little information about the quality of the borrower (whether a good/safe‚ or a bad/risky borrower.) As a result‚ the bank cannot charge a higher interest rate to compensate the risk of the bad/ risky borrowers as those rates might not be viable for the safe borrowers. This adverse selection problem of the bank is solved by the Grameen Bank lending model. The crux of the Grameen Bank lending model is the feature of joint liability. This feature states that if a certain member of the group is unable
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world poverty‚ by Yunus Muhammad. "What challenges did Yunus overcome to develop microfinance?" The data on the starvation and poverty issues pushed the economist Muhammad Yunus to invent another type of finance‚ called microfinance (micro credit) based on the experiments‚ studies and reports of the farmers‚ he went to local villages to "learn from the poor" and find out what they actually needed to develop. Then Yunnus decided to create a specific bank whose goal was
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considered have an equivalent monetary expression. (3) The only channel of communication between individuals is prices. 4) All the social relations and social ambits are considered as market exchange transaction. Concept of Microcredit and Grameen Bank Poverty is one of the vital problems of the third world countries‚ and to elevate poverty microcredit has become the most popular approach to address this undesirable phenomenon. According to Jonathan Murdoch‚ Chairman of UN Expert Group on Poverty
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GRAMEEN BANK Poverty is not created by the poor people. So we shouldn’t give them an accusing look. They are the victims. Poverty has been created by the economic and social system that we have designed for the world. It is the institutions that we have built‚ and feel so proud of‚ which created poverty. It is the concepts we developed to understand the reality around us‚ made us see things wrongly. The essence of my
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http://socialentrepreneurshipximb.wordpress.com/2009/12/08/review-of-the-book-banker-to-the-poor-by-muhammad-yunus-by-lg-9/ Social Entrepreneurship exploring the unexplored………. GRAMEEN BANK – The bank for the poor. In 2006 Mohammed Yunus and the Grameen bank were jointly awarded the Nobel Peace Prize‚ “for their efforts to create economic and social development from below”. Analyzed the root cause of the misery of the rural women of Bangladesh who work hard day and night and are still
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References: 1. Yunus‚ Mohammad.(2010). Building Social Business: The New Kind of Capitalism That Serves Humanity’s Most Pressing Needs. 2
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BROAD Studying abroad is important period of anyone’s life. It contains lots of exposure‚ experience and personal development. It has deep effect on students because people from all over the world came at one place having different cultures and different school of thoughts. When they study together they discover new methods of study and research. This is ultimately helpful for whole world not for single country. In this way whole world can walk together in every field of life. When they talk to
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Bibliography: 1. Armendáriz de Aghion‚ B. (1999). ’On the design of a credit agreement with peer monitoring ’‚ Journal of Development Economics‚ vol. 60‚ pp. 79-104. 2. Auwal‚ MA(1996). Promoting Microcapitalism in the Service of the Poor: The Grameen Model and Its Cross-Cultural Adaptation Journal of Business Communication‚ Vol. 33‚ No. 1‚ 27-49 3 4. Besley‚ T. and Coate‚ S. (1995). ’Group lending‚ repayment incentives and social collateral‚ ’ Journal of Development Economics‚ vol. 46 (1)‚ (February)
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Grameen Danone Foods Muhama Yunus reinvented the world by giving the poor a way out of poverty through micro financing with Grameen Bank and improving the health of children with Grameen Foods. With the help of Grameen Group’s establishment‚ he was turned towards Danone‚ where he continued his venture of social entrepreneurship. The partnership between Grameen and Danone was crucial to the organization that was built. Just as Homeless World Cup and Nike partnered to give each other benefits
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Behind its gentle image is a tough‚ highly lucrative bank. Banco Compartamos portrays itself as the gentler lender to Mexico’s poor. Compartamos means "let’s share‚" reflecting the philosophy of its founders‚ the two Carlos’. The non-profit Grameen Bank model and the commercial for-profit Banco Compartamos have many differences‚ the fundamental distinctions between them is in their funding methods. Grameen Bank funds microloans primarily through local funds usually from savings deposits‚ while Compartamos
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