Analysts have suggested that microcredit can bring communities into debt from which they cannot escape

,
[41][42][43][44]

citing situations where microloans from the Grameen Bank were linked to exploitation

and pressures on poor families to sell their belongings, leading in extreme cases to humiliation and ultimately suicides.[45] The Mises Institute's Jeffrey Tucker suggests that microcredit banks depend on subsidies in order to operate, thus essentially becoming another example of welfare,[46] whereas Yunus believes that he is working against the subsidized economy, giving borrowers the opportunity to create businesses. Maulana Ibrahim, a reactionary imam in Bangladesh, spoke out against the Grameen Bank in 1993 for fostering "un-Islamic ways", alleging (referring to the lenders' pledge) that women were taking a vow not to obey their husbands and not to live in poverty anymore.[47] Grameen bank has been accused of tax evasion in a Norwegian Documentary: "Caught in Micro debt" these accusations have recently been repeated in a Spanish documentary: 'Microcredit'. The accusation is based on the unauthorised transfer of approximately 100 million USD donated by The Norwegian Agency for Development Cooperation (NORAD) from one Grameen entity to another 'Grameen Kalyan' in 1996, before the expiry of theGrameen bank's tax exemption. Muhammad Yunus denies that this is tax evasion: 'There is no question of tax evasion here. The Government has provided organizations with opportunities; we have made use of these opportunities with aim of benefitting our shareholders who are the rural poor women of Bangladesh.' The matter has since been resolved. David Roodman[48] and Jonathan Morduch[49] question the statistical validity of studies of microcredit's effects on poverty, pointing to the complexity of the situations involved.[50]

The Grameen Bank attracted criticism from the former Prime Minister of Bangladesh, Sheikh Hasina, who commented, "There is no difference between usurers [Yunus] and corrupt people." Hasina's major criticism is the high interest rate that the bank charges. I get that the middle man needs to be paid, but then how come interest rates in the US are lower? Is it because the loans being made to wealthier people are larger? Also, Sudhirendar Sharma, a development analyst, claims that the Grameen Bank has "landed poor communities in a perpetual debt-trap", and that its ultimate benefit goes to the corporations that sell capital goods and infrastructure to the borrowers.

It would be so nice if they had some way of making the loans cost go down. This would be incredibly difficult to implement, not only due to costs, but getting the people to even use a system such as this, when they have no computer knowledge whatsoever would be quite daunting indeed. However, if each person simply created an account on a server, and then could go to ATM style kiosks, where they could withdraw money or deposit money, and the payments were taken out weekly

bounce payments. . then they could possibly cut down on costs. The oft-repeated stories of how microcredit has helped a rural woman buy a buffalo. and center appear to love him. and would probably introduce a whole new list of problems for the bank workers as people steal passwords. who are being charged very high rates of interest relative to conventional banks. hack the system. and then the rhetoric alone carries the day. then. a large number of NGOs have benefited. However. For those who follow the zeitgeist ³ and the Nobel Prize committee seems always in the position of following rather than leading ³ the 2007 Peace Prize was no surprise. Could be awesome though if it worked. right. The literature on Grameen is an echo chamber of hurrahs. and corporations have got a growing consumer market to target. Its link to other resources includes only one source: The Grameen Bank. Even the Nobel Committee didn't bother looking more deeply. are genuine market institutions ³ in poor areas of the United States are hounded by the anticapitalist Left. unlike Grameen. His microcredit scheme seems to mix the best socialist ideals with free market means. will be a continued rethinking of the core assumptions behind microcredit of the Grameen model. Sudhirendar Sharma of New Delhi writes that the effect of the Grameen strategy has not been to reduce poverty but only to create a debt trap for borrowers. Why is giving high-interest loans to the inner-city poor considered exploitative in the United States but wonderful and compassion in Bangladesh? The best fallout from the prize. cannot be replicated in meaningful numbers. The uncritical attitude is especially strange given the extent to which pawn shops and payday lending ³ which. Its press release is 5 paragraphs of puff. at the cost of the poor.automatically. It went to one of the least-criticized men on the planet: Professor Muhammed Yunus and his GrameenBank of Bangladesh. this is much more of a dream. As they would need less people on foot out there collecting and filing paperwork. etc. or how a poor woman now owns a telephone kiosk. banks have found a convenient route to increased lendings. Everyone left. Conversely.

