Tag Archives: muhammad yunus

World Bank Lowers Bangladesh’s Growth Forecast Citing Political Instability

Posted on by
Reply

The World Bank has revised Bangladesh’s economic growth projection for the fiscal year 2024-25, lowering it to 4%, down from an earlier estimate of 5.2%. This adjustment comes in response to the political unrest that has shaken the country, creating significant economic and political uncertainty.

In its South Asia Development Update for October 2024, the World Bank emphasized how the political turmoil of July and August has disrupted the nation’s economic performance, directly impacting its gross domestic product (GDP) growth. Supply chain disruptions and investor hesitancy have further contributed to the economic slowdown.

The Asian Development Bank (ADB) also recently cut its growth forecast for Bangladesh, revising it to 5.1% for the current fiscal year. The ADB cited similar concerns, noting that the political unrest over the past few months has created challenges for Bangladesh’s supply chains, adding pressure to its economic outlook.

Bangladesh and the Maldives stand out as the only two South Asian countries where the World Bank has downgraded growth forecasts. This reflects the unique political and economic hurdles facing both nations. Inflationary pressures are also expected to rise, while the broader South Asian region shows more positive economic trends.

Recovery Potential 

Despite these setbacks, the World Bank remains cautiously optimistic about Bangladesh’s long-term economic prospects. The global lender foresees a gradual recovery, underpinned by key reforms in the financial sector, improved business conditions, expanded trade, and greater domestic resource mobilization.

The recent political changes in Bangladesh, including the resignation of Prime Minister Sheikh Hasina and the appointment of an interim government following student-led protests in August, have further added to the country’s economic uncertainty. However, the World Bank’s projections for 2025-26 suggest that Bangladesh has the potential to rebound and achieve strong growth in the coming years.

While the near-term outlook for Bangladesh is clouded by political instability, the World Bank believes that with the right reforms, the nation can bounce back. Implementing structural changes in the financial sector, boosting investment, and strengthening domestic industries will be critical to ensuring long-term growth and stability.

 

Muhammad Yunus Opens Narayana Hridayalaya Hospital in Mysore

Posted on by
Reply

Nobel laureate and microfinance pioneer Mohammad Yunus, who was in Mysore to open a 200-bed multi-specialty hospital for the working class on Friday, said the need for social entepreneurship is the new call of the day.

The 200-bed Narayana Hrudayalaya will have only general wards and taking cue from Yunus, NH founders have set up a hospital simple and pro-poor in ambience.

“I had heard about the revolution Yunus had created when I was working in Kolkata,” said Dr Devi Shetty, founder of Narayana Health. To make poor people who get scared when they go to corporate hospitals and instead squat on the floor, the new hospital will be friendly for all, insisted Dr Shetty.

Muhammad Yunus at a special summit hosted by the University of Salford.

Known for his innovative pro-poor model of empowering women in 1976, Dr Yunus, an economic professor, founded Bangladesh’s Grameen Bank and went on to win Nobel Peace Prize in 2006. The first microfinance lending bank has benefitted more than 8.5 million women.

When women in his country got into microfinancing, it changed women’s marriage equation too, he said. “When I started the bank, I was clear that 50% of our borrowers must be women. Now rural women have money and their husbands borrow from them,” he told TOI in an interview.

“Money means power. It has given them confidence. And has helped them in their children’s education. Worldwide wherever I go, I see young doctors and engineers who tell me that they hail from the villages of Bangladesh and were assisted by Grameen Bank. That gives me immense satisfaction,” said Yunus.

His advice amid increasing criticism against misadventure of microfinance model in Andhra Pradesh was to be a social entrepreneur. Business does not mean money-making, he reiterated.

“Dissociate selfishness. I delinked business from money-making. Social entrepreneurs can touch the lives of many. It’s not rocket science to create a business model,” Yunus said.