Social business can bring millions out of poverty: CA

Claiming that social business can bring millions of people out of poverty, Chief Adviser Professor Muhammad Yunus on Tuesday (April 22) said poverty is created due to a wrong economic system.

"We are aware that poverty is not created by poor people. It is a consequence of an economic system where resources surge upwards, concentrating wealth ever more narrowly," he said.

Prof Yunus made the remarks while delivering his keynote speech on 'Exploring the role of social business, financial inclusion, and microfinance in fostering sustainable development and economic opportunities for marginalised communities' at Earthna Summit, organised by Qatar Foundation, in Doha, Qatar.

He said social business armed with the power of financial inclusion can break free of this trap and can move millions out of poverty.

"Today, I will share the firsthand experiences of the power of two interrelated innovative approaches of social business and microcredit that have uplifted marginalised communities in my own country," he said.

In Bangladesh, the chief adviser said microcredit model showed that even the poorest individuals are creditworthy.

By offering small, collateral-free loans, microcredit empowers individuals to build livelihoods, generate income, and lift themselves and their families out of poverty, he said.

The Grameen Bank founder said microcredit has a strong track record of success, most notably through the pioneering work of Grameen Bank in Bangladesh.

Founded on trust, he said the bank provided collateral-free microloans to poor villagers, especially women.

It has empowered over 300 million people globally by unlocking their entrepreneurial potential, he mentioned.

Prof Yunus said Grameen Bank itself lends over US$ 2.5 billion annually to 9 million women with a remarkable repayment rate of nearly 99%.

He said this model has been successfully replicated in various countries, including the United States through Grameen America, while over US$ 600 million in loans was provided to over 86,000 low-income women with a repayment rate exceeding 99%.

The chief adviser said stories of entrepreneurs like Damaris in Boston expanding her restaurant and Reyna in Texas growing her boutique exemplify the transformative impact of microcredit._BSS.