Then he went to US foundations. he started borrowing at low interest rates from governments around the world. that the bank delays defaults and hides problem loans. We are told that Yunus discovered a wonderful new way of making profitable loans to the poor by doing something that all conventional bankers in Bangladesh had overlooked. Are we really supposed to believe that banks blithely overlooked millions of poor people out of bias or hatred or snobbery? Even if we can accept that he had some sort of entrepreneurial insight that no one else had. that the bank isn't subject to any kind of serious supervision. public or private. microbanking has been commerce in name only. the dominant issue that is being debated right now in microbanking circles is how best to build institutions that are genuinely market viable as verses subsidy dependent. the Wall Street Journal's Daniel Pearl and Michael Phillips revealed that the repayment rate of their loans isn't anywhere near what the bank claims. In 2001. others would have discovered the same profit opportunities and done it without help from government. In the 1980s and '90s. aside from my own piece in 1995. Yunus's first pile of cash came from the United Nations. and since its books are under wraps and its stockholders are that in name only. Until very recently and with only few exceptions. while the rest is only superficially owned by borrowers who cannot sell or trade their stock. the bank received nearly $150 million in grants. we'll never know for sure. Grameen has been giving loans to poor women for thirty years. The Bank says it no longer accepts outright grants ³ the grant money goes to a dozen or so spinoff "enterprises" ³ but it still borrows low and sells high. the Grameen public relations edifice has been cracking for years. Consider the absurd claims that we are being asked to believe. But the real problem with Grameen is not found in the data but in market logic. But this much we do know. His institution keeps the difference. As Connie Bruck explains. Half the population lives below the poverty line in Bangladesh. Grameen is not an enterprise at all. that at least one quarter of its loans were being used for consumption. . and lending out the same money at higher rates. At the same time. The government owns 6% of its assets.And actually. Then he went to the Bangladesh government. Are we really supposed to believe that conventional bankers were so stupid as not to spot this opportunity after decades of demonstration? He says that he discovered that the poor are "bankable" but if this were true in the way that he says. Actually.

y Fifth is the idea that microcredit institutions can become self-sustaining. Yunus won the Nobel peace prize. George Soros has given some $12 million plus to all sorts of Grameen spin-offs. y Second is the idea that loans are the main financial service needed by the poor. 7. The bank assembles peer groups to lean on delinquent borrowers. But I also reflect that now the . 3.5 million from Bill and Melinda Gates just a few months ago. 8. which has made their lives very difficult." y "We shall build and use pit-latrines. many institutions have rushed forward to take credit for the success. y First is the idea that poor should be self-employed rather than work for wages. As a Bangalee. including gifts to expand "banking" in other countries." y "If we come to know of any breach of discipline in any centre. y Third is the idea that credit is what builds enterprise. Here is a small sample of other grant announcements: 1. Since Yunus and Grameen won the prize. whereas the truth is that entrepreneurship and management are more important. the chief of Basix. Meanwhile. of all people ³ fall for the line that more debt can somehow save the world? Vijay Mahajan. which are now being taken out to repay previous loans and so on. reports to the Guardian that Grameen's tactics suffer from five fatal assumptions. 6. we shall all go there and help restore discipline. whereas the truth is revealed in market-based banking: higher incomes can handle higher debt. We shall eat plenty of them and sell the surplus. whereas they really need savings and insurance." y "We shall grow vegetables all the year round. Any one should feel proud when another person of his country gets a Nobel.The Grameen "foundation" received 1. by virtue of their vast giving. That is contrary to the whole history of successful economic development." A very strange bank indeed! And why would economists ³ and sophisticated free market economists. 4. and makes political-mental reconstruction a condition of the loans. 5. The repayment tactics of Grameen are very disturbing. 2. I've received notes from financial professionals in Bangladesh that have thanked me for writing about this institution. His "Sixteen Decisions" that must be adopted by all borrowers read like a party platform for collectivist regimentation. whereas all experience shows that new enterprises in poor areas that are built on credit alone rarely emerge from dependency. I fully agree with you that the Grameen success stories are nothing but over blown claims supported by tricky financial arithmetic. y "We shall take part in all social activities collectively. y Fourth is the idea that the non-poor don't need credit. I am delighted that Dr. But I thought it might be useful to share these recent additions to my pile of correspondence: Your article on Grameen system is informative and thought provoking. For years.

