I went to the 3rd Annual Innovation Awards and Summit tonight, hosted by The Economist, and before I collapse into a technological slumber, I would like to give a big shout-out to Dipal Barua and the Grameen Bank in Bangladesh.
Why? Because this bank, founded in 1976, provides micro-loans to poor women to help them start their own sustainable businesses and support their families. Loans are typically about US $30, and are used by the women to finance businesses selling things like bamboo stools and baskets. Some of the bank's newest outreach programs include one targeted toward Bangladesh's beggar population, and another that sells women cell phones, which they then use to start businesses as, like, local payphones, where other villagers pay them to make calls on their phones--they make an average of $60 a month. The women don't have to sign any legal document to get the loans, and upon joining the bank, each "member" (as its customers are called, since they also own part of the bank) is put into a community group to help encourage and support them as they pay back their loans. The result of this relationship of trust? A 98% payback rate. Pretty freaking cool, right?
Here are some other great numbers:
-So far they've lent over US $4.5 billion, $4 billion of which has already been paid back.
-96 percent of loan recipients are female, despite the fact that it is a Muslim society that does not encourage women to work outside of the home.
-the bank also provides scholarships to the families of its members. 60 percent of the scholarships go toward women.
-Since 1997, 75,000 people have started cell phone businesses.
-The bank currently operates more than 1, 256 branches providing credit to more than 3.7 million poor people in over 45,000 villages in Bangladesh. A similar cell phone program is being launched in Uganda, and the micrcredit model has been emulated in 50 countries around the world, including the US.
"I grew up in a small village," Barua said when I asked him what his inspiration was for the bank. "I knew the poor people. The satisfying part of my work now is seeing their smiling faces."
It's a pretty amazing project; The Economist ran a story on it a while back if you want more information. Hearing Barua speak was inspiring and he and the bank deserve all the Salty love they can get. Congratulations for winning the first-ever Social and Economic Innovation award!