Media Brief—6 March 2011 (draft)
SITUATION OVERVIEW
On March 2, 2011, the Bangladesh Central Bank informed Professor Muhammad Yunus, the
country’s Nobel Peace Laureate, that he would be “relieved of his post” as the Managing
Director of the renowned microfinance institution he founded, Grameen Bank. According to
the Central Bank, the decision to oust Yunus is based strictly on the fact that Yunus exceeds the
60 year age limit for some public positions.
In fact, the Board of the Grameen Bank determined in 1999, when Yunus approached 60, that
an age limit did not apply to the Managing Director. Yunus, along with nine directors of the
Grameen Bank, has presented the Bangladesh High Court that this action is violation of his
fundamental rights under Articles 27, 31, and 40 of the Constitution, and that his
reappointment in 2000 was indeed valid. Ironically, the Bangladeshi Finance Minister who told
the 70 year old Yunus he was too old is 77 years old himself.
The court has subsequently been requiring Yunus to participate in hearings on a series of
unfounded complaints. Failure to appear in person will mean imprisonment for Yunus.
The attempt to remove Yunus from his post as Managing Director is the culmination of
monthslong campaign by Bangladesh Prime Minister Sheikh Hasina to discredit Yunus and allow
government control of the Grameen Bank. Sheikh Hasina’s position has been declared blatantly
political by both government and media observers worldwide. Sheikh Hasina has walked away
from the longstanding tradition of the Bangladesh government, to allow civil society
organizations to operate without interference. It is this well functioning civil society that is
widely credited with the progress Bangladesh has in easing poverty and improving living
conditions for Bangladeshis.
World leaders, development experts, media, and others in the microfinance field have spoken
out in support of Yunus and are urging the Bangladesh government to cease persecution of
Yunus. There are also fears that disrupting the operations of the Grameen Bank (one of the
Bangladesh’s best functioning entities) will destabilize the country.
There has also been an outpouring of support and concern by Bangladeshi’s – media, other
NGOs, customers, and expats.
Currently, the Grameen Bank is 95% owned by approximately 8 million borrows, primarily
consisting of low-income women. The Bangladesh government holds a 5% stake.
In Bangladesh, Yunus has also worked to create about 25 additional innovative firms that serve
the needs of low income Bangladeshi’s, or to employ them. Almost all are not for profit or are
1
owned fro the benefit of the customers like a credit union or a mutual insurance company.
Professor Yunus owns no shares in anything, has a nominal net worth and leads a famously
Spartan life living with his wife in a two bedroom apartment in the Grameen office complex.
These innovative new businesses have brought millions of dollars of direct investment to
Bangladesh and have greatly improved living conditions in Bangladesh. These additional
businesses innovations include:
Grameen Fund – provides risk capital to small and medium enterprises
Grameen Telecom– pioneered the VillagePhone which alled rural poor to own a mobile
phone as a profit-making venture.
GrameenPhone – a GSM-based cellular operator
Grameen Solutions Limited – a software development company
Grameen Communications—an information technology company
Grameen Fisheries and Livestock Foundation – organization that provides food security
and sustainable livelihood through aquaculture, fisheries and dairy resources
Grameen Shakti – a developer of renewable energy technologies in remote areas
Grameen Shikkha – an educational lender
Grameen Byabosa Bikash – a provider of supplemental services to microfinance
customers
Grameen Danone Foods – a producer of fortified yoghurt product
Grameen Eye Hospitals – low cost provider of eye care
Grameen Nurse Training – a nurse training program
Grameen Health Care Trust – operator of 53 rural primary care clinics
Grameen Veolia Water – provider of purified drinking water
2
KEY POINTS
Muhammad Yunus has spent his entire adult life working to alleviate poverty. The
microfinance model he created has lifted millions out of poverty worldwide. Professor
Yunus and the Grameen Bank were awarded the Nobel Peace in 2006 prize in recognition of
the ability of microfinance to alleviate poverty and improve the human condition.
In Bangladesh, Grameen Bank and BRAC (another microfinance organization) have played
key roles in the country’s advances and are foundational to the Bangladesh civil society.