wholeGrameen operation will come under intense international scrutiny. Who provided the hard currency? The poor Bangalee labourers who toil in Middle east like slaves. Other commercial banks have to pay the taxes. TeleNor which owns 62% share took the profit and transferred it as US dollar. Yet. We should not be taken in by a fast talking economist whose life-long objective has been to be a player in the international arena. like the Grameen women are from deep rural areas where there is no electricity. . for Grameen Bank never publishes its audited annual balance sheets. She privately told me of some troubling aspects. These labourers. They send the dollars earned as their wage. it was hard for her to not notice the harsh big brotherism. takenfor-granted individual rights. Grameen Bank does not pay any corporate tax which is about 20%. Yunus verging on madness should now end. How did he manage to fund these projects? Is it the Grameen Bank that funds his 'innovative ideas'. that the all pervading poverty in this country could be used profitably to gain international attention and perhaps appreciation. She did have some concerns as you also mention mainly in the pushy privacy violation aspects. The western enthusiasm over Dr. Except for Grameen Phones. As a gifted observer with US upbringing and heightened respect for the universally prevalent. This is a massive fraudulent act involving millions of truly poor people who are incapable of getting beyond the razzle dazzle economic talk Dr. The poverty problem in Bangladesh and many other countries are truly frightening and it has deep rooted causes. and came back with both admiring and critical position on their works«. And he found out fast. Out of these profit. « And another concerning the Sixteen Decisions: My daughter did an internship with Yunus/Grameen while she was doing her under graduate studies in the late 90's. Dr. How do these people use the mobile phone? They don't. We should evaluate other models where a nation came out of poverty and fulfilled their basic human needs. Yunus is jetting around the world to tell that the Grameen phone has revolutionized the countryside. Yunus founded so far 17 companies. all flopped. Dr. I feel the presence of a very sleek salesman who target group is rich and powerful in the west who are apparently on a guilt trip over the poverty in third world countries. I see this guy on the TV. Every other commercial banks in this country does that and it's mandatory. Yunus is making. In fact there are more than 70% households (mostly in the rural areas) where electricity is not available. Because they can not re-charge their mobile phone battery. Last year Grameen Phone made US$450 million profit (that's what I read in the newspaper). « Whenever. Perhaps we will never know. I am sure that they will come to the same conclusions as you did.

and some of the world's worst political violence and official corruption. unionization. heavy taxes on foreign investment. And it is true that he has pushed a bit for halfway privatization in health care. There is no mention of Grameen's contribution to its 5% rate of economic growth in any reliable source. The best that Professor Yunus could do to help his country would be to use his now-considerable credibility to push for a freer market through radical privatization and free trade. The irony of it all is that Bangladesh is making economic progress in its export sector for fish and clothing. 2010 A Full Transcript from the Press Conference held on December 12. vast amounts of state-owned enterprise.$50$35 How Real Banks Work The real problem is Bangladesh is revealed in the account in the Index of Economic Freedom. a high tax burden. Its government's bad economic policies include huge barriers to trade. Home Media In the Media A Full Transcript from the Press Conference held on December 12. But in general. . he has a stake in keeping the status quo just as it is.

