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Statement of Prof. Yunus Regarding His Removal from Grameen Bank

May 07, 2011

Statement of Nobel Laureate Professor Muhammad Yunus on the Occasion of Supreme Court Verdict on May 5, 2011 Regarding His Removal from Grameen Bank.  Professor Yunus voiced his concern after revelations surfaced surrounding violence against employee leaders of the Bank.  Those interested may also want to read in the Bank's point-by-point refutation of the allegations brought up in the government's Review Committee report, as well as by the nation's government-aligned media.

You have already heard the verdict from the Supreme Court.

Why did I appear before the Court? Why did I want to contest the order of Bangladesh Bank? Why there is so much concern about this issue at home and abroad? There may be some confusion regarding these questions. Please allow me to share my feelings with you to remove this confusion. I went to the Court for a specific reason. Bangladesh Bank sent a letter to Grameen Bank, removing me from my post as Managing Director of Grameen Bank. The letter also mentioned that I held this position for the last eleven years illegally. Bangladesh Bank did this without giving me a chance to explain my position. I felt that this letter was not legally correct, and through this letter, not only was I been wronged, but so was Grameen Bank. Nine elected members of the Board of Directors of Grameen Bank felt the same way. That is why the nine members of the Board and I filed separate writs in the High Court. We wanted these wrongs to be corrected. Therefore, we had to seek justice through all avenues offered in the Bangladeshi judicial system. This is what we have done.

The fate of 40 million poor people connected to this
In the event that the Honorable Court stated in their final decision that the letter from Bangladesh Bank was issued without lawful authority, I could continue my work with Grameen Bank and make the transition to a capable management as smoothly as possible. But, if the Court verdict went against us, the Board may be forced to take steps to implement the content of the Bangladesh Bank letter. This was the only reason for me to take this matter to the Court. I had no option but to seek justice in this matter.

It is indeed a much wider and much more significant issue to save the future of Grameen Bank and also to protect the hopes and dreams of the over 8 million borrowers. These borrowers are also the owners of 96.5% of the Bank’s shares. The Bank is connected with 40 million microcredit borrowers in Bangladesh, and its impact on all these people cannot be neglected. What happens to Grameen Bank influences the future of the millions of Bangladeshis who benefit from microcredit activities, as well as the future of the institution of microcredit itself. It is actually a great concern for me, and many others, that I properly fulfill my responsibility to safeguard their future before and after leaving the post of Managing Director of Grameen Bank.

Some have said that, instead of going to the court, it would have been more honorable for me to resign from my position as suggested by the Finance Minister. I do not think so. In that case, the end result would have been the same, so far as my exit is concerned. But I would have suffered from carrying the guilt of knowingly accepting an unexpected proposal and putting the borrowers and their families’ futures at risk. I could not do that.

[caption id="attachment_1665" align="aligncenter" width="300" caption="Millions of borrowers like the ones seen meeting above could be adversely affected by a government takeover of Grameen Bank."]Millions of borrowers like the ones seen meeting above could be adversely affected by a government takeover of Grameen Bank.[/caption]

Some people felt that I intend to cling to the position of Managing Director of Grameen Bank. But, the nation knows that this position is not my life’s goal. I was, and am, conscious of the fact that my future work will not be based on my holding on to this position, but rather, it would be working with the young generation, from other platforms to address the problem of poverty at home and abroad. I want to do that without jeopardizing the interests of Grameen Bank. This is the thought which prompted me to write the letter to the Honorable Finance Minister one year ago. I suggested two options to him for a transition that could take place without creating any waves within the Bank.  I did not get any response to these proposals.  I was, instead, told to quit. It is, therefore, unfair to me to suggest that I am holding on to the of position of managing director unjustly or to allege  that I am not co-operating in the process of transition.

For the last few months, a section of the media devoted itself fiercely to campaign against me, Grameen Bank, and the concept of microcredit. Everyone has his own explanation why this is happening.

An unfriendly atmosphere is not helpful for a smooth change of leadership
The cause of my concerns, as well as those of the nation and the world, lies here. These concerns are more for Grameen Bank and the future of its millions of borrowers, than for me. For this reason, I have been reminding you repeatedly that undertaking the transition process of Grameen Bank's management in an unfriendly environment will only cause harm to the future of the Bank. I have always wanted to make sure that the transition takes place in a friendly, mutually supportive environment, so that the achievements of Grameen Bank may continue without interruption. There are many issues related to this. The big questions are: whether Grameen Bank can maintain its independent existence, and whether it can be successful in keeping itself away from political influences. What actually happens to financial institutions in our country if political influences start playing a role in these institutions is common knowledge. This experience will not inspire trust in the borrowers.  We all know how important the role of trust is in the operation of Grameen Bank.

Lessons Learned from AppLab’s First Three Years in Uganda

January 21, 2011

Eric Cantor has led Grameen Foundation’s AppLab efforts in Uganda for the past three years, and continues to serve as an advisor on the project.

More than three years ago, I landed in Uganda to establish Grameen Foundation’s “Application Laboratory” – a program conceived to explore the potential of mobile phones to improve the lives of the poor.  In our quest to test, develop and expand mobile services that are useful for the most often-ignored people on the planet, our team spent (and spends) extensive time talking to our users, in the places they work and live, to hear about the good and the bad of the methods we are testing to empower them.

We sit under the mango tree at the rural health clinic, hearing about how people learn to avoid and treat common and devastating diseases like malaria and HIV.  We walk the banana plantations of farmers in the West, trying to gauge how they can best control banana wilt, using locally available resources and techniques.  We observe the effects of the rapidly growing “mobile money” phenomenon – essentially digital currency delivered through a mobile phone network – and assess how it can improve the lives of villagers.  We see how people interact with the Internet and other unfamiliar services available through the few laptops and smartphones in a community.  And we listen to farming groups, led by Community Knowledge Workers (CKWs), as they plan and prepare to bulk their crops for sale to the highest-paying buyers.  As white winter washes over the US, and the rains wind down and planting season approaches in Uganda, we share some lessons learned through this work in the hopes that our growing body of work, as well as that of other practitioners in this field, will benefit.

