Microfinance icon and Nobel Laureate Yunus fired from Grameen Bank

The central Bank of Bangladesh and the Bangladeshi government have compelled the sacking of Yunus, the microfinance pioneer, from his position as head of Grameen Bank. Yunus, the original head of Grameen Bank, is well known for his work in the realm of microfinance, lending small loans to the poor to help them start companies. The Bangladeshi government is thought to doing this to silence dissent, as Yunus has been openly critical of the government.

Trying to get Nobel Prize winner out

NPR states that Muhammad Yunus was forced from his placement by the Bangladeshi government. Yunus, who won the Nobel Peace Prize in 2006, was ordered out of his position as managing director of Grameen Bank by Bangladesh Bank, the central Bank for the nation of Bangladesh. Yunus didn’t follow a rule, claims Bangladesh Bank. This rule calls for that at age 60, Bank directors must retire. Grameen Bank was founded in 1983 under a different law which exempt Yunus form this. That is why he is 70 and nevertheless working there. After he turned 60, he was given in 2000 an indefinite term of office as Grameen Bank managing director. Yunus is nevertheless in the job while Grameen is battling this.

Government will not let go of it

For years Yunus and the Bangladeshi government have been combating. Corruption is in the government, according to Yunus claims. Grammeen is "sucking the blood from the poor," though, the government claims, with its small loans made. There was a time that Muhammad Yunus tried to get his own political party started. This failed in 2007 though. Officials have been looking at the operations of Grameen Bank to root out any possible malfeasance for months, after allegations were made of an improper funds transfer, according to the NY Times. Grameen allegedly transferred more than $100 million in donations from the Norwegian government to a Grameen affiliate without alerting the Norwegian government, but all the funds were redeposited.

Key figure in fight against poverty

Several know and love Yunus and Grameen Bank. This is due to the microfinance loans used to battle poverty in the world by the Bank. Industries are started by poor people getting loans from Grameen Bank. These are mostly women. A business and income could possibly be started be a really poor woman attempting to make clothing with a microloan so she can be fabric and a sewing machine. Women make up 97 percent of Grameen’s borrowers, in accordance with USA Today, and the Bank has more than $10 billion in loans. The 2006 Nobel Peace Prize award was given to Yunus and Grameen Bank due to help with poverty conditions. Bangladesh did much better after these loans were made. Many microlenders in other nations have been found to be corrupt in practices doing things such as using violence to collect payments causing criticism for the microcredit model while others suggest getting the poor into debt is a bad cycle to start.

Articles cited

USA Today

usatoday.com/money/world/2011-03-02-bangladesh-yunus_N.htm?loc=interstitialskip

New York Times

nytimes.com/2011/03/03/world/asia/03yunus.html

NPR

npr.org/2011/03/02/134190697/bangladesh-forces-microcredit-pioneer-from-bank