Banker To The Poor

The Simplest and the Most Effective Solution to a very Complex Problem hides in the last place we would ever look for..!!

This is one of my Favourite books. I came across this one accidentally, before reading this I thought I knew enough about Micro Lending, my definition of Micro Lending was giving loans to Poor People in Villages from the Tax Payers money and write them off as Bad Debt.. :(.

Ah...!! How terribly wrong I was. This book is a 300 Page journey through the life of Muhammad Yunus from Bangladesh to America and back to Bangladesh - Three Share Farm experiment - Problems of Jobra women - Birth of Grameen bank - Grameen's troubles in learning to walk and run - The impact it made in the whole world - Bill Clinton's interest in the Program - Financial problems of Grameen... and its Success.

The Idea of Grameen is Simple [Because Muhammad found it and proved it]. All Poor women in the village are divided into groups of 5 each. Each one of them will give a test, if any one women in the group fails the test, the loan is revoked. So there is enough pressure in the group to succeed which makes all 5 of them move forward. Then all of them are give a very small loan. If any one of the group member fails to repay on time - the loan for the whole group is revoked. Hence enough pressure is created in the group again to repay.

Finally, there is no need for a hi-fi 'Rocket Science' to solve most of the complex problems in the world.. Just look for a Simple Solution which hides in the last place we would ever look for..!!