Bastobota without reality chara

After walking for long hours, two travelers, seeking relief from the heat of the mid-day sun, took shelter under a leafy tree. They soon felt cool and refreshed. “What sort of tree is this? Does it produce seasoned fruits?” asked one of the travelers to the other. “It’s a plane tree,” said his companion. “Don’t waste your time looking for fruits. It produces neither fruits nor good wood. It’s one of the most useless trees around.” 

“How can you say that when you’re enjoying my shade at this very moment?” snapped the tree.

Moral: Often, a person’s worst critics are those who have benefited the most from him.

Shadakalo digs into the New Nation claim and separates the Shada from the Kalo. Shadakalo confirmed, - "15 senator" letter is genuine. New Nation is Lying. SalamDhada and Mash played their part on finding the fact. I expect an explanation from the New Nation as their attempt is now well exposed. 

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15 US Senators cared enough to save democracy in Bangladesh; reports BDNEWS. How nice of these 15 people. They sent a letter to Caretaker Head Fakruddin Ahmed saying "promptly lift the state of emergency and restore full civil and political rights to all citizens of Bangladesh". The letter dated 14 May 2007 also said, "Announce within next two months a roadmap towards free and fair elections to be held as soon as possible with inputs of the political parties and civil society leaders so that democratically-elected government can be restored as soon as possible". The names include Hillary Clinton, Joseph Biden, John Kerry, Joseph Lieberman.

The names. Big names. Future Daddy/ies and Mummy. BAL and BNP leaders are happy. Very happy. Ex-World Bank dude will not ignore this call, will he? Can he? Sneak-ludu playing days are over. It’s the time to Disco. Shadhinota elo bole. Freedom to ruin the country ones more. O well, some are in their early sixties, maybe the last time. Last time to say the beautiful words. Beautiful words like “Amader Shorkar”. Words like  “Agami kaal desh bapi Hartal”.

Beshi Beshi Fn’F, shobai khushi; Kotha hoi jone jone beshi beshi. Desh Desh Desh, BAL o BNP r’ desh, US senator der nei doroder shesh.

UPDATE:

1. Bangladesh's former prime minister Begum Khaleda Zia cancelled a plan to fly to Singapore on Wednesday after a charge of extortion was filed against her son Arafat Rahman. Amar ja obostha, ja korar, bojhe shune kori.

2. Law Adviser Barrister Mainul Hosein said Bangladesh has to solve its problems on its own, rather than listen to the foreigners. It is up to the foreigners how they realise the problems of Bangladesh, he said. Mr. Barrister, do remember your stand on foreigners, the time you send Mr. Iftekhar Chowdhury or other well mannered people to beg foreign aid (this thing for its unique characteristics, only come from the foreigners). Ami jare chai re, tare jeno peye o na harai re.

3. The New Nation reported 'Letter to Fakruddin from 15 US Senators Fake'. Several of the US senators' offices have confirmed that no such letter was sent to the Chief Advisor of Bangladesh. Man, this has gone out of control. What next? This better not be one of Mainul Hosein's awful tricks.

Bangladeshi blogosphere got fired up.

Articles, comments and advises are floating like Tsunami for the last three days and all for good reasons. For a moment, it became inevitable that writing in blogs is not that ‘a small gig anymore’ – it can smash the government and get notify by the extreme rulers. The support and concern the bloggers showed regarding Tasneem Khalil issue is the greatest asset for any blogger. Time will tell us whether the ‘Tasneem Khalil issue’ was a gimmick or a typical military act; one thing is for sure – we all are united and will try to defend ourselves as long as freedom-of-speech is concerned. Bangladeshi pioneer bloggers including SalamDhaka, Rezwanul and international human rights watch covered the news with intensity while the Bangladeshi TV channels and newspapers totally failed to cover the incident on time.

Intentions of maintaining blogs and posting comments in forums / blogs / newspapers differ but one common thing that ties up everybody is that a thinking progression is on. Bloggers are continuously updating events and analyzing in a unique manner that is missing in the printed and electronic media. Bloggers take their stand on different issues and start debating – a wonderful thing this is. It is however shocking to read slang and threats in the blogs as much it is shocking to realize that blind supporters of a particular community is still favouring ‘dynasty politics’ and corrupt politicians in the name of human rights and democracy.
Bangladeshi blogosphere got all fired up right after some bold decisions taken by the current caretaker government; bloggers showed amazing skills in analyzing the situation. What's right is not what's popular and vise versa. ‘January 2007’ government made it absolutely clear from the day one that it wants to purge the nation out of corruption by any means. That seemed its first agenda; the course is still on with some hilarious decisions in-between. Bloggers pointed out the loopholes, gave advices and suggested a better route. In the process, some rent seekers plugged-in their thoughts for obvious future benefits; and that is of course in the name of freedom-of-speech and so called democracy which they do not practice even in their social life, to be exact.

