Bringing Sustainability to Bangladeshs Fight Against Poverty.

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Presentation transcript:

Bringing Sustainability to Bangladeshs Fight Against Poverty

Agenda Poverty in Bangladesh Functions and Sustainability of the Grameen Bank Criticisms and Looking towards the Future

Causes of Poverty in Bangladesh Natural disasters Cyclone caused $291 million in damages to rice crop in 2007 Government Strikes caused $70 million in losses per day for garment industry in 2006 Lack of infrastructure Inefficient village loan system Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Grameen Bank and Bangladesh Is there something about Bangladesh that helps make Grameen successful? Yes. 90% of Bangladeshis practice Islam (mostly Sunni sect). Sunni Islam places high importance on community. Grameen is able to achieve high repayment rates. Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Pioneering Microfinance Primarily Women Groups of Five Weekly Payments Lower Poor High Commitment to Training Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Changing the View of Lending to the Poor The Poor Can Find Profitable Jobs! The Poor Can Repay! The Poor Can Save! Banks that Lend to the Poor Can Survive and Grow! Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Why the Grameen Bank? Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Food for Thought 1. High interest rates Profitability and subsidizing of beggar loans The debt trap How can the bank reduce rates? Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Food for Thought 2. Scaling up Historical dependence on grants and cheap loans Self-sustainability only achieved in 1995 after three decades Future expansion Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Grameen Bank: A Final Cure? Microfinance alone cannot solve poverty Corrupt Government Weak Banking Corrupt customs officials Cheating on Exams Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Grameen Can Help Grameen and/or the government has to help the poor develop disaster mitigation strategies Partner with healthcare, infrastructure or education NGOs Bangladesh Development Partnership Center Bangladesh Academy for Rural Development Support non-corrupt political candidates Poverty in Bangladesh | Functions and Sustainability | Looking to the Future