Globalization

I recently started reading the book :"Creating a world without poverty" by Muhammad Yunus.

I came across a very interesting insight on Globalization:

"I support the idea of globalization-that free markets should expand beyond national border, allowing trade among nations and continuing flow of capital, and with governments wooing international companies by offering them business facilities, operating conveniences, and tax and regulatory advantages. Globalization, as a general business principle, can bring more benefits to the poor than any alternative. But without proper oversight and guidelines, globalization has the potential to be highly destructive.

Global trade is like a hundred-lane highway criss-crossing the world. If it is a free-for-all highway with no stoplights, speed limits, size restrictions, or even lane markers, its surface will be taken over by the giant trucks form the world's most powerful economies. Small vehicles-a farmer's pickup truck or Bangladesh's bullock carts and human powered rickshaws-will be forced off the highway.

In order to have win-win globalization, we must have fair traffic laws, traffic signals, and traffic police. The rule of "the strongest takes all" must be replaced by rules that ensure that the poorest have a place on the highway. Otherwise the global free market falls under the control of financial imperialism."

After receiving his PhD in Economics from Vanderbilt University in the United States, Muhammad Yunus returned to his home country of Bangladesh in 1972. There he founded the Grameen Bank Project in 1976, and transformed it into a formal bank in 1983.

Through the Grameen Bank Muhammad Yunus has given practical expression to his belief that the world’s poorest people can transform the conditions of their own lives if given appropriate financial support. From this belief came the idea of 'micro-credit' – bank loans offered to the poor without asking them for guarantees or security in return.

As Muhammad Yunus himself describes it: ‘The repayments are designed in such a way that they are tiny instalments. You can pay back your loan over a long period. So all of this together is micro-credit. Small loans for income-generating activity, addressed to the poorest, without collateral.’

For more than 30 years Muhammad Yunus has worked tirelessly to gain loan opportunities for the world’s rural poor, especially poor women. Grameen Bank currently operates 2,381 branches, offering credit to 7 million poor people from 75,950 villages in Bangladesh.

In 2006 Muhammad Yunus and the Grameen Bank were awarded the Nobel Peace Prize for their efforts to create economic and social development from the ground up. This award not only inspired the people of Bangladesh towards greater achievements, but also gave worldwide recognition to the nation as a whole. Muhammad Yunus has proved himself to be a leader by transforming his vision into practical action for the benefit of millions of people, not only in Bangladesh, but in many other countries too.