ONE on ONE with the NOBEL PEACE PRIZE WINNER
Dr. Muhammad Yunus, NYC
Do you know the difference between a CELEBRITY and a HERO? Well, we recognize a celebrity as someone who is well-known, someone who commands a high degree of public attention. But a HERO, on the other hand, is a person whom we admire for their courage and noble qualities. These individuals have risked and sacrificed everything for the benefit of others. One such modern hero is Dr. Muhammad Yunus.
In 2006, Dr. Yunus and his company Grameen Bank earned the Nobel Peace Prize for their efforts to create economic and social development from the bottom up. Dr. Yunus is considered the pioneer of Microcredit, which is the extension of very small loans to the unemployed, to poor entrepreneurs and to others living in poverty.
His list of supporters include: Nelson Mandela, President Bill Clinton, Hillary Clinton and Kofi Annan to name a few. Recently, he paid a rare visit to NYC from his native Bangladesh. I had the honor of sharing a few laughs and thoughts with the Nobel Peace Prize Winner.
The following is a summary of Dr. Yunus’ unconventional business model:
THE PROBLEM
Dr. Yunus identified the massive increase in poverty in India as having a direct correlation to the national banks’ rejection of millions of loan applications. As a by-product, loan sharks began to manipulate the poor with sub prime lending. This realization led Dr. Yunus to initiate a search in his own village for all victims – 42 in total. He discovered their combined debt was only $27. Feeling compelled to offer support, he personally paid everyone’s debt.
Taking it a step further, Dr. Yunus decided he would assist these debtors in acquiring bank loans. But, he was promptly made aware that the banking system was not in the business of lending to the disenfranchised. As the infamous quote states:
” The only social responsibility of business is to make profits.”
THE GAMBLE
Although the banks rejected the unemployed borrowers, they did present one option. Dr. Muhammad Yunus had to personally sign as guarantor for all 42 applicants individually. For anyone else the answer would have been an emphatic “NO”. Nonetheless, he signed for everyone. Dr. Yunus further explained, “if you exchange the child born in the palace with the child born in the street, there lives would be entirely different.” He was convinced of man’s innate desire to want better.
The result of his gamble was 100% repayment of each loan.
THE NEW PARADIGM
Dr. Muhammad Yunus felt his successful intervention was the impetus for something much bigger. His new project…was to end poverty. Once again, he thought outside the box by studying the capitalist business model of the current banking system and did everything completely opposite for his new creation – Grameen Bank. Here are some of the company tenets:
Lend the the poor vs. rich
Lend to women vs. men
Lend in rural areas vs. big cities
Require NO collateral
No repayment terms
Conduct business on the borrowers doorstep vs. office
The objective was to create a Social Business Model, with the emphasis on improving the lives of the people. Dr. Yunus was adamant business should have dimensions other than making money. More importantly, Grameen’s results are irrefutable:
7.5 Million borrowers
98% repayment of loans
97% are women entrepreneurs
I was curious about the company philosophy of lending primarily to women. Dr. Yunus’ answer was simply, “women are nurtures who are intuitively very responsible.” Jokingly, I stated I would sue his company for violation of my Equal Opportunity Rights as a man.
Please note that it is impossible within the blog to share all the incredible stories shared by Dr. Yunus.
4 Key Ideas I took away from Dr. Muhammad Yunus:
1. Business can have a social benefit where personal profit is not the goal.
2. All humans have unlimited potential regardless of our socio-economic status.
3. Never undervalue or marginalize the ingenuity of women.
4. Always ‘Think Outside the Box’.
His latest book is called A World Without Poverty: Social Business and the Future of Capitalism. I look forward to reading my autographed copy.
Dr. Yunus is a great man, I have been researching his work for over 15 years. His work was the foundation for my thesis at Princeton. I once met Dr. Yunus when he visited with President Jimmy Carter. How were you able to interview the Nobel Peace Prize Winner?
Amazing!
Dr. Muhammad Yunus and his company Grameen Bank have helped millions of poor people in India. My family personally has benefited from his efforts.
Great Post! I felt like I was in the room with Dr. Yunus again!
It’s really amazing how one thought can translate into millions. Thanks for the post. Let us all learn from this experience and take that one step which begins that million mile journey. For it is not the walk to achievement that we fear sometimes, but the possibility of crossing the finish line that scares us the most…..
Good work Talani. Interesting concept.
