“We must break the existing financial system which is operating for rich people, to pave the access of the large number of poor living in the region to financial resources. Even a judiciary system has become unaffordable to the poor mass. We must promote Micro Financial Institutions (MFIs) to ensure greater access of poor to finance,” said Yunus while delivering a speech at an interaction on Micro-finance and Poverty Reduction in South Asia, on Saturday at the SAARC Secretariat. [break]
“Keeping in view that the legal battle is beyond the capacity of poor, we have layer-free legal system in our country which has ultimately supported the poor,” said Yunus who is champion of Microfinance.
Hailing the role of MFIs in his country Bangladesh, Yunus said greater number of people will be benefited as in Bangladesh if concept of MFIs is replicated widely in the other countries in the region.
“Poverty doesn´t crop up from among the poor, there are so many external factors that create poor,” said Yunus, who won the Nobel Peace Prize in 2006 for lifting significant number of poor out of poverty through micro-credit from Grameen Bank.
Discussing in detail on how Bangladeshi poor, especially women are benefiting from the information technology, Yunus also stressed the need for empowering the new generation with modern technology to reduce poverty in the region."They (women and youths) will become the agents of change if we use their power”" added.
He also expressed dissatisfaction over commercialization of healthcare system by the private sector and failure of the government to provide the service to the poor.
The founder of Grameen Bank of Bangladesh, which pioneered microfinance in the region, also said stating that economy will not go ahead with prosperity unless people at the bottom of the pyramid are not lifted out of the poverty.
"Our existing economic system doesn´t serve the interest of the poor who are the real force of economy as it makes an environment for the rich to become richer. We need to reach out to the poor to stimulate whole economy," he added.
He also said Bangladesh is moving ahead with the vision to eliminate poverty by 2030 with the implementation of the spirit of micro-finance that mainly aims at uplifting the poor at the grassroots level."
"We will have achieved Millennium Development Goal (MGD) by 2015 and eliminated poverty by 2030, when anyone finding a poor in Bangladesh will be rewarded with one million dollars," he added humorously. He also highlighted the role of social business -- a non-loss, non-dividend business run to fulfilling social needs -- eventually for the transformation of lives of the poor people.
Expressing discontent over the functioning of the South Asian Association of Regional Cooperation (SAARC), he suggested to the eight-member bloc to become more proactive rather than becoming ceremonial-like institution.
Dr Yuba Raj Khatiwada, governor of Nepal Rastra Bank, said poverty in the SAARC region couldn´t be reduced as expected despite 6-7 percent annual growth rate, due to growing inequality among the people.
"We would have achieved significant reduction in poverty simultaneously with faster economic growth had we succeeded in narrowing down inequality among the people in the region," said Khatiwada. He also said the region is lagging behind generating employment, protection of environment and empowerment of poor.
Industrialist Binod Kumar Chaudhary said social business will prove instrumental for the positive economic transformation of society.
Deependra Bahadur Kshetry, vice-chairman of the National Planning Commission, hailed the role of micro-finance in various countries for reducing poverty. "We have to increase access of the poor people to MFIs, which are a vehicle of transformation in the lives of millions of people," said Kshetry.
SAARC Secretary General Ahmed Saleem said experience of Yunus will be beneficial for SAARC secretariat that has been observing Poverty Alleviation Decade 2006-15.
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