Prof. Arindam Chaudhuri
Hony. Dean, Centre For Economic Research and Advanced Studies, IIPM
The world might term him as a social crusader, a social entrepreneur, a developmental economist, an enigma; but for me, he would always remain the most visionary, innovative and true ‘happy capitalist’ of our times. Yes, I’m talking about Prof. Mohammad Yunus.
With humble beginnings of lending a mere $27 to 42 poor victims almost two decades back, Prof. Yunus’s Grameen Bank has grown to almost 1000 plus branches in Bangladesh with 2 million loans, amounting to a combined worth of a staggering $2 billion. Through his banking operations, he has shown to this world that markets are not only made of the top 20% of the population but also of the bottom 80% (almost 90% of Grameen Bank’s borrowers are poor women and the bank holds a record loan repayment of 98%). And this is what makes Prof. Yunus strikingly different from other entrepreneurs, as he has radically treaded on a path where a business enterprise is run by keeping people before profits. Forget comparable achievements by any other entrepreneur, Prof. Yunus’s initiatives can put even governments to shame. For, his bank has not only provided income-generating loans (and that too without any collaterals) in millions and student loans to the poorest of poor families, but has also been instrumental in building 6 lac homes. Reports state that ‘an overwhelming 5% of his borrowers come out of poverty every year. It is through his efforts that poor children are now healthier, education and nutrition levels are higher, housing conditions are better, child mortality has declined by 37%, the status of women has been enhanced and the ownership of assets by poor women, including housing, has improved dramatically’.
If one Prof. Yunus has brought about such a titanic transition in the social landscape of Bangladesh, which is one-tenth of India’s size, then it is a matter of shame that so many Indian entrepreneurs put together could not bring about a tenth of that change to the Indian poor. Forget eradicating poverty, even basic amenities like education, health, sanitation and access to safe drinking water are a far cry for most of the Indians. No doubt that India Inc. is posting profits every quarter, buying out global companies and driving the stock markets, but it has terribly failed when it comes to sensitising the poor. For most of them, whenever it comes to serving the poor, they use some incomprehensible new age jargons like corporate social responsibility, corporate ethics and philanthropy management (which effectively mean nothing but shallow rhetoric). And for the rest, all they do in the name of poor is to start some foundations, dole out pittance and do some media friendly charities. It is extremely sad that India Inc. has still not realised the magic of keeping people before profits. So much so that even today, India Inc. and various apex bodies are busy lobbying for petty tax cuts and exemptions rather than forcing the government not to give such exemptions and use the money for upliftment of the poor. They have completely failed to realise that for all selfish reasons, the petty tax cuts can reduce prices, but at best increase the markets by a miniscule proportion; whereas if the poor are empowered, then the markets are bound to grow by an unprecedented rate.
What’s more, recently Prof. Yunus claimed that ‘Bangladesh is going to be the only country to meet the Millennium Development Goals by reducing its poverty to half by 2015’. Can you ever imagine India Inc. talking, thinking or even contemplating on such a humane vision? I always felt that the Nobel Foundation actually did partial justice by honouring him only for peace, as he should have been ideally honoured for economics as well. As it is he who has successfully modelled the fact that the only way to end poverty and restore peace permanently, is to create employment and income opportunities for the poor. And that is why I call him a true ‘happy capitalist’.
by Prof. Arindam Chaudhuri