POVERTY : THE MICROFINANCE EXPERIENCE

 ■ POVERTY IS NOT CREATED BY THE POOR

    It is created by the structures of society and the policies pursued by society.

    Change the structure as we are doing in Bangladesh, and you will see that the poor change their own lives.

    Given the support of financial capital, however small, the poor are fully capable of improving their lives.

    - Muhammad Yunus, Grameen Bank, Founder, father of the microloan.

 ■  WHY DON'T BANKS ACCOMMODATE POOR PEOPLE ?

    Some do!

    Grameen Bank in Bangladesh was formed out of a project providing small loans to women in the village of Jobra.

    Bancosol, a commercial bank in Bolivia, is also a bank which provides microfinance services for the poor of Bolivia.        

    However, the majority of formal banks do not provide microfinance products as microfinance is an expensive enterprise – you can make a lot more money on a large loan than a small loan, and you won't make much money holding savings accounts with very little funds in them.

    Banks can make more money only if they provide financial services to those who already have money...

    ■ GRAMEEN CARTOON

    ■ GRAMEEN SHAKTI SOLUTIONS