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Two Approaches to Relieving Poverty - Essay Example

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Two Approaches to Relieving Poverty

To eliminate poverty Grameen Bank has bought a solution which they call banking for the poor. Grameen Bank is founded by Muhammad Younus who won the Noble Peace prize for his Bank. It is a community development bank which is based on microfinance credits. The idea behind the system of this bank is that the poor people have many skills which are not being utilized. The bank gives small loans without the requirement of collateral. It also accepts deposits and runs many businesses including telephone and fabric business. The most remarkable point about the credit program of this bank is that the majority of the loan takers are women. Grameen Bank has changed the behavior towards women in an orthodox Muslim society where women are subjugated to many social vices. (Younus, 80) In Bangladesh the total women labor force is only 9%. But Grameen Bank is the most successful in engaging women in economic activities. Women participation in Bank's activities is constantly on the rise. If this continues to happen the bank will become exclusive for women. There are many success stories of women like Ammajan Amina and sufiya begum who started bamboo business successfully.
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Poverty can be defined as a condition in which a person lack basic human needs such as food, clothing and shelter because of inability to afford these basic needs. Poverty falls in two major groups, absolute poverty and relative poverty. In absolute poverty a person cannot afford even the basic needs and the relative poverty is the one in which a person have low income or fewer resources as compared to others within a society…
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Two Approaches to Relieving Poverty essay example
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