Grameen Research Articles

Advocacy Coalition Framework of Ultra Micro Loan Policymaking in Indonesia

Advocating the Ultra Micro-lending concept of Indonesia's Ministry of Finance in 2017 was a tumultuous nine-year process. The present paper aims to examine the Ultra Micro-lending (UMi) program conducted by the Ministry of Finance of Republic of Indonesia using Advocacy Coalition Framework. This paper showed that Advocacy Coalition Framework could moderate the interest groups' disagreement through seven steps as follows. First, relatively stable parameters of poverty need alleviation using better financial access with empowerment. Second, the external system is inspired by Grameen Bank as the winner of the Nobel Peace Prize. Third, removing constraints and resources of subsystem actors from the internal Ministry of Finance and the Parliaments. Fourth, creating consensus for getting the Ministry of Bureaucratic Reform's permit. Fifth, policy subsystem that coalesces the need of market-rate and subsidized rate to cater to 46.7 million grassroots entrepreneurs as a 'win-win' arrangement to complement the bank-based People's Business Credit (KUR). Sixth, policy outputs as the legal product of the UMi with a 7 Trillion State budget. Seventh, policy impact's measurement after one year piloting before UMi's scaling up. This paper has a significant contribution to enhancing the efficacy of UMi program, and as a continuous effort to ensure the economic development of the country.

Financial Performance of Selected Regional Rural Banks in Jammu and Kashmir- An Empirical Study

Regional Rural Banks(RRBs) have been formed to serve rural areas with banking and other financial Services. These institutions were brought in the public domain through an ordinance passed by the then President of India in September 1975, with the intent of providing banking and credit facilities for the agriculture and other rural section of the society across the nation. They are key financing institutions at rural levels that provides agriculture credit in rural areas. RRBs have more access to rural areas and play a key role in strengthening the agriculture sector & rural development of India. The main objectives behind the formation of such type of vibrant institution in India was to established a link between the banks and rural households, especially in banking deprived areas. Moreover, to encourage rural savings, to generate employment opportunities, and to provide cheaper credit to the marginalised section in rural India.
 Presently, the RRBs are under great pressure and going towards financial distress (As revealed from studies). In this paper, an attempt has been made to study the financial performance of Selected Regional Rural banks (RRBs) of J&K by applying “CAMEL” Model approach. The finding of the study revealed that the performance of the J&K Grameen Bank(JKGB) and Ellaquai Dehati Bank(EDB) is not up to the mark.

Self Help Group and women participation: An overview

Abstract: The present study tries to examine the origin of the concept of Self Help Groups (SHGs) in India. Self Help Groups (SHGs) are basically self-governed, informal voluntary associations of people which mainly comprise of 10-15 women who share the same economic background and urge to make a certain contribution of their savings to uplift themselves. As far as the origin of Self Help Group is concerned, it was an NGO named MYRADA which was inspired by a Grameen Bank of Bangladesh took an initiative of forming self help affirmity groups in India. Owing to the increasing participation of people in forming self-help groups, The Government of India took an initiative to promote Self Help Groups in the name of Swarna Jayanti Gram Swarojgar Yojana (SGSY) in the year 1999, which was renamed as Deen Dayal Antyodaya Yojana - National Rural Livelihood Mission (DDY-NRLM). Thus, the present study tries to look into how the concept of SHG emerged and turned itself into a women-centric programme. Keywords: Self Help Groups (SHGs), NABARD, SGSY, NRLM and Women.

Global inequities and healthcare disparities: can they be eliminated ethically?

Purpose The purpose of this paper is to comprehensively explore and propose solutions to global economic inequities and disparities, with a particular focus on healthcare. This paper also aims to explore whether drastic reductions of inequality are justified in terms of conventional economic theory, and whether ending inequality can be viewed as ethical through certain lenses. Design/methodology/approach To seek the response to those questions, the paper uses Pareto optimality; Hicks–Kaldor model; Millian utilitarianism; the ethical theories developed by John Rawls in his 1971 work on ethics as well as his 1999 Law of People; and the capability approach developed by Noble Laureate economists Amartya Sen. As demonstrated, those equalizing works cannot support a policy that would advocate an end to global inequities. Those theories also propose no practical solutions for the end of those extreme inequities. Thus, the paper attempts to present other solutions. Findings This paper discusses two theories that are very helpful in supporting those without much wealth. Mohammad Yunus’ Grameen Bank and its provision of small free-interest loans to poor businesses (in particular women) in Bangladesh has been very successful. Another alternative advocating interest-free banking that was proposed by the proponents of binary economics is discussed. Originality/value The author believes the arguments used to support the theses of this paper be unique and novel.