The BRAC Chairperson has also spoken out in support of Yunus, despite concerns about his
own security.
The pressures against Yunus in Bangladesh are based on the blatant political motivation of
Bangladesh Prime Minister, Sheikh Hasina. Sheikh Hasina (and some of her supporters)
have engaged in a vigorous smear campaign against Yunus include the widespread
dissemination of false accusations –all of which have been refuted by Yunus and Grameen
Bank.
On March 2, the Bangladesh Finance Minister attempted to force Yunus's removal as
Managing Director of the Grameen Bank. And Yunus is now being further harassed by
requirements that he appear in court in person to participate in hearings on a series of
unfounded complaints. Failure to appear in person will mean imprisonment for Yunus.
The basis of the Finance Ministers attempt to remove Yunus was a claim that Yunus
exceeded the retirement age for his position. Ironically, the Bangladeshi Finance Minister
who told the 70 year old Yunus he was too old is 77 years old himself. Nelson Mandela was
72 years old when he got out of prison, and he went on to serve South Africa and the world
for another 20 years.
On March 4, Sheikh Hasina’s son, Sajeeb A. Wazed, sent a widely distributed email which,
includes a range of gross accusations, and also shows his personal interest in the value of
Grameen Phone. In this rambling email Sajeeb opens by claiming “Here are the facts from
the Bangladesh Government’s side on the Mohammed Yunus and Grameen Bank issue:”
He close the letter identifying himself as “Advisor to Sheikh Hasina, Honorable Prime
Minister of Bangladesh.” While Sajeeb has no formal or official government position, he
talks about Bangladesh as if it were a family business.
World leaders, development experts, media, and others in the microfinance field have
spoken out in support of Yunus and are urging the Bangladesh government to cease
persecution of Yunus. There are also fears that disrupting the operations of the Grameen
3
Bank (one of the Bangladesh’s best functioning entities) will destabilize the country.
There has also been an outpouring of support and concern by Bangladeshi’s – media, other
NGOs, customers, and expats.
While this unfounded attack and hearings restrict Professor Yunus's ability to travel, he
continues to engage with his supporters and speak out on the power of microfinance to
alleviate poverty. He will continue this engagement via phone, email, and video
connection.
The effectiveness of the Grameen model in the United States, Bangladesh and throughout
the world can be seen through a film, To Catch a Dollar, which is being released later this
month.
This attack on Professor Yunus and Grameen Bank in Bangladesh comes at a time when this
highly-regarded documentary, about the success of the Grameen model in New York City, is
being launched nationally in the United States with widespread support from public and
private sector organizations, including Whole Foods and Operation Hope. Sponsors are
committed to the promise and success of the Grameen model here in the U.S., and to a
campaign to use the film to help spur similar economic empowerment initiatives in
communities across the country.
The film is a testament to the power of microfinance. In one year, the Jackson Heights
branch of Grameen America grew to loan over $1.5 million to 550 women. Just twelve
months after opening, they’ve added two more branches in Brooklyn and Manhattan, with
the plan to opening other US cities in the coming years. Grameen America has let out over
$14 million since its inception, and its repayment rate is 99%. To Catch a Dollar follows the
journey of some of these women borrowers and the changes their lives undergo over the
course of a year. Working with borrowed money for the first time, and able to create
opportunities such as a small shoe selling business, a catering business and the introduction
of hair and cosmetic products for a beautician, they begin to realize their own potential and
the power that comes with it.
The issues with Grameen Bank in Bangladesh do not impact the Grameen network outside
of Bangladesh—and will not impede the progress of Grameen America or the launch of To
Catch a Dollar. Each entity of Grameen network outside of Bangladesh is a separate legal
entity with separate funding and management so that one will not be adversely impacted
by the fate of another entity. The Grameen Trust provide some management support
worldwide.
4
YUNUS ENDORSEMENTS
Support from influential leaders:
Senator John Kerry, chairman of the United States senate committee on foreign
relation.
