Garza Gilbert Muhammad Yunus Presentation

Leader Introduction and Background

Founded Grameen Bank in 1983He is known as the father of microfinance (Burke, 2011)Dubbed “banker to the poor” (Quadir, 2011)Managing director of Grameen BankGrameen Bank was founded under a special ordinance only the board can remove him, not the central bank (Pereira, 2011)The idea of microfinance lent small sums to millions of deprived people to help them start or run their own businesses as a first step out of poverty filling the gap that traditional banks had left and cutting out local loan sharks The bank rapidly had millions of clients, mainly women (Burke, 2011)

Type of Power and Characteristics

Legitimate PowerFounder of Bank (Burke, 2011)The managing director (Quadir, 2011)Expert PowerEconomics professor (Ph.D. in economics from Vanderbilt University)His idea (Father of Microfinance)Referent PowerWon the Nobel Prize in 2006 (Pereira, 2011)Helping and supporting poor people around the worldPassionate and committed

Issue: Microfinance guru Muhammad Yunus faces removal from Grameen Bank (Article)

Political IssuesThe campaign to remove Yunus, mounted mainly by politiciansBangladesh’s finance minister said Yunus should stand down following alleged irregularities in operations The prime minister accused Yunus of treating Grameen as his personal property and claimed the group was “sucking blood from the poor”Attacks come at a time when microlending faces increasing political hostility (Burke, 2011)The central bank declared him past the age of retirement and has ordered his removal (Pereira, 2011)Government officials believed they needed to redefine the bank’s role and bring it under close regulation. (Quadir, 2011)

Internal and External Responses

Internal ResistanceGrameen Bank said Yunus was staying on, it had not violated any rules (bbc.com, 2011)Supporters of Yunus fear politicians want to bring Grameen under government controlMotive may be the electoral advantages in controlling the bank, the government has a 10% stake, and the resources and popularity it might bring (Burke, 2011)External ResistanceAn international campaign made up of high powered friends defended Yunus Mary Robinson, the former United Nations high commissioner for human rights and one-time president of Ireland, condemned the campaign against YunusJames Wolfensohn, former World Bank president, Yeardley Smith, the French-born American actor, and Liam Black, a UK-based social entrepreneur. (Burke, 2011)

Organizational Politics and How It Ended

The organization tried to resist the government and sought legal adviseUltimately, Yunus decided to relinquish his post to prevent undue disruption of the bank’s work (bbc.com, 2011)His only concern is that the bank continue to be totally committed to the mission for and with the poor (Burke, 2011)Yunus Legacy ContinuesHis micro-lending model has been copied in developing countries around the world (bbc.com, 2011)Grameen Research, which provides research, training and support in the field of microfinanceGrameen America (2010 – 4 branches in 2 cities)(2018 – 21 branches in 14 cities)(grameenamerica.org, 2020)Grameen Danone Foods / Yunus Social Business

References Cited

Burke, J. (2011, February 21). Microfinance guru Muhammad Yunus faces removal from Grameen Bank. Retrieved February 22, 2020, from https://www.theguardian.com/world/2011/feb/21/muhammad-yunus-microfinance grameen-bank-BangladeshGrameen America. (2020, January 8). Retrieved February 25, 2020, from https://www.grameenamerica.org/Grameen Bank founder Muhammad Yunus quits top post. (2011, May 12). Retrieved February 22, 2020, from https://www.bbc.com/news/world-south-asia-13384338Pereira, E. (2011, March 2). Muhammad Yunus Told to Step Down from Grameen Bank. Retrieved February 22, 2020, from https://www.forbes.com/sites/evapereira/2011/03/02/muhammad-yunus-told-to-step down- from-grameen-bank/#7bfc82fe6965Quadir, S. I. (2011, March 2). Bangladesh removes Nobel winner Yunus as Grameen Bank. Retrieved February 22, 2020, from https://www.reuters.com/article/us-Bangladesh/yunus/bangladesh-removes-nobel-winner- yunus-as-grameen- bank idUSTRE7212V620110302