Poverty museums for $27

Posted October 25th, 2007 at 7:52 am by Julie Han, Blog Team

 5 Comments / Filed in: Behind the Scenes, Working at Yahoo!

If someone were to tell you that the only way future generations would know the meaning of poverty would be to visit a poverty museum, would you believe them? If Dr. Muhammad Yunus was the one delivering that message, you might.

Last week, we had the great pleasure of welcoming the 2006 Nobel Peace Prize winner and founder of Grameen Bank to speak at our Sunnyvale campus to share his journey as the “banker to the poor” and discuss the important role information technology plays in society. He imparted that it’s not about where technology is taking us, but rather where we want to go with it — a powerful message and reminder of the opportunity Yahoo! has to positively impact the world and inspire change.

As a microcredit (small loans to entrepreneurs too poor to qualify for traditional bank loans) pioneer, it’s not surprising that the Bangladesh native questioned the value of economic theories and PhD’s as people just around the corner were dying of hunger. After seeing the ruthlessness of money lenders and the plight of poverty-stricken families trying to obtain their loans, he knew there was a simple solution to this difficult problem. He would be part of the solution.

His first loan consisted of $27 in total, which Dr. Yunus used to help 42 basket weavers regain their dignity and independence from creditors (who charged exorbitant interest rates and yielded mere pennies in profits). What followed was a lifelong pledge and journey of an educator turned banker, who arms the poorest of the poor with the tools and means to become financially independent. He firmly believes that poverty is not created by the poor, but rather is a system we have created. To prove this point, he has given loans to nearly 100,000 beggars and has seen 10,000 of them completely stop begging and 90,000 of them transformed into entrepreneurs in their own right. The Grameen Bank has the highest recovery rate of any banking system in the world with 98 percent of the loans being paid back.

How does technology play a part? Grameen’s “phone ladies” are widespread across rural communities in Bangladesh, offering the use of mobile phones for a fee. By loaning out cell phones on a per call basis and putting them in the hands of the rural poor (many of whom have never seen a telephone before), these women become the central access point to information technology and the rest of the world. So, what’s next for Dr. Yunus? Imagine “Internet ladies.” Talk about making technology work for you.

Julie Han
Blog team

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5 Comments Add your own

gag | October 25th, 2007 at 6:33 pm

When i read a lot and posts like above, i become quiet. I think i have to first figure out the computer and the internet before talking about the above topic in detail. I understand its complex and their is lot of work to do in this world but i am glad i yahoo! everyday.

Hollywood Entertainment Blog | October 26th, 2007 at 9:02 am

Poverty is serious issue, we need to fight against poverty with good planning and implementation, as we do panning but fail to implement

Esther | October 26th, 2007 at 3:21 pm

So glad Dr. Yunus spoke. Very inspiring and tangible!

Alexis Kauffmann | October 26th, 2007 at 9:04 pm

I can testify microcredit’s power to reduce poverty from Brazilian experience. Many people who lived from social assistance are now well-succeeded entrepreneurs and have become employers. In the worst cases, microcredit helps extremely poor families to raise their life standards to something higher than mere survival standards.

retro | November 19th, 2007 at 7:21 pm

It’s a shame what happened to Bangladesh. I hope the world steps up and helps them.