Communications and Media
• Advertising
• Communication Strategies
• Public Relations
• Educational Theories
• Teacher's Career
• Chicago/Turabian
• Company Analysis
• Education Theories
• Shakespeare
• Canadian Studies
• Food Safety
• Relation of Global Warming and Extreme Weather Condition
• Movie Review
• Admission Essay
• Annotated Bibliography
• Application Essay
• Article Critique
• Article Review
• Article Writing
• Book Review
• Business Plan
• Business Proposal
• Capstone Project
• Cover Letter
• Creative Essay
• Dissertation
• Dissertation - Abstract
• Dissertation - Conclusion
• Dissertation - Discussion
• Dissertation - Hypothesis
• Dissertation - Introduction
• Dissertation - Literature
• Dissertation - Methodology
• Dissertation - Results
• GCSE Coursework
• Grant Proposal
• Marketing Plan
• Multiple Choice Quiz
• Personal Statement
• Power Point Presentation
• Power Point Presentation With Speaker Notes
• Questionnaire
• Reaction Paper

Research Paper

• Research Proposal
• SWOT analysis
• Thesis Paper
• Online Quiz
• Literature Review
• Movie Analysis
• Statistics problem
• Math Problem
• All papers examples
• How It Works
• Money Back Policy
• Terms of Use
• Privacy Policy
• We Are Hiring

Grameen Bank, Essay Example

Pages: 1

Words: 293

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

Social entrepreneurship is the attempt to solve or at least alleviate a social issue through bolder and often never-tried-before methods. Social entrepreneurs are not afraid to think outside the box because they realize older methods are not working. In addition, they also understand the opportunities presented by globalization and advancements in technology and are willing to employ them. Social entrepreneurship could be considered the creative side of nonprofit sector which aims to do more with less.

One of the social entrepreneurship initiatives I personally connect with is Grameen Bank (Grameen Bank). Grameen Bank is especially an inspiring story because it didn’t take place in the western world but in one of the most unlikely places, i.e. Bangladesh. Grameen Bank deserves even more praise due to the fact that 97 percent of its loans have been to women (Grameen Bank). One of the most admiring facts about Grameen Bank is that it tried to provide funding to poorest who had no other reliable sources and did so in a way that increased the success of applicants’ business ventures. Grameen had the wisdom to recognize that people just want to stand on their feet and do not seek sympathy but genuine assistance. Grameen not only provides funds but also business guidance. In addition, it has a reliable system in place to track progress and ensure reliability.

Grameen’s approach reminds me of a famous quote which implies that giving food to someone only feeds them for a day but teaching them skills feed them for lifetime. I like Grameen’s approach to philanthropy because it results in a permanent solution to the underlying issue and not merely a temporary fix. In addition, it involves all the stakeholders in solving the underlying issues.

Grameen Bank. Introduction. 29 January 2015 <http://www.grameen.com/index.php?option=com_content&task=view&id=16&Itemid=112>.

Stuck with your Essay?

Get in touch with one of our experts for instant help!

Administrative and Clinical Health Systems, Research Paper Example

What Is Social Entrepreneurship? Essay Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

Related Essay Samples & Examples

Voting as a civic responsibility, essay example.

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

The Term “Social Construction of Reality”, Essay Example

Words: 371

• American History (3,981)
• Biographies (2,674)
• Book Reports (5,067)
• Business (8,525)
• English (7,265)
• History Other (4,905)
• Miscellaneous (6,640)
• Music and Movies (2,693)
• Philosophy (2,801)
• Psychology (3,461)
• Religion (2,383)
• Science (4,476)
• Social Issues (5,999)
• Technology (3,885)
• Browse Essays
• / History Other
• / Grameen Bank

Grameen Bank

Essay by review   •  February 16, 2011  •  Essay  •  467 Words (2 Pages)  •  929 Views

Essay Preview: Grameen Bank

Dr. Muhammad Yunus, Professor of Economics at the University of Chittagong in Bangladesh founded the Grameen Bank. This began, when he could not reconcile the fact that people create enormous wealth working hard so that their employers could keep the fruits of their labor. In fact, this situation occurs in developing countries where people are exploited and have nobody that puts a stop on this. These unfortunate people are not allowed to invest, get loans, or get credit, because they cannot provide collateral.

Dr. Yunus found out that people did not succeed, because there are no resources or aid for the poor. They do not have possibilities to achieve their dreams. Most of these people are literate, and have a lot of potential to pursue a good job; yet, the lack of employment discourages them, and unconsciously they start believing that there is not solution to poverty getting easily discourage.

The fact of poverty in today's world is hopeless; however, Dr. Yunus came up with an idea. He wanted to be an intermediate of a bank; meaning that he would get loans from the bank, and then lend it to the needy. The results were positive. The amount of money borrowed by the people was paid on time. Therefore, he applied this idea in other towns and villages, and in all of them people was responsible, and paid the loan borrowed on time. With this proof, he went to several banks attempting to get loans directly to the needy, but again failed. With this unfortunate result, he decided to open a bank on his own. The result of this new bank "Grameen Bank,"was extremely positive, and gave new hope for the unfortunate ones, especially for women that are discriminated and ruled by sexism.

These poor people do not have the opportunity to aspire for more, so they are force to settle for less. For example, from my own experience, I have perceived this situation in a country in South America for nearly 15 years.

I totally agree with the author when he says that "The eradication of poverty starts with people being able to control their own fates. It is not by creating jobs that we will save the poor but rather by providing them with the opportunity to realize their potential" (Yunus: 182). Poor countries are poor largely because they have undeveloped infrastructures and facilities for health, education, agriculture, governance at a large scale, and law enforcement. They remain poor because they have few resources, employments,

We use cookies to enhance our website for you. Proceed if you agree to this policy or learn more about it.

• Essay Database >
• Essays Examples >
• Essay Topics

Essays on Grameen Bank

9 samples on this topic

To some students, crafting Grameen Bank papers comes easy; others require the help of various kinds. The WowEssays.com collection includes expertly crafted sample essays on Grameen Bank and relevant issues. Most definitely, among all those Grameen Bank essay examples, you will find a paper that resonates with what you perceive as a decent paper. You can be sure that virtually every Grameen Bank work showcased here can be used as a bright example to follow in terms of general structure and writing different parts of a paper – introduction, main body, or conclusion.

If, however, you have a hard time coming up with a solid Grameen Bank essay or don't have even a minute of extra time to explore our sample catalog, our free essay writer company can still be of great assistance to you. The thing is, our writers can craft a sample Grameen Bank paper to your individual needs and specific requirements within the defined period. Buy college essays today!

Example Of Case Study On Banco Compartamos Enterprises

Example of essay on microcredit.

Definition of the microcredit

Example Of Review Of Microfinance Article Review

(Instructor Name)

Free Reaction Report Essay Sample

Free research paper on research on mohammed yunus.

Introduction

Grameen Bank As An Organization Research Paper Samples

One of the most successful development organizations in the world is the Grameen Bank of Bangladesh. Started by professor Muhammad Yunus, the Grameen Bank is noteworthy for the stark contrast between its operating principles and those of the big, international lending institutions, such as the World Bank and the IMF. The Grameen Bank's success in empowering the poor has made it a model that is being emulated around the world.

History and Purpose

Level of Poverty Evaluation Essay Examples

Essay on Evaluating the Two Models for Less Developed Countries

Research Paper on Evaluating Microfinance

275 words = 1 page double-spaced

Password recovery email has been sent to [email protected]

Use your new password to log in

You are not register!

By clicking Register, you agree to our Terms of Service and that you have read our Privacy Policy .

Now you can download documents directly to your device!

Check your email! An email with your password has already been sent to you! Now you can download documents directly to your device.

or Use the QR code to Save this Paper to Your Phone

The sample is NOT original!

Short on a deadline?

Don't waste time. Get help with 11% off using code - GETWOWED

No, thanks! I'm fine with missing my deadline

• Investigative Stories
• Entertainment
• Life & Living
• Tech & Startup
• Rising Star
• Star Literature
• Daily Star Books
• Roundtables
• Star Holiday
• weekend read
• Environment
• Supplements
• Brand Stories
• Law & Our Rights

Most Viewed

Rapper Aly Hasan clarifies controversial comments, announces plans to retire from music

A symbol of our degradation

Magnitude 5 quake jolts parts of Bangladesh

Railway off track

Yunus Centre refutes Grameen Bank allegations centring Packages Corporation

The Yunus Centre has issued a detailed rejoinder in response to fresh allegations made by the current management of Grameen Bank against its founder and Nobel Laureate Professor Muhammad Yunus.

