Oct 16 2007
Yunus’ Visit
Yunus came to campus today to give a speech. General impressions:
1. A dynamic speaker who has a very compelling story: an economics professor in a Tenn college, went back to Bangladesh after independence. One day found out 42 poor neigbhors needing total of $27 from loan sharks. That is how everything started.
2. Anti-system: the “system” creates and traps poverty. Banks won’t consider lending to the poor even after being proved wrong. He did everything against the system convention: lending to the poor, turning 99% male clientelee to 97% female, established a “begger program” that has 100K members.
3. Built everything based on raw trust: banking at client’s house in Bangladesh. Thousands staff members going door to door to collect tiny payments. No forms, collaterals, etc.
4. Turning the system resources to his advantage after being recognized: Grumin phone, yugort factories, etc.
5. 90+% repayment rate, 7 million clients out of a population of 150 million
Q&A at reception: very unstructural, very anti-system, does not sound like an economist at all.