the Grameen Foundation

I remember when it was announced that Muhammad Yunus won the nobel peace prize for 2006. One thing that I like about the nobel peace prize, is that they try to choose people that aren't as well known. Not that the Grameen foundation isn't a successful and well known organization, but just not as visible on the popular front. For example, common top contenders were also U2's Bono and Bill Gates. While they do many good things for many people, I like the idea of bringing someone else's organization and name to the forefront. In terms of Yunus the truth was, I still really did not know much about the Grameen Bank. I read the blurb about Yunus, but that paragraph long description gave no real insight into what was going on.

Our discussion last week in conjunction with the video for this weeks lecture proved to be much more informative. What the foundation is doing makes perfect sense. What astonishes me is that, this wasn't really prevalent before. I looked up Grameen Bank on wikipedia.org and under criticism it said, "Sudhirendar Sharma, a development analyst, claims that it has 'landed poor communities in a perpetual debt-trap,' and that its ultimate benefit goes to the corporations that sell capital goods and infrastructure to the borrowers. Former Finance Minister of Bangladesh, Saifur Rahman, commented that giving the poor some money does not make them well off. They are suceptible when larger corporations take over." Yes, these people are in debt, but as stated in the wikipedia article the loans are interest free, the repayment period is arbitrarily long, and the borrower is covered under life insurance free of cost. Not exactly what I'd call a "debt trap". I think it gives people a chance to get out of their poverty stricken state and gives them the opportunity to use their talents to flourish. How are people suppose to get out of their debt state if they can't make enough to buy food? Normal banks won't lend them money and it leaves them some choices as to just barely make it, make a dishonest living in crime or other such ways, or borrow money from a loan shark that would charge exorbitant interest rates. I'm sure not everyone is successful after getting their loan, but it seems to have helped a lot of people. These people at least deserve a chance, and this foundation seems to be giving it to them. Moreover their rural telephone programme not only is profitable for the villagers, but it helps bring a wealth of new resources available to these people.