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Trust Mechanisms, Cultural Difference And Poverty Alleviation, Lihua Guo

CLCWeb: Comparative Literature and Culture

In her paper "Trust Mechanisms, Cultural Differences and Poverty Alleviation" Lihua Guo explores how Grameen Bank, which originated in Bangladesh, can effectively reduce regional poverty. The basic means based on a trust mechanism include the provision of loans only to women, five-person teams, a system of conference centers, personal financial management and weekly repayment with golden membership awards. Although the Grameen mode presents different practice effects around the world due to cultural differences, the fundamental cause for success is the respect showed to human beings by the model, and a tailored program that includes rather than excludes. The Grameen model …