Muhammad Yunus – Founder of Grameen Bank and Nobel Peace Prize winner

The Nobel Peace Prize 2006 was awarded jointly to Muhammad Yunus and Grameen Bank “for their efforts to create economic and social development from below”. Grameen Bank is a micro-finance organization which allows small loans to be made available without any collateral to set up small businesses. The bank’s main focus was to allow women to start up small businesses to eradicate poverty and it has been a huge success. The unusual bit about Grameen is that some of the women who are borrowers of the bank are also on the Board of Directors of the bank and in effect, part owners.

Recently, there has been a huge struggle between the Bank and the Government. Last year, the government removed Grameen’s founder Muhammad Yunus from the Managing Director’s position claiming he was too old at 70 years of age and that the official age of retirement was 60 years.

Recently, the cabinet of the PM Sheikh Hasina amended a 29 year old rule which would effectively give the government authority to bypass Grameen’s board of directors and handpick Yunus’ successor. This brazen step not only threaten’s Grameen’s independence but also the ownership rights of millions of poor women who control 97% shares of Grameen.

Many believe that Hasina, whose government is considered immensely corrupt, is on a personal vendetta against Yunus who forayed into politics for a brief period, criticizing Hasina’s government, and now Hasina is attempting to humiliate him.

Whatever the case, it is important to note that in today’s day and age, businesses are hugely impacted by the political scenario in the country or market they operate in and only a fool would not take into account the political side of any market or country.

References:

1. http://opinionator.blogs.nytimes.com/2012/08/22/an-attack-on-grameen-bank-and-the-cause-of-women/

2. http://www.nobelprize.org/nobel_prizes/peace/laureates/2006/

3. http://www.avaaz.org/en/save_the_world_best_bank/?bEDcmdb&v=18483