{"id":308967,"date":"2024-08-31T18:35:21","date_gmt":"2024-08-31T13:05:21","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=308967"},"modified":"2024-08-31T18:35:21","modified_gmt":"2024-08-31T13:05:21","slug":"bangladeshs-development-model","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/bangladeshs-development-model\/","title":{"rendered":"Bangladesh’s Development Model"},"content":{"rendered":"

Source<\/strong>-This post on Bangladesh’s Development Model <\/strong>has been created based on the article \u201cWhat microfinance can teach economists<\/strong>\u201d published in \u201cBusiness Standard<\/strong>\u201d on 31 August 2024.<\/p>\n

UPSC Syllabus<\/strong>-GS Paper-2- the Role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.<\/p>\n

Context<\/strong>– Muhammad Yunus, the Nobel Prize-winning microfinance expert, recently called economics a “meaningless subject.” His statement drew attention when he was appointed to lead Bangladesh\u2019s caretaker government after the removal of Prime Minister Sheikh Hasina.<\/p>\n

By the 1990s, Bangladesh was a development success story, largely due to Yunus and BRAC founder Fazle Hasan Abed. They effectively used civil society alongside traditional state and market methods to drive progress.<\/p>\n

With Yunus in a key role, Bangladesh\u2019s development model will face close scrutiny. The main question is whether the civil-society-driven approach is a genuine alternative to traditional economic theories or just a short-term shift.<\/p>\n

What is the Significance of The Microfinance Model?<\/strong><\/h2>\n

1) Community-Based Model<\/strong>– Yunus\u2019s microfinance model was innovative. By lending to groups of women instead of individuals, it built a supportive community where borrowers held each other accountable and encouraged repayment.<\/p>\n

2) Culturally Tailored Group<\/strong>– Research shows that Grameen Bank\u2019s success stems from its group-based social support, unlike Western models that use external systems. Designed for the Global South\u2019s cultural context, Yunus\u2019s model is more effective and relevant.<\/p>\n

A detailed article on Microfinance: Status, Benefits, Challenges and Solutions<\/strong> can be read here.<\/a><\/p>\n

What are the Critiques and Challenges of Microfinance model?<\/strong><\/h2>\n

1) High Interest Rate<\/strong>-Microcredit commercialization has caused high interest rates and excessive debt for borrowers.<\/p>\n

2) Misuse of Microcredit –<\/strong>Some organizations misuse the system for profit, raising concerns about its sustainability and ethics.<\/p>\n

Question for practice<\/strong><\/p>\n

What is the Importance of the Microfinance Model? What Are the Criticisms and Issues Facing the Microfinance Model?<\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post on Bangladesh’s Development Model has been created based on the article \u201cWhat microfinance can teach economists\u201d published in \u201cBusiness Standard\u201d on 31 August 2024. UPSC Syllabus-GS Paper-2- the Role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders. Context– Muhammad Yunus, the Nobel Prize-winning microfinance expert, recently called economics… Continue reading Bangladesh’s Development Model<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1235],"tags":[10503,212,239],"class_list":["post-308967","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-international-relations","tag-business-standard","tag-gs-paper-2","tag-international-relations","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/308967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=308967"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/308967\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=308967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=308967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=308967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}