“I am deeply concerned by efforts to remove Muhammad Yunus as managing director of
the Grameen Bank," he said in a statement released in Washington on Thursday.
The head of the US Senate committee hoped both sides would reach a compromise to
maintain Grameen Bank's autonomy and effectiveness.
"Institutions like the Grameen Bank make a significant contribution to Bangladesh's
development and democracy and Professor Yunus' life-long work to reduce poverty and
empower women through microloans has deservedly received world-wide attention and
respect,” added John Kerry.
The statement is available on the US Senate website.
Mary Robinson, former President of Ireland and former United Nationas High
Commissioner for Human Rights, is chair of the newly formed “Friends of GrameenAlso
attached is statement from the "Friends of Grameen" chaired by Mary Robinson, former
President of Ireland and former United Nations High Commissioner for Human Rights.
“The members of Friends of Grameen are all deeply concerned by the continued attacks
against Professor Yunus and Grameen Bank, that are politically orchestrated. Some
highly visible private microcredit experiences turned themselves into financially
lucrative enterprises, in countries like Mexico and others. Professor Yunus and Grameen
Bank paved the way more than 30 years ago for a sustainable model, with very
transparent and reasonable interest rates, and making borrowers the owners of their
bank.”
She added, “Because of the importance of such a role model, our duty is to protect the
integrity of Professor Yunus and the independence of Grameen Bank. One of our
immediate focus points will be to urge an independent monitoring of the fairness and
legality of the current dealings of the Government of Bangladesh and its appointed
Chairman and representatives with Grameen Bank, its board, employees and Managing
Director Muhammad Yunus, through the Review Committee and beyond.”
5
Fazle Hasan Abed, the chairperson of BRAC, another large Bangladesh microfinance
organization.
"On behalf of BRAC, I am expressing my concern at the recent development concerning
Grameen Bank," he said in a statement.
"For the sake of the millions of its members, we must take utmost care in not letting this
happen. A carefully planned succession for Dr Yunus can help a smooth transition and
give the organisation the stability that it needs to ensure the welfare of its members,"
he contended.
Maria Nowak, President of ADIE, a pioneering French microfinance institution created in
1989. “The Government’s harassment of Professor Yunus has been unrelenting over the
last months, and the events unfolding over the last couple of days testify of the
Government's will to completely takeover the Grameen Bank, at any cost.”
“Friends of Grameen” includes 50 foundings members including prominent public
figures, NGOs, and corporations.
6
Support from influential media
The New York Times columnist Nicholas Kristof: “ Muhammad Yunus, the Nobel Peace
Prize winner who helped found microfinance to alleviate poverty around the world, has
been fired. Grameen Bank says that the Bangladesh Central Bank has removed Yunus as
managing director. I'm disgusted. This is the work of the Bangladesh prime minister,
Sheikh Hasina, who is jealous of Yunus's success-and she shames herself and her
country. The losers are the world's poor.
The Economist US Business Editor Matthew Bishop and Author Michael Green: “As we
have argued before, though we have issues with Mr. Yunus’ attacks on for-profit
microfinance, we stand shoulder-to-shoulder with him in opposing this politically-
motivated attack. We note with alarm that the Bangladesh government is continuing to
up the ante despite widespread opposition in the global media and by some of the most
respected leaders of the international community, including the founders of the new
group, Friends of Grameen.”
The Daily Star columnist Fakhruddin Ahmed: “Professor Yunus and Sir Fazle have won
incredible number of most prestigious awards from foreign countries all over the world
for their incredible achievements. What astonishes the writer is that neither of them has
won any award from the government of Bangladesh! On the contrary, based on its
recent actions, it appears that the government is going after possibly one of the few
honest public figures remaining in Bangladesh, Professor Muhammad Yunus.”
Time columnist Sumon Chakrabarti: “The Friends of Grameen, a group of charities led
by former Irish President Mary Robinson, last month alleged that Yunus was being
subjected to ‘politically orchestrated vilification.’ Yunus, too, has called the charges
against him politically motivated in the past.”