Lack of transparency is never a good sign and the current government is guilty of this for sure; but only as much as the democratic parties were during their rules. Democracy in Bangladesh always worked as a dictatorship of the majority. BNP and BAL did not practice democracy for a single day; they used it for personnel benefits and brought the nation to a complete standstill whenever they desired. There is no significant deference between the ‘January 2007’ government and democratic regimes of 1991, 1996 & 2006. All of them came to power with support from the Cantonment dudes, to be precise. Both BNP and BAL ‘on the regime / off the regime’ got away by massive destructions only because the majority remained with them; and now this caretaker government is trying to clean up the mess as most of the Bangladeshis want that to happen but creating few more confusions in the process without realizing it. If, due to present consequences, Bangladesh is better-off after five years from now, Dr. Fakhruddin Ahmed along with his band of brothers (snobby educated advisors and Cantonment dudes) surly will get praise by the bloggers and the history. If they fail for their ill decisions, the history itself will punish them ruthlessly. Failing to bring stability and calm however leave with two options - one more caretaker government backed by another bunch of ambitious Army officers or Army all by itself – the last thing Bangladesh needs. Cantonment dudes are no saints and there is no reason to trust that they can bring stability though the current military leadership tried to impose the idea that it intervened and formed a new set of advisors to save the country as it was going towards a turmoil - half truth really. The top generals were challenged and took action only at the point, where they almost lost the power game to their next line. They intervened just to retain their positions; bringing stability in Bangladesh was the second thing in the list, as it has always been; may it be part of a democratic regime or an autocratic one.

Role of the Bangladeshi bloggers are quite huge now, as is seems that the rulers and their backbones do read blogs with passion. Instead of criticizing the government in an abusive manner, we must take a stand to suggest our views accordingly for the betterment of the nation. If some bloggers still believe the existing BNP and BAL leaders can direct Bangladesh towards a bright future, they must be having a good reason for it; a wrong good reason that is.

Pohela Boishakh. Start of a New Year.

Every New Year brings new inspiration to mind; muche jak glani- lets hope for a progressive new year which will dissolve all melancholy, misery, confusion and uncertainty from our social and political affiliations. To join in the party, not only the Bengolies celebrate a New Year on 14^th April; Cambodian people on the same day rejoice their own Khmer New Year - a common event by the two Asian culturally enriched nations.

Ki ache kopale?

As always, the coming year holds answers to some key questions. Will Bangladesh Cricket Team provide us any more joy in the world cup? Will the Army Jomidars head towards a democratic rule or end up like their predecessors? Will Dynamite prize winner Dr. Younus show any new magic? Will Khaleda Apa and Hassina Apa shape together to fight the interim government? Will Jamatul Mujahidin Bangladesh carry out new attacks (they already shot dead the prosecutor who carried out the case against six hanged militants)? Will Barrister Maudid change his platform again and join Dr. Younus? By the end of the year, most of these questions will find a shape.

Ekhon ki r she e din ase? Din Bodlai se na!

Bangladeshis have been fortunate enough to observe two autocratic regimes and two democratic ones; not to forget interim governments in-between. None were good enough so search begun for a new one. I hope the coming year gives us the pleasure of having a new political system or a major political party. It is however too early to judge the current government and its style of getting things done. They must be given some time to show, what they are made of, what their intentions are and how they are different from other rulers (starting from Shashanko). People who try to judge them now, are doing it for the sake of doing it or they are directly or indirectly got some hammering.

A proposition-

Eid-ul Azha and Eid-ul fitar are the two major occasions in Bangladesh, I guess. Hindus have their own pujas, so does Christens and Boddas. As Pohela Boishakh is the common platform; Bangladeshis should celebrate this one as THE MAJOR occasion. We can have three days national holidays here and cut down all the religious holidays to just one day.

Ayman Faruq Choudhury-

My son Ayman is celebrating his second Pohela Boishakh. He was just five days old on 14^th April 2006. This year, he got his first Fotuwa, first lungi. He was having dress rehearsal last night. He tries to cope up with the complex dimensions of lungi without much luck. Lungi drops down; he gives a bashful smile; his mother rushes to the spot, puts it back; Ayman runs to his Dadi; in the meantime, Lungi drops down again!         