1216 Professor Muhammad Yunus's Opening Remarks Welcome.2. There was a disagreement between the two of us about modality. By doing so. NORAD did. they did not mention these documents anywhere in their articles published. Press Conference in Grameen Banks' Head Office. Grameen Bank broke the agreement under which such grants were provided. There was never any mention of misappropriation or corruption. Dhaka . The Norwegian Government conducted a new investigation into this matter and in its report. In the documentary shown on NRK. Bangladesh Bank at a later date gave their opinion that since NORAD's funds were returned to Grameen Bank. In the Bangladeshi media. that which has been published in significant parts of the Bangladeshi media has been the cause of deep sadness in me. state that: Grameen Bank "is perhaps the single most successful development project in the world". 2010. many of my fellow citizens have been similarly hurt. In the past few days. We decided that not only SIDA's but also all donor funds should be returned to Grameen Bank. "make him take the stand". etc. Mirpur . there wouldn't be any grounds for further dispute about this transfer of funds. To all members of the media. I extend my good wishes to you. The disagreement between NORAD and us was an honest disagreement. The charge leveled in the microfinance documentary shown on Norwegian television NRK has been completely misconstrued to show misappropriation of wealth and corruption on my part by this part of the media. which brought forth such false and . "fund seizure". this has been misinterpreted and transformed. They. we have again provided an explanation highlighting the truth of the matter. it was argued that by transferring funds from one organization to another. as was the letter provided by the Norwegian authorities stating their satisfaction over the steps taken by Grameen Bank to bring a resolution to the matter. again stated that 12 years ago this matter was settled with Grameen Bank to their satisfaction. Grameen Bank's explanation of the matter was provided with the documentary. with the result that numerous false charges of "misappropriation".. After this sort of false news broke out across the country. Their report stated that there was no issue of misappropriation or corruption in this dispute. and along with the statement from the Honorable Minister for International Development. have been thrown at me. like me. I have come here to express that sadness to you. That section of our media. the funds provided by SIDA should also be returned to Grameen Bank. I feel that. However. But those who have distorted this news.2010 Mar 12 2011 December 12. in the attachments to their report. Other donors did not raise any objections with us about our modality. We decided to reach a settlement over these objections so that our good relations with NORAD would not be broken.

how was it possible that the TV channel reported that I own Grameen Kalyan? The reasons for feeling hurt are created in this way. did not feel the need to publish the truth. I am a non-voting member. By being successful in achieving the Goals. many did not even feel the need to publish the rejoinder issued by the Indian High Commission to the statements falsely attributed to the Indian Prime Minister. all sections of the nation are working in their different way. I have come here before you because I feel the need to express my sadness over this entire episode. transportation or subsidy from any of the organizations that I have created. to preserve and remain in that exalted position is the solemn duty of all employees of Grameen Bank. other than from Grameen Bank. We have pledged ourselves to achieving the Millennium Development Goals. Indeed. We are always vigilant against corruption spreading into Grameen Bank. that it was set up at the behest of the Board of Directors of Grameen Bank. I receive a salary and other benefits from the Bank. At no point did it ever enter my mind to reap financial benefit from these organizations. The Danish journalist. that it has no owners. Grameen Bank has established itself as an organization that the nation can be proud of. Muhammad Yunus. I have set up numerous organizations. I have always refused the honorarium offered to Board members for attending Board meetings. reassure all my fellow citizens that Grameen Bank is an honest organization. Poverty is our number-one national problem. through you. as Managing Director even though I am a Board member. did not mention that Grameen Kalyan was an organization owned by me. As an employee of Grameen Bank. To solve this problem. Grameen Bank is an organization that is engaged in removing poverty. today we are again distributing these documents to you again. In the past 34 years. After all this. Bangladesh has attracted the attention of the entire world. later once the charges had been proved false. I have been extremely hurt by how the media has handled this issue. I do not own a single share inGrameen Bank or in any of the organizations in the Grameen family. I do not receive any financial benefit. All of us have to work . I want to.misleading charges to their readers and viewers. an organization owned by Dr. I do not own any organization in the Grameen family. Grameen Bank's explanation and the Norwegian Government's statement has been provided to the media. and I have never received financial benefit from any of these organizations. we are requesting the cooperation of the media. There is a lot of misunderstanding about my financial relationship with all of these organizations. I would like to make it absolutely clear in front of all that. housing. So that Grameen Bank is successful in this goal. That Grameen Kalyan is a not-for-profit organization. Indeed. Because I do not own shares in Grameen Bank. Indeed. even yesterday in a TV channel it was said that NORAD's fund was transferred to GrameenKalyan. The inspiration behind every organization set up was to solve a social or economic problem of the country. all of these facts are clearly expressed in our report. I do not have voting rights. in his documentary.

