The theoretical aspect of Muhammad Yunus’s dream-'putting poverty in museums'

Zaman, Md Monowaruz (2007): The theoretical aspect of Muhammad Yunus’s dream-'putting poverty in museums'.

Abstract

Poverty is an irrevocable curse of our existing institutional structure and a grey area of existing economic theories. The micro-credit can support a mere semi-subsistence economic structure since its targets are those poor people who are dependent on borrowings for their subsistence. The concept of social business described by professor Yunus is insufficient to put “poverty in museums” because the social businesses can not provide the incentives required for the entrepreneurs to stretch their business for the poor people beyond their existing business pace. This article describes an Unbiased Pareto Improvement (UPI) model to steadily integrate the poor people with mainstream economic activities. Eventually the economy will be benefited in terms of new values, welfare and employment opportunities.

• Item Type: MPRA Paper
• Language: English
• Keywords: Grameen Bank; Greenhouse Care, Inefficiency Equilibrium; Micro Credit; Pareto improvement; Pareto optimality; Poverty Alleviation; Social Business; Welfare
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I30 - General; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O21 - Planning Models ; Planning Policy; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D52 - Incomplete Markets; D - Microeconomics > D6 - Welfare Economics > D60 - General; J - Labor and Demographic Economics > J8 - Labor Standards: National and International > J83 - Workers' Rights

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