Peace Prize Recipient Helps Poor Women

Last week, as you’ve probably heard, Muhammad Yunus and Grameen Bank were awarded the Nobel Peace Prize. The Grameen Bank made popular the use of micro-credit loans to those in Bangladesh. These loans, most of which are less than $200, encourage the proliferation of small businesses.

Why micro-loans? It’s widely believed that by raising the economic level of those in poverty, peace, democracy, and human rights can prevail. (And the North Koreans thought it was nuclear bombs!)

The microfinance programs enable their borrowers to pull themselves out of poverty. As each loan is repaid, the money is redistributed as loans to their borrowers.

Village Phone is just one of those programs. It allows the borrower to borrow the money needed to purchase a phone for their village. These are generally areas where there is currently no telecommunication. These “Village Phone Operators” then rent the use of their phone to other villages and make a small profit on per-call usage.

Here are some quick facts about the Grameen Bank:

* Today, the bank provides loans to approximately 6.6 million borrowers.
* 97 percent of their borrowers are WOMEN!
* Their banking system is based on mutual trust. In other words, there is no need for the borrower to provide collateral for the loan.
* While the Grameen Bank finances only in Bangladesh, the Grameen Foundation funds programs in Latin and South America, as well as Africa and Asia.

The folks at Grameen believe that women are the best at fighting poverty. Their experience and studies have shown that women use the profits to expand their businesses, send their kids to school and improve the overall living condition of their families. And, they are more likely to repay the loan in full. You Go Grrrls!

Happy Travels!