In October 1983, Grameen Bank, the internationally acclaimed microfinance institution, was authorized by national legislation in Bangladesh to operate as an independent bank. Muhammad Yunus, its founder, has long claimed that his inspiration stemmed from the 1974 Bangladesh famine, during which he extended a personal loan of US$27 to 42 women in Jobra village, enabling them to produce items for sale without succumbing to predatory lending practices. Among these borrowers was Sufia Begum, who later became the emblematic figure of Yunus’s microfinance narrative. However, the veracity of Sufia’s story and the broader Grameen Bank model has been mired in controversy.

Yunus and Grameen Bank showcased Jobra village and Sufia as exemplars of their microcredit success to the international community. This narrative garnered Yunus significant global attention, culminating in the Nobel Peace Prize in 2006. Sufia’s name transcended borders, heralded as a testament to the transformative power of microcredit. Yet, unbeknownst to many, Sufia died nearly a decade earlier in abject poverty, deprived of basic medical care.

The true story of Sufia Begum: Exposing the myths

Sufia Begum, the first microcredit borrower from Muhammad Yunus in Jobra village, passed away on January 16, 1997, leaving behind two daughters, Nurunnahar and Fazilatunnhar. Her husband had died during their daughters’ childhood, compelling Sufia to become the sole breadwinner, primarily by selling vegetables. Despite her efforts, economic hardship persisted, exacerbated by the pressures of repaying loans to Grameen Bank.

Sufia initially borrowed BDT 60, repaid it, and subsequently took another loan of BDT 500, which she also repaid. However, she never recovered her deposits from Grameen Bank. The financial strain contributed to her elder daughter’s mental health deterioration. Today, both daughters and their families live in dire poverty, unable to secure loans from Grameen Bank or other NGOs.

Fazilatunnhar’s two sons, both rickshaw-pullers, reside with their families in modest straw-roofed huts. Nurunnahar’s family faces similar hardships, with her elder son being the sole earner. Their........

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