Foreign Policy Blogs

Norad Clears Grameen Bank: Does Blot on Dr. Yunus' Reputation Remain?

Earlier today the Norwegian Agency for Development Cooperation (Norad) cleared Grameen Bank’s moves to supply its private arm with development funds targeted for its non-profit works.

The Minister of the Environment and International Development, Erik Solheim, the official who commisioned a Norad report on this affair offered this assessment:

“There is no indication that Norwegian funds have been used for unintended purposes, or that Grameen Bank has engaged in corrupt practices or embezzled funds. The matter was concluded when the agreement concerning reimbursement of the funds was entered into in May 1998 under the government in office at the time.”

The aid organization has cleared the allegation.  The Ministry of Development, likewise it seems.  One wonders though: has the domestic and international political fall-out from this episode been accounted for?

Both Sheikh Hasina and Foreign Minister Dipu Moni are on the record publicly blasting Dr. Yunus.  The foreign markets and other aid organizations might take some time to get in cozy with Grameen, especially since this affair has brought to the surface problems with the business model.  The conspicuous moves in India have already become married to Grameen’s founding and public branding narrative and, as such the news from Andhra Pradesh signal the need for wholesale revision of the  public and private micro finance industry.

 

Author

Faheem Haider

Faheem Haider is a political analyst, writer and artist. He holds advanced research degrees in political economy, political theory and the political economy of development from the London School of Economics and Political Science and New York University. He also studied political psychology at Columbia University. During long stints away from his beloved Washington Square Park, he studied peace and conflict resolution and French history and European politics at the American University in Washington DC and the University of Paris, respectively.

Faheem has research expertise in democratic theory and the political economy of democracy in South Asia. In whatever time he has to spare, Faheem paints, writes, and edits his own blog on the photographic image and its relationship to the political narrative of fascist, liberal and progressivist art.

That work and associated writing can be found at the following link: http://blackandwhiteandthings.wordpress.com