Professor Muhammad Yunusto deliver the Seventh

Nelson Mandela Annual Lecture

Nobel Laureate to discuss combatingpoverty by investing in marginalised people

“my greatest challenge has been to change the mindset of people. mindsets play strange tricks on us.

we see things the way our minds have instructed our eyes to see.” muhammad yunus

I S A T U R D A Y 1 1 J U L Y 2 0 0 9 I J O H A N N E S B U R G C I T Y H A L L I S O U T H A F R I C A I

I S S U E 1 Dialogue TimesDialogue Times

13h00 I Doors open / Arrival of guests

14h40 I Guests take their seats

14h45 I Doors to the City Hall close for live broadcast

I Opening of the Seventh Nelson Mandela Annual Lecture

I Welcome: Prof G J Gerwel (Chairperson of the Nelson Mandela Foundation)

I Prof Muhammad Yunus delivers the Seventh Nelson Mandela Annual Lecture

Theme: ‘Eradicating poverty by investing in the marginalised’

I Vote of Thanks:

Mr Achmat Dangor (Chief Executive of the Nelson Mandela Foundation)

I Perfomance by Sibongile Khumalo

16h30 I Book signing session with Prof Muhammad Yunus

I Light Cocktails in the City Hall

L E C T U R E P R O G R A M M E

The founder and managing director ofGrameen Bank and 2006 Nobel Peace Prizewinner will be focusing on “investment in themarginalised as a way of creating wealthand combating poverty”. Grameen Bankspecialises in microloans of as little as a fewdollars to the very poor, to help them startsmall businesses. As commercial banksseldom lend to the very poor, Grameenprovides credit to those, arguably, who needit most.

Started in Bangladesh in the 1970s, Grameennow operates in 100 countries, lending$100-million per month. Prof Yunus’ visionis starting to become a reality, with Grameenpulling millions of people out of povertyevery year. “This business approach to thealleviation of poverty has allowed millions ofindividuals to work their way out of povertywith dignity,” the World Bank is quoted assaying on the Muhammad Yunus Foundationwebsite. In addition to the humanitarian aspectof Prof Yunus’ work, Grameen is flourishingat a time when financial markets are in turmoil.

“Microcredit has been one area the crisis hasnot impacted,” says Prof Yunus in an articleby Reuters.

“The crisis has not touched it; still it is robustas ever.” On top of his 2006 Nobel Peace

Prize, Prof Yunus has received over 70 majorinternational awards for his work and 29honorary degrees. He sits on the board ofadvisors of a plethora of national andinternational companies. Prof Yunus startedhis studies at a local village school inBangladesh before enrolling at LamabazarPrimary School when his family moved toChittagong. He continued his studies inChittagong, finishing in the top 20 out ofnearly 40 000 matric students in the EastPakistan region.

He went on to the Chittagong College, wherehe won several awards for acting, beforeenrolling in the department of economics atDhaka University. He completed his BA in1960 and his MA in 1961. Upon graduation heworked as a research assistant to ProfessorNurul Islam and Rehman Sobhan at the Bureauof Economics. After being awarded a Fulbrightscholarship, he travelled to the United Statesto do his PhD in economics at VanderbiltUniversity. Having completed his doctorate in1969, he spent three years, from 1969 to 1972,at Middle Tennessee State University as anassistant professor of economics before movingback to Bangladesh to take up a professorshipat the Chittagong University. It wasn’t, however,until 1974 that Prof Yunus first becameinvolved in the economics of poverty during

a famine in Bangladesh. During that period,he discovered that very small loans oftenmade a disproportionate difference to the verypoor. Two years later, he founded Grameen.

“Grameen”, he claims in the introduction tohis memoirs Banker to the Poor, “is amessage of hope, a programme for puttinghomelessness and destitution in a museum sothat one day our children will visit it and askhow we could have allowed such a terriblething to go on for so long.”

On accepting the invitation to deliver theseventh Nelson Mandela Annