The Grameen Bank in Bangladesh

Type :

Term papers

Pages :

9 pages

Format :

.doc

Published date :

05/17/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Creation of the Grameen Bank
1. Flooding of 1974
2. The laboratory of Jobra
3. Helping the women
Functioning of Grameen Bank: A success
1. Solidarity among borrowers
2. Very small loans and an interesting payback of loans
3. Principle of transparency: Very low interest rates and high interest rates of savings
4. The struggling members program housing micro enterprise and education loans
5. Creation of spin-off companies
Critics and future of the Grameen Bank
1. Difficulties to ban poverty
2. Acceptance of outright grants
3. Hope of the Grameen Bank
4. Microcredit in North America
Conclusion
Bibliography
Annexes

Abstract

"Where businesses cannot develop, countries cannot flourish. Let us use this International Year of Microcredit to put millions of families on the path to prosperity. I extend my gratitude to the nation and people of bangladesh for helping to show us the way." the former UN general secretary Kofi A. Annan Said in August 2006. bangladesh remains a developing nation, in despite of continuous domestic and international efforts to improve economic and demographic prospects. Its Gross Domestic Product (GDP) based on purchasing-power-parity (PPP) per capita is US$1299,695 in 2007 , this value is much lower the world GDP average of $10.200. The grameen bank, which contributed to developed bangladesh, was founded in 1976 by Muhammed Yunus who won the Nobel Prize in 2006 for his contribution to reduce poverty by the way of micro credit. The word "grameen", derived from the word "gram" or "village", means "of the village". The grameen bank makes small loans to the impoverished without requiring collateral. Collateral is a borrower's asset that is forfeited to the lender if the borrower is insolvent. The system of this bank is based on the fact that poor have skills which are under-utilized. Today, bangladesh seems more developed. However, has the grameen bank really reduced poverty in bangladesh?