Eat it if you deserve it-

Many resulting matters are linked with the Pohela Bouishakh. Some of those have become obsolete while some still exist in certain special regions only. One heritage that has been limited in the town boundary now-a-days is the ‘Panta with hilsha fish and green chili’ eating events. Well, only for the wealthy and semi wealthy people can effort it now. Enjoy. Rest, enjoy it on the national TV.

Shubho Noba-Borsho to all. 

Bangladesh's number one air time service provider Grameenphone is at the centre of a row between Norway's Telenor and ‘Dynamite prize’ winning academic Muhammad Yunus bhai. Telenor wants to float some Grameen shares on the Bangladeshi stock market, rejecting calls to sell part of its 62% stake to its partner, Mr Yunus. Yunus bhai wants to take control of the firm, saying this will ensure that the firm works as a social enterprise.

Grameen Phone recently changed its logo and the overall outlook from 'red-green' to more Telenor based blue. Gram gram bhab ar nai er modhe. More over, 'the women with a goat at her lap' image is no more. 

Grameenphone employs 5,000 staff while 12 million people use its phones. Its success however has been clouded by an increasingly bitter dispute between Telenor and Mr Yunus, whose efforts to help lift Bangladeshi families out of poverty earnt him the 2006 Nobel Peace Prize. Mr Yunus, whose Grameen Bank offers small loans known as "micro finance" for community projects, wants to increase its subsidiary Grameen Telecom's 38% stake in Grameenphone. The company has offered $427m to buy an additional 13% stake from Telenor, which would in effect give it control of the business.

Mr Yunus, the 'would-be President' of Bangladesh accused Telenor of reneging on a 1996 agreement which he says required it to give up control of the business in 2002. Speaking recently in Oslo, Mr Yunus said he was "disappointed" by Telenor's attitude, suggesting its efforts should be directed towards entrenching the social and cultural benefits that mobiles bring, not merely extending phone ownership. Younus Bhai feels the need of Bangladeshis very well and wants the best deal for the poor / semi poor / slylish poor people of Bangladesh.

But Telenor has insisted there was no legal agreement on the future ownership of the business. "The demand for the company's conversion into a social enterprise has no basis in reality," said Telenor's deputy chief executive Arve Johansen.

It has also argued that Grameenphone's strong growth would not have happened if Telenor had not invested significantly in its development between 2001 and 2003. By floating its shares on the stock market, Telenor believes more Bangladeshis will be able to have a stake in the firm's success. It says the move will also fund valuable new services for the poorest people, such as medical and financial information delivered via mobile phones.

Younus bhai to etodin grame'r manusher bhalo dekse, now he is fighting a corporate battle. Different approach is required. I am sure he has that. Mukh dekhe to ar uni ‘Dynamite prize’ pai nai.

India is considered as a fast moving economy with good potentials in human development and massive industrial advancement. Despite this economic achievement, desperate farmers in some region s of the country are committing suicide with the hope of getting relief from their enormous debt and ill-fated life. It's gradually turning into an epidemic in India, where farmers find themselves trapped in a vicious cycle of poverty with frequent drought and but on the other hand the outside world sees India as the next Asian Tiger.

Since 1997, more than 25,000 farmers have committed suicide across the country, many consuming the chemical that was supposed to make their crops more productive. Machinery, chemical fertilizers, pesticides, and hybrid seeds , all of which originated in the West, on the contrary spell disaster here rather than prosperity as Indian farmers witness the other side of globalization very closely. The tragedy unfolds largely from crop failure, drought, pests, and pesticides that small farmers don't have the means to face. The tendency is higher in Warangal District of Andhra Pradesh which is a suicide belt consisting districts of Andhra Pradesh and Karnataka. Apart from this region, Royalaseema, Anantapur, Vidarbha area in East Maharashtra and in certain other districts in northern Karnataka also face the tragedy.

The government of India has taken decisions on macro-economic policies, approved plans for big dams, ports and roads, established Social Economic Zones, cut taxes on computer accessories, and undertaken big development projects. But these farmers got very little benefit from the government , as for they do not get what they actually need and deserve. The modest list of government's response includes free electricity for agriculture, waiver of electricity dues and Rs.150, 000 as financial assistance for the relatives of the farmers who committed suicide in 2006 is in no way to redress the problems of the farmers.

