Two Approaches to Relieving Poverty The study is based on ways to alleviate poverty. The main objective is to be able to analyze the processes, mechanisms, and effects of the proposals that are presented.
Based on the fifth chapter of the book, a presentation of the onset of one of the most successful project that combined both banking techniques with the perspectives of improving the conditions of the poor, the beginning of the Grameen Project had been put into focus. The said project had been initiated in 1977 by Muhammed Yunus and became successful in the present period that it had earned him a Nobel Prize in 2006. The main objectives of the Grameen Project if to provide loans to the poorest members of the society to ultimately improve their life and alleviate poverty (Yunus “Chapter Five…”).
The success of the said project had been based on the unconventional rules that the institution had established. One is the provision of loans to mostly woman on the basis of the belief that they are the persons who definitely care for the welfare of the family to the point of putting them on the top priority above their own needs. Another is the fact that the project offered less interest, longer payment period and on a weekly payment basis. These rules lessen the pressure of paying at one time during the end of the period with higher interest. The loan system is based on trust thus no legal actions are involved and support groups are established. It can be considered that through the contributing benefits of the said methods the project had helped many starting from the time it had been established through the course of its history (Yunus “Chapter Five…”).
Due to the belief of Yunus in the role of women, he worked hard on increasing the participation of woman as both workers and borrowers. In cases of borrowers, women in the Bangladesh culture are conservative and traditional, thus, they are not given rights to hold any amount. Convincing them to join groups and borrow can beconsidered
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