Micro-Lending and the Battle Against World Poverty - Book Report/Review Example

?Book Report: Mohammad Yunnus, Banker To The Poor: Micro-Lending and the Battle Against World Poverty Organization of the book and the s credentials Basically, the book is an autobiography of the author, Mohammed Yunnus. The book is organized into finding out about five major things in the life of the author, which are “Why Muhammad Yunnus established Grameen Bank; how he did it; what obstacles he faced; how the bank has succeeded; and how “microcredit” and other market-based programs can improve the lives of the poor” (Get Abstract, 2007). The credibility of the author, Mohammed Yunnus in writing about micro-finance is in the fact that he has both studied and practiced economics at the highest level. As a founder of a bank, he certainly have practical experience to write about the role of the bank in improving the life of the rural poor. Key ideas presented by the author Most of the key ideas presented by the author in the book center around the Grameen Bank and the principles under which the bank was established. This gives the book a biographic touch though its main aim spans beyond just a biography. From a biographic point of view, ideas in the book are presented as they happened personally to the author in his quest to help reduce the plight of poverty-ridden people. To this effect, the key ideas of the books are presented in relation to why and how the Grameen Bank was established. There are also key ideas on the principles under which the bank operates. To this effect, the book presents key ideas on the need to taunt bookish economic principle to bring to bare practical interventions that help in improving the lives of people, the need to target the right people for the right assistance, the need for presenting alternatives to people who cannot survive the competition of regular traditional banks and the need to build a sense of community and individual self reliance among people who wish to be helped financially. Summary of key ideas Under the need to taunt bookish economic theories and principles, the author writes about how he was touched by the need to make people feel the practicability of the economics he taught at the university. To this effect, the writer remarked, "What good were all my complex theories when people were dying of starvation on the sidewalks and porches across from my lecture hall?.... Nothing in the economic theories I taught reflected the life around me" (Yunnus, 2003). On the need to target the right people for the right assistance and the need for presenting alternative to people, the writer writes on how he rose above all obstacles to start his microfinance organization and made women his target for the loans that his institution gave. Finally, the writer is very loud on his principles for qualifying a person for loans whereby efforts were made to make individuals and groups responsible for the loans they collected from the bank. By and large, the focus of the book is on poverty reduction and creation of wealth through simplest workable way possible. The author refuses to accept that people by go through the stressful experience of poverty but that through basic support; referred to in his books as micro financing, people should receive sufficient assistance to be able to cater for themselves. Critique on the validity and relevance of these ideas As much as possible, I am for all but only one of the ideas discussed by the author. The only idea I have reservations on have to do with the choice of women as the main target for giving loans. My reservation is made against the backdrop that Bangladesh as a nation is not well grounded economically as compared to global economic giants such as China, America, Germany and Great Britain. Due to this, men as much as women in Bangladesh have need of economic empowerment. Quite apart from this, the remaining ideas can be judged as valid and relevant. For instance it is common knowledge traditional banks across Bangladesh have always showed lack of competence when it comes to expanding their scope of support to ordinary traders and people. Microfinance therefore remains the most promising alternative to cater for the majority of small scale business owners who would not receive support from banks. How the ideas apply to the business world It is common knowledge that the world has not recovered fully from the global recession. For this reason, companies are still struggling to meet their revenue targets, governments are still struggling to create jobs and individuals are still struggling to live on three-square meal a day. This phenomenon makes it extremely important that people be aided through financial assistance and programs to survive the hardship. This makes the issue of micro financing still very important in our real business world. It can be noted that as governments continue to show incompetence towards giving people the kind of jobs they desire, the people are on their own looking for jobs (Opportunity International, 2011). In such situations where fund-raising must be self-made, microfinance remains very vital. In real business world, the general idea of microfinance is very potent in making businesses grow. Opportunity International (2011) explains that “microfinance is the provision of financial services such as loans, savings, insurance, and training to people living in poverty.” In today’s global economy when the world is still recovering from the economic meltdown, it takes interventions such as loans, savings, insurance and training of people to equip the growth of their businesses. Thoughts on the shortcomings of the book and ideas on how these could have been avoided or overcome One visible shortfall of the book is in the way microcredit was made to be global solution to poverty. Indeed, as noted by Yunnus (2003,), “the poor, once economically empowered, are the most determined fighters in the battle to solve the population problem; end illiteracy; and live healthier, better lives" (Amazon Review, 2011). This need to empower the poor not withstanding, the author should have conceded the fact that microcredit works best in developing and underdeveloped economies and not that of developed economies. The author should have therefore addressed alternative ways of ending poverty in developed countries. Until then, suggesting that businesses in America or Germany need loans on the range of $300 to survive would only remain a fallacy. What engaged and surprised me the most in the book In the course of reading the book, what engaged me the most was the boldness and willingness of the university professor to denounce the knowledge in bookish economic theories as something that did not have answers to solving the common problems of people but rather resulted to practical models of alleviating poverty. As far as I am concerned, not all people in academia can take this step. Indeed, I was surprised by the professor’s decision and action. REFERENCE LIST Amazon Review. Banker to the Poor. Editorial Review. http://www.amazon.com/Banker-Poor-Micro-Lending-Against-Poverty/dp/1586481983. 2011. Web. September 5, 2011. Get Abstract. Banker to the Poor. http://www.economist.com/media/globalexecutive/banker_to_the_poor_yunus_e.pdf. 2007. Web. September 8, 2011. Opportunity International. What is Microfinance? http://www.opportunity.org/what-is-microfinance/. 2011. Web. September 9, 2011. Yummus, Muhammad. Banker to the Poor Micro-Lending and the Battle against World Poverty. Public Affairs. Print. 2003. Read More