Microfinance Focus`s Special Blog For Micofinance`s Conferences Mar 31 An Exclusive interview with Dr. Muhammad Yunus, Nobel Laureate 2006 | By Microfinance Focus Special Interviews Dr. Yunus gave an exclusive interview to the “MICRO FINANCE FOCUS – a global magazine on micro Microfinance Focus Events Page 1 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009finance and sustainable development” at the Reception Dinner on 30th March 2009 on the eve of the Sa Dhan’s National Micro finance Conference 2009 being organized at New Delhi. Here are the excerpts from the interview: MF FOCUS: Microfinance is an established and recognised instrument for fighting poverty today. Many people are confident and it gives hope, poverty can be eliminated. Isn’t it too simple just to rely on microfinance? Dr. Yunus: You don’t have to. Nobody is forcing you to do that. If somebody wants to do Microcredit – fine. I wouldn’t say this is something everybody should have. Nobody says it is the only solution. Human beings are very multidimensional. Microfinance is one of the many, many things. MF FOCUS: Social business is an additional way. Do you identify enough potential for social business to make a real difference, globally? Dr. Yunus: Yes of course. Definitely it is a global and not a local issue. There are two kind of businesses: One is business to make money, the other business is to change the world. The one with the intention of changing the world and not to have any personal gain from that. It is all dedicated to make a difference. It is addressing a social issue. Resolve it, you can do that. MF FOCUS: What are all the factors making social businesses successful? Dr. Yunus: A good business plan, good ideas and use the creativity in the most creative way. MF FOCUS: Microfinance as well as Social businesses have to be highly efficient. How is it possible to maintain or re-introduce the social mission back into microfinance? Dr. Yunus: Whenever something gets popular, actually catches attention, there are people who take advantage of that and misuse it. It happens in everything. When Big brands are popular, it gets imitated by fake ones. Same thing happens with microcredit: People name it microcredit but in fact it is not microcredit. It is something completely different. People have to be made aware of what is microcredit and why it is important to stick to the real microcredit and not one which has a different motivation. But while you are looking at the microcredit itself, even good people may have wrong ideas, which makes them shift away from the whole idea, the mission. You have to be very carefully remind ourselves, what is our mission. That is why we have meetings like this, to rediscover your mission and then re-adjust your work to the mission. MF FOCUS: To build an enabling environment for social entrepreneurs, what governments should do and what regulations do you count as important? Microfinance Focus Events Page 2 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009Dr. Yunus: It is very important. Very Importnt!! Regulation is very important but at the same time regulation can be stifling, destroy the whole business by overregulating and make it impossible to function. It is like a mother and a child. You know how you have to change your child to do the right things. At the same time you should not control your children so that it loses all its initative. It is like becoming a prisoner in the hands of the mother. Regulation should be promotional, a Cheerleader. At the same time making sure you do the right thing, that you don’t drift away from the real principles. It is a tough job in the sense you have to balance both: How to encourage, and at the same time how to restrain. MF FOCUS: Due to the financial and economic crisis development funds were cut by the north. Where do you see the responsibilty of rich countries in fighting poverty? Where should they act? Dr. Yunus: See…The southern countries didn’t create the crisis, they are the victims of the crisis.It is only one country which created the crisis and it spread all over. Those who were involved in creating this crisis also have a moral responsibility to make sure that the victims are supported . There are lot of people suffering, that has to be taken care of. Now they are busy of making bailout packages and all the support. And i am saying …At least 10 % of all bailout packages every where should be earmarkerd for victims in the third world. Those things have to be built in the system. MF FOCUS: Apart from poverty there are many topics, which can be solved or bargained only on an international level: Climate Change for example. Nicholas Stern is convinced, we have to solve both topics together: Poverty and Climate Change. Dr. Yunus: Well, financial crisis is the latest crisis. 2008 had the food crisis, which is still here. Simply front pages have been taken over by financial crisis and has pushed away all discussion about the food crisis. 2008 was also the year of energy crisis – the oil prices shot up to the sky. It didn’t disappear, it is lying low for a while. And also this is a perpetuating environmental crisis. All these crises have their roots in the same thing. These are not seperate crisis. You have to adjust the root causes than you are adjusting all of them. The root causes are the wrong structure, the capitalism structure we have. We have to redesign the structure we are operating in. Wrong, unsustainable lifestyle. We have to take the hard decision ! We and each one of us must take a decision on this planet. And also we should inculcalte among our children a simple way of living. We should not live in a way, that it harms another person. Once you take this decision, everything will be solved. We have no right to live a life which is harming anybody else. It is like traffic laws: You can’t have a car and knock everybody off the road. There’s a rule you have to drive safely, so that you don’t harm anybody. Same thing is for living on this planet. We are sharing with each other. MF FOCUS: Grameen Bank has moved to grameen II methodology, still Grameen replicators in India follows the Grameen I model. Do you think they should explore such flexible methodology? Dr. Yunus: It is upto them, what they like….. I can not advise. We thought we can solve some of the Microfinance Focus Events Page 3 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009problems. we see the opportunity that we have by relaxing our procedures and rules to make it more friendly. MF FOCUS: What is the next level for Micro finance and how to take it forward? Dr. Yunus: Next level is to enter into Insurance, pension funds, second generation issues young children coming up…. growing up…………….. to make them into better citizen to deal with life. MF FOCUS: Savings product is much needed by the