Financial Times: “The Bangladeshi government’s vicious campaign against Yunus has
reached its bathetic climax. After publicly denouncing the founder of Grameen Bank for
corruption and of “sucking the blood” of the poor, Dhaka has limply resorted to a legal
technicality to remove the Nobel Prize winner from the board of the microfinance
institution.
7
ADDITIONAL INFORMATION ON GRAMEEN ORGANIZATIONS IN BANGLADESH (from Wikipedia)
Grameen Fund
Main article: Grameen Fund
Grameen Fund is a not-for-profit company in Bangladesh established to provide risk capital to
small and medium enterprises (SME) beyond the scope of Grameen Bank's objectives of
providing microcredit to the very poor.[5][7] Incorporated in 17 January 1994, Grameen Fund
started operation in February 1994, inheriting 40 projects of Grameen bank with assets of 391
million Bangladeshi taka investmented in small industries, fisheries and agriculture.[6] As of
2007, it invested equity worth $1.0 million in 13 joint ventures and financed 1763 small and
micro enterprises in Bangladesh, especially in technology-oriented industries, by providing
collateral-free fixed and working capital loans.[7][8]
[edit] Grameen Telecom
Main article: Grameen Telecom
Grameen Telecom (GTC) is a not-for-profit company in Bangladesh established with a partial
stake in Grameen Phone (GP). GTC has driven the pioneering GP program of Village Phone that
enables rural poor to own a cell-phone and turn it into a profit making venture. The vision
behind the village phone program was formulated by Iqbal Quadir who was convinced that a
mobile phone could become a source of income generation. Quadir worked with Professor
Yunus and the Norwegian company Telenor to make the program a reality. Currently Grameen
Telecom provides mobile phones among the villagers of the country.[3][9][10]
[edit] Grameenphone
Main article: Grameenphone
Grameenphone is a GSM-based cellular operator in Bangladesh and market leader[11] with
more than 50% of the Bangladeshi market share. Grameenphone started operations on March
26, 1997. It is partly owned by Telenor (62%) and Grameen Telecom (38%). It has more than 10
million customers as of December 2006.[12] It is also the fastest growing cellular telephone
network in Bangladesh. At the end of 2005, it had about 3500 base stations around the country
with plans to add about 500 in the following six months. Grameenphone's stated goal is to
provide cost-effective and quality cellular services in Bangladesh.
[edit] Grameen Solutions Limited
Grameen Solutions Limited (GSL) is one of the fastest growing software development
companies in the region.[13]
8
[edit] Grameen Communications
Grameen Communications (GC) is a not-for-profit information technology company established
in Bangladesh in 1997, with a portfolio that includes software products and services, internet
services, hardware & networking services and IT education.[2][3] The life of the company began
as an IT support unit under Grameen Trust in 1994.[14] Besides providing IT support to various
Grameen family organizations it in charge of developing systems for organizations like
CASHPOR Financial and Technical Services Private Limited (CFTS) in Mirzapur District, Uttar
Pradesh, India, CMC in UIndia, Swayam Krishi Sangham (SKS) in Hyderabad, India, Grameen
Koota in Bangalore, India, Moris Rasik in East Timor, Ganesha Foundation in Jakarta, Indonesia,
and Ahon sa Hirap Inc. (ASHI) in Manila, Philippines.[14]
The company has developed the Village Computer and Internet Program (VCIP) to set up a
number of multipurpose Cyber Kiosks in rural areas using different connectivity solutions for
information access, communication and IT education.[14][15] The first VCIP was established in a
room rented from the Grameen bank at Madhupur Upazila, which is connected through
microwave link to the VSAT at Grameen Communications office 160 km away in Dhaka.[16][17]
Two others were established at Sarishabari Upazila and Mirzapur Upazila.[16] A partner of
International Development Research Centre (IDRC) initiative Pan Asia Networking (PAN),[18] GC
is also developing a program with Digital Divide Data of United States to provide data entry jobs
for rural Bangladeshis.[16]
[edit] Grameen Fisheries and Livestock Foundation
Grameen Fisheries and Livestock Foundation or Grameen Motsho O Pashusampad Foundation
(GMPF), a non-profit organization, was founded as Grameen Fisheries Foundation or Grameen
Motsho Foundation (GMF), in February 1994 to mitigate poverty through aquaculture &
fisheries, as well as an integrated fish-crop-livestock and dairy development farming system.
