CGD in the News

Yunus Forced from Bank. How Will It Affect Microfinance? (Marketplace)

March 04, 2011

David Roodman was interviewed on Marketplace about Muhammad Yunus and microfinance.

From the Article

Kai Ryssdal: There was a big shake-up today in the world of microfinance -- the business of giving tiny loans, generally to poor people in developing countries. Muhammad Yunus, Nobel Peace Prize winner and a pioneer in the field, is said to have been ousted from Grameen Bank, the microfinance bank he founded 30 years ago.

David Roodman is a senior fellow at the Center for Global Development. We've called him up to get some insights into this. David, good to talk to you.

David Roodman: Great to be here.

Ryssdal: So what has happened in Bangladesh between Muhammad Yunus and the government?

Roodman: Well a rumor went out today that Muhammad Yunus had been fired, which technically is not true because the only people who can really fire him are the board of the Grameen Bank, and they don't want to do that. But it's clear that the government wants to get rid of Yunus, and I'm thinking increasingly that they will succeed.

Ryssdal: Why do they want to get rid of him? He is, you could fairly say, the founding father of microfinance.

Roodman: Well for the prime minister of Bangladesh, Sheikh Hasina, this is a serious political game. She comes from a long, established, political family with a brutal history. And she sees Muhammad Yunus -- because of his fame and stature -- as a potential rival.

Read the Transcript