The fresh attack accused Professor Yunus of financial improprieties during his tenure as Managing Director of Grameen Bank in the 1990s, specifically in dealings between GB and Packages Corporation, a renowned printing press in Dhaka at the time that was owned by the Yunus family.

For all latest news, follow The Daily Star's Google News channel.

Yunus Centre, which operates as a think tank dedicated to the flourishing of Prof Yunus' ideas on fighting and eradicating poverty, circulated a point-by-point rebuttal of each of the allegations hurled by Grameen Bank.

Yunus family profiting from loan for Packages

One of the primary allegations is that Packages Corporation Limited, a business entity owned by Prof Yunus and his family, received a loan of Tk 9.5 crore from Grameen Bank without adhering to the bank's regulations.

The Yunus Centre clarifies that the owners of Packages Corporation, including Professor Yunus and his family, did not intend to benefit financially from the agreement with Grameen Bank. The bilateral agreement explicitly stated that the owners would not receive any financial benefits, such as profit shares, rent, or fees.

The objective was to reduce Grameen Bank's printing costs and ensure timely delivery of quality printing materials. The agreement provided Grameen Bank with access to the printing plant free of charge, which was crucial during the bank's rapid expansion.

"Owners just literally handed over the printing plant to Grameen Bank free of cost," Yunus Centre said. "A new phase of Packages Corporation began when it was no longer under any control of the owners, nothing flowed to the owners. It entered a new phase, where the owners totally distanced themselves from all affairs of the Packages, including financial affairs."

Benefiting from print orders

Another allegation claims that Professor Yunus and his family financially benefited from awarding printing orders worth billions of taka to Packages Corporation at inflated prices.

The rejoinder firmly denies this claim, reiterating that the agreement precluded any financial benefits to the owners from transactions between Packages Corporation and Grameen Bank. The Price Fixing Committee of Grameen Bank ensured that prices were always lower than market rates, thus preventing any undue financial gains.

Misuse of GB loan facility

It was also alleged that Professor Yunus violated the Grameen Bank Ordinance 1983 by providing loans to Packages Corporation, which should have been limited to landless poor borrowers.

The Centre responds that the loans received by Packages Corporation came from the Social Business Venture Capital Fund (SVCF), a donor-funded initiative to support social businesses. Under the agreement, any profit made by Packages Corporation would not benefit the owners. The arrangement ensured compliance with the law, and the loans did not reach the owners.

Loan waivers for Packages

Grameen Bank accused Professor Yunus of waiving significant sums in unpaid loans to Packages Corporation, thus benefiting himself and his family when they failed to repay them.

The rejoinder states that the owners were not involved in the financial affairs of Packages Corporation. No loans from Grameen Bank were given to or reached the owners, making the question of waiver irrelevant. The amount in question, Tk 7,22,000 was negligible, and not indicative of misuse of power.

Unauthorised appointments, use of GB office

Finally, it was alleged that Professor Yunus entered into a managing agent agreement with Packages Corporation without informing the board of directors and appointed bank employees to the corporation, besides using GB office space free of charge to conduct the activities of Packages Corporation.

Yunus Centre asserts that the agreement with Packages was authorised by Grameen Bank and discussed in multiple board meetings, receiving full support. The use of Grameen Bank employees and resources was necessary to manage the large-scale operation of printing and supplying materials during the bank's expansion.

In conclusion, the Yunus Centre reiterated that all the allegations against Professor Yunus and his family are baseless and unfounded.

রাহুল গান্ধীর জোট ২০০ আসন পেলে যেভাবে বদলে যাবে ভারতের রাজনীতি

এনডিএ জোট পার্লামেন্টের নিম্নকক্ষে '৪০০ পার' বা ৪০০'র চেয়ে বেশি আসন না পেলে তা নরেন্দ্র মোদির সরকারের জন্য বড় প্রতিবন্ধকতা তৈরি করবে। বিশেষ করে, সংবিধানে কোনো ধরনের পরিবর্তনের...

