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Letters
Dr. Yunus on Financial Crisis  
Dear Editor,

Your report based on the video interview published in Business Week on October 13, 2008 entitled "Muhammad Yunus on the Financial Crisis" misrepresented my views on what I believe is needed to tackle the current global financial crisis.

The interview quotes me as stating that I am opposed to the present government bailout to save the failed financial institutions, and I am proposing that we should rely on market solution. It is ridiculous to suggest a market solution at a moment when the market virtually does not exist. I welcome the bailout. I believe that at this time there is no other alternative to a government bailout.

When I talked about market solution for such crises, I was talking about the future. I was suggesting that this is the right time to prepare to avoid FUTURE crises.

I was arguing that bailout cannot be relied on as solution to market problems. Market must have built-in mechanism to protect itself from the occurrences of such crisis. Self-protection is possible only when market can ensure that it will not allow a crisis to develop in the first place.

I suggested a mechanism to buy all potential toxic assets on a daily basis through a business created by the participation of all businesses, which engage in highly speculative businesses and make high profits. I suggested that the market must be equipped with a strong mechanism to detect bubbles at the very initial stage and an instantaneous reaction device to shoot it down.

Everyday the market must hunt down the potential toxic assets and bought off by a company created for these purposes. Capitalization of this company may be made from requiring companies to pay a percentage of gains made from highly speculative transactions at a progressive rate. Market must be developed as a self-correcting system. It cannot be left as a wild party of some money-hungry people, and organizations.

I hope you will publish my letter so that your readers do not misunderstand me.

Regards
Professor Muhammad Yunus

http://muhammadyunus.org/content/view/170/128/
Grameen Joins Hands with GE Healthcare

Grameen Healthcare Trust, a Grameen sister organization, and GE Healthcare, a unit of General Electric Company announced on December 22, 2008, that they will work together to develop prototype of social businesses for healthcare delivery in Bangladesh, to be replicated in other countries of the developing world.

The partners will jointly evaluate ways to improve Grameen Healthcare Trust's existing healthcare delivery systems and primary care clinics in rural Bangladesh. At the end of an initial period, they will try to see if these social business model can be replicated in other countries, addressing the needs of the 4 billion people around the world whose income is less than US$ 3 a day.

In the coming years the partnership will focus on the following areas:

  • Primary health promotion and disease prevention, the most cost effective steps in affordable health care
  • Evaluate product, training, workflow, and other capabilities that would be needed for full deployment of ultrasound capability in rural areas.
  • Developing continuous training programs for nurses, technicians and physicians in the usage of ultrasound.
  • Reviewing operating efficiencies and scope of services (e.g., telemedicine and mobile health care) at Grameen's rural clinics.

http://muhammadyunus.org/content/view/176/128/
Mundo en Armonia Supports Sidr Victims through Grameen
Mundo en Armonia (World in Harmony) a non-profit organization, based in Madrid, Spain, and led by Her Royal Highness Princess Irene of Greece, has teamed with Grameen to help re-build 500 houses which were destroyed by the devastating Cyclone Sidr. Mundo en Armonia has also supported microcredit program in Afghanistan through a Grameen Trust partner.

Besides its philanthropic activities in Bangladesh, in 2008 Mundo en Armonia also supported programs providing scholarship, human rights assistance, financial support for income generating activities in Brazil, Cambodia, Spain, South Africa, USA, Viet Nam, Zanzibar and Greece.