The Grameen BankBringing Sustainability to Bangladesh’s Fight

Against Poverty

Agenda

Poverty in Bangladesh

Functions and Sustainability of the Grameen Bank

Criticisms and Looking towards the Future

Causes of Poverty in BangladeshNatural disasters

Cyclone caused $291 million in damages to rice crop in 2007

GovernmentStrikes 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 BangladeshIs 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 povertyCorrupt Government

Weak BankingCorrupt customs officialsCheating on Exams

Poverty in Bangladesh | Functions and Sustainability | Looking to the Future

Grameen Can HelpGrameen and/or the government has to help

the poor develop disaster mitigation strategies

Partner with healthcare, infrastructure or education NGOs Bangladesh Development Partnership CenterBangladesh Academy for Rural Development

Support non-corrupt political candidates

Poverty in Bangladesh | Functions and Sustainability | Looking to the Future