Dhaka: A number of countries in the Middle East have launched microcredit schemes to fight poverty while others are likely to follow, Dr Mohammad Younus, the 2006 Nobel Peace Prize winner, told Gulf News here yesterday.
"Many countries in the Middle East have already accepted the Grameen Bank's microcredit concept while others are following," Dr Younus, who is also Bangladesh's first Nobel laureate, told Gulf News here. "Last year Jordan established its first microcredit institution, Microfinance Bank. I am a member of its advisory board along with Queen Rania, among others.
"I lend our expertise to expand the microfinance scheme in Jordan, which is going to help the poor in that country. Similarly, Saudi Arabia, Yemen, Egypt and others are also introducing the scheme as part of their poverty eradication strategy, although some countries are energy rich." Dr Younus, at a recent conference organised by the Islamic Development Bank, said microfinance could solve poverty in some parts of the Arab world and that his Grameen Bank model could be an ideal solution.
"I frequently travel to the Middle East, especially Saudi Arabia where the concept will be implemented in certain areas," he said.
He said he has no plans to internationalise the Grameen concept.
"However, it is now a global phenomena and many countries are adapting this in the light of their culture, environment and local conditions.
Consultancy services
"We do not directly offer consultancy services to the countries. However, we have an organisation, Grameen Trust, dedicated to support any initiatives globally. We'd be happy to extend this to the Middle Eastern countries," he said.
Starting in the late 1980s, many economies of the region committed to far-reaching economic reform programmes, designed to restore macroeconomic balances and help in the transition from state-led to private-sector led development. The effort contributed to improved economic performances in the region, with region-wide GDP (Gross Domestic Product) growth increasing from 2.4 per cent from 1981-1990 to 3.1 per cent between 1991-2002, the World Bank said in a recent report.
"However, in light of the high population growth, even this higher level of economic growth has translated in a quasi-stagnation of per capita income and was clearly insufficient to make a significant reduction in poverty levels. Close to a quarter of the region's population still lives on under $2 (Dh7.34) per day," the report said.
The Middle East and North Africa (MENA) Region has 12 active or potentially active World Bank borrowers - Algeria, Djibouti, Egypt, Iran, Iraq, Jordan, Lebanon, Morocco, Syria, West Bank and Gaza, Tunisia, and Yemen - with per capita incomes that range from $330 (Dh1,211, Yemen) to about $2,870 (Dh10,538, Lebanon). In addition, eight relatively high-income countries (per capita incomes above $4,000, or 14,680) - Bahrain, Kuwait, Libya, Malta, Oman, Qatar, Saudi Arabia, and the UAE - are also users of the region's non-lending services, much of which is reimbursed.