Optimal group size in microlending

Microlending, where a bank lends to a small group of people without credit histories, began with the Grameen Bank in Bangladesh, and is widely seen as the creation of Muhammad Yunus, who received the Nobel Peace Prize in recognition of his largely successful efforts. Since that time the modeling of microlending has received a fair amount of academic attention. One of the issues not yet addressed in full detail, however, is the issue of the size of the group. Some attention has nevertheless been paid using an experimental and game theory approach. We, instead, take a mathematical approach to the issue of an optimal group size, where the goal is to minimize the probability of default of the group. To do this, one has to create a model with interacting forces, and to make precise the hypotheses of the model. We show that the original choice of Muhammad Yunus, of a group size of five people, is, under the right, and, we believe, reasonable hypotheses, either close to optimal, or even at times exactly optimal, i.e., the optimal group size is indeed five people.

Deriving Socio-Economic Benefits, Empowering Women and Decision making through involving in Self-Help Group with special reference to Nagarbera Revenue Block of Kamrup District of Assam

Women Empowerment is now considered as a issue of global arena, because the country’s development path in inevitably linked with the social and economic plight of female participation in the nation’ road of progress. Women constitute almost 50% of the population and play a significant transformation of a country. With the time being it becomes essential that women should be economically be developed as in the line with the policy of liberalization the Indian economy. Empowerment of female members by involving in Self-help Group, which is being popularized by Prof. Mohammed Yunus, a Nobel Laureate of Bangladesh along with the theory of “Grameen Bank”, can bring enviable changes and enhancement of the living conditions of women in developing countries. Self-help Group or SHG, an effective tool to empower female citizen socially and economically, where in India a still a major segment of female population are exploited and deprived of the basic rights. The present study is being conducted in nagarbera revenue block of Kamrup district. The study aims to look at the role and performance of SHGs in empowering women, the socio-economic benefits and their decision making ability in family as well as community. For the study primary and secondary sources have been considered. Analysis of results have been computed by percentage method. The study concludes that financial autonomy, training programs, community participation are enabling factor to achieve goal.

An overview on integrated farming system

In terms of geography and time, Integrated Farming Systems (IFS) and methods of thinking about them have developed. Crop and livestock outputs rose in the past two decades, bringing with them worries about their socio-economic and ecological tradeoffs. A solution to issues emerging from a primarily reductionist approach to research and a cornucopian perspective of external inputs was the application of farming systems research (FSR) to agricultural development. Modern technology was either unwelcomed or resulted in unintended negative consequences. This article examines FSR definitions and forms, as well as the necessity for change in agricultural development thought. The use of thermodynamic theory (TDT) in the study of agricultural systems has an impact on debates between cornucopians and environmentalists, as well as between reductionist and holistic research methods. There is a need to identify context (technology appropriateness), pay greater attention to relationships within systems (system dynamics), and define sustainability standards. The article connects biophysical and socioeconomic processes, provides a physical context for anthropomorphic waste ideas, and compares and contrasts objectivism and constructivism. It is claimed that FSR can only progress if all of these problems are taken into account when thinking about IFS development. Because of the complexity of reality, scientists should think more thoroughly about the best approach for lifting people out of poverty. Replicas of the well-known Bangladesh Grameen Bank micro-credit initiatives conducted throughout Asia indicate that there is ideal developments for farm families in the subcontinent to which even the impoverished aspire. Poor women invest in little animals as a result of this experience, and the household gradually rises out of poverty. Research on local resources to meet the needs of these individuals is a huge and unmet issue.

