Breaking rules of microfinance is Microcredit Summit’s new agenda

Monday, August 3, 2009, 19:51
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Sam Daley-Harris

Microfinance Focus, Aug. 4, 2009: Microfinance has evolved after Dr Muhammad Yunus decided to break the rules of traditional banking. “Now as microfinance is becoming a main stream banking system, we need to start thinking about breaking the rules of Microfinance,” says Sam Daley Harris, Director of the Microcredit Summit Campaign, in an interview to Jerome Peloquin, Managing Editor-US of Microfinance Focus.

Sam Daley-Harris is also founder of RESULTS, a grassroots organization that seeks to create the political will to end hunger and the worst aspects of poverty. He cited how Dr. Yunus broke all the rules of banking 20 years ago. “The Grameen model of microfanance was based upon breaking the rules… by violating traditional banking practice. If traditional banks lent to the affluent he would lend to the poor. If banks lent principally to men, he would lend mainly to women. If banks asked for collateral before making a loan, he would ask for none. If banks required people to come into a bank to get a loan, he would go to them to give out loans.”
He also recollected how at the conference sessions of the Latin America-Caribbean Microcredit Summit held in June 2009 voted for the title “Breaking the Rules of Microfinance to End Poverty”, when nearly 50 titles were submitted for selection.
Mr. Daley-Harris is the author of the book “Reclaiming Our Democracy: Healing the Break Between People and Government”, which former US President Jimmy Carter said, “(Daley-Harris) provides a road map for global involvement in planning a better future.”
Sam is currently leading phase II of the campaign to help boost the UN’s Millennium Development Goals for 2015 and includes two of its own new goals — reaching 175 million of the world’s poorest and ensuring that 100 million families rise out of $1 a day poverty, lifting half a billion people out of extreme poverty.
The next Africa/Middle East Regional Microcredit Summit (AMERMS) will be held in Nairobi, Kenya from April 7 to 10, 2010.

(Full interview will appear in Microfinance Focus digital magazine’s forthcoming August issue)

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2 Comments on “Breaking rules of microfinance is Microcredit Summit’s new agenda”

Nora Bali wrote on 3 August, 2009, 20:59
Wouldn’t this put us back exactly to square one at the rules of main stream commercial banking/lending; and hence have more difficulties reaching the very poor?

Would be interesting to read a bit more on the topic. Suggestions are much appreciated.

Many thanks!
chris macrae wrote on 9 August, 2009, 21:10
At YunusUni.com we are concerned with understanding the only system of sustainability investment I have ever been mathematically able to validate. It requires core rules not to be broken that both Grameen and BRAC prooftested in 1970s Bangladesh. About 99% of so-called MFIs blatantly break these rules though intriguingly Kenya’s and Africa’s star case http://jamiibora.org does not. Dr Yunus used the opportunity to speak at his Nobel prize to advocate that these same system rules can be designed as a social business around any life or sustainability critical community service. I assume he will similarly share this inspiring news with Obama this week. Moreover knowledge of this system’s rules can help rich nations from exponentially collapsing vital community systems. The question I have been debating for 32 months now since first meeting Dr Yunus is how to scale up awareness of this system’s pattern rules so that at least everyone knows we have a choice of end poverty futures – Yes We Can or Yes We Cannot.