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Nobel winner lays out microcredit plan

(09/28/07 4:00am)

In clear, soft-spoken English, Bangladeshi Muhammad Yunus, Nobel Peace Prize laureate and founder of Grameen Bank, spoke Thursday via conference call about his work in relieving poverty and steps the World Bank must take for the future. Yunus and his bank jointly received the 2006 award for their work on reducing poverty in Bangladesh through microcredit, a system which gives loans to expand small businesses. The call was organized by RESULTS Education Fund-a nonprofit organization dedicated to promoting knowledge on issues of hunger and poverty throughout the world-to explain the measures the World Bank must take to encourage poverty alleviation in other countries. Sam Daley-Harris, RESULTS and Microcredit Summit Campaign founder, moderated the call between Yunus and reporters. Daley-Harris reported that in 2003, 700 parliamentarians wrote then-World Bank President, James Wolfensohn, requesting a meeting for an increase in World Bank funds for microcredit from 1 percent to 2 percent and for a commitment that half of those funds go to the very poor. The lobbyists also wanted a requirement of cost-effective poverty measurement tools to ensure compliance and an annual report on results. The World Bank staff-which Daley-Harris said opposed these measures-knew that Wolfensohn supported these changes, and therefore, kept the meeting from happening, Daley-Harris explained. Soon after, 500 parliamentarians wrote Wolfensohn's successor, Paul Wolfowitz, to discuss these changes, and Wolfowitz agreed to meet with Congress two years later. Wolfowitz avoided that meeting, however, by resigning from his position as World Bank President in June 2007. In July, 72 members of Congress continued the campaign and wrote current World Bank President Robert Zoellick. After less than a month of holding the position, Zoellick agreed to a meeting, which is set to occur Oct. 3. Daley-Harris said the outcome of this meeting could make a huge difference on microfinance and on the very poor. After explaining the problems with the World Bank to the journalists and praising Yunus for his work, Daley-Harris introduced the Nobel Peace Prize laureate. He explained the success he experienced in Bangladesh, where the Grameen Bank currently reaches over 80 percent of the poor families with microcredit. Conversely, Yunus said, microcredit programs in other countries remain small. Reaching 15 percent of the poor with microcredit in countries outside Bangladesh is rare, Yunus said. Yunus added that the World Bank claims to be the most important financial institution created for the poor, with an overarching goal of reaching out to poor people and helping them out of poverty, but he said the World Bank is still not involved in microfinance to an appropriate degree. After speaking on the improvements the World Bank needs to make, Yunus opened the floor to questions. Yunus said he had met with Zoellick Wednesday in New York, and the president had been sympathetic toward reshaping World Bank policies. "It's very much a government-oriented program," Yunus said. "We need to find a way to go outside the government and start doing work with other parts of society that would be more relevant to addressing poverty." Daley-Harris said young people can get involved in a variety of ways, and some students in the United States are forming microfinance clubs on college campuses nationwide. "If you look around, you can find ways to get involved," Daley-Harris said.