Nice post. Micro-credit programs for low-income women make sense since, many households are headed by a woman, who is faced with handling all aspects of running a home and family by herself.
Jobo Taa; Continue to instigate thought. Mr.Yunus took current capitalist principles and practices and transformed them into a higher ideal tapping into the best in all of us .Optimally if this form of financial system could be replicated globally all would benefit not just those at the top,and in time I can visualize a shift in philosophy of acquiring material wealth is only a means to an end and not the end itself.If the heads of financial institutions, govt/s govt personnel, monarchies,and political systems were moral and ethical in character and set this as a standard, I believe it would eventully seep down into the societies.
”Before we had money we had each other” West African/African American axiom.
Great Post Talani, my how things have changed.
Now this was fantastic. If only I could find further information on reaching out to these organizations. I am most desirous of owning my own restaurant/bakery – something that we do not have (bakery) in our area.
Mick
Interesting concepts and good article. I am working on a project and may need to consider this institution.
Peace King. Well done. Your wit from HS is still there – as you joked about suing for Equal Employment Rights as a man. But on a serious note, these are the opportunities which show the good which still exist during these tough economic times. Thanks for reminding us that God still sends hope in the form of great leaders such as Dr. Yunus.
Stay Up!
~ 360 (C. Smith)
I LOVE the pic!! Thanks for taking mine too!! Lets hope the world continues to have more role models like Dr. Yunnus.
Congratulations on having an opportunity to explore Dr. Yunus’ insights. I have seen in other documentaries about him that now mainstream lenders are seeing the profitability in this once "untouchable" class of would-be borrowers. he also discussed grameen solar and other initiatives to help eliminate poverty and the ills that surround it. in particular, it was heartening to see how many religious stalwarts initially in opposition to the idea of empowering women or who had prohibitions against lending came around to see the benefits of providing the opportunity for amelioration of one’s immediate circumstances and in conjunction with the other business models for solar and phone an amelioration of the circumstances of the community.
keep up the great work!
Peace.
Hi All
Dr. Yunus is honored by the great responses and the incredible traffic which you can’t see the data but it’s REAL.
@Twix – My next business model is going to being centered around WOMEN.
@Mickey & @Mike White – His company is Grameen Bank and just opened a branch in Jackson Heights, NYC.
@360 – That was a great word as always.
@Tyrone – Please share the names of any documentaries that speak to this topic. I did realize many realize stalwarts attempted to sabotage this process. I would enjoy hearing your thoughts.
Respect
TALANI
This is a great and inspiring piece. If only this model will spread like wildfire throughout the world… we will all live in a better place unimaginable.
Talani… I know this is only the tip of the iceberg when it comes to what you’ve learned from this man. Keep up the good work and great writing!
Q
Talani,
You’ve definitely inspired me to go out and meet the folks I’d like to meet whom I think can add something to my life.
Thanks buddy. I’ll be writing about my chronicles on Big Piece of Chicken so check it out there.
Keep it coming,
Ben
Great piece. Dr Yunus is definitely one of my heroes. I’m curious, how did he respond to your equal opportunity joke? Did he laugh? Did he answer you seriously?
Nice piece Tee….
I’ve truly enjoyed the read….
peace
I see you are doing big things Talani.. A very interesting concept.. I am sure it was inspirational meeting one of your heroes. Thinking out of the box is something we hear but more of us need to put into practice… Including myself! Thanks for sharing
One,
Craig Boogie
True story, this article was very personal because I have great respect for Dr. Yunus.
@Qadr – The power of the Internet, I receive luv from California. Thanks for taking a minute to share.
@Ben – You understand the formula. If you need assistance let me know
@Jocelyn – We had a great laugh. Dr. Yunus is a very humble man even with all of his accolades. But he does loan to men but very few.
@Ron – Much Respect
@Craig – My college alum…..I look forward to catching up.
Thanks to everyone for supporting with comments on the blog and on all the social networking sites. This has really been unexpected.
Respect
Talani
This is Hot. I heard about this on my NOW podcast.
You were curious as to why Dr. Yunus’s model was to lend primarily to women. Well, I don’t have the numbers, but the numbers are astounding as to the number of under-educated and under-represented women in third world countries still are. So, this proposal, I believe is not to necessarily just accommodate women’s "ingenuity", it is an attempt to mine the talents of one of the most neglected resources of underdeveloped nations: women.
Hi Talani,
Excellent picture of a great man with great ideas. I am like a natural supporter for such initiatives.