The Grameen Bank and the Ideology of Development

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TheGrameen Bank and the Ideology of Development

TheGrameen Bank and the Ideology of Development

Part1: Ideology of development

Easterlyportrayal of how development is being carried out at the global stageis correct. This is confirmed by the fact that the internationalorganizations (such as the World Bank and IMF) have gainedsignificance and influence the direction of the global economy. Theseinstitutions tend to apply the experts’ knowledge and believe inscientific strategies in addressing all global challenges, such aspoverty and violence. The concept of the free market, which is beingpopularized by the international institutions with the support ofdeveloped countries, is an example of how the ideology of developmentis being forced into communities at the expense of their respectiveautonomy.

Oneof the key compelling points in the article is an observation thatthe experts driving development at the global level see everychallenge as being purely technological in nature. This can be easilyobserved in everyday life, because technology (including the internetand mobile phones) is seen as the major solution to the world’sproblems. Although technology may solve some problems, social aspects(politics, economics, and sociology) of community development shouldbe taken into account. It was quite surprising to learn from thearticle that ideologies that failed in the past are getting adherentafter the failure of the ideology of development in some countries,such as Nicaragua. It would be expected that these countries wouldlook for better ideologies and frameworks instead of support thefailed ones.

Part2: The Grameen bank

Grameen’smodel of economic development is unique and is contrary toconventional models that are followed by other banks and institutionsthat are expected to alleviate poverty. From the article, it isevident that conventional models help people who are already abovethe poverty line and can present a collateral security to accessloans and create more wealth. However, the economic model adopted byGrameen Bank, which targets people living below the poverty line hasproven to be the correct approach in addressing social economicchallenges affecting the modern society. Grameen’s model departsfrom conventional models that are based on the concept of capitalismby helping members address other issues (such as hygiene, socialdictums, and health) besides creating wealth.

Oneof the key compelling points in the article is the fact that theconventional system used by banks fails to take account of thehardworking behavior and talents in members of the society whenissuing loans. These banks ignore the fact that poor people could begood entrepreneurs who lack capital and collateral. It is surprisingthat people living below the poverty line have a loan repayment rateof between 96 % and 100 %, while institutions using conventionaleconomic models classify them as credit unworthy.

Part3: UN’s Millennium Development Goals

Easterlyand Yanus are likely to agree with some MDGs and approaches whiledisagreeing with some of them. For example, both Easterly and Yanusoppose the most of the conventional approaches that are based onexperts’ opinions and see all problems as being technological innature. Based on this fact, they would both disagree with theinnovative measures of accelerating learning that were proposed byexperts who framed MDGs. These approaches may help a few people, buttheir sustainability is doubted. On the other hand, Yanu`s model ofeconomic development is mainly based on the idea of communityempowerment, where the poor people are given the knowledge andresources that they need to address their own challenges. This is inline with the approach adopted in the first MDG goals of eradicatingpoverty, where the poorest members of society are offered withfinancial literacy training programs. Therefore, Easterly and Yanuswould feel satisfied with some goals and approaches and feeldissatisfied with others depending on their sustainability andviability.

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