This publication contains information on our interest rates that we charge our borrowers. we request that each news organization limit talk to just one question. Nurjahan Begum: My thanks to Professor Yunus for his words. we will then field further questions. and we publish it very regularly. If you do not have the time to read it. It is a very important document of ours.not in a negative attitude but in a positive way. It is called "Grameen Bank at a Glance". I would like to reiterate a few points. We would like to show you what is included in the packet that has been provided to you. it will clear up many of your misconceptions. Questions and Answers Professor Yunus: My opening remarks end here. She will moderate this press conference. You have all gathered here today at our call and we appreciate your effort to be here. We publish this regularly and it contains all the latest information about Grameen Bank. We would like to request that all of you take a look at this document. This cooperation will increase our enthusiasm and effectiveness many times over. When you put your question to us. At this point. and we will conclude this press conference within that time frame. you can give it to them.together. If you read this document. we will even mail it to you regularly if you are interested. please mention your name and the . With this hope. Nurjahan Begum. and if you take the time to go through them. It will cause us to achieve our goals much faster. so it will not be difficult for you to understand it. they will be able to learn a lot of interesting information from this document. We publish this document every month. The second document that we want to call your attention to is called "Grameen Bank's Interest Rate". This press conference will continue for one-and-a-half hours. We have been publishing this for many years. And all of the information is provided in brief and summarized points. If you provide us with your address. It contains detailed information about all of the work that we do. Before the start of this question-and-answer session. I would like to welcome all of you again to this press conference. so we will not take any more time in going through them. We hope that we will get this cooperation from you. I would like to hand over to my colleague. it is a very interesting document. In this document you will be able to find all kinds of information about Grameen Bank. The media can point out our failings and shortcomings . and you will find it on our website. if there is time for a second round. The two documents that we have highlighted to you are very important documents published related to Grameen Bank. After the first round of questions is over. And so that we are able to field questions from all of the news organizations present here today. you will learn a lot about Grameen Bank. perhaps you have children who go to school or college. we will start today's press conference. The rest of the documents provided are very brief.

and there was no objection from donors. To protect our good relationship with them. Professor Yunus: He is the financial expert.. this was not an exception. Can we hold this as an example of "Best Practice"? Or is this an exception? Md. this is done everywhere in the world. And because this practice is extant elsewhere in the world. Bangladesh Bank and our auditors did not raise any objection over this transfer.. I am not a financial expert. this was done according to all rules and regulations. so I will not be able to answer this question properly. Nor did any of the donor organizations raise any objection other than NORAD. we reached a settlement over this issue. The fund was transferred for the best use of the funds. Md. Professor Yunus: This happened with the intention of implementing the purpose with which the funds were provided. the funds were returned to GB. ATN News: But if you say that this was a best practice. It was the generally followed principle. and yet after two years. so he will be able to answer this question. Question: The main issue was that the funds were transferred from one organization to another. Is this an example of best practice or was this an exception? Md. Do you think that this has broken what is known as "financial discipline"? What is your opinion? Professor Yunus: No. The Board took this decision. ATN News: If Sir would answer the question. our Board knows this. you had transferred money. The only donor organization that raised an objection later was NORAD.organization that you have come from. ATN News: The funds were transferred from GB to GK in 1996. There was no other intention or purpose behind the transfer of the funds.. Shahjahan: No. BBC: It was written in your statement that there was a financial transfer from one organization to another.. Shahjahan: This was not an exception. rather than argue over the matter. And in the end we reached a compromise with them and the matter was settled. and yet within two years you had returned the money back. ATN News: I am asking whether what had occurred. And there was nothing objectionable to the matter. Bangladesh Bank knows this. then why has this issue arisen after 12 year? . Shahjahan: Are you asking whether this is a different financial. And all concerned authorities know of this matter.

