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The theoretical aspect of Muhammad Yunus’s dream-'putting poverty in museums'

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Author Info
Zaman, Md Monowaruz

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Abstract

Poverty is an irrevocable curse of our existing institutional structure and a grey area of existing economic theories. The micro-credit can support a mere semi-subsistence economic structure since its targets are those poor people who are dependent on borrowings for their subsistence. The concept of social business described by professor Yunus is insufficient to put “poverty in museums” because the social businesses can not provide the incentives required for the entrepreneurs to stretch their business for the poor people beyond their existing business pace. This article describes an Unbiased Pareto Improvement (UPI) model to steadily integrate the poor people with mainstream economic activities. Eventually the economy will be benefited in terms of new values, welfare and employment opportunities.

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File URL: http://mpra.ub.uni-muenchen.de/1306/
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File URL: http://mpra.ub.uni-muenchen.de/10184/
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File URL: http://mpra.ub.uni-muenchen.de/10226/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1306.

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Date of creation: 02 Jan 2007
Date of revision: 28 Aug 2008
Handle: RePEc:pra:mprapa:1306

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Related research
Keywords: Grameen Bank Greenhouse Care Inefficiency Equilibrium Micro Credit Pareto improvement Pareto optimality Poverty Alleviation Social Business Welfare

Find related papers by JEL classification:
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
D60 - Microeconomics - - Welfare Economics - - - General
J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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  1. Camerer, Colin, . "Progress and Behavioral Game Theory," Working Papers 1004, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Samuel Bowles & Herbert Gintis, 2000. "Walrasian Economics In Retrospect," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1411-1439, November. [Downloadable!] (restricted)
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  3. Jakob B Madsen & E Philip Davis, 2006. "Equity Prices, Productivity Growth and 'The New Economy'," Economic Journal, Royal Economic Society, vol. 116(513), pages 791-811, 07. [Downloadable!] (restricted)
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  4. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, 01. [Downloadable!] (restricted)
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  5. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March. [Downloadable!] (restricted)
  6. Luca Anderlini & Leonardo Felli, 2006. "Transaction Costs and the Robustness of the Coase Theorem," Economic Journal, Royal Economic Society, vol. 116(508), pages 223-245, 01. [Downloadable!] (restricted)
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