In AppLab’s early work, we tested a number of information services, leading up to our launch, with MTN (one of the primary mobile phone services providers in east Africa) and Google, of Google SMS Tips, the product that won the award for “Best use of Mobile for Social and Economic Development” at the 2010 GSM Mobile World Congress.  It was rewarding to sit on a farm and hear how making organic pesticides using local chemicals or even waste products found on the farm helped save a farmer money, and increase her yields and incomes.

[caption id="attachment_1451" align="aligncenter" width="300" caption="Community Knowledge Workers act as valuable local intermediaries, bridging the "last kilometer" to bring essential information to other rural farmers in Uganda. Here, a CKW uses her high-end mobile phone to check for information on banana wilt."]Community Knowledge Workers act as valuable local intermediaries, bridging the "last kilometer" to bring essential information to other rural farmers in Uganda. Here, a CKW uses her high-end mobile phone to check for information on banana wilt.[/caption]

But what became quickly apparent was that information alone is not a complete solution.  A reference pointer or a tip about maternal health techniques may be useful to an expectant mother, but creating deep, impactful behavior change – what information-driven development initiatives seek – requires a context in which that information has a value. People certainly have a hunger for knowledge and a willingness to embrace the mobile phone to search for answers, as shown by all the questions they asked from the beginning about family planning, and HIV and other sexually transmitted infections, which affect them directly and for which few reliable, anonymous sources are available.  But we require several things to make this information actionable and impactful: specific information, a context in which to make it useful, and relevant services and resources.

Witnessing Our Impact in Nairobi, Kenya

April 21, 2010

Sandra Adams is Grameen Foundation’s Vice President of External Affairs.

During the first week of April several Grameen Foundation board members, other staff and I traveled to Kiambu, Kenya—about 45 minutes outside Nairobi—to see how local organizations are making a difference in the lives of poor families. Staff at the microfinance institution Kenya Entrepreneurship Empowerment Foundation (KEEF) and some of the MFIs ambitious borrowers welcomed us and shared their triumphs and challenges in the fight against poverty in their communities.

Day Two: Grameen Power and Moving to the Field

December 16, 2009

[caption id="attachment_303" align="alignleft" width="200" caption="Muhammad Yunus and Royston Braganza"]Muhammad Yunus and Royston Braganza[/caption]

Royston and I spent the first few hours on Monday back in the Grameen Complex in Dhaka.  The most exciting meeting was with two retired Grameen Bank officials -- Fazley Rabbi and, briefly, Abser Kamal – both of whom now work with Grameen Shakti (Energy).  Shakti, a sister company of Grameen Bank set up by Dr. Yunus in the early 1990s and that had been led until recently by Dipal Barua, has become a world leader in bringing renewable energy to rural households.  We heard how they had passed 300,000 solar home systems installed, and how they do it profitably and at a rate of 13,000 per month at present.  (The second most successful program of this kind has reached just over 100,000 installations.)

Back in Bangladesh

December 14, 2009

Alex Counts is President and CEO of Grameen Foundation, and the author of “Small Loans, Big Dreams: How Nobel Prize Winner Muhammad Yunus and Microfinance are Changing the World” (John Wiley & Sons, 2008). Below is Part Two of this journey to assess the state of microfinance with Grameen Foundation partners worldwide.

[caption id="attachment_305" align="alignleft" width="200" caption="Muhammad Yunus and Alex Counts"]Muhammad Yunus and Alex Counts[/caption]

After a gap of about two years, on December 13, 2009 I returned to Bangladesh – the birthplace of the modern microfinance movement and the country where I spent six of the first nine years after I graduated college.  I came here initially driven by naïve idealism – that someone (especially at my tender age!) could catalyze the spread Grameen Bank’s approach beyond the borders of Bangladesh, so it could to become a global (rather than simply national) anti-poverty strategy.  As I was to learn, even by the time I arrived in December 1988, that process was under way – a process that was much more complex than I had imagined, and one that has been the focus of Grameen Foundation since it was established in 1997.

Reflections of our journey (Part 5)

July 23, 2009

Kathleen M. Snoddon recently returned from Morocco where she was able to witness microfinance first-hand. This is the final entry in a five-part blog series about her journeys.

[caption id="attachment_195" align="alignright" width="300" caption="FONDEP Borrower"]FONDEP Borrower[/caption]

Having left Baiya’s with apologies for not being able to stay longer, we approached our original meeting place and could see our companions gathered and waiting our arrival.  It was hot and they were both exhilarated and spent by the activities and encounters of the last several hours. I wanted to stay longer. I wanted to spend time with each and every   woman who had made the effort to forge a future for themselves and their families.  I wanted to hear what their aspirations were for themselves and their children.

One Million Cell Phone Challenge

February 18, 2009

by Brian Weinberg, Director, Recycle to Eradicate Poverty

[caption id="attachment_68" align="alignleft" width="128" caption="Brian Weinberg (left)"]Brian visiting local water well[/caption]

Each of us has a unique set of convictions to pursue.  My own fell into place unexpectedly, after I read a Fortune Magazine article highlighting Dr. Muhammad Yunus's vision to "put poverty into the museums."

I had just arrived home, after studying Spanish in Buenos Aires and trekking 2,858 miles (4600km) alone throughout South America. Reading this article summoned the mental snapshots of several "Shanty Towns" from my recent trip, inspiring a personal call to action.

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