Grameen Bank and Prof Yumus - Assignment Example

The bank said that it has the lowest rate of interest as compared with other private banks. It works like a cooperative wherein borrowers and depositors are owners, and are paid regular dividends. It is different because of the conventional methodology it uses. The bank offers loans without collateral to the poorest of the poor like beggars. Grameen Bank stopped getting donations and loans because they deemed that they had enough resources for operation.
Grameen Bank started only as an idea of hope but has grown to a point where it has made a force in alleviating poverty on a national level.

2. The Conflict
Prof. Yumus was prompted to resign from his position because of the Supreme Court ruling that he must retire since he had reached the retirement age already. Yumus is already 70 years old, while retirement age is 60. Yumus wanted to contest this ruling because before the SC ruling, he was already willing to resign but under different terms but was not allowed by members. He wanted to leave the bank in a prestigious way.

Many believe that the conflict is political because of the “blood bath” between Yunus and the Prime Minister of Bangladesh for the reason that Yunus planned to start a political party in 2007. Yunus later on, did not continue with the idea, but the hatred had started and because of this, he had gathered powerful enemies.(Epatko, Larisa, March 2011).
Still, another conflict that lingered with the bank was after a documentary was aired investigating Norwegian Aid Funds being transferred from one entity to another to preserve the bank’s tax-exempt status. Eventually, the investigation proved that there was no anomaly or fraud in the transaction. (Epatko, Larisa)

3. How does this situation illustrate the potential tension between civil society, NGOs, and government institutions?

The situation illustrates potential tension between the stakeholders of GrameenBankk, the civil society, and the government because of the government’s attacks that Yumus is trying to evade taxes following the release of the Norwegian documentary (Dhaka, Jan. 6, 20ll). Further to this, is the seeming insistence of the government to find faults in the Grameen Bank’s operations. The government has just announced that it will investigate its operation, In the meantime, his supporters that is composed of the civil society feared of a government takeover and feels they are no longer safe from the chaotic policies of the government (Dhaka). Epatko, Larisa, a news correspondent of the PBS News Hour thinks that if the government takes control of the bank and begins to cancel the borrowings and favor their political party, the bank may suffer and begin to lose the stream of revenues

3. Do you agree with the situation?
Age is something that we cannot procrastinate. Since Prof. Yumus has reached the age of retirement the Supreme Court is correct in its ruling. But I do not agree with the timing of the ruling since it is politically tainted. He should be given honors due to his establishment of this bank. It should be remembered that he painstakingly crafted this bank from a few handfuls who believed in his vision for the poor people, to million borrowers and depositors now. I believe that the situation is political since it wants to put a good man down and the integrity of the bank is put into question. Rightly said, it is a question of crab mentality that tries to pull one man rather than letting him go ahead or pursue his dreams. This is a poor reflection of one’s personality, and in this case, the opponents of Prof. Yumus in the political arena. Read More