Case Study 3 –Emerging Markets: Microfinance, Macro Success or Global Mess
1. Why was Yunus awarded the Nobel Peace Prize (as opposed to the Nobel Economics Prize)?
Although Yunus is an economist by profession and his microfinance project does sound as an economic move, nevertheless the scope of it is much wider than targeting finances alone. He has a long term vision to eliminate poverty around the world and provide a better quality of life for those who are less fortunate and deprived of some secure financial background. Since he feels like every person on this planet has an equal right to get a chance to improve her/his life, nevertheless her/his background, we could say that his vision goes far beyond providing the loans – he strives to
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In other words, although the bottom of the pyramid is a relatively insignificant in regard to its financial power/influence, the 4 billion people, which are its members, are more than a half of the overall population and they have a potential to become a very powerful force if angry/unsatisfied enough. Therefore, Yunus contributed to happiness/satisfaction of a very large number of people and by that contributed to the overall peace in the world; by preventing them to do something unwise (such as war) because of their dissatisfaction. The reason for a Nobel Prize being rewarded to Yunus for peace, instead of for economics, lies most likely in the fact that he did not invent something new in economics fields, but he rather applied already known economic mechanisms (loans) in new fields – providing them to the poor. The Nobel Economics Prize is usually awarded to some new economic theories that were nonexistent until somebody discovered them and by that contributed …show more content…
MFIs are indeed a source of profit for those who collect the interest rates (IPOs holders and other stakeholders, such as small banks). For that reason, it might look like that the very top of the pyramid is getting even richer on the behalf of the unfortunate bottom of the pyramid. It is also true that the interest rates are locked at their highest pick, which was a result of a global financial crisis in 2008-2009. However, we should look at these facts as the area for improvement, rather than as a reason to stop MFIs once and for
... Nobel Peace Prize he received that night of December 10, 2002. Like it was said “for his decades of untiring effort to find peaceful solutions to international conflicts, to advanced democracy and human rights, and to promote economic and social development” I strongly believe that this prize was well given to the right person.
How has MCI raised external funds in the past? How sensible have these decision been?
Carnegie ends his essay by saying that to follow his plan regarding wealth would someday solve the problem gap between the rich and poor, and bring “Peace on earth, among men Good-Will” (495). I plan to show my concerns and beliefs for and against his ideas.
Patterson, David S. "Andrew Carnegie's Quest for World Peace." Proceedings of the American Philosophical Society 114.5 (1970): 371-83. JSTOR. Web. 11 Mar. 2014.
...nd usually the institutions and churches do not have the resources to provide a safety net for starving people. What we have found when working with the World Bank is that the poor man's safety net, the best investment, is school feeding. And if you fill the cup with local agriculture from small farmers, you have a transformative effect. Many kids in the world can't go to school because they have to go beg and find a meal. But when that food is there, it's transformative. It costs less than 25 cents a day to change a kid's life.” (Sheeran)
On the other hand, Carnegie understands that there exists inequality, but he believes that the superior can cooperate with the inferior to gain equality. In fact, it the document he clarifies, “There remains…only one mode of using great fortunes…in this we have the true antidote for the temporary unequal distribution of wealth, the reconciliation of the rich and the poor−a reign of harmony” (Carnegie, 54). Carnegie does not particularly consider inequality a problem. He understands that in order for wealthy to facilitate the lives of the poor, there must be inequality to establish status, but he also discerns that by helping the poor they are given a chance to reach equality. In fact, Carnegie says, “Individualism will
The Nobel Peace Prize is a prestigious grant awarded to those who exemplify the pursuit of peace and coexistence of all races and cultures. The prize was created after the death of multi-millionaire and inventor Alfred Nobel who amassed a great fortune through the creation and manufacturing of dynamite for use in transportation, farming and building (Kushner p. 444 – 45). Alfred was criticized, however, for his invention due to its application in war. He must have taken these criticisms harshly for on his deathbed Alfred asked those around him to use his great wealth to create five individual prizes to be awarded to those who have promoted great progress in the fields of science, literature and peace (Kushner p. 444 – 45). Previous winners of the prize have been: the Doctors without Borders organization in 1999 for their charity medical treatment in impoverished countries and for speaking out at times when medical relief is not enough to end suffering or save lives, and, individual winner, Martin Luther King Jr. in 1974 for his work in ending oppression in America and elsewhere through public speaking (Kushner p. 444 – 45).
prize in 1952 and the Soviet Lenin Peace prize in 1958. Du Bois joined the
endorsed in the Wealth of Nations that epoch-making publication remains as perhaps the most famous economics book of all time. Governments in search of a strengthening of their states through economic policy, and many individuals in search of personal gain, have all drawn lessons from its pages. Powerful movements that led to the emergence of Modern Capitalism were substantially based on Smith's work and hence he deserves to be
A penny saved may be a penny earned, just as a penny spent may begin to better the world. Andrew Carnegie, a man known for his wealth, certainly knew the value of a dollar. His successful business ventures in the railroad industry, steel business, and in communications earned him his multimillion-dollar fortune. Much the opposite of greedy, Carnegie made sure he had what he needed to live a comfortable life, and put what remained of his fortune toward assistance for the general public and the betterment of their communities. He stressed the idea that generosity is superior to arrogance. Carnegie believes that for the wealthy to be generous to their community, rather than live an ostentatious lifestyle proves that they are truly rich in wealth and in heart. He also emphasized that money is most powerful in the hands of the earner, and not anyone else. In his retirement, Carnegie not only spent a great deal of time enriching his life by giving back; but also often wrote about business, money, and his stance on the importance of world peace. His essay “Wealth” presents what he believes are three common ways in which the wealthy typically distribute their money throughout their life and after death. Throughout his essay “Wealth”, Andrew Carnegie appeals to logos as he defines “rich” as having a great deal of wealth not only in materialistic terms, but also in leading an active philanthropic lifestyle. He solidifies this definition in his appeals to ethos and pathos with an emphasis on the rewards of philanthropy to the mind and body.
A wealthy person, with the desire to do well with their fortune, could benefit society in a number of ways. Carnegie has verbally laid a blueprint for the wealthy to build from. His message is simple: Work hard and you will have results; educate yourself, live a meaningful life, and bestow upon others the magnificent jewels life has to offer. He stresses the importance of doing charity during one’s lifetime, and states “…the man who dies leaving behind him millions of available wealth, which was his to administer during life, will pass away ‘unwept, unhonored, and unsung’…” (401). He is saying a wealthy person, with millions at their disposal, should spend their money on the betterment of society, during their lifetime, because it will benefit us all as a race.
helped create the new economy of capitalism with his book, "The Wealth of Nations", countries
Marx observations of society led him to the realization that the people work every day for a poor salary; while the people they are working for, get wealthier. This created a ...
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
Imagine being a black individual living in a South African society where whites thrived in numerous aspects of life while those who were colored were treated very poorly and inferior. This would have been the current situation in the country if it wasn’t for one individual who completely turned the entire nation from a place of inequality and injustice to a land of prosperity and hope. This person was able to suffer through racism, which included being wrongfully imprisoned for nearly 27 years, to ensure that his country would someday view everyone as equal regardless of their skin color. This person, who utterly reshaped the entire nation of South Africa for the better of colored individuals, was Nelson Rolihlahla Mandela.