Empowering Individuals in the Global Community Through Entrepreneurship
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AMERICAN-STATESMAN STAFF
Sunday, January 13, 2008
Muhammad Yunus has been making waves since he pioneered the idea of microcredit, extending very small loans to poor entrepreneurs in Bangladesh. But after he won the Nobel Peace Prize, he really got people's attention.
The Bangladeshi banker and economist is in Austin to speak with local philanthropists and to promote his second book, "Creating a World Without Poverty: Social Business and the Future of Capitalism."
Ralph Barrera
AMERICAN-STATESMAN
Muhammad Yunus is in Austin to speak with local philanthropists and to sign copies of his new book at BookPeople today.
Yunus is no stranger to the city: He has visited several times as a partner with the nonprofit arm of Whole Foods Market, Whole Planet Foundation, and he calls the grocery chain's founder, John Mackey, a great friend.
"The central focus of my work is how to get poor people out of poverty," Yunus said. "There is no lack of potential in them. It's a question of opening the door."
Since early 2006, the Austin-based foundation has helped finance the expansion of the bank he founded and manages, Grameen Bank, into Costa Rica, Guatemala and India. It is planning to expand into China.
The foundation has pledged almost $6 million to microlending around the world.
"When John met professor Yunus, it was a meeting of minds," said Philip Sansone, the foundation's president.
"We knew we wanted to get into microcredit, but after meeting with him, we wanted to do Grameen microcredit."
Yunus, who has taught at universities in Bangladesh and the United States, started the bank in 1976.
It lends small amounts of money to the very poor — mostly women who can't get loans from large banks — so that they can start their own businesses.
Today, the bank has 7.5 million borrowers, and the repayment rate is 99 percent.
In October of 2006, Yunus and his bank won the Nobel Peace Prize.
"You don't have to feed the poor people — just give them the chance" to lift themselves out of poverty, Yunus said.
Yunus said the foundation's efforts to support microcredit are part of a concept that he's trying to promote: "social business." That's a business whose aim is not to maximize profits for the owners, but to aid poor people, he says.
For example, he started an eye hospital in Bangladesh where patients pay only what's needed to cover the costs of the hospital.
"I'm not giving handouts; I've created it to help other people," Yunus said. "But I don't want to make money."
Yunus will be signing copies of his new book at 1 p.m. today at BookPeople, 603 North Lamar Boulevard.
pgeorge@statesman.com; 445-3851
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