Friday, October 13, 2006

Md. Yusuf and Grameen Bank wins Nobel Peace Prize 2006

A big recognition for the Microfinance - Prof Yusuf, pioneering Grameen Bank in Bangladesh, wins the coveted Nobel Prize! I remember being taught in details about how the Grameen bank system operates in Microfinance course by Prof Sriram at IIM-A. We compared the pros and cons of the system with SHG or Self-help groups in India. Grameen's regimented approach, somewhat, made us believe that SHG is more convenient and less staff intensive. Even we read about the doubts on Grameen's long term viability and whether what they are reporting is the actual or not. Their loan default rate is less than 1%! That is not even achieved by our corporates!

But, at the end of the day, a recognition from the Nobel means a lot for Grameen and Prof. Yusuf. Grameen is an unique model - it's being replicated elsewhere too, even in India, particularly in Andhra. Kudos to Grameen! Indeed a great achievement!

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