Grameen Developments
Brigham Young University Grameen Support Group
No. 2
David M. Kennedy Center for International Studies
November 1997
"What do we then live for if it is not to make life less difficult
for each other"
-George Eliot
Problems and Solutions
How do we fight poverty? The question is as old as the human conscience.
Liberal thinkers of half a century past established the World Bank and the
International Monetary Fund to provide credit and to foster development
in poverty stricken countries. They then pledged billions to their support,
encouraged private lenders to follow their lead, and congratulated themselves
on their philanthropy.
As a result, debt in less developed countries (LDCs) ballooned from $135
billion in 1974 to more than $2 trillion in 1994. And the poverty remains.
The theory goes that capital (i.e., investment money) will migrate to
LDCs with comparative labor and advantages (i.e., lower wages). The jobs
created will produce a working middle class with increased income, which
will expand overall demand. This will in turn stimulate further production
to meet the new demand. Thus, investmentled growth is a self-perpetuating
process.
Unfortunately, reality does not always follow theory. One reason for this
is that the supply of labor in developing countries is virtually unlimited.
Another reason is that investment knows no border. Corporations threaten
to take their money elsewhere if governments don't suppress wages. Thus,
labor abundance in China cuts wages in India, Southeast Asia, and South
America, and vice versa.
One way out of this vicious cycle is through microcredit. Microcredit is what economists call "patient capital." It does not immediately demand a high return on its investment. Thus, it allows a slower, but steady, growth. Because it is done on a local level, it is also able to spread the investment broadly throughout an economy. In other words, all of the country 's eggs are not in one basket (industry).
The localization of this "patient capital" also allows microcredit to provide a more sustainable growth. As workers use loans to improve production, their families' incomes rise with their output. Increased family incomes alleviate poverty and the excess of supply by providing more consumers to consume the new goods and services.
The result is a win-win scenario. By spreading the profits of investment
more evenly between borrower and lender, microcredit offers a viable method
for sustaining growth and eradicating poverty.
- Lansing Gatrell
The Sixteen Decisions
Formulated in a national workshop of 100 center chiefs, all of whom were
women, in Joydevpur (about 30 miles north of Dhaka) in March 1984, the Sixteen
Decisions might be called the social development constitution of Grameen
Bank. All Grameen Bank members are expected to memorize and implement these
Decisions.
1. We shall follow and advance the four principles of Grameen Bank - Discipline, Unity, Courage, and Hard Work - in all walks of our lives.
2. Prosperity we shall bring to our families.
3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses as soon as possible.
4. We shall grow vegetables all year round. We shall eat plenty of them and sell the surplus.
5. During the plantation season, we shall plant as many seedlings as possible.
6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health.
7. We shall educate our children and ensure that we can earn to pay for their education.
8. We shall always keep our children and their environment clean.
9. We shall build and use pit latrines.
10. We shall drink water from tube wells. If it is not available, we shall boil water or use alum.
11. We shall not take dowry at our sons' weddings, nor shall we give any dowry at our daughters' weddings. We shall keep our centre free from the curse of dowry. We shall not practice child marriage.
12. We shall not inflict any injustice on anyone, nor shall we allow anyone else to do so.
13. We shall collectively undertake larger investments for higher incomes.
14. We shall always be ready to help each other. If anyone is in difficulty, we shall help him or her.
15. If we come to know of any breach of discipline in any centre, we shall go there and help restore discipline.
16. We shall introduce physical exercises in all of our centres. We shall
take part in all social activities collectively.
Getting Involved:
The BYU International Development Program
Many BYU students interested in the problems of poverty in developing nations choose to major in International Studies with a Development emphasis. This new major, offered by the David M. Kennedy Center for International Studies, gives students the opportunity to explore the issues of development through a multidisciplinary curriculum that includes courses in anthropology, sociology, political science, business, and religion. This curriculum gives students a broad understanding of issues facing the developing world.
Students in the major focus on one area of the world as an Area Studies minor. Many do fieldwork in the developing world to enhance their undergraduate studies. The International Development major prepares these students to actively participate in development projects throughout the world.
The Kennedy Center also offers an International Development minor to interested students in disciplines outside of International Studies. The minor helps students apply their education to the developing world in the fields of agriculture, health, public policy, education, and business among others.
Graduates of the Development Program are prepared for advanced degrees and careers in public and private efforts in the developing world.
Interested students can learn more about the International Studies major
in the International Career Center, 273 HRCB (Kennedy Center). Contact Cory
Leonard.
Calendar of Events
Development Fair
Thursday, 13 November
BYU Campus
Professor Muhammad Yunus
Thursday, 13 November
3:00 p.m. Varsity Theater
Grameen Support Group Retreat
Friday &: Saturday,
5-6 December
(Time and Place TBA)
5-6 February 1998
BYU Campus
"Muhammad Yunus had demonstrated that large
scale replication of an effective antipoverty strategy can be both successful
and profitable. He resisted the temptation to keep Grameen small (and easily
controlled by him), and in the process reached 2 million borrowers,
created a highly decentralized management structure, and trained a workforce
of 11,000."
- Alex Counts
How far are you willing to go to change the world ?
The BYU Grameen Support Group
meets every Thursday at 8:30 p.m. in
238 HRCB (Kennedy Center Conference Room)
or
Call the BYU Grameen Support Office
(801) 378-3548
or email
Send any questions or comments to chittagong@byu.edu
Page sponsored by: David M. Kennedy Center for International Studies