Mohammed Yunus, the Grameen Bank, and knowledge-brokers

7 August 2013

I just finished reading Mohammed Yunus' first book about the Grameen Bank, 'Banker to the Poor'. I'm starstruck, and impressed, and in awe, of the incredible work he's done. He took an idea and turned it into real, concrete action, having positive effects on millions of people's lives, in a tough environment to work in.

The distinction he makes between the poor and the very poor – the most destitute, those who don't have a roof over their heads, or enough food for themselves or their family, is key to the scheme. He rightly identified that identifying the poor and the most destitute together in one bracket generalises over some key differences; namely, that the most destitute have just one chance to get out of their poverty, and they were given this chance by being allowed to borrow tiny portions of money. They had everything to lose if they didn't make the most of this chance; this, as Yunus describes, makes them ideal borrowers, as they needed to pay the loan back if they were to continue on their path away from destitution. (and the figures have proven that his hypothesis was correct, with over 96% of loans being paid back on time – this is higher than in most commercial banks)

Identifying that women were the key change makers in families living in extreme poverty made a huge change, too. At least in Bangladesh, it is/was traditionally the man's role to deal with financial matters for the family; subverting this trend has proven to be a great success, and the associated issues of men feeling threatened by their spouses' newfound 'power' is also dealt with in the book. Receivers of loans from the Grameen Bank are 97% women, and the bank is actually owned 95% by its borrowers.

From the conclusion of the book, one paragraph in particular stood out for me:

Information and communication technology is raising the hope that we are approaching a world which will be free from power-brokers and knowledge-brokers... Any power built on exclusive access to information will disintegrate. Any common citizen will have almost as much access to information as the head of government. Leadership will have to be based on vision and integrity, rather than the manipulation of information.

This book was written in 1999. Nearly 15 years later, these predictions haven't come true, but they should have. In part, I was thrilled to see that the the basic message of the organisation I work for, the Open Knowledge Foundation, is/was shared by Mohammed Yunus; but isn't it sad that we need to be actively campaigning and working towards a world free of 'knowledge-brokers', as he puts it? Shouldn't it have justhappened naturally?

Happily, the tide is beginning to turn, thanks to the incredible open movement across the world, but Yunus' hope that 'any common citizen will have almost as much access to information as the head of government' is still a long way off.

One last quote to think about:

Easy access to credit, and easy access to a global network of information for the poorest women and men anywhere in the world will eliminate poverty from our planet more surely and speedily than anything else will. 

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