Government support price for the farmers is too low; a recent study done by the Government of Andhra Pradesh reported that more than 55 percent of the farmers are not getting the 'Minimum Support Price'. For instance, In Anantapur district, about 90% of the holdings are small and marginal. They are under immense pressure owing to the vagaries of market and non-institutional forces that control credit and output. Most of the farmers are very much tied in the hands of the traders and middlemen who often take advantage of their poverty and desperation. This depresses the price that farmers should get for their output. Additionally, cost of cultivation has increased manifold since 1990s. In 2006, the government-sponsored cotton marketing federation purchased 13, 00,000 quintals of raw cotton from its 100-odd procurement centres, while the private traders have purchased 68,00,000 quintals till December 31. On the other hand, farmers in the region have produced over 220,00,000 raw cotton only in 2006. Poor farmers sometimes look for a helping hand from the agricultural or commercial banks; but these institutions give loan at very high interest rates and ask for collateral, which the farmers fail to produce.

Several non-governmental organizations including banks, research centers are trying to implement strategies aiming at increasing these farmers' income by 3 to 4 times through better co-ordination and synergizing the available resources. They through several studies found out that the government apathy, the absence of a safety net for farmers, lack of finance and lack of access to information related to agriculture are the major causes for the desperate condition of farmers.

Less expensive, lower-risk organic farming methods might offer a solution for the cotton-growing crisis in India. But without a change in agriculture policy and practices, thousands more Indian farmers are likely to continue to take their own lives.

'Fastest growing free market democracy' a slogan that the Indians use to glorify them is not implacable for most of the Indians; 44% of the population still lives below the international standard of $1 per day, and as many as 86% live below $2 per day. It is probably necessary for the policy makers to go into the depth of the problem with an open mind and search for a genuine solution. More public and private investments in the rural areas along with introduction of micro-credit could be considered as a long term solution. Lowering interest rates will also be important to make cheaper credit available. Side by side, the government should take steps to make fertilizer, pesticide and seeds easily available to the poor and really deserving farmers. Free counseling to handle the problems and educating the farmers in modern methods of cultivation would definitely restore confidence among the farmers, which in turn would reduce the frustration among them. 

The unleashing free-market and capitalist forces deepened the gap of inequality between capitalist and worker, rich and poor, across the globe and as well as within the national boundaries. Though most of the rich countries enjoyed a strong economy with low levels of inflation and unemployment; the strong economy, however, has not resulted in a steady rise in income for all group of people. Several economic reports indicate that inequalities of wealth ownership and income are accelerating in all parts of the globe. Wealth inequality now reached at a monstrous level. Worldwide, the richest 1% owns over $515,000 of assets each (property, shares, cash, etc) which is 40% of the world’s wealth, totaling $125 trillion.

The richest 10% own 85% of the wealth, while the bottom half of the population (50%) own only 1.1% of global wealth. Globalisation, is a phenomenon that is said to bring positive change for everyone; yet there are over 1,000,000,000 people struggling to survive on less than $1 a day, most of whom live in the Africa and Asia. Most of the ‘super-rich’ people are footed in the USA, Europe and in few Asian countries including Japan and South Korea, and few more elites are growing in many of the developing countries as well.

Acceleration of inequality is taking place for a century or more. In 1913, per capita GDP (total national output divided by the population) was 22 times higher in the rich countries than that of the poorest countries. By 1970, it was 88 times higher. But after globalisation began to accelerate in the early 1980s, the gap widened severely; in the early twenty first century GDP in the rich countries was 267 times that of the poorest countries. Inequality within the poorer, developing countries also increased at in the 80’s and in the 90’s. China, for instance, which has experienced growth of over 9% a year, is one of the most unequal countries in the world. The average income of the bottom 20% of the population is less than 5% that of the top 20%. Luxury sales are increasing in Russia, China and India because of a growing wealthy class, but at the same time the poor in those countries dies in hunger.

In the mid-1970s, the most affluent 10 percent of Argentina's population had an income 12 times that of the poorest 10 percent. By the mid-1990s, that figure had grown to 18 times, and by 2002, the income of the richest segment of the population was 43 times that of the poorest. In contrast, in 2005, average Canadians had earnings of $38,010, compared to the $9 million average salary earned by the top 100 CEOs. The lowest-paid CEO took home a mere $2.8 million, while the top-paid raked in a whopping $74 million.