and we will not be able to find solutions to these problems by fighting with each other. Today we are spending so much time here. And I am doing this by making use of all the opportunities provided for by the Government. then your tax liability will be reduced. I am only expressing my hurt feelings to you. This is my duty as Managing Director. I do think that it is. And since the image of Grameen Bank is tied to the image of Bangladesh. Desh TV: Sir. What is your response to this? Professor Yunus: I do not want to make any comments on this. this documentary shown on a foreign channel has brought a stain on the image of Grameen Bank. no. . the Prime Minister made a number of comments about you. Radio Today: A few days after the story broke here in Bangladesh. Are you against paying tax? Professor Yunus: I am not against paying tax.Professor Yunus: We cannot say why this has come up again after so many years. My duty is to reduce cost. We can only say what we have done about this issue. It hurt me what newspapers wrote about me and Grameen Bank. [Indiscernible question from same reporter] No. All of us have to work together. are you going to take legal action against those who are behind is documentary? And if not. health. nor do I harbor any ill feelings towards any of you. and the Government has a number of rules about this: if you do this. and increase income. Question: One of the reasons given for the transfer of NORAD money was that Grameen Bank's tax exemption could be taken away. let us concentrate on finding solutions to these problems. and so the funds were transferred. I will stop my comments here. no.Grameen Bank and microfinance. I have not blamed any of you. Let us forget what has happened in the past and move forward. There is no question of tax evasion here. is relevant or in keeping with the dignity and honour of a Nobel Laureate? Professor Yunus: Yes. education. Nor did the question of tax evasion ever arise. we have made use of these opportunities with aim of benefitting our shareholders who are the rural poor women of Bangladesh. She made those comments out of her consideration. why? Professor Yunus: I have already said in my opening remarks that I want cooperation with all. Question: Do you think that the transfer of funds from one organization to another which you have admitted to. This is what I mentioned in my statement. because it was needed for us to be here so we are taking up so much of your valuable time. The Government has provided organizations with opportunities. We have so much problems with poverty. There are many problems in the country. Every organization tries to reduce its costs. I do not want any fight with anyone.

Can you please inform us what you have done with the prize money from the Nobel Peace Prize? Or if nothing has been done as of yet. nor does it . do you think that this is because of your involvement in politics? Professor Yunus: No. has Grameen Bank's wealth. I could not contact him because of the same reason. I do not think that this is due to any of the two points that you raised. This was a shortcoming on our part and we recognize this. In the future. and people from our side met and spoke with him. A few of these are Grameen Kalyan. My question is. which is a source of pride for us. We are not able to get information whenever we need it. She will be responsible for this. We know what Rabindronath Thakur and Amatya Sen did with their prize money from the Nobel Prize.Daily Shomokal: It was mentioned in the documentary that Tom Heinemann tried to contact you for six months with no positive result. So do you think that Telenor is somehow involved in any of this? And my other question is. I was very busy at the time. Grameen Bank has a lot of sister companies which are extremely profitable. Of the rest. Of these. four companies are directly connected with the Bank. Will you use the profit from these companies to reduce the interest rate charged to the borrowers of Grameen Bank? You have been given a number of awards. Everyone tries to contact me. is she here? Jannat. Daily Amader Shomoy: Grameen Bank has created a number of companies over the years. Will you be appointing someone who will be the contact person forGrameen Bank? Professor Yunus: I recognize that this was a shortcoming on our part. both national and international. they have used the name. You can ask then why do they use the name of Grameen? Yes. Whenever I set up a company. can you give us an indication as to what may happen with this money? Professor Yunus: It is true that I have set up a lot of companies. assets or goodwill been used for the creation of these companies? Secondly. There is no problem with this. I do not think that any of these two explanations are correct. but I am very busy and therefore unavailable for much of the time. Grameen Motsho (Fisheries) Foundation andGrameen Fund. we provided him all the relevant documents about this issue. But even though I was not able to meet with him. it's just that I was not able to meet him. You have even won the Nobel Peace Prize. Question: Grameen Telecom is involved in Grameenphone. her name is Jannat-e-Qaunine. Journalists here in Bangladesh also face this problem. Grameen Krishi (Agricultural) Foundation. if you would step forward. And I am travelling a lot of the time. there is no relationship with Grameen Bank other than the use of the Grameen name. I gave them the use of the Grameen name. she will provide you with information about what we do. And about him [Tom Heinemann]. so I was not able to meet him. Recently the Government introduced the Right to Information Act which charges all organizations to have someone as the contact person with whom concerned persons can contact for information. But now we can let you know that we have appointed a contact person. Sometimes we tend to think of conspiracy to explain what is happening.

