28 June - Muhammad Yunus birth anniversary

 

Muhammad Yunus is a renowned Bangladeshi social entrepreneur, banker, economist, and civil society leader. He is best known for his pioneering work in microfinance and microcredit, which aim to provide financial services to the poor, enabling them to create self-employment opportunities and break out of poverty. Here is a detailed overview of his life and contributions:

Early Life and Education

• Birth: Muhammad Yunus was born on June 28, 1940, in the village of Bathua, Chittagong, in British India (now Bangladesh).
• Education: He studied at Chittagong Collegiate School and then attended Dhaka University, where he earned a Bachelor of Arts in Economics. Later, he received a Fulbright scholarship to study in the United States and obtained his Ph.D. in Economics from Vanderbilt University in 1969.

Academic Career

• Teaching: Yunus began his academic career as an assistant professor of economics at Middle Tennessee State University. After the independence of Bangladesh in 1971, he returned to his home country and joined the University of Chittagong as the head of the Economics department.

Grameen Bank and Microfinance

• Inspiration: During a famine in Bangladesh in 1974, Yunus was struck by the extreme poverty in rural areas and the inability of the poor to access traditional banking services. This led him to experiment with providing small loans to the poor without requiring collateral.
• Grameen Bank: In 1983, he founded Grameen Bank (meaning "Village Bank") based on the concept of microcredit. The bank provided small loans to poor entrepreneurs, primarily women, to start small businesses. The repayment rates were impressively high, demonstrating the viability of microfinance.
• Impact: Grameen Bank's success spurred the growth of microfinance institutions worldwide. Yunus’s work has empowered millions of people, particularly women, by providing them with the financial means to improve their lives.

Recognition and Awards

• Nobel Peace Prize: In 2006, Muhammad Yunus and Grameen Bank were jointly awarded the Nobel Peace Prize for their efforts to create economic and social development from below.
• Other Awards: Yunus has received numerous other awards and honors, including the Presidential Medal of Freedom in 2009 and the Congressional Gold Medal in 2010.

Publications and Advocacy

• Books: Yunus has authored several books on microfinance and social business, including "Banker to the Poor," "Creating a World Without Poverty," and "Building Social Business."
• Social Business: He has been a strong advocate for social business—a business model designed to solve social problems in a sustainable way. Yunus believes in creating enterprises that are self-sustaining and focused on addressing social issues rather than maximizing profit.

Controversies and Challenges

• Challenges: Despite his success, Yunus has faced challenges and controversies, including political opposition in Bangladesh. In 2011, he was removed from his position as managing director of Grameen Bank by the Bangladesh government, a move that sparked international criticism.

Legacy and Continuing Work

• Global Influence: Yunus’s ideas have had a profound impact on global development policies and practices. Microfinance and social business models inspired by his work continue to thrive around the world.
• Current Activities: Yunus remains active in promoting social business and sustainable development through the Yunus Centre and various international initiatives.

Muhammad Yunus’s vision and dedication have not only transformed the lives of millions of people living in poverty but also reshaped how the world approaches economic development and social entrepreneurship.