Dr Muhammad Yunus, a banker and economist, was awarded the Nobel Peace Prize in

2006 for his efforts to improve the economic and social conditions of the disadvantaged
poor in Bangladesh. Hailed as a rare visionary, Yunus, who leads a simple life, wants to
eradicate poverty from the world. Dr Yunus fight against poverty began during the famine
of 1974 which killed 1.5 million Bangladeshis. As a professor of economics at Chittagong
University, he was teaching his students that the longer you work the more you earn. Yet,
this economic theory did not seem to work in Bangladesh. He was dumbfounded to learn
that people were starving despite working 12 hours every day of the week.
With the help of his students he set out to learn why these people were living in poverty.
In the village of Jobra, near Chittagong University he came across women who made
bamboo furniture. These women had to borrow money from moneylenders to buy the raw
materials needed to make bamboo stools. They were also forced to sell these stools to the
moneylenders to repay them. Their profit of 0.50 Bangladeshi taka was barely enough for
them to support their families.
Dr Yunus discovered that these people were at the mercy of moneylenders who charged
high interest rates for loans given out. They had no choice but to turn to moneylenders
becausetraditional banks refused to give them small loans at affordable interest rates.
Moreover, the banks considered these people repayment risks.
This prompted him to set up Grameen Bank in 1976 which gives out small loans or
microcredit to destitute Bangladeshis. Loans as little as US$30 are given to very poor
people to start their own businesses. Grameen has certain conditions - borrowers must be
women. 96% of Grameens borrowers are women. Yunus discovered that women were
more careful and responsible about their loans as 99% of them usually repay their loans.
Another brainchild of Dr Yunus is the Grameen Phone or Village Phone. With the
Village Phone, the rural popluation of Bangladesh are now able to enjoy phone
connectivity. Besides, this is another project which provides rural women with business
opportunities. It works along the same principles of Grameen Bank, where rural women
are given small loans to buy cellular phones so that they can set up public call centres at
their homes. The women then use the money they earn to settle their loans.
Dr Yunus ideas have saved not only the poor from death but also given a new strength
to women. Before Grameen, many Bangladeshi women were viewed as useless and a
burden by their fathers and husbands. This largely stems from the traditional view that the
man is the sole bread winner in a family. With no means to earn money, some of these
women especially widows were forced to beg. Now, with microcredit, the women have
proven to the men that they too are capable of taking care of their families and supporting
them financially. Their self-esteem has also improved as they are now active financial
contributors to the family. With more money in hand these women are able to provide
better nutrition for their children. Grameen is also responsible for the improved social
status of women as men seem to show them more respect.
Today Grameen also provides education and housing loans. Financing is also available
for irrigation projects and other economic activities. But its main principle remains
helping the poor. Despite the success of Grameen, Dr Yunus is still not satisfied with the
changes he has brought about. There is a lot more work that needs to be done to improve
the living conditions of the poor. Dr Yunus hopes to use part of the US$1.4 million award
he received to set up a company to produce low-cost, high nutrition food for the poor. The
other plan he has is to set up an eye hospital for the poor in Bangladesh.

Comprehension Questions 1-5

1. From paragraph 1,
(a). why was Dr Yunus given the Nobel Peace Prize?
(b). what is Dr Yunus aim in life?
2. (a). From paragraph 2, what is this economic theory?
(b). From paragraph 3, what did the women do with the money they borrowed from the
moneylenders?
3. From paragraph 4, give two reasons why poor Bangladeshis could not obtain loans
from traditional banks?
4. From paragraph 5,
(a). why are 96% of Grameens borrowers women?
(b). find a word which has the same meaning as poor.
5.(a). From paragraph 7, how has Grameen changed mens treatment of women?
(b). From paragraph 8, provide evidence that proves that Yunus is a selfless man.
Summary question
Dr Muhammad Yunus is truly a selfless person who has dedicated his life to helping poor
people.
Write a summary about:
what Dr Yunus has done to help the poor and how his ideas have helped change
the lives of women.
Your summary must be in continuous writing
not be longer than 130 words, including the 10 words given below.
use material from lines 24 to 49
Credit will be given for use of own words but care must be taken not to
change the original meaning.

Begin your summary as follows:

Dr Yunus mission to help the poor improve their lives began?