Introduction This video can be viewed in its entirety or via short video clips sorted along themes (blue underlined) which emerged during the debriefing. This debriefing was organized by the Knowledge and Learning Group as part of AFTQK's knowledge sharing and learning services, and was undertaken on June 26 and 27, 2004. Part I: Team Debriefing - June 26, 2004 Watch Full Video (1:00:43 min). Introduction (1:18 min). Grameen Bank Video Clip (17:05 min). The Bank is Owned by the Poor. This is very important for our African context, we have this thinking that the poor cannot own anything – one of the lessons that we can take is that the poor can own a Bank themselves (31 sec). Savings Products make the Bank Sustainable. One of the most interesting products is the pension scheme. Grameen Bank does not take any grants it operates only from the savings. Grameen Bank has shown that “these people can actually deposit their money and build on their own pensions. There are two types of savings products: compulsory and voluntary (1:43 min). Beggars Program. Gives credit to beggars in order to help them rise out of poverty. The idea is not to change the behavior of beggars, they are able to continue begging but also increase their incomes slowly through the sale of products they are now able to afford, such as matchboxes. “If you want to help them, give them some credit, allow them to go and negotiate with some of the business people, let them have some few items, like matchbox, sweets etc” (1:52 min). Institutional Set-up. 40 people form what they call the village centers. 50 – 60 of those centers form a Bank branch, and a number of those also form a zone. The Bank also goes to the people; the people do not go to the Bank (2:01 min). Branch Sustainability. The challenge is to find areas to invest that money to generate profit to give to the savers – they have been investing in the money market in Bangladesh but now there are so many other players in the market. Money should move from the center to the villages by giving communities and these women’s groups more interest on their savings so they can do more investments (1:39 min). Summary and Overview of Program Strengths (1:17 min). Self-Sustaining Branch Offices. Branch Area and Head Office loans money to Branch office, branch lends to the communities. Various branch offices all over country are self-sustaining (45 sec). Question and Answer Session Part I (3:26 min). Highlights: Role of Peer Pressure. The Bank relies on peer pressure. The members know each other; there is a lot of transparency there. The members know, and are able to explain. Each of the centers has one leader, who represents that at the Branch level. There is a lot of transparency in the system (57 sec). Reduction of Costs for the Bank. Outsourcing activities, keeping records, managing and assessing loans all contribute to the reduction in the costs of the Bank (33 sec).
Question and Answer Session Part II (18:12 min). Highlights: Businesses Financed by the Bank. Group members run a number of businesses, shops, bull fattening, rice cultivation, raising chickens, fish farming, embroidery, etcetera (3:29 min). Details of the Basic Loan. It is a small loan. They start small, and graduate tom second and third loans as they pay (29 sec). Loan Graduation System. Even after they graduate, they can continue borrowing from Grameen Bank. There is no upper limit right now they have started a micro-small enterprise loan. Loans have certain legal requirements, the entire processes, and a business plan is already made. There is no upper limit. Smaller loan is 2500 Taka, slightly less than 50 dollars (1:55 min). *(Please be patient while video re-loads at 36 seconds). Profit Motive in the Indian Context. Their principle is to make a smaller profit, but save a bigger percentage of that profit and spend less “One of the greatest things for me as an African I learned from them, is every time these people are talking about profit. This is not what we are talking about on the African continent. We don’t talk profit…but there, whatever activity they are talking about making a small profit. It is not about the size of the profit, it is about being able to save that profit“ (1:05 min). Role of the Government helping the Bank to Grow (3:15 min). Age Limits and the Pension Savings Plan. As long as you reach a certain age where you are now no longer able to operate, you should access back your money with interest. As you age, your interest is also accumulating (1:01 min). Models of Development. Support training and institutional supports to women’s loans (1:16 min). Types of Loans Housing loans attract lower interest-rates. Basic loan should help you get established in your business and micro-finance loans (4:35 min).
Question and Answer Session, Part III. (4:25 min). Aarong and Ayeshabed Foundation. Aarong is important as a brand name. Social responsibility combined with niche products, and entirely locally made and created Bangladeshi products (2:48 min). Concluding Remarks (2:21 min). Part II. Bangladesh Debrief - June 27, 2004 Watch Full Video (5:35 min). Introduction BRAC creates sustainability through for-profit and not-for-profit initiatives, and provides savings and credit loans through SHGs. The for-profit legs of the organization (Aarong, poultry farms, etc) are able to plow money back into the system and put it into the development programs. These not for profit development programs include health, education, childcare among others and the interaction between these two sectors make the whole sustainable. (1:05 min). Lessons Learned: BRAC and Grameen Bank (50 sec). BRAC and the Bangladeshi Government. BRAC works with the government towards the development of Bangladesh. It exists almost as a parallel system of governance, and one that the government of Bangladesh depends on. It is also filling a vacuum left by the failures in government activities in poverty reduction - particularly in the 80's and 90's (2:18 min). Relationship between BRAC and Grameen Bank. How well it works depends on the community and village level organizations. There is overlap in activities Between BRAC and Grameen Bank. The two organizations conduct many similar activities. They exchange attendees, and in certain areas this works well and in others it does not and there is more overlap. Both organizations have a strong micro-finance mechanism, right down to the village level (53 sec). M&E Mechanisms. Both of the organizations have strong M&E Mechanisms right down to the village and grassroots levels, as far as Microfinance operations go. In this way, you are able to tell exactly who is s member (15 sec). Alternative Models of Poverty Alleviation. Grameen provides credit on the basis that the woman knows best how she wants to handle her own situation. Basic philosophy of BRAC however believes that in order to come out of poverty, a woman needs all kinds of inputs and support services and structures. BRAC therefore believes in setting up support networks and structures, and Grameen Bank has a single point agenda (1:17 min). |
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