Dhaka: Muhammad Yunus, chief adviser to the Bangladesh government, on Saturday called for a redesign of the financial system in developing countries to ensure that prosperity benefits all, stressing that combining entrepreneurship and social business can work wonders.
“If we give an important place to social enterprises, that is, companies that are created exclusively to solve social and environmental problems,” said the 84-year-old Nobel laureate, adding that this could pave the way to a world of three zeros – zero net carbon emissions, zero wealth concentration and zero unemployment.
Yunus was speaking at the Third Voice of Global South summit hosted virtually by India.
Yunush, the pioneer of microfinance in Bangladesh, pointed out that today’s youth want work “simply because in all our countries the education system prepares them for working life” while their creative skills have been forgotten, and called for a redesign of the system.
“Our education and financial system are only designed to create job seekers and provide them with jobs. We need to redesign our system,” he said, hoping that this could be achieved together with the countries of the Global South, which are “rich in a fantastically creative young population.” The combination of entrepreneurship and social business can work wonders, said Yunus, who took office as chief adviser to the interim government on August 8 amid the country’s social and economic crisis after Prime Minister Sheikh Hasina resigned on August 5 and fled to India.
“We would like to propose some joint institutions in developing countries to take concrete steps to unleash the creativity and energy of our young population through social entrepreneurship,” said the former professor, who is known for his award-winning work in microfinance.
“My lifelong experience is that our financial system is designed to encourage the concentration of wealth. We need to redesign our financial system to ensure that wealth benefits all,” said Yunus, who received the Magsaysay Award for Community Leadership in 1984 for “his pioneering work in helping rural men and women achieve economic independence.”
“It should not be a one-way street to prosperity. We need to ensure financial services for all people, especially women and young people. We can learn from each other how to do this successfully,” he added.
“Finance should not be a wall for anyone. It should be geared towards unleashing entrepreneurship and creativity. The creation of social banks to address problems such as poverty and unemployment can be encouraged,” he said.
Yunus also called on southern hemisphere leaders to work together and create social enterprises that address all environmental and social issues, saying: “If we work together, it can become a tremendous force.”
Published August 17, 2024, 11:45 a.m. IS
