Introductions

On Saturday 27th July, I will fly to Dhaka, Bangladesh, to begin a month-long internship with the Grameen Bank. 

The Grameen Bank is a Noble-Peace Prize winning, microfinance initiative established by Professor Muhammad Yunus in 1976. The Bank established itself to lend small amounts of money to the poorest women in Bangaldesh, without requiring collateral, in order to enable them to invest in their farms or small enterprises, and raise themselves out of poverty. Lending works on a collective repayment method, whereby a group of women is lent the money collectively, and should one woman default the ability of the group to borrow in the future is inhibited. This method has proved incredibly successful, with a 98% repayment rate compared to a more traditional 60% figure. In his book, Banker to the Poor, Yunus states that the poor women that are being lent the money know that their only collateral is their life, that if they fail to repay the loan, their income and thus very existence is called into question. As such, the determination to work to repay the loan and gradually drag themselves out of poverty is amazing. 

The Bank has developed rapidly since its creation, with it now accepting deposits, running a Low Cost Housing Program as well as telephone and energy companies. The Bank currently employs over 20,000 people, with operating revenues of $176million. For anyone who has read Banker to the Poor, and knows how Yunus' idea began with the $27 he lent to 42 women in Jobra, this growth is truly phenomenal and inspirational. 

I am incredibly drawn to this idea of social enterprise. Instead of operating as a charity, the Grameen Bank gives its borrowers the pride and satisfaction of working their way out of poverty in a sustainable manner. I hope this month will give me an idea of how such social entrepreneurship projects can be established and grown successfully in the future. 

I would like to thank the Old Members' Trust at University College, Oxford for their kind support of my trip to Bangladesh.