Expanding Dr. Yunus' Sphere of Influence

The word is spreading. Here is an extract from a long piece in today’s New York Times about the use of cellphones in various parts of the world, especially in Africa.

After Muhammad Yunus, the Nobel-winning founder of Grameen Bank, began making microloans to women in poor countries so that they could buy revenue-producing assets like cows and goats, he was approached by a Bangladeshi expat living in the U.S. named Iqbal Quadir. Quadir posed a simple question to Yunus — If a woman can invest in a cow, why can’t she invest in a phone? — that led to the 1996 creation of Grameen Phone Ltd. and has since started the careers of more than 250,000 “phone ladies” in Bangladesh, which is considered one of the world’s poorest countries. Women use microcredit to buy specially designed cellphone kits costing about $150, each equipped with a long-lasting battery. They then set up shop as their village phone operator, charging a small commission for people to make and receive calls.

The endeavor has not only revolutionized communications in Bangladesh but also has proved to be wildly profitable: Grameen Phone is now Bangladesh’s largest telecom provider, with annual revenues of about $1 billion. Similar village-phone programs have sprung up in Rwanda, Uganda, Cameroon and Indonesia, among other places. “Poor countries are poor because they are wasting their resources,” says Quadir, who is now the director of the Legatum Center for Development and Entrepreneurship at M.I.T. “One resource is time, another is opportunity. Let’s say you can walk over to five people who live in your immediate vicinity, that’s one thing. But if you’re connected to one million people, your possibilities are endless.”

It is definitely worth a read. Simple technology used by people for the applications that make sense to them – and everyone gains.