Big retailers like Primark, Asda and Tesco claim they have a 'living wage' policy and uphold 'ethical standards' for workers overseas; yet they are supplied by subcontractors who, in Bangladesh and in Pakistan pay workers $0.50 an hour. A living wage would be about $45 per month, while most workers earn only around $20 a month for a 60-hour week.

A study by the World Bank’s Independent Evaluation Group showed only eleven countries experienced reductions in poverty, marginal at best, while 14 had the same or worsening poverty rates over the last five years despite the bank’s extensive poverty reduction efforts. In China, Romania, Sri Lanka and many Latin American and African countries, fast expanding economies improved incomes of many, but benefits were limited by an instantaneous increase in economic inequality, putting most of the benefits in hands of the wealthy people and not enough in the poor households.

Building more open political and social institutions to allow the poor and historically subordinate groups, such as Afro-descendants and indigenous people, to gain a greater share of agency, voice and power in society may reduce the income inequality in the developing countries while protecting and enforcing the property rights of the urban poor is another way on minimizing the gap in the poorer countries. Different approach is required for the rich and wealthy countries such as progressive taxation and efficient income distribution.

There is no single factor behind the increase in income inequality. Growth is a lucrative term in the economy and in most of the cases comes along with the income inequality. If the real incomes of society's poorest people are rising but not as quickly as are those of society's wealthiest people- everyone is materially better off even though income inequality is on the rise. Challenge is to minimize the gap. Achievement so far is way below then the expectations.

The term ‘Sharia’ refers to the body of Islamic law. It is established as the legal framework within which public and private aspects of life are regulated for the citizens living in legal system based on Muslim ideology. Sharia law includes many aspects of day-to-day life including economics, banking, politics, business, contract, sexuality and related social issues. In countries, where Islam dominates in the political atmosphere, the Sharia law plays an important role in the domestic judicial fields such as family and inheritance; and in many cases it the political strength that forces the Muslim population to endeavor the Sharia law apart then their believe towards such system.

Sharia is primarily meant for all Muslims, but applies to a certain extent also for people living inside a Muslim society. Muslims however are not bound by the Sharia when they live or travel outside the Muslim world. Human right activists (including the European Court of Human Rights) consider the punishments prescribed by Sharia law as being barbaric and cruel. They also indicate that Sharia law is biased towards male population and females are deprived from many aspects of life in this system.

Sharia Law becomes ‘somewhat obligatory’ for the Muslim world simply because the primary sources of Sharia are the Qur'an and Sunnah. The other source of Sharia law remains the Ijmas; which are the rules developed on the basis of debate and subsequent consensus among religious scholars and the Muslim community as a whole. The process of constructing Sharia, however, evolved through time and through the efforts of Muslims around the world. Muslim scholars in the first two centuries of Islamic emergence had their due contribution in forming this as well. Muslims also imply qiyas, a kind of reasoning that uses analogies to apply precedents established by the holy texts is some cases. No confusion should arise in mind whether Sharia is compulsory or not; as there are fine lines between what needs to be done as a Muslim and the laws that are implemented by the Sharia. Implement of qiyas also draws the line between Qur’an’s instructions and reasoning current situation in hand. Had governance by a Sharia based state been compulsory in Islam, clear instruction by the Qura'n and by the Prophet must have been there. The Prophet never instructed such system as compulsory; not even in his sermon during the last Hajj. Traces of many non-Muslim juridical systems, such as Old Arab Bedouin law, commercial law from Mecca, agrarian law from Madina, Roman law and Jewish law are present n the Sharia law which makes it well diversified but not compulsory.

The historical pattern of Islam indicates that when a nation gains a sufficiently large Muslim population, it begins to agitate for Sharia law to be implemented. Implementation of Sharia law is deferent is deferent societies / countries; popularity varies with this notion as well. Most Muslim countries included traditional Sharia law into their legal codes, especially in personal-status law, which governs marriage, divorce, and inheritance. In other areas of the law, such as the criminal code, most Islamic nations have attempted to limit the application of traditional Sharia law, replacing it either with secular legislation or with laws characterized as modern interpretations of Sharia. Iran and Saudi Arabia are exceptions to this who claim to fully implement Sharia in all areas of the law. Some Islamic nations such as Jordan, Kuwait, Pakistan and Yemen also have certain criminal laws which reflect traditional Islamic practices. Several countries with large Muslim populations, including Indonesia and Bangladesh have secular constitutions and laws, with only a few Islamic provisions in family law. Islamic banking and finance (largely based on Sharia law) however is rapidly expanding in Muslim world along with some of the stable economies around the world including Germany and Hong Kong. Financial brains are creating an industry that seeks to harmonize modern business practices and traditional Sharia norms. This system seems to be working fine and getting popular with the help of globalization.

