Microfinance or Debt Trap: Case for Yunus' Grameen Bank in Bangladesh

The book "Microfinance or Debt Trap: Case for Yunus' Grameen Bank in Bangladesh" by Mohammad Ashraf offers a critical analysis of the microfinance system established by Nobel laureate Muhammad Yunus. The Grameen Bank, founded in 1983, was originally intended to combat poverty in Bangladesh. Despite its over 30-year history, the question of how much the bank has actually contributed to poverty alleviation remains unanswered. This study examines the impact of the Grameen Bank's microfinance program on the income situation of the rural population and concludes that it has no significant effect on the income increase of poor households. Instead, it argues that the system often leads to a debt trap, further deteriorating the living conditions of those affected. This critical examination raises important questions about the effectiveness of microfinance programs and encourages discussion on alternative approaches to poverty alleviation.