Globalization and Bangladesh

Abject poverty is at home in Bangladesh, especially after a cyclone hit the country in November of 2007. This month, Jan Stuermann travels to Bangladesh for "Society" to find hope (Spotlight 4/2008). And there has been reason for hope over the past years. First, Bangladesh's economy grew rapidly during the 1990s, as the country liberalized its markets and became increasingly integrated into the world economy, making the transition from exporting jute to exporting garments. Temporary workers have been crossing the borders, sending back remittances which play an important role in the Bangladeshi economy. However, the global recession of 2001 hit the country hard, and increasing competitiveness in the global garment industry industry is undermine the country's growth and worsening conditions for its workers. If Bangladesh is to become less vulnerable, it will need to strengthen its domestic economy, creating jobs and markets at home.

That is exactly what Nobel Peace Prize winner Dr. Muhammad Yunus aims to do. He is using the power of the free market to solve the problems of poverty, hunger and inequality. As the founder of Grameen Bank, Dr. Yunus pioneered microcredit, the innovative banking program that provides poor people — mainly women — with small loans to launch businesses and lift themselves and their families out of poverty. Over the past thirty years, microcredit has spread across the globe, benefiting over 100 million families.

Now Dr. Yunus is applying the dynamics of capitalism in yet another way, promoting the idea of social business to tackle problems from poverty and pollution to inadequate health care and lack of education. Collaborating with some of the world's most visionary business leaders, Dr. Yunus has started up the world’s first purposely designed social businesses, including Grameen Danone.

This gives even the least developed countries such as Bangladesh hope to begin a transition to socially sustainable development and a new, more humane form of capitalism.

"By giving poor people the power to help themselves, Dr. Yunus has offered them something far more valuable than a plate of food — security in its most fundamental form." — Jimmy Carter

This week's exercises look at the language of globalization, recycling useful word partnerships from the Spotlight article and from the text above. Build your vocabulary to discuss the developing world.

Anne Hodgson