This has been done for a specific purpose. if it is Grameen Shakti. and it is quite natural to feel hurt if these accusations are not true. These are not-for-profit companies. So for example. then appropriate measures will be taken. then the profits will be used in agriculture. if it is Grameen Krishi Foundation. [The Nobel Peace Prize money has been earmarked for the Grameen Eye Care Hospital. So have you ever thought of starting your own newspaper? Professor Yunus: [laughter] Grameen Newspaper! [More laughter] No. but rather on social business principles. that the media should be run as a social business.] Bangla Vision: When this matter broke in the media here in Bangladesh. I have been asked to work with them to set up a global news network as a social business. This network will not operate under for-profit basis. So I say that the media is an appropriate sector for operating under social business principles. that is also explained in the book. It should not operate for the profit of anyone. It should not be run for the profit of anyone. then people can express their own thoughts otherwise. If it is run as a social business. I recently had meetings with Shekhar Kapur. and I do so again here. at that time the Awami League and the PM in particular had said that there will be an investigation and if anyone is found to be guilty. but for the benefit of everyone. people are busy express the opinion of the owners. The issue with these companies is that they are not-for-profit companies. Question: Then can we take it that there will be a "Grameen Patrika"? Professor Yunus: Many have expressed their desire to me. It has not been. for Professor Yunus's personal use. especially the one from India. I do not want to go there. then the profits will be used for expanding the Solar Home System program. nor will it be. and a big desire of his is to set up a media company along social business principles. But I have said from time to time. There is no profit involved. How do you see this statement or comment? Professor Yunus: I have already welcomed the call for an investigation. Financial Express: You have expressed your sadness over the way this issue has been handled. it will be used in another way. and no one can take away the profit from the company. So if you go through the list in the book ["Grameen Bank at a Glance"]. and for what purpose. So whenever these companies make profits. the profits earned by these companies are not withdrawn from them. from America. . and if it is some other company. you will be able to find out how all profits have been spent. And some of these requests are very serious requests. From India. since you brought up the question. how these profits are used.matter to anyone. So people have expressed similar wishes like you and hopefully something may come out of it. I have received requests for setting up a TV station as a social business.

to make them independent. and I had a big debate at Clinton Global Initiative with Vikram Akula over this very topic. there has been a lot of criticism of microcredit . SKS is one of the major players in the commercialization of microcredit. that it is not removing people from poverty. for self-employment. Vikram Akula. Our desire was to provide these people with small loans so that they can create a small business to generate income for themselves. Microcredit is being used to make profits off the poor. And this is the reason for my argument with SKS. My main point there was that microcredit was created for the benefit of the poor. What is your is your opinion and what do you feel about this criticism? Professor Yunus: This problem with microcredit in India has been a topic for discussion and argument.All India Radio: In the recent past few months.that it is actually creating a cycle of debt. The person who started SKS. it was not created to extract profits from them. This concept has slowly become the victim of misuse and abuse by many people. as a student he came to me and he was very impressed by what he saw here and he decided that he would do in imitation what Grameen Bank was trying to d .

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