A review study on integrated farming systems

Integrated Farming systems (IFS), and methods of thinking about them, developed in place and time. Rapid change has occurred in the past two decades when agricultural and animal outputs rose, along with worries about their socio-economic and ecological tradeoffs. The use of farming systems research (FSR) to agricultural development was a reaction to issues emerging from a primarily reductionist approach to research and a cornucopian perspective of external inputs. Modern technology were either not accepted or produced unanticipated unfavorable trade-offs. This article examines definitions and types of FSR and the necessity for evolution in thinking about agricultural development. The article connects biophysical and socio-economic processes, provides a physical basis for the anthropomorphic notions of waste, and examines elements of objectivism and constructivism. It is claimed that FSR can only progress if the full significance of these problems is addressed in thinking about growth of IFS. The intricacy of the reality should make scientists think more carefully about the right approach that will bring people out of poverty. Research in Asia of replications of the renowned Bangladesh Grameen Bank micro-credit programs indicate that there is an ideal development for farm families in the sub-continent that even the impoverished aspire too. According to this experience impoverished women invest in little animals and the family bit by step climbs out of poverty. There is a significant and unmet need for study on local resources to respond to the requirements of these individuals.

A Review of Role of Mobile Based Advisory System for Transfer of Technologies for Sustainable Agricultural Development

Mobile phones have established itself in the rural areas and are becoming quite popular both with farmer and farm women. These powerful electronic machines that were a farmer’s dream earlier have become a reality as the farmer’s can immediately make use of them to address their field problems and other farm difficulties. The Government gifted Kisan Call Centres (KCC) are functioning the all over India which give answers to the farmer queries in local languages to this toll free number 1800-180-1551. Grameen Phone is a commercial operation providing cellular services in both urban and rural areas of India, with approximately 40,000 customers. A pilot programme of Grameen Phone, through the Grameen Bank and a wholly owned subsidiary called Grameen Telecom, is enabling women members of the Grameen Bank’s revolving credit system to retail cellular phone services in rural areas. This instrument is more than a means of communication and it is being used as a weapon for empowerment and fight poverty. Mobile advisory system have been developed and utilized for transfer of agricultural technologies for sustainable development across the world. The findings of the different mobile based studies conducted across the world have reviewed and presented for replicating the suitable models in similar situation for effective dissemination of the technologies. It is concluded that mobile platform is only tool to reach the last mile connectivity especially in rural areas for delivering need based technologies in time.

Exploring The World as A Global Family Instead of as A Global Marketplace: Vasudhaiva Kutumbakam in The COVID-19 Environment

When our way of life is threatened, as in this COVID-19 environment, human beings should forget boundaries and competition and allow our innate spiritual values to lead. By allowing our priorities to align with placing people above power and the marketplace, we can adopt universal, spiritual concepts such as the Hindu philosophy, Vasudhaiva Kutumbakam- the world is one family. The adoption and integration of Vasudhaiva Kutumbakam into our values and morals creates a global community. By comparing several global organizations, World Central Kitchen, Grameen Bank, VF Corporation, and TikTok who exhibit each outlook, this paper examines the world as a global marketplace vs. the world as a family. The following comparisons demonstrate how allowing inner transformation and interconnectedness through spirituality and a global, familial mindset can positively change global exigencies’ outcome.

Social Entrepreneurship and COVID‐19

Social Entrepreneurship and COVID‐19

Blood Uric Acid Prediction With Machine Learning: Model Development and Performance Comparison.

