Learning about the Virtuous Circle

My primary purpose to go on this internship was to learn more about micro-financing and its impact on women empowerment and poverty. From my experience I have gathered, the poverty level in Bangladesh has been improving, although it is still a widespread epidemic, initiatives have been taken to remedy this. It is amazing to see women in the villages standing up for their families and helping alleviate the problem of poverty in their lives. In a patriarchal society it is difficult for women to work but Grameen Bank has helped repair this notion. Through this internship I learned more about micro-financing

This past winter break has been one of the most memorable times of my life. I was given the opportunity to intern at Grameen Bank in Dhaka, Bangladesh for a little over two weeks. However none of this would have been possible without the help from the OCES office and CEG grant. My main focus was to learn more about micro-financing and its impact on women empowerment. The experience went above and beyond and opened my eyes to a whole new world. I have never been put in the situations I was placed in and it has helped shaped what I want to do in the future after graduation.            

Both my parents are Bengali and I was born in raised in America, so I rarely visit Bangladesh. I grew up speaking Bangla, so going on this internship I had a huge advantage. I have only been to Bangladesh about four times prior to this trip and each time, I resided in the main city where I was sheltered from the rural areas. When I went this winter break, it had been four years since my last visit but I was ready to embrace the culture all over again. Growing up in American and learning the traditions, is different from actually going and experiencing it. The first day of my internship, I was very nervous as getting past security became a difficulty but in the end all was well. I first got to meet the general manager and we had tea, which I quickly learned was a custom. Whenever I visited a branch during the duration of the trip, I was always offered tea, even at the houses of the borrowers. It was rude to decline, so I had a lot of tea on this trip! After meeting the manager I got to meet my own coordinator that would be in charge of me during the internship. I was amazed that there were so many international students there! There about thirty other students, five which were American. Everyone was around the same age and so we all got along well. This was such a cultural experience because I met people from all across the world, literally. My group made the internship very memorable and the experience exciting.

My internship compromised of several steps. The first day was an orientation and we had to watch a number of videos and tutorials to get acquainted with how Grameen functioned. We learned about the founding of Grameen Bank by Dr. Muhammad Yunus in 1976 in the village of Jobra with only a mere $27 US dollars. Since then, Grameen Bank has evolved into an enormous entity that has been helping put an end to poverty and has to this date dispersed more than $8 billion US dollars. The bank functions on the basis of micro-financing and provides micro-credit loans that are free of collateral to the poor, in an effort to better their lives. Grameen Bank functions on the following objectives: extend banking facilities to poor men and women; eliminate the exploitation of the poor by money lenders; create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh; bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves; and reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income".[1] 

The methodology utilized by Grameen Bank is the reverse of conventional banking. Conventional banking makes it difficult for the poor to obtain a loan because they have nothing to offer. However, Grameen Bank is based on an understanding of mutual trust and doesn’t require any type of collateral. Grameen Bank is best known for its solidarity lending, which is where small groups borrow money collectively and encourage one another to pay.[2] Solidarity is an important basis of microfinance and is practiced successfully in over 43 countries.[3] Each individual that wants to borrow must be part of a five member group but the group is not held responsible for giving any guarantee for a loan to its member. Repayment is left to the responsibility of the individual borrower and the group is there to ensure that things are under control. There is no joint liability and no one is held responsible if one member is unable to pay. There is no legal document between the borrowers or Grameen Bank and all transactions are based on a bond of trust.[4]

