We
watched a video called Pennies A Day about
the Grameen bank started by Muhammad Yunus. Before the Grameen Bank, Bangladesh
was a country in great poverty. Nobody was making money. Banks did not want to
loan to poor people in Bangladesh because they did not think they would pay it
back. Then Muhammad Yunus came up with the idea that he would start a bank
where they would lend out money to poor rural people around Bangladesh. The
business of the Grameen Bank is micro-credit which involves giving small loans
to poor people so they have the opportunity to create small businesses. Loans
are made for livestock, crafts and agriculture. Ninety-six percent of the loans
are given to women because woman with the loans are cautious with the money and
spend it first on their children. Each week the people who receive the loans
gather in a large circle to make their payments. The Grameen bank operates in almost every village in Bangladesh.
The pay back rate is 99%. Now Bangladesh has roads and there are lots of small
businesses.
By Anna Weisel
By Anna Weisel
