Dollars and Jens
Sunday, October 15, 2006
On the Grameen Bank.
Potential borrowers must band together with four other people from their community. The five act as a support group and must approve each other's proposals.While it's replicated over and over and coordinated at a higher level, it works because the essential dynamics are at the community level — this is a bottom-up, community-driven system.
"If someone wants $60 for a goat then the others must approve the idea and believe it will work," said Alex Counts, who worked with the Grameen Bank in Bangladesh and now heads the U.S.-based Grameen Foundation.
While group members are not liable for each other's loans, they can qualify for further loans only if all in the group are current on their first ones.