Community Development Creating a world without ...

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Creating a world without poverty: social business and the future of capitalism a

John E. Meador a

Department of Rural Sociology, University of Missouri, Columbia, MO, USA Published online: 08 Apr 2014. To cite this article: John E. Meador (2014) Creating a world without poverty: social business and the future of capitalism, Community Development, 45:2, 209-210, DOI: 10.1080/15575330.2014.890406 To link to this article: http://dx.doi.org/10.1080/15575330.2014.890406

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Community Development, 2014 Vol. 45, No. 2, 209–210

BOOK R E VI E W

Creating a world without poverty: social business and the future of capitalism, by Muhammad Yunus, New York, Public Affairs Press, 2007, 261 pp., US$26.00 (hardback), ISBN-13 978-1433208355 Muhammad Yunus’ s Creating a World Without Poverty examines a realm of community development that often emerges as a major obstacle for academics and practitioners alike: poverty. He focuses on intergenerational poverty, found in much of the global South and developing world. Yunus, an economist, and his creation, the Grameen Bank, were awarded the Nobel Peace Prize in 2006 for introducing microfi nance loan institutions that serve the poorest-of-the-poor in developing nations. In Creating a World Without Poverty, Yunus discusses the history, successes, and shortcomings of the microfi nance movement, as well as his plan for eliminating poverty entirely. He contends that while microfi nance institutions have been quite successful in alleviating poverty in many regions around the world, the increasingly connected world and global economy offers a new opportunity to ameliorate poverty through what Yunus terms social businesses. Yunus states that the poorest-of-the-poor around the globe have at least one thing in common – they survive, even without many of the basics often taken for granted in the global North. This survival predisposition ensures that, if given a chance to succeed in a business, and with adequate fi nancial backing and guidance, the poorest-of-the-poor can create viable businesses. According to Yunus, “ Giving the poor access to credit, lets them immediately put into practice the skills they already have – to weave, to husk rice paddy, to raise cows, or to pedal a rickshaw” (p. 113). Typically targeted to women, these businesses, which may appear minor to outsiders, can provide sustenance to those living in atrocious conditions. Moreover, and perhaps just as important, businesses created from microfi nance loans help to build confi dence among participants. Building on the idea of entrepreneurship as a vehicle for change in the lives of the world’ s poor, Yunus introduces his concept of the social business. According to the author, a social business would operate much like a traditional profi t sharing business; however, all profi ts generated from a social business will be put back into the business in lieu of dividend checks for shareholders. The purpose of a social business is to invest in the poor; a good investment does not come in the form of capital for the investor, but in the knowledge that one’ s money has contributed to social betterment. It is Yunus’ s belief and hope that one day, much like the rise and success of microfi nance, the social business will transform the capitalistic economy and become a mainstay in the global market, along with its own success indicators and social stock market. Yunus hopes that future global citizens will know of poverty only by visiting museums. Creating a World Without Poverty offers readers an ambitious goal: Yunus wants to end poverty. His global goal may be more ambitious than the goals of many community development academics and practitioners, some of whom focus on micro-level research

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Book review

and development projects. Further, some academics and practitioners view poverty as unavoidable. But perhaps the most important message is Yunus’ s steadfast belief that, if given a chance, the poor of the world can help themselves out of poverty through their own entrepreneurial spirit. This powerful message fi ts within the popular grassroots community development movement. Throughout the text, Yunus avoids most technical jargon, economic and social theory, and the use of complicated statistical illustrations. Instead, the author opts for a more narrative style and idiomatically explains complex subjects that are fundamental to the book. Creating a World Without Poverty is an excellent read for those interested in the history of microfi nance institutions and the concept of the social business, community development practitioners who work in poverty alleviation, and students interested in learning new approaches to global economic and community development. John E. Meador Department of Rural Sociology, University of Missouri, Columbia, MO, USA [email protected] © 2014, John E. Meador http://dx.doi.org/10.1080/15575330.2014.890406