Last Updated Jun 5, 2008 11:19 PM EDT
Economists may find themselves frowning in this section of the book. Yunus tweaks his former colleagues for their blind spots and their refusal to look at people except in abstract terms like "labor." His is another voice in favor of 'experimental' economics, the part of the field that tries to look at human behavior as it is, rather than as economists say it should be.
That kind of anthropological economics resulted in many useful business practices at Grameen, and Yunus is generous in discussing what has worked and what has needed revising. For instance, it found that the wisdom of crowds works among the very poor: it has learned to lend to people in groups of five, and they all have to vouch for the person receiving the loan. It's also learned that lending to women has a bigger potential for getting families out of poverty than lending to men.
Grameen is also of interest because it has spawned 25 different kinds of social businesses. Yunus details some of them in this section and then walks us through the newest, Grameen Danone, a joint venture between Grameen and France's Danone Group (in the U.S. we know it best for Dannon yogurt). This venture is a ground-breaking social business that now sells very inexpensive yogurt to help feed Bangladeshi children. In his two chapters on the creation of what he hopes will be a trendsetting operation, some of what Yunus looks at focuses on how a very large corporation was able to shift its own mindset about things like manufacturing, distribution and packaging in ways that may help its regular business.
Grameen's creativity and ability to change minds and remake both markets and government regulation is strikingly evident in this section. So is its ability to listen to its customers and adapt to them, rather than forcing them to adapt to it.
The final section of the book looks at his prescription for eliminating poverty. My final post on this book will examine what it means for businesses.
UPDATE: Here is my post Summing up Muhammad Yunus, Creating a World Without Poverty.