http://amiralace.blogspot.com/2009/02... ( )

Do you know what micro-lending is? Basically, micro-lending is when a person or organization lends a very small amount of money to a poor person. Then that poor person uses that loan to start a business in hopes that the business will pull them out of poverty. As it ends up...micro-lending is extremely effective. Banker to the Poor: Micro-Lending and the Battle Against World Poverty by Muhammad Yunus is an autobiography and the story of how Grameen Bank got its start. Grameen Bank was the first organization to attempt microlending as a vehicle to end poverty.

In very poor areas of the world, like Bangladesh...where this book takes place, it is very difficult to get out of debt and into a cycle of self-sustainability. Loans are available to people by local "lendingmen", but they generally charge extreme interest rates making it nearly impossible to be relieved of a poverty stricken life. That's where Grameen comes in. They offer the villagers loans at 20% interest...with no collateral or previous credit. They also do not require the borrowers to pay back at any particular time. Of course, they set up a program for the borrowers to follow, and if they do not repay the loans at all, they can't borrow again. But Grameen boasts over a 98% repayment rate, which is outstanding.

These loans allow for the villagers to start their own businesses doing what they already know how to do. They weave baskets, make food, etc.. These loans allow the borrowers to purchase raw materials and make a profit...and repay the loan. There are plenty of success stories where people have broken the poverty cycle and now live self sustained lives.

One interesting aspect of Grameen Bank is that they lend predominantly to women. This causes some issues in these poor villages because women are not generally considered worthy of handling money or running businesses. They are pretty much second class citizens. But what Grameen found out was that lending to a women had a much larger impact than when they lent to men. Yunus said that when a man would make extra money he would spend it on himself. But a women would spend the money on her family or housing improvements. For some reason, when I told my wife that story...she wasn't surprised. Weird.

The book is actually Yunus' life story and how he came to start Grameen Bank. Yunus is a fascinating person, and I would venture to say that by creating the micro-lending culture, he has done more to alleviate world poverty than all the governments combined. He is an amazing man, who was recognized as such when he won the Nobel Peace Prize in 2006.

If you are interested in reading more about micro-lending...read this book. I also recommend getting involved with Opportunity International, a US based micro-lending organization. I believe you really are changing lives when you donate your time or money to these organizations.

Rating: 5 out of 5
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This review, and others, can be found at www.lettersonpages.com

Fascinating look at how a professor of economics dealt with poverty in Bangladesh. Towards the middle I was a bit lost with the details as there are many, but once he began to address the issues within the U.S., my interest was renewed. I am surprised after reading this book that I had never heard of his work prior to this reading. ( )

This book is an amazing account of how microfinancing is enabling the poor and changing the world. It is full of short inspiring real-life stories.
Kudos to Yunus for persevering and breaking the flaws of the current banking system. Now microfinancing is replicated world-over and is benefiting people across the globe. If you are curious about the power of microfinancing, this is one book you should read to hear the story from the place where it all originally started... ( )

Great book. I would love to have a conversation with Mr. Yunus about his journey and the implications of micro-lending in America. My non-economic brain left me re-reading a few passages but overall it was fantastic and well-written! ( )