Nisadas

I recently had the opportunity to read Banker to the Poor – the story of the Grameen Bank by Muhammed Yunus. While you can easily find out the story of Grameen at its Wikipedia page, there are some points of interest in the book that don’t make it into Wikipedia:

The worm’s eye view

Most interesting is the point that is made right at the beginning, where the professor is confronted by the magnitude of human suffering caused by famine in 1974. Upset by the scenes of death in Jobra village, Muhammed Yunus decided to take a different view in order to help solve the problem:

I promised myself to try and learn everything about the village. I thought I would be fortunate if I could understand the life of one single poor person. This would be a big departure from traditional book learning. By attempting to equip the students with a bird’s eye view, traditional universities had created an enormous distance between students and the reality of life. When you can hold the world in your palm and see it from a bird’s eye-view, you tend to become arrogant – you do not realise that when looking from such a great distance, everything becomes blurred, and that you end up imagining rather than really seeing things.
I opted for what I called the ‘worm’s eye view’. I thought I should rather look at things at close range and I would see them sharply. If I found some barrier along the way, like a worm, I would go around it, and that way I would certainly achieve my aim and accomplish something.

Not only did Muhammed Yunus adopt a radical approach to the problem, but he also adopted an attitude of not letting obstacles prevent him from achieving his goal. There is a lesson here to anyone in business – your feet need to be on the ground if you plan on delivering a good value proposition.

Cynicism and Independence

Another constant theme throughout the book is the professor’s cynicism towards the various international aid agencies and notably, the World Bank. His reasons for independence from their influence reminds me of the book Confessions of an Economic Hit Man. By refusing to obey the rules set by international agencies, he has been able to formulate an approach to the problem of poverty in Bangladesh. The book details many occasions where Grameen has maintained its independence, even though it meant refusing significantly large amounts of funds in the form of “soft loans” from the World Bank.

Interestingly, he alludes to a proposal made by the World Bank in 1984 for an alternative micro-credit organisation; the Bangladeshi government rejects the proposal which (according to the prof.) is then amended slightly before being thrust upon the government of Sri Lanka.

Too often we are prepared to take solutions from elsewhere and simply dump them on our problems with the expectation that the results will be the same. Blind faith in foreign intervention is clearly not the best approach. Possibly, the approach of learning from others (the prof. was a Fulbright scholar with a degree in economics from Vanderbilt University) and tailoring the solution to the specific problem would be the better alternative.  Here in Sri Lanka, IMHO we find that many policy proposals are made by people who believe wholly in western ideals, or those who wholly reject them. Perhaps a healthy dose of disbelief of foreign motives, coupled with lessons learned from foreign lands would be better?

Charity is not a solution

This is a theme also constant throughout the book, where that age old adage of feeding a man for life by teaching him to fish can be evoked. Muhammed Yunus criticises Bangladesh and other third world countries for adopting and sometimes deliberately promoting the view that they are in an incurable situation. Being a realistic observer of politics in South Asia, he points out how little of donor funds would actually end up helping the supposed beneficiaries and how much would be pocketed by intermediaries. This is a lesson that we should take to heart. As a nation we have many issues to sort out, but also many avenues of growth. While it may be difficult to sway those “educated” people who firmly believe it is the government’s job to generate employment, there are surely plenty of people with the skills and the desire to grow wealth who can do some wonders with access to funds (see Rajaratarala’s post on Sri Lankan ingenuity).

Passion and Attitude

HRH the Prince of Wales in his foreword mentions the passion in Muhammed Yunus towards poverty alleviation. Similarly, there is mention of how recruits to the bank were hired not on banking experience but on their desire to carry out the bank’s goal of reducing poverty. In fact, “experts” with experience in traditional banking were rejected, since “re-programming” would take too long. By generating the feeling that they are instruments of change in the community they operate in, Grameen empowers its employees to help alleviate poverty, empower rural women, encourage entrepreneurship and educate the younger generation among other things.

In a country like Sri Lanka where the traditional “honour thy elder” culture has been perverted to the stage where hierarchy exists to stifle employee motivation, there is much to be learned. There are companies which have grown thanks to passionate people which have nevertheless burdened themselves with unwieldy hierarchies. While in some cases a hierarchy cannot be simply done away with, it must not exist to distance the employee from the company’s objectives. Of course, it’s a lot easier to create employee engagement when dealing with a notion like eradicating poverty, but there are surely ways of engaging employees in order to achieve optimum results. By creating a passionate environment and encouraging a “can-do” attitude firms can achieve good results, but it may require a lot of management of the egos of those higher up on the ladder in many cases.

A poverty free world

The book closes with the question on whether a poverty free world is possible. While economically there will quite likely continue to be a gap between the “haves” and the “have-nots”, Professor Yunus’ ideal of a world where everyone is able to meet their basic life needs seems quite plausible. Hopefully, we can learn from his experiences in Bangladesh and perhaps adopt a similar approach in Sri Lanka.