BackgroundUric acid is associated with noncommunicable diseases such as cardiovascular diseases, chronic kidney disease, coronary artery disease, stroke, diabetes, metabolic syndrome, vascular dementia, and hypertension. Therefore, uric acid is considered to be a risk factor for the development of noncommunicable diseases. Most studies on uric acid have been performed in developed countries, and the application of machine-learning approaches in uric acid prediction in developing countries is rare. Different machine-learning algorithms will work differently on different types of data in various diseases; therefore, a different investigation is needed for different types of data to identify the most accurate algorithms. Specifically, no study has yet focused on the urban corporate population in Bangladesh, despite the high risk of developing noncommunicable diseases for this population.ObjectiveThe aim of this study was to develop a model for predicting blood uric acid values based on basic health checkup test results, dietary information, and sociodemographic characteristics using machine-learning algorithms. The prediction of health checkup test measurements can be very helpful to reduce health management costs.MethodsVarious machine-learning approaches were used in this study because clinical input data are not completely independent and exhibit complex interactions. Conventional statistical models have limitations to consider these complex interactions, whereas machine learning can consider all possible interactions among input data. We used boosted decision tree regression, decision forest regression, Bayesian linear regression, and linear regression to predict personalized blood uric acid based on basic health checkup test results, dietary information, and sociodemographic characteristics. We evaluated the performance of these five widely used machine-learning models using data collected from 271 employees in the Grameen Bank complex of Dhaka, Bangladesh.ResultsThe mean uric acid level was 6.63 mg/dL, indicating a borderline result for the majority of the sample (normal range <7.0 mg/dL). Therefore, these individuals should be monitoring their uric acid regularly. The boosted decision tree regression model showed the best performance among the models tested based on the root mean squared error of 0.03, which is also better than that of any previously reported model.ConclusionsA uric acid prediction model was developed based on personal characteristics, dietary information, and some basic health checkup measurements. This model will be useful for improving awareness among high-risk individuals and populations, which can help to save medical costs. A future study could include additional features (eg, work stress, daily physical activity, alcohol intake, eating red meat) in improving prediction.

The Relationship between Culture and Social Capital with the Sustainability of Microfinance

Poverty has been the biggest problem around the world, and one of the innovative solutions offered is microfinance. Since the success story of Grameen Bank has been widely spread, many countries decided to adopt microfinance programs to alleviate poverty. Microfinance is then believed as an effective instrument that can answer the poverty challenges. Several studies have analysed the impact of microfinance on poverty reduction, but the results varied. Some support that microfinance can improve the poor, but other criticize and argue that microfinance does not play a significant role to reduce the poverty rate and even undermine the poor. This article aims to analyse factors, namely culture and social capital, that can influence the sustainability of microfinance performance. The assumption used in this article is that the success of microfinance cannot be separated from the borrowers’ background that influences their behaviours towards microfinance. The article summarized a number of studies that have discussed this issue using a qualitative approach. The findings show that culture and social capital have an impact on the sustainability of microfinance, but the impacts depend on the condition of cultures and social capital in a society. However, additional supports are needed and should not be ignored to accelerate the impact of microfinance.

A Reviewal Journey of Social Entrepreneurship in The 4th Id: With A Reference of the Grameen Bank, Bangladesh

A Reviewal Journey of Social Entrepreneurship in The 4th Id: With A Reference of the Grameen Bank, Bangladesh

Impacts of Anthropometric, Biochemical, Socio-demographic, and Dietary Habits Factors on the Health Status of Urban Corporate People in a Developing Country.

This study focused on urban corporate people and applied multinomial logistic regression (MLR) to identify the impact of anthropometric, biochemical, socio-demographic and dietary habit factors on health status. Health status is categorized into four levels: healthy, caution, affected, and emergent. A cross-sectional study, based on convenience sampling method, was conducted to select 271 employees from 18 institutions under the Grameen Bank Complex, Dhaka, Bangladesh. Biochemical measurements such as blood uric acid are highly significant variables in the MLR model. When holding other factors as constants, with a one-unit increase in blood uric acid, a person is 11.02 times more likely to be “emergent” compared to “caution”. The odds are also higher, at 1.82, for the blood uric acid to be “affected” compared “caution”. The results of this study can help to prevent a large proportion of non-communicable diseases (NCDs) by reducing the most significant risk factor: blood uric acid. This study can contribute to the establishment of combined actions to improve disease management.

A Comparative Integration Study of Performance Metrics in Microfinance

This study aims to understand the cause-and-effect relationship between financial and non-financial measures under a balanced scorecard (BSC) model in the microfinance sector of Bangladesh. Structural equation modeling is employed to test non-financial relationships hypothesized under BSC model and one sample t-tests are conducted to further relate non-financial variables to the financial performance variable for two microfinance providers. While all non-financial variables share positive and significant relationships, findings show that customer perspective and internal business process factors are quite strong and more evident for Grameen Bank than a cooperative bank. As such, microfinance providers which will improve their non-financial perspectives can ultimately benefit from increased financial performance. The article draws attention to microfinance providers so that they can address shortcomings in their current performance measurement systems and identify mechanisms that can help them improve their financial performances. Implications and future directions are discussed too.

