Muhammed Yunus –
Received his Honorary Doctorate from DCU, Ireland, on 18th October, 2014
-I was fortunate to be present
Dr Martin McAleese, Chancellor of Dublin City University (DCU) presented the ethos of Professor Yunus as a man who truly believes in the rights of the individual as stated in the UN Charter of Human Rights, as a man who does not promote charity but promotes the concept of a chance for those living in poverty to escape the shackles of poverty put on them by society.
Dr McAleese said that Yunus looks for more than charity can give:
- acceptance that each person is very important, that each person has potential and that he or she can have influence;
- acknowledgement that everyone has unlimited potential which often lies dormant;
- acknowledgement that if we harness all the unrealised potential of people- we could do so much;
- acceptance that things are never as complicated as we make them, it is our arrogance about our own sophistication that pushes us to complicate issues unnecessarily.
A Champion of Solutions and Simplicity
Professor Yunus became a champion of solutions and simplicity, of the need to challenge our default position of complacency, and of our need to recalibrate our conscience.
Professor Yunus was described as a creative destructor of equilibrium.
He had brought hope to the disenfranchised poor of Bangladesh.
He has a BA and MBA in economics and had received a Fullbright scholarship to study in the United States where he established a Bangladesh Information Centre and worked to highlight the plight of people in Bangladesh.
He was later lecturing in the University of Chitagon in Bangladesh and he brought his students on field trips to a nearby village where he was haunted by the poverty.
In 1976, a lady who was a skilled weaver told him her story: that she was being charged an interest rate of 14000% on a loan equivalent to 22cents by a moneylender who would buy stools from her at a price which he decided and so she was in the ultimate poverty trap.
This inspired Professor Yunus to invite his students to become volunteer bankers, starting with a stake of $20 and lending 40 women 50 cents each. This has blossomed into the Grameen (or Village) Bank which now has a turnover of $9bn.
Parallels with Jonathan Swift
At the ceremony in DCU, Dr Ní Bhradaigh took the opportunity to draw parallels with Dean Jonathan Swift who developed a system of Microloans in Dublin in the early 1700s.
Yunus believes that there is no village without an entrepreneur.
Professor Yunus, identified the concept of socio-economic building blocks of 5 women who were friends but who were not related. He valued the concept of social capital and efficacy, he understood the value of development from below. Almost 100% of the Grameen bank loans are to women and there is almost 100% repayments.
Professor Yunus identified that loans to women lead to more benefits to families and through that, more benefits to society. He put a value on mentoring and training, and developed the concept of “Sixteen Decisions”.
He has inspired spin-off companies, he is a true social entrepreneur who won the Nobel prize for Peace in 2006.
Instinct and Initiative
Professor Yunus said that what he had done, he had done on instinct and initiative, not as a researcher or an academic. That this was a work of desperation, he knew that something had to be done.
He had found himself teaching in a class which was disconnected from the people outside the walls of the classroom. The classroom felt like “make-believe” and as a teacher, he had a sense of uselessness.. So he crossed the border from the university into the village.
Professor Yunus said he “wanted to see if I could make myself useful, even for one day…”.
Unconsciously establishing a bank
So the little things that he could do to help started to become clear. He began to lend money from his own pocket, this idea became a sensation and it was very encouraging but more people wanted to borrow and the money was running out. So he tried to get the banks involved but it took three months to be successful in this. But the banks were not making enough money due to the paybacks, so the project started to fail, so Yunus started his own bank. It took seven years but now it is all over Bangladesh and has even got branches in New York, LA and San Francisco.
When he reflects on how he started a bank, he says, he looked at how conventional banks did it and he did the opposite: he loaned money to poor women, not rich men; he was based in the village and not the city, he brought the bank to the people, not the people to the bank; the bank is owned by the borrowers, there is no collateral, no legal papers, no lawyers.
He notes that poverty is not created by the people but by the system. Poor people are like a bonsai tree, they have not been given room to grow, to be entrepreneurs.
He said people are born entrepreneurs, but we are in a society where the drive is to find a job. But humans are job creators not job seekers.
Yunus believes that conventional entrepreneurship is limited to the goal of making money, it becomes a job slot focussed on making money. We need to go beyond this, we need social business focussed on solving problems.
A very strong theme running through the speeches about and from Professor Yunus is that the issue for society is not about charity but about freedom of opportunity.
“Sixteen Decisions”
The list below shows the “Sixteen Decisions” which is recited and agreed to by borrowers at all branches of the Grameen bank:
- We shall follow and advance the four principles of Grameen Bank: Discipline, Unity, Courage and Hard work – in all walks of our lives.Prosperity we shall bring to our families.
- We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.
- We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.
- During the planting seasons, we shall plant as many seedlings as possible.
- We shall plan to keep our families small. We shall minimize our expenditures.
- We shall look after our health.
- We shall educate our children and ensure that they can earn to pay for their education.
- We shall always keep our children and the environment clean.
- We shall build and use pit-latrines.
- We shall drink water from tube wells. If it is not available, we shall boil water or use alum.
- We shall not take any dowry at our sons’ weddings, neither shall we give any dowry at our daughters’ weddings. We shall keep our centre free from the curse of dowry. We shall not practice child marriage.
- We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.
- We shall collectively undertake bigger investments for higher incomes.
- We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.
- If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.
- We shall take part in all social activities collectively.
These sixteen principles, with cultural adaptation could provide such a strong foundation in our own society. More interestingly, though, these are not presented as principles but as “decisions”, and arguably, that is where their power lies.
“Make myself useful even for one day”
Yunus’s idea of just wanting to make himself useful even for one day is an excellent starting point for reform. For those of us who aspire to be part of social reform and healthcare reform perhaps we need to adjust our thinking to “making myself useful, even for just one day…”
“Haves and Have-nots”
Professor Yunus said there is no need for poverty, however after just a few weeks studying for a masters in business, I am more aware than ever that, business is about differentiating the haves and have-nots. I believe, sadly, that the haves will always have a need to ensure there are “have-nots”. But Muhammad Yunus’s ideas have thrived and he has brought hope to thousands who were hopeless. Sometimes dreams triumph over reality.