Grameen Bank

[Cloaked_Shadow]

As you all probably know, a professor from my homeland (Bangladesh) has been awarded the Nobel peace prize.

 

 

 

The reason is because he pioneered the micro-credit system, which helps alleviate poverty within a nation. I don't know much about it, but I'll explain as much as I can.

 

 

 

The system revolves around a banking system based upon referrals. If you want a loan, you can get one without providing a guarantee for paying back the bank (such as your land). You have to be referred to by other people who need loans however. These people will watch you, as they depend on you to pay back the bank in order for THEM to get a loan. The trust between the bank and the person who needs a loan is based upon repetition. The money amount is low, but loans are frequent. This way, if someone runs away with cash, not much is lost.

 

 

 

Through this, the poverty stricken have hope of creating their own businesses. Normal banks do not lend to beggars and such people, because there is no way to guarantee that they will pay the bank back.

 

 

 

It's a pretty cool system. I've created this topic to encourage you to go to your schools and ask for a donation at the end of a quarter. A small amount from everyone is enough...something like three dollars. The donations will go to Grameen Bank, and it's success will spur other nations on to do the same thing. Your school/organization will also encourage others to start donating to this good cause.

 

 

 

I will be doing the very same thing at my school this year.

[BlueLancer]

Even Martti Ahtisaari (the most likely candidate for a Nobel) said he's impressed with the system, and it is pretty effective. The referral scheme is quite good, but there have been numerous cases of micro-credit fraud.. That kind of systems would never (sadly) work in places like the US due to lack of trust on behalf of the lender.