Review of Building Social Business by Mohammad Yunus

Nobel Laureate Mohammad Yunus, professor emeritus of Economics at Dhaka University in Bangladesh is the founder and managing director of Grameen Bank. Before this, he was the chairman of the economic department at Chittagong University. The dire poverty situation in Bangladesh coupled with the 1974 famine compelled him to become a social activist (Yunus & Weber, 2010). Due to frustration with local banks that refused to give loans to the poor, he decided to boldly act as a “guarantor” for several poor people so that banks would give them loans. Despite this, there still existed a lot of red tape in the banking sector that slowed down his noble intentions. To overcome them, rather than turn his bank on the poor, he decided to give up his academic work and started a bank. “Grameen Bank” which means “village bank” was founded in 1976 and through its various businesses aimed at poverty alleviation became the first micro finance bank. To simplify the repayment process his “clients” would receive loans using no collateral and pay back interest free in weekly increments in line with set rules. The bank taught the borrowers how to effectively manage and use their loans so as to create small successful businesses (Yunus, 1940). In its initial stages, it loaned money to both men and women but soon realized that due to cultural practices, children of borrowers benefited much more when the borrower was the mother and not father. This is due to the fact that, whereas men would in most cases spend the borrowed money on themselves, the women on the other hand would spend this money on children for food and education. Empowerment of the “Grameen ladies” has had a positive impact on their social status within their families and communities (Yunus, 2010).

The impact of microcredit borrowing on household consumption in Bangladesh

ABSTRACT The rapid expansion of microcredit in recent years renders knowledge of its impact on poverty critical. Unfortunately, empirical investigations have been limited by endogeneity issues, and randomized controlled trials suffer from a lack of power. This article suggests a strategy for handling the endogeneity of microcredit borrowing without specifying instrumental variables, allowing for estimation using observational data. The model is identified by an assumption on the conditional second moments of the errors and estimated semiparametrically. I find that an increase in the amount borrowed from the Grameen Bank and similar institutions in Bangladesh has a positive and significant effect on per-capita household consumption. The estimated elasticity is in the range of 0.18 to 0.21. These estimates indicate that microcredit may be more effective than previously thought.

Towards Implementing the Grameen Bank Financing Model Among Micro Enterprises in Botswana: Is it a Possibility?

Micro Enterprises (MiEs) in Botswana are neglected by financial institutions in favor of Small and Medium Enterprises (SMEs) that have collateral security and financial records. MiEs could engage unemployed youths and adults to become self-employed and alleviate poverty; but MiEs struggle to finance their businesses because financial institutions require business proposals and collateral security; furthermore, micro lenders charge exorbitant interests. Currently there is no study specifically targeting MiEs financing in Botswana tailoring the Grameen Bank Model (GBM), hence the need for this study. This research explores how financial institutions can adopt the GBM from Bangladesh to finance Botswana MiEs. Apart from literature search, interviews were conducted among three commercial banks in Gaborone, Botswana to explore the banks’ awareness and willingness to apply the GBM in Botswana. Purposive sampling was used to select the three banks out of seven, in 2015. Findings show that commercial banks are not ready to accept the GBM as they fear losing money through defaulting customers. It is hoped that the findings will shed light on challenges and opportunities of implementing GBM in Botswana, and the possibility of applying it to reduce unemployment and alleviate poverty. It is recommended that Botswana Government invites Professor Yunus, Grameen Bank founder, to come and hold a workshop for bankers and other stakeholders; introducing GBM and its possible benefits to Botswana. The researchers recommend that local financial institutions should develop funding packages specifically for MiEs to grow their businesses.

Measuring the level of Job Satisfaction of the Employees of Grameen Bank: An Empirical Study

The aim of this study is to measure the level of job satisfaction among the employees of Grameen Bank. It describes the factors of job satisfaction from the earlier literature and identifies their impacts on the overall job satisfaction of employees. The sample size of this study is 50 employees from the different branches of Grameen Bank. Data were collected from 10 branches of Grameen Bank by means of a structured questionnaire. The findings of the study show that organizational factors such as working conditions, pay, fairness and promotion significantly influence job satisfaction of the employees in Grameen Bank and the individual factors such as age and gender do not significantly influence employee job satisfaction in the Bank.