The mandates of the organization are to provide rural landless poor, especially women, to gain
access to common resource properties; replace exploitation with community empowerment;
replace stagnation with social and economic growth; replace traditions with modernity; provide
women with legal and gender rights; and to provide food security and sustainable
livelihood.[3][19]
[edit] Grameen Shakti
Grameen Shakti (GS) or Grameen Energy is a not-for-profit company in Bangladesh established
in 1996 to promote, develop and popularize renewable energy technologies in remote, rural
areas of Bangladesh.[20][21] It is a part of the Grameen family of organizations founded to take
the Grameen Bank objective of alleviating poverty for the extreme poor through
microcredit.[20][21] Grameen Shakti has been honoured with a Right Livelihood Award for its
Grameem Shakit work,[22] and has also won two Ashden Awards, in 2006[23] and 2008.[24]
9
Grameen Shakti employees over 9,000 women as engineers, installers and maintenance
workers and has installed over 500,000 solar panels
[edit] Grameen Shikkha
Grameen Shikkha or Grameen Education was established in 1997 to promote mass education
in rural areas, provide financial support in the form of loans and grants for the purpose of
education, use IT for alleviation of illiteracy and development of education, promote new
technologies and innovate ideas and methods for development of education. It also conducts
Life the Oriented Education Program, the Pre-school/Child Development Program, the Early
Childhood Development Program and the Arsenic Mitigation Program.[2][3]
[edit] Grameen Byabosa Bikash
Grameen Byabosa Bikash (GBB) or Grameen Business Promotion and Services was established
in 1994 as a social business and not-for-profit organization to provide supplementary services
on top of microcredit to rural entrepreneurs dealing in products like vegetables, livestock or
handicrafts to provide experience, skill and knowledge.[3][25]
[edit] Grameen Danone Foods
Main article: Grameen Danone
Grameen Danone Foods was launched in 2006 as a joint venture between Grameen Bank and
the French food company Groupe Danone. Grameen Danone's first product is a fortified
yoghurt, branded Shoktidoi, which is designed to provide children with many of the key
nutrients that are typically missing from their diet in rural Bangladesh. A crucial aspect of the
joint venture is the over-arching business goal: although Grameen Danone Foods is a profit-
making company, social impact, rather than financial profit, is the number one measure of
success.
Grameen Eye Hospitals
Two Aravind eye hospitals that can each ultimately do up to 50,000 eye examinations and
10,000 eye surgeries a year. High quality eye surgery costs just $25 per surgery with lower
infection rates and better outcomes than similar operations in the US. No one is turned away
because of inability to pay, and the indigent get free care of the highest quality.
Grameen Nurse Training.
A nurse training program that focuses on training the children of the Grameen borrowers to be
world class nurses who are fluent in English and who meet international standards. These
10
nurses come from among the lowest income families in Bangladesh, and they are a great source
of pride to their families and the rural villages they live in
Grameen Health Care Trust
Grameen Health Care Trust has 53 rural primary care health care clinics.that are about 90%
sustainable and that have attracted support from GE Medical Systems, Pfizer Pharmaceuticals
and other major health care providers.
Grameen Veolia Water
The surface water of Bangladesh is severely polluted, and the deeper water reached by tube
wells has dangerous levels of natural arsenic, poisoning the people who drink it. Working with
Veolia, the largest water management company in the world, Grameen Water supplies pure
drinking water at an affordable and sustainable cost.
11
REFERENCE
For more information on the Grameen Bank in Bangladesh visit:
www.grameen-info.org
For more information on the Grameen Foundation (worldwide operation) visit:
www.grameenfoundation.org
For more information on Grameen America visit:
www.grameenamerica.com
For more information on ‘Friends of Grameen” visit:
(will add URL once it is live)
For more information on To Catch a Dollar visit:
www.tocatchadollar.com.
12