poor. Regulation is cautious not to allow collection of savings by certain category of MFIs. What is your opinion? Dr. Yunus: Savings product is very important. Change the law!!! Keep on insisting that the system is right. MF FOCUS: With Micro finance focus, the monthly magazine, we are working on information exchange and promoting Best practices. How important are projects like Micro finance focus for the sector. Dr. Yunus: Yeah ! This is a good initiative. Communicate…… I mean….. Let the people know what is happening, what is right, what is wrong, so they can participate in debate, discuss, make more efficient, more cost effective and more friendly to take home. —————————————————– Prof. Yunus with Microfinance Focus Team Microfinance Focus Events Page 4 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/200911 Responses to “An Exclusive interview with Dr. Muhammad Yunus, Nobel Laureate 2006 | By Microfinance Focus” Rating: 7.3/10 (9 votes cast) Share this story to your network : Microfinance Focus Events Page 5 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/20091. Raman V Machiraju Says: March 31st, 2009 at 11:02 am Congratulations! to Microfinancefocus Team Its indeed a great opportunity to have a live interview with Dr Mohammad Yunus, the questions were very apt and the answers were also quite convincing. Its now the responsibility of MFIs and practitioners to adopt a suitable model to address the needs of the poor and take forward this unique mantra of changing the world. With Best Regards, Raman V Machiraju Rating: 0.0/5 (0 votes cast) [Reply] 2. Vinod Varghese Says: March 31st, 2009 at 11:31 am Yes,. I agree with Dr. Yunus, we have to define a life style which should not affect our neighbour. Same time our life style should not exploit other. Same time we should discourage accumulation of wealth(not prifit, but accumulating profit for self satisfaction, greed and lavish life style). If we impart this knowledge and challenge new generation, we can achieve this upto certain extent . Today urban life is controlled by Market,Media and Money(rural life slowly moving towards this ). along with credit we should provide legal support system for poor and oppressed. We should make our political system accountable for their action, so that things are not taken as granted. Corporate houses should resuce their margin, corporate salary should cut down (there is a very big gap between common man and corporate man) . We pay more for intelectual work, and neglect physical labour and that category. Let us rise and raise our concern thanx Rating: 0.0/5 (0 votes cast) [Reply] 3. Mahasemam Trust Says: March 31st, 2009 at 2:01 pm conference going very well. by all staff in Mahasemam Rating: 0.0/5 (0 votes cast) [Reply] Microfinance Focus Events Page 6 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/20094. Vivekanand Salimath Says: April 2nd, 2009 at 9:21 pm The wise man’s words ” There are two kind of businesses: One is business to make money, the other business is to change the world. The one with the intention of changing the world and not to have any personal gain from that. are important. Many of the ills the Micro finance industry is facing today and the general scorn of people about the practices of MF practitionars are on account of greed of a few stakeholders. Dr Yunus has made a clarion call. We need to learn frm the call Rating: 0.0/5 (0 votes cast) [Reply] 5. Anant G. S. Says: April 7th, 2009 at 12:45 am First of all congratulations to all MF Focus team members! It is an excellent interview taken by your team. All questions were good and answers to them are simply Great! Specially opinion expressed by Mr. Yunus regarding the financial & other crisis we are facing, is very clear and true. About government initiative for developing social enterprises or future social entrepreneurs, I think why should we rely on the governments completely? What already successfully running Social Enterprises can do in that aspect? after all co-operation is one of the keys to success. I feel such successful social enterprises should help newly started social enterprises for their growth and sustainability. Rating: 5.0/5 (1 vote cast) [Reply] 6. G Muralidhar Says: April 8th, 2009 at 10:38 am I agree -we need to be in the business of changing the world. We need to be in strauctural transformation and paradigm shift processes. G Muralidhar Rating: 0.0/5 (0 votes cast) [Reply] 7. Gerardo J. Mendieta Peñaranda Says: April 8th, 2009 at 10:47 am I am so gratefully with you. I think that the knowledge is increasing when it is shared. ANED is a little organization in the same way. Best regards ================================================= Gerardo J. Mendieta Peñaranda Director Ejecutivo Microfinance Focus Events Page 7 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009Asociación Nacional Ecuménica de Desarrollo -ANED http://www.aned.org La Paz -Bolivia Rating: 0.0/5 (0 votes cast) [Reply] 8. Pranita Says: April 9th, 2009 at 1:14 pm Its a nice piece of information. Very optimistic comments on larger issue of development by Dr. Yunus which is encouraging for all those who are working in development sector.. Rating: 0.0/5 (0 votes cast) [Reply] 9. Gopal K Agrawal Says: April 9th, 2009 at 11:30 pm Though Dr. Yunus is the Father of Micro finance in Bangladesh , it also remains a fact that inspite of Grameen being in existence for more than 2 decades, Grameen can still not claim as how many poor assisted by it have since risen above the poverty level. In India, although mf movement has made tremendous progress in terms of volume of business, no. of beneficiaries especially women, no of banks/NGOs/MFIs involved, etc.,it has still to get international recognition.. Of late, it is also observed that most of the MFIs are becoming institution centric, commercial and the interests of the poor are increasingly becoming incidental. Rating: 0.0/5 (0 votes cast) [Reply] 10. Dr.Krishna. Says: April 11th, 2009 at 4:22 am it is very good to read about opinions on MF business but that the same time all we should focus on enterprise development in order to share and support every beneficiary under this program. It is mandatory. Because getting loans and increasing personal prooerties will not support our national income. In my opinion each client who got benefited under micro credit must pay tax to the government. this way all the MF practioners should encourage as well as define the value of money. Rating: 3.0/5 (1 vote cast) [Reply] 11. Ali Ghezawi Says: April 12th, 2009 at 12:14 pm As usual vital and enlighten interview Microfinance Focus Events Page 8 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009Rating: 5.0/5 (1 vote cast) [Reply] Pagelines Design + Wordpress Microfinance Focus Events Page 9 of 9 http://www.microfinancefocus.com/events/?p=155 4/14/2009