Traditional Sharia law should not act as a copycat of the past and must be imposed with necessary updating. Once updated, Sharia might be very similar to existing laws of secular democratic countries.

CEC M.A. Aziz walks into the President Iaz Uddin’s office and sees the President cum Caretaker government head jumping and screaming in joy.

"What's the matter, Mr. President?" The M. A Aziz inquired.

"Nothing at all, bhai-jan. I just finished a jigsaw puzzle in record time!" The President said with a big smile.

"How long did it take you?"

"Well, the box said '3 to 5 Years' but I did it in a month!"

M.A. Aziz said, “You are a genius; BNP did the best by putting you in the caretaker head position. I am trying to solve the same since BNP made me the Chief Election Commissioner. I had to take a medical leave for a week or so, just to concentrate on the puzzle. Still I am unable to solve it!”

Things I read recently:

 
UK universities own £15 million in arms shares

The UK's universities own shares in the arms trade worth over £15 million, according to figures obtained under the Freedom of Information Act. 45 universities and university colleges have admitted that they own shares in at least one top arms company. Three institutions - UCL, Trinity College Cambridge and the University of Liverpool - each hold arms shares worth over £1 million.

Myanmar, the world's landmine capital

Myanmar contains along its insurgent-contested international borders some of the most heavily landmined areas in the world. Russia, Nepal and Myanmar are the only three governments that admit to still using anti-personnel mines, of which Myanmar's military is the most extensive user. Casualties from landmines average about 1,500 per year in Myanmar, most of them civilians.  

Learn from the big Apple

“Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”

China and India: Room for Reform by Diana Farrell

Mention Asia's economic powerhouses, and the first names that jump to mind are China and India. The two countries have made immense strides in recent years, but they can't sit back and enjoy their success just yet. New research by the McKinsey Global Institute (MGI) highlights the shortcomings of their financial systems. To address these, Beijing and New Delhi need to keep up the good work and continue to introduce rapid reforms.

In China's case, must-do reforms include deregulating interest rates, boosting competition in banking, and improving lending and risk management. Beijing also needs to develop its corporate bond and equity markets and speed the setup of an electronic payments system. Together, these changes could boost gross domestic product by $321 billion a year. In India, financial system reform, coupled with further economic liberalization, could add $48 billion a year to gross domestic. This would increase per capita income levels by a third and raise the country's annual growth rate from the 6.5% forecast now to 9.4% over the next 10 years—thus matching China's rate of expansion.

Study: Office Bullies Create Workplace 'Warzone'

Bigger Brains Make Smarter People

Why is a Credit card expensive?

854 million still go hungry

St. Louis named most dangerous US city

Muhammad Yunus makes no apologies for giving nothing to beggars. But Yunus's philosophy is to help the poor to help themselves: give a man a fish and you feed him for a day, but only by teaching him how to fish, you feed him for life. This man, Bangladesh's 'banker to the poor' w0n the Nobel Peace Prize this year. He is sharing the prize with his founded organization Grameen Bank

The Nobel committee says Mr Yunus, 66, and Grameen Bank have been chosen "for their efforts to create economic and social development from below".

The economics professor set up Grameen in 1976 to give credit to poor people in Bangladesh, especially women, enabling them to start up small businesses without collateral. The success of Grameen, which means village and Mr Yunus' banking concept has been emulated in more than 40 countries by now. The prize of $US1.36 million will be handed out in the Norwegian capital, Oslo, on December 10.

The economics professor is seen as one of the main developers of the concept of "microcredit," which gives entrepreneurs who are too poor to qualify for traditional bank loans very small sums to start up their own enterprises. Borrowers used the loans to buy their own tools and equipment, cutting out the middlemen and transforming their lives through self-employment. Grameen Bank recovers nearly 99 percent of its loans even though borrowers need put up no collateral and pay a 20 percent interest rate on income-generating loans, which are always for one year.

Borrowers from Grameen Bank own 94 percent of the equity of the bank. The remaining six percent is owned by the Bangladeshi government. Yunus defies critics who say his bank makes loans that are too small and too expensive, and insists he is not waging war on the rich, just helping the poor.