ব্যাংকে টাকা আটকে যাওয়ায় ৬৮২ হজযাত্রীর যাত্রা অনিশ্চিত

What was Trump found guilty of? See the 34 business records the jury decided he falsified

Donald Trump was found guilty of 34 felony counts of falsifying business records after prosecutors successfully convinced a jury he disguised hush money reimbursement as legal expenses. He is the first former president to be convicted of a crime.

Each count is tied to a different business record that prosecutors demonstrated Trump is responsible for changing to conceal or commit another crime .

Those records include 11 checks paid to former lawyer Michael Cohen , 11 invoices from Michael Cohen and 12 entries in Trump's ledgers.

The jury found that Trump authorized a plan to reimburse Cohen for the $130,000 hush money payment issued to Stormy Daniels and spread the payments across 12 months disguised as legal expenses.

Live updates: Former President Donald Trump found guilty on all counts in hush money case

Prep for the polls: See who is running for president and compare where they stand on key issues in our Voter Guide

Breakdown of 34 counts of falsifying business records

Here are the 34 business records Trump was found guilty of falsifying, as described in Judge Juan Merchan 's jury instructions :

• Count 1: Michael Cohen's invoice dated Feb. 14, 2017
• Count 2: Entry in the Detail General Ledger for the Donald J. Trump Revocable Trust dated Feb. 14, 2017
• Count 3: Entry in the Detail General Ledger for the Donald J. Trump Revocable Trust dated Feb. 14, 2017
• Count 4: A Donald J. Trump Revocable Trust Account check and check stub dated Feb. 14, 2017
• Count 5: Michael Cohen's invoice dated March 16, 2017
• Count 6: Entry in the Detail General Ledger for the Donald J. Trump Revocable Trust dated March 17, 2017
• Count 7: A Donald J. Trump Revocable Trust Account check and check stub dated March 17, 2017
• Count 8: Michael Cohen's invoice dated April 13, 2017
• Count 9: Entry in the Detail General Ledger for Donald J. Trump dated June 19, 2017
• Count 10: A Donald J. Trump account check and check stub dated June 19, 2017
• Count 11: Michael Cohen's invoice dated May 22, 2017
• Count 12: Entry in the Detail General Ledger for Donald J. Trump dated May 22, 2017
• Count 13: A Donald J. Trump account check and check stub May 23, 2017
• Count 14: Michael Cohen's invoice dated June 16, 2017
• Count 15: Entry in the Detail General Ledger for Donald J. Trump dated June 19, 2017
• Count 16: A Donald J. Trump account check and check stub dated June 19, 2017
• Count 17: Michael Cohen's invoice dated July 11, 2017
• Count 18: Entry in the Detail General Ledger for Donald J. Trump dated July 11, 2017
• Count 19: A Donald J. Trump account check and check stub dated July 11, 2017
• Count 20: Michael Cohen's invoice dated Aug. 1, 2017
• Count 21: Entry in the Detail General Ledger for Donald J. Trump dated Aug. 1, 2017
• Count 22: A Donald J. Trump account check and check stub dated Aug. 1, 2017
• Count 23: Michael Cohen's invoice dated Sept. 11, 2017
• Count 24: Entry in the Detail General Ledger for Donald J. Trump dated Sept. 11, 2017
• Count 25: A Donald J. Trump account check and check stub dated Sept. 12, 2017
• Count 26: Michael Cohen's invoice dated Oct. 18, 2017
• Count 27: Entry in the Detail General Ledger for Donald J. Trump dated Oct. 18, 2017
• Count 28: A Donald J. Trump account check and check stub dated Oct. 18, 2017
• Count 29: Michael Cohen's invoice dated Nov. 20, 2017
• Count 30: Entry in the Detail General Ledger for Donald J. Trump dated Nov. 20, 2017
• Count 31: A Donald J. Trump account check and check stub dated Nov. 21, 2017
• Count 32: Michael Cohen's invoice dated Dec. 1, 2017
• Count 33: Entry in the Detail General Ledger for Donald J. Trump dated Dec. 1, 2017
• Count 34: A check and check stub dated Dec. 5 2017

Jurors saw copies of these records entered as evidence. Evidence from the entire trial is available on the New York Courts website .

Contributing: Aysha Bagchi

EU foreign chief says Israel must respect UN court, control settler violence in the West Bank

B RUSSELS (AP) — The European Union's foreign policy chief insisted Sunday that Israel must abide by the U.N. top court's rulings and end its offensive in the southern Gaza city of Rafah and, at the same time, questioned the possible involvement of authorities in the settler violence against Palestinians in the occupied West Bank.

On a day that visiting Palestinian Prime Minister Mohammad Mustafa basked in the attention after two EU nations and Norway pledged to recognize a Palestinian state, Josep Borrell further pressured Israel to take immediate actions to make sure that tax income meant for the Palestinian authorities is no longer stopped.

The demands came at the end of the week that saw the international community put increasing pressure on Israel to fundamentally change the course of the war it wages on Hamas in the Gaza Strip through international court action and diplomatic maneuvering.

Borrell insisted Israel had driven the Palestinians to the edge of a catastrophe because “the situation in Gaza is beyond words. The occupied West Bank is on the brink, risking an explosion any time.”

While most of the global attention is centered on Gaza, Borrell said that “we should not forget what’s happening in the West Bank,” where the seat of the Palestinian Authority is based.

“There we see an intensified spiral of violence. Indiscriminate and punishing attacks by extremist settlers, more and more targeting humanitarian aid heading to Gaza. And they are heavily armed. And the question is, who is arming them? And who is not preventing this attack from happening,” Borrell said.

Rights groups and Palestinian residents have said that Israeli forces often provide an umbrella of security to armed settlers attacking Palestinian towns and nomadic communities.

Such settler violence, Borrell said, "is coupled with unprecedented Israeli settlement expansions and land grabbing.”

Borrell also countered Israeli threats to hit the Palestinians financially. On Wednesday, Finance Minister Bezalel Smotrich said he would stop transferring tax revenue earmarked for the Palestinian Authority, a move that threatens to handicap its already waning ability to pay salaries to thousands of employees.

Under interim peace accords in the 1990s, Israel collects tax revenue on behalf of the Palestinians, and it has used the money as a tool to pressure the PA. After the Oct. 7 Hamas attack that triggered the war in Gaza, Smotrich froze the transfers, but Israel agreed to send the money to Norway, which transferred it to the PA. Smotrich said Wednesday that he was ending that arrangement.

“Unduly withheld revenues have to be released,” said Borrell, with Norwegian Foreign Minister Espen Barth Eide standing next to him.

Eide was in Brussels Sunday to hand over diplomatic papers to Mustafa ahead of Norway's formal recognition of a Palestinian state, a largely symbolic move that has infuriated Israel.

The formal recognition by Norway as well as Spain and Ireland — which all have a record of friendly ties with both the Israelis and the Palestinians, while long advocating for a Palestinian state — is planned for Tuesday.

The diplomatic move by the three nations was a welcome boost of support for Palestinian officials who have sought for decades to establish a statehood in east Jerusalem, the West Bank and the Gaza Strip — territories Israel seized in the 1967 Mideast war and still controls.

“Recognition means a lot for us. It is the most important thing that anybody can do for the Palestinian people," said Mustafa. "It is a great deal for us.”

Some 140 countries — more than two-thirds of the United Nations — recognize a Palestinian state but a majority of the 27 EU nations still do not. Several have said they would recognize it when the conditions are right.

The EU, the United States and Britain, among others, back the idea of an independent Palestinian state alongside Israel but say it should come as part of a negotiated settlement.

Belgium, which holds the EU presidency, has said that first the Israeli hostages held by Hamas need to be freed and the fighting in Gaza must end. Some other governments favor a new initiative toward a two-state solution, 15 years after negotiations between Israel and the Palestinians collapsed.

Sunday's handover of papers came only two days after the United Nations’ top court ordered Israel to immediately halt its military offensive in the southern Gaza city of Rafah in the latest move that piled more pressure on the increasingly isolated country .

Days earlier, the chief prosecutor for the International Criminal Court requested arrest warrants for Israeli leaders, including Prime Minister Benjamin Netanyahu, along with Hamas officials.

The war in Gaza started after Hamas-led militants stormed across the border, killing 1,200 people and taking some 250 hostage. Israel’s ensuing offensive has killed more than 35,000 Palestinians, according to Gaza’s Health Ministry, and has caused a humanitarian crisis and a near-famine.