A Paradigm Shift in Poverty Alleviation through ‘Micro Credit’

Abstract

This study aims to replicate the concept of paradigm shift in science, coined by Professor Thomas Khun, with the concept of Micro-credit postulated by noble laureate Professor Yunus. As science shifts its paradigm pursuing the efforts of revolutionary scientist working outside the old theorems, in the same way, the concept of providing credit was transformed following the idea of Professor Yunus. The old theory of providing credit required so called feature of possessing “credit-worthiness”; whereas, Professor Yunus stated this perception as the igniter of vicious cycle of poverty and suggested for micro-credit. Micro-credit plan not only provides loan to the poor having no credit-worthiness, but also, aids them with credit management and supervision. Adding to the said note, Professor Yunus also compared the poverty stricken people with bonsai tree; on the point of having no opportunity for them, in our society to grow bigger.