Analysing The Grameen Bank Of Bangladesh Economics Essay

Analysing The Grameen Bank Of Bangladesh Economics Essay Grameen Bank (GB) is called the bank of poor people in Bangladesh. It has been established for the welfare of the poor village people of Bangladesh, which becomes a role model of the world of micro credit banking system. At the beginnings of Microcredit, Dr. Muhammed Yunus who is an economist educated in the United States of America, although originally from Bangladesh, introduced the world to the notion of micro-credit in the 1970’s. Counts (1996) said that Muhammed Yunus talked with the poor village people and discover that general local bank never shows interest to provide loan to poor people and does not lend them and they had to borrow money from extortionate moneylenders with high interest rates. As a result, they ended up more-or-less permanently in debt and any money they made went to pay the interest on these high-interest loans. Yunus became conscious at that moment that the poor problems were in some ways no different from anyone else: low interest credit was a nec essity of life. Definition of Micro Credit Auwal (1996): An extremely small loan given to impoverished people to help them become self employed. Also known as â€Å"micro lending.† This small loans extension (microloans) to those in poverty designed to spur entrepreneurship. These loans especially given to a poor person to enable him or herself to become self employed. Financial services loaned a small amounts of money usually around $50-$150 to poor people as a capital of a small business to start or extend it. The Grameen Bank in Bangladesh has become a model of successful micro loan provider. Principles of Microcredit: General financing or credit. It emphasizes building capacity of a micro-entrepreneur. Employment generation. Trust building. Socioeconomic development. Help the micro entrepreneur on during difficult. Advantage of Microcredit Soeama (2004): Source and cost of funding: â€Å" In order for the Microfinance institutions to loan they need funding too and a stab le microfinance institution might have a competitive advantage of low cost of funds which enables it to provide finance at low cost. Infrastructure set up: Microfinance companies must have a required network and infrastructure to deliver these services. The Grameen Bank of Bangladesh creates and implements this structure in rural village area. Image: MFI’s are many times criticized as money squeezing machines which charge very high cost. Which is not necessarily true considering their cost of funds and risks moreover they have to be sustainable. So here I think having a good name, image and Top management team helps a lot.† Disadvantages of Micro Credit: Although microcredits are the keystone in terms of development in poor countries, it can also have its difficult. Indeed, the disadvantages of microcredits are: Some microcredit institutions are often unpredictable. Refunding problems. Budget depends on subsidises from the government or NGOs. Fig 1: Current Microcredit Network of Grameen Bank History of Grameen Bank: â€Å"The founder of Grameen Bank Muhammad Yunus open up the idea of ‘micro-credit’–minuscule loans to the very poor. The bank currently lends more than $500 million a year with a repayment rate of better than 97 percent. Its Group Savings Funds have assets of $186 million. Grameen Bank operates 1,100 branches in half of Bangladesh’s nearly 80,000 villages. The program has been successfully replicated in dozens of countries, including the Philippines, Malaysia, Vietnam, South Africa, and Bolivia. It has also been applied to inner city and rural poverty in rich nations in North America and Europe.

Management Skills - CIMA Official Learning System Enterprise Managemen Annotated Bibliography

Management Skills - CIMA Official Learning System Enterprise Management - Annotated Bibliography Example This paper is being carried out in order to establish a comprehensive and academic discussion of leadership and management – how to establish efficacy in these areas based on practical concepts. In the book by Norton and Hughes (2009), the authors discuss different management skills and one of these skills is delegation. Their discussion on delegation points out how a leader or a manager discusses to the members of the team or the organization about the task or the activity which has to be carried out and what each of them has to do in order to contribute to the accomplishment of the task (Norton & Hughes, 2009). In their discussion, the authors were able to point out that the leader is actually not fully capable or competent in carrying out the task which is needed to complete the activity; hence, such tasks are assigned to different people who are more capable (Norton & Hughes, 2009). Delegation is about empowering each member of the team and giving each member a chance to be a leader and a chance to contribute to the bigger goals of the organization or the team. The authors discuss in their book that delegation is about allowing the members of the team to make mistakes à ¢â‚¬â€œ and to correct such mistakes – without the fear of being blamed for such mistakes (Norton & Hughes, 2009). In the above article, the website Mind Tools discusses principles which can be applied by a person in order to ensure successful delegation. The website first emphasizes that it is important to clearly articulate or express the desired outcome to the members of the group. It is therefore important, to begin with, end goals in mind and to specify how results can be gained from the end goals (MindTools, 2010). The constraints and boundaries also have to be identified, including the lines of authority and responsibility for each member of the group. It is also important to empower the members through the delegation process and in letting them decide which tasks can be assigned to them (MindTools, 2010).

Week 4 Assignment Example | Topics and Well Written Essays - 250 words - 4

Week 4 - Assignment Example The risk management could aid in the development of the Comet in several ways to avoid the problems that emanated. The risk management could have engaged in risk identification and assessment. This could be done through proper risk analysis to establish the potential impacts of such risks. This could help in coming up with mitigative measures to such risks early enough. In addition, the risk management could have aided through monitoring of such risks and offering professional advices to de Havilland Aircraft Company regarding such risks. in addition, the risk management could have helped in ensuring design testing for the Comet to ascertain the credibility of the aircraft for its operations. There are several risks associated with any invention. These may include technical risks, financial risks, commercial risks and psychological risks. In addition, sociological risks also form part of the risks associated with innovations. In relation to the Comet, technological risks, sociological and financial risks were evident. A lot of money was invested in the design of the aircraft. In addition, several funds were invested in the manufacturing industry of the Comet. This money was invested in creating a streamlined airplane that could comfortable carry the passengers amidst maintaining aerodynamics at relatively high speeds (Case Study 7.1. Classic Case: de Havilland’s Falling Comet). Technological risks associated in the comet’s case involve the repeated accidents that befell the aircrafts leading to loss of several lives. This follows the new and radical features in such aircrafts. These new features were too risky and were associated with the explosions of fuse lages, as well as, metal fatigue from the wings of the aircrafts. The success of innovations majorly depends on the time taken to come up with such discoveries. Investing