If you have any interest in micro-financing, or want to learn more about a bottom-up approach to combating world poverty, this is an important book for you to read. In 2006, Muhammad Yunus and the Grameen Bank of Bangladesh received the Nobel Peace Prize for “their efforts to create economic and social development from below.” What began in the mid-70s with a simple $27 loan to a group of impoverished women later became the Grameen Bank, whose microcredit model has now spread to over 100 institutions in over 50 countries worldwide. Most of the Grameen Bank’s loans are to women, and since it was officially formed in 1983, there has been an astonishing repayment rate of over 98 percent.

When reading this book it is interesting to track Yunus’ formulation of policies as he felt his way forward by visiting with families, talking with those within his target group—the poorest of the poor—and making decisions based on his experiences. “The idea behind the Grameen Bank is ingeniously simple: extend credit to poor people and they will help themselves. This concept strikes at the root of poverty by specifically targeting the poorest of the poor, providing small loans to those unable to obtain credit from traditional banks” (from the Amazon.com review). It may surprise you to read that he does not require training or collateral before a loan may be secured. All the bank requires is that a person be desperately poor and have a reasonable business plan.

This is a fascinating book that is well-written and engaging. I highly recommend it to anyone interested in micro-finance.