5 facts about bangladesh microfinance by brac/fazle abed
1 muhammad yunus did not invent microfinance though he designed a variant which served smaller communities than BRAC and was presented to famous people like the clintons as a banking system independent of nation building processes such as last mile heath systems and designing agriocultural value chains- in fact as far as Abed was concerned financial services were not really a separate invention at all -they flowed naturally from innovative microfranchise solutions to end starvation and raise life expectancy to worldwwide norms from over 20 below
2) At least 7 years before yunus was granted the grameen bank oridnance 1983, Abed's responsbilirty for 100000 villagers livelihoods (see metavilage 5.1 and microfranchsie 1.1) had generated hundreds then thosnands of village women microfranchise operators - and so they needed a savings and loan system to continue beimng the hardest working entrepreneurs nature has ever seen.
3 abed/brac did not assume it was his place to bank for these microifranchsies but the national governemnt around 1974 said it still did nit have sufficient resources for serving rural peoples - so brac as an ngo had to become the service provider
4 there was therefore never a role for true bangladesh micriofinance to be IPO'd as quarterising profit corporation; the purpose of brac microfinance was to keep scaling more microifranchises in uniting womens community adbancement of sustainability goals; as with anything abed designed positive cashflow sustained scaling and the surplus was invested back in the overall ngo trust. His favorite maxim - small may be beuariful but in bangaldesh large scale is absolutely essential.
5 as with every one of the 30 women empowered collaborations brac microifinance+ was a jigsaw piece fitting multiple other investments in bangladesh women services over the 50 years they progressed from zero access to engines to the market leapfroging partnership stimulated by emergence of solar and mobile from 1995; everything in abed's ngo reinfiorced next stage advances in all of the 5 primary sdgs but always reiterated improved system design to to include the very poorest (see eg Ultra poor 1.3); if a network does not relentlessly prioritise its service to those in deepest need, then you find that a defing pattern of any every business sector (from banking to education, from land agriculture to health, safety) that the less poor edge out the poorest (its always needs less innovation to serve those that are not facing the extreme edge of existence -this systemic issue applies to anu and all servant leadershsip foci : financial ,health diet, other resiliency crises such as those caused conflicts in the rest of the world such as climate and wars and so populations of refugees )
here is how forbes reported brac dairy's nation leading value chain 2.5 in 2008 arguably the logistically mnost compled nationwide supply chain that brac took on
One of the last interviews made of fazle abed covering 1970-2017- ngo advisor had just rated brac most effective /efficient