Since being awarded the Nobel Peace Prize in 2006, microfinance and its architect, Professor Muhammad Yunus, have gained widespread recognition, especially among the impoverished populations of Bangladesh, India, and various African and American nations. Dubbed the “banker to the poor,” Yunus’s microloan strategy has been instrumental in preventing rural unrest in many impoverished regions globally.
Prof. Yunus’s approach represents a significant shift in economic theory and practice. Departing from the profit-centric models of corporate firms, the Grameen Bank, established in 1983, has become a beacon of hope for the poor and his transition from an academic setting to practical banking underscored a commitment to creating an inclusive economy, to which he would be credited for ever.
Once, Yunus highlighted the inadequacy of traditional economic theories amidst the famine in Bangladesh in the mid-1970s, which prompted him to take direct action to alleviate poverty with his microcredit model. By focusing on …