Nobel Peace laureate Dr. Muhammad Yunus (Grameen Bank) delivered a beautiful bold talk this morning to the International Humanistic Management Association. Here is the link to the video, https://youtu.be/WFwK8bzIKW0 … and a summary of my notes.
The global economic machine is broken. Coronavirus has done us a favor. We should create a bank for rural entrepreneurs. Call it emerging, or potential sector instead of an informal sector. Young people should not have to go to cities and face harassment. Rural economy should not be a footnote to the urban economy. These are social businesses. More than 50% of people work in the informal sector. Urban economy consumes rural labor and makes money for themselves. Rural economy should not become a footnote to urban economy. Distance has become unimportant. The business idea has become important. We don’t want to go back to the old economy. We want to go forward and design a new world.
This is a crisis, but also a great opportunity to create global social businesses for coronavirus solutions. Globalization has deepened. e.g. the same virus impacts everyone. The narrow view is about how to make money. There are only a few companies who own a chunk of medicine business. The medicine solution should be for the benefit of the people, not to make a profit.
Rural areas don’t need to wait for urban buyers. We will process our produce here. We are not at the mercy of the urban buyers. We will deal on equal terms. Governments have not done much for the informal sector. Bangladesh has Ministry of Labor at all levels of the government. We will create our own chambers of commerce. Rural social businesses have full rights.
Academics have had a big role in creating this misery. We have contaminated the young minds with wrong ideas about a selfish world. There are social businesses that are not motivated by private interest but by common interest. We have to take care of the future of the world and our children and grandchildren. Social businesses can be in rural areas as well as urban areas.
How to get the economic machine to come out of coma, and put it to good use? We are pouring trillions of dollars into the machine, so the money is there. We should not pour into the fossil fuel industry. We should move into a new world. Scaling up is not a problem because the money is there. Invest in the companies that are solving the problem. Anyone who can help lead to this new world will win Nobel Prizes. Business education should not be only to make money for others. That is the conventional MBA for a soldier (general, gladiators) to make money for corporations. The alternative is the social MBA. Its purpose is to solve social problems of the world in the fastest way. How to inspire people to do that. This is a good time to start a social MBA program.