When I first came to Grameen Bank I had no idea what micro-financing really was, or for that fact, how it even functioned. This internship has allowed me to grasp a better understanding of the inner workings of Grameen Bank and how it is really making a change in the lives of many poor and impoverished individuals. The first day trip we took to Khaliakur was the first exposure I had to the villages of Bangladesh. We attended a centre meeting and I finally was able to put a number of faces to the name of Grameen Bank. I watched as the branch manager introduced my group and myself to the group of ladies. They were all very curious and shy at the same time. We each took turns introducing ourselves and giving a brief background of where we were coming from. When it was my turn, I started speaking in Bangla and you could hear the initial shock and gasps from the ladies because they were unaware that I was actually Bengali. The branch manager then explained the whole process of how the groups and centers are created and what a group is comprised of. It was nice being able to communicate and ask the center questions. It was even more interesting when they started asking us questions as well! Afterwards, we visited a borrower’s house and did a case study. Her name was Jorna and she welcomed us into her home with open arms. We sat and did a casual interview and learned about her sewing business and how she came to be where she is because of Grameen Bank. The trip to the village was very interesting because I got to experience micro-financing first hand and actually see what I have been reading in books and articles all this time.

The weeklong trip to Feni was quite memorable as well! The branch we stayed at was very accommodating and friendly. They immediately immersed us into their family and treated us as a part of the Grameen family. The first day we sat with the manager as he gave us the entire story of Grameen Bank, right from the very start! He explained the several types of loans they give out, such as the basic loan, micro-enterprise loan, house loan, higher education loan and struggling member loan. He went into great details to provide us an accurate picture. He also went over how to form a group and a center and what a group was comprised of. He then went to explain scholarships amongst many other great things. We also got a chance to meet the entire staff and learn their position in Grameen Bank. The first night was full of information which I took detailed notes of so I could share with people. The second day we visited a village called Rooheya and went to the centre meeting. The ladies were very welcoming and shy like our other village visit but were quick to warm up. They were full of questions. We asked them many questions as well. The best part is always being able to visit the homes of the borrowers and hearing personal stories. We visited two homes and did a case study on each and learning of the different types of loans each woman took and its affect on their lives. The third day we did the same thing and visited another village by the name Aziev Bhag and attended a center meeting followed by home visited. We then visited the home of a girl who received a scholarship and is attending university. It was such a splendid experience! Sitting there and talking to someone around the same age as me and the other intern and getting to learn how Grameen has been such a huge impact in her life. The family was very welcoming and it was a pleasure being able to visit them. I won’t forget them; they left a lasting memory in my mind. The next day we visited stores that belonged to borrowers and saw things first hand. We then did a final overview and met the area manager. The trip to Feni was very memorable and an experience I will never forget. The hospitality of the branch and the members we met were immeasurable.

Interviewing the women on this trip was incredible. I never knew how big an impact micro-financing had on their lives. These women came from nothing and made a living on their own skills. Many of the women sew clothes and others have cattle business. Some also run a car service which I thought was neat. In a patriarchal society, they are taking the initiative to change their lives. Hearing the stories was heartwarming and at times, I teared up. A number of these women lost their husbands however they are still successful and standing on their own feet. They have stable homes and are able to send their children to school. It’s remarkable how determination can change your life. These women were an inspiration to me.

Through Grameen Bank, women have been empowered to take stand for themselves and bring their families out of poverty. Not only have these women taken themselves out of poverty, but created a different lifestyle. One of the main components in taking out a loan is that the women have to take a oath known as the “16 Decisions”. These are goals that have been laid out by the foundation and express things such as stopping the dowry problem and promising to send both boys and girls to school. These goals have helped better the lives of not only the women, but their families.

Looking back at this internship, I have realized that I have learned more than I expected. Being a Bengali born and raised in America and being able to hear such great things about my country and coming to see it first hand, was extraordinary. I had a wonderful time working with such a diverse group of interns and hard working members of Grameen Bank. Everyone I met was open-minded and always available to answer any questions I had. They went out of their way to make sure we got the ultimate experience and achieved what we came to achieve in this internship. I have found a place for Grameen Bank in my heart and look forward to going back to American and visiting the Grameen Foundation in Washington D.C. since I only live 20 minutes away from it. Grameen Bank has opened my eyes to the wonderful aspects of micro-financing and the things it can do for the country of Bangladesh.