Banker To The Poor: Micro-Lending and the Battle Against World Poverty [Paperback]

Muhammad Yunus (Author)

Book Description

Publication Date: October 14, 2003

Muhammad Yunus is that rare thing: a bona fide visionary. His dream is the total eradication of poverty from the world. In 1983, against the advice of banking and government officials, Yunus established Grameen, a bank devoted to providing the poorest of Bangladesh with minuscule loans. Grameen Bank, based on the belief that credit is a basic human right, not the privilege of a fortunate few, now provides over 2.5 billion dollars of micro-loans to more than two million families in rural Bangladesh. Ninety-four percent of Yunus's clients are women, and repayment rates are near 100 percent. Around the world, micro-lending programs inspired by Grameen are blossoming, with more than three hundred programs established in the United States alone.

Banker to the Poor is Muhammad Yunus's memoir of how he decided to change his life in order to help the world's poor. In it he traces the intellectual and spiritual journey that led him to fundamentally rethink the economic relationship between rich and poor, and the challenges he and his colleagues faced in founding Grameen. He also provides wise, hopeful guidance for anyone who would like to join him in "putting homelessness and destitution in a museum so that one day our children will visit it and ask how we could have allowed such a terrible thing to go on for so long." The definitive history of micro-credit direct from the man that conceived of it, Banker to the Poor is necessary and inspirational reading for anyone interested in economics, public policy, philanthropy, social history, and business.

Muhammad Yunus was born in Bangladesh and earned his Ph.D. in economics in the United States at Vanderbilt University, where he was deeply influenced by the civil rights movement. He still lives in Bangladesh, and travels widely around the world on behalf of Grameen Bank and the concept of micro-credit.

Editorial Reviews

Amazon.com Review

It began with a simple $27 loan. After witnessing the cycle of poverty that kept many poor women enslaved to high-interest loan sharks in Bangladesh, Dr. Muhammad Yunus lent money to 42 women so they could purchase bamboo to make and sell stools. In a short time, the women were able to repay the loans while continuing to support themselves and their families. With that initial eye-opening success, the seeds of the Grameen Bank, and the concept of microcredit, were planted.

After earning a Ph.D. in economics at Vanderbilt University, Dr. Yunus returned to Bangladesh to settle into a life as a professor. But a famine in 1974 ravaged the country, leading Dr. Yunus to alter his thinking and his life profoundly: "What good were all my complex theories when people were dying of starvation on the sidewalks and porches across from my lecture hall?.... Nothing in the economic theories I taught reflected the life around me." Armed with little more than a lofty dream to end the suffering around him, he started an experimental microcredit enterprise in 1977; by 1983 the Grameen Bank was officially formed.

The idea behind the Grameen Bank is ingeniously simple: extend credit to poor people and they will help themselves. This concept strikes at the root of poverty by specifically targeting the poorest of the poor, providing small loans (usually less than $300) to those unable to obtain credit from traditional banks. At Grameen, loans are administered to groups of five people, with only two receiving their money up front. As soon as these two make a few regular payments, loans are gradually extended to the rest of the group. In this way, the program builds a sense of community as well as individual self-reliance. Most of the Grameen Bank's loans are to women, and since its inception, there has been an astonishing loan repayment rate of over 98 percent.

Banker to the Poor is an inspiring memoir of the birth of microcredit, written in a conversational tone that makes it both moving and enjoyable to read. The Grameen Bank is now a $2.5 billion banking enterprise in Bangladesh, while the microcredit model has spread to over 50 countries worldwide, from the U.S. to Papua New Guinea, Norway to Nepal. Ever optimistic, Yunus travels the globe spreading the belief that poverty can be eliminated: "...the poor, once economically empowered, are the most determined fighters in the battle to solve the population problem; end illiteracy; and live healthier, better lives. When policy makers finally realize that the poor are their partners, rather than bystanders or enemies, we will progress much faster that we do today." Dr. Yunus's efforts prove that hope is a global currency. --Shawn Carkonen --This text refers to an out of print or unavailable edition of this title.

From Library Journal

Bangladesh, a country the size of Florida with a population of over 120 million people, is the home of Grameen Bank, the inspiration of economist Yunus, Bangladesh-born and U.S.-trained. Instead of spending his life as a university economics professor, Yunus decided in the mid-1970s to develop a micro-lending program to help the poorest people of his country. Yunus based the program on his strong belief that the very poor do not need complicated training programs to improve their economic lot. They need money, in the form of loans. This program has empowered thousands of peopleAmany of them womenAand surprised experts in economic development who never believed that the very poor would find the initiative and ability to repay even the smallest ($25-$500) loans. Grameen ("of the village") Bank has developed into an internationally acclaimed and replicated method for assisting the impoverished in Malaysia, the Philippines, Nepal, and even the United States. Definitely recommended for larger public and academic libraries.AOlga B. Wise, Compaq Computers, Austin
Copyright 1999 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 312 pages
• Publisher: PublicAffairs; Rev. and Updated for the Pbk. Ed edition (October 14, 2003)
• Language: English
• ISBN-10: 1586481983
• ISBN-13: 978-1586481988
• Product Dimensions: 8.3 x 5.6 x 0.8 inches
• Shipping Weight: 10.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (101 customer reviews)
• Amazon Best Sellers Rank: #8,747 in Books (See Top 100 in Books)
  • #1 in Books > History > Asia > Bangladesh
  • #15 in Books > Business & Investing > Industries & Professions > Banks & Banking
  • #28 in Books > Biographies & Memoirs > Professionals & Academics > Business

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Customer Reviews

Most Helpful Customer Reviews

55 of 56 people found the following review helpful:

5.0 out of 5 stars A good idea that led to great results, January 3, 2005

By 

Vincent Poirier (Tokyo, Japan) - See all my reviews
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This review is from: Banker To The Poor: Micro-Lending and the Battle Against World Poverty (Paperback)

In the 1970s Professor Mohammed Yunus had a great idea on how to help the poor of Bangladesh and he made it work. He invented micro-credit, or lending very small amounts to the poorest of the poor, without asking for collateral. This, rather than simple handouts, would help the poor become self-reliant enough so that they could lift themselves out of poverty. He concentrated on women. He relied on peer support to motivate repayment of the loans by making loans to one member of a group of women who would have access to credit only if the entire group had a good credit record (when a group started, they were assumed to have good credit). Professor Yunus's organization, the Grameen Bank, is a cooperative owned mostly by its members and boasts a repayment rate over 98%.

In the 30 years since Professor Yunus's first loan of 27 dollars, Grameen has now lent out billions to millions. It has liberated women in small villages, it has brought capitalist market mechanisms to the economic bottom 2% of the world population.

This first hand account by the American-educated Bangledeshi founder of Grameen Bank might not win any literary prize and it might end with a (I think) slightly naive vision of social work, but it effectively presents a simple story about a practical man who has made millions of the world's poorest people significantly better off.

33 of 33 people found the following review helpful:

5.0 out of 5 stars Deeply Moving & Motivating!, June 16, 1999

By A Customer

This review is from: Banker to the Poor: Micro-Lending and the Battle Against World Poverty (Hardcover)

If you know the story of Grameen Bank, and wanted to know more about the founder - I don't need to say anymore.

If you haven't heard of Grameen, prepare yourself to learn about a bank which has overturned the conventional wisdom about helping people who live in poverty.

Yunus' big idea can be put very simply: people who live on less than $1 per day (3 billion people) don't need to be tought how to feed themselves and survive - the very fact that they are alive is testament to their abilities.

His approach rests upon that faith in people's ability to help themselves, if given access to the very small amounts of loan capital they need to start a profitable venture - whether that is weaving cloth or repairing bicycles.

The road to reaching more than 2 million people in Bangladesh, and many other millions worldwide, wasn't smooth. What you get from reading this book is a sense that sometimes the 'homegrown' solution beats the 'imposed' ideas from the developed world.

A challenging book for liberals and conservatives alike!

40 of 43 people found the following review helpful:

4.0 out of 5 stars The pioneer of microlending..., March 1, 2004

By 

Ted (Dallas, TX) - See all my reviews

This review is from: Banker To The Poor: Micro-Lending and the Battle Against World Poverty (Paperback)

The story of the Grameen bank is an excellent example of how social change initiatives can be combined with government and private industry support to acheive a greater outcome than the organization could acheive by itself. Yunus provides an excellent chronicle of his bank's formation as well as explaining its principles. Highly recommended for anyone interested in social entrepreneurship or social change. The only shortcomings are: 1) as a finance person, I would like to have read more about the operational side of the banks relative to their commercial competitors - what specific factors enabled them to be so successful (other than the broad social factors he identifies)? 2) Need more information about how these types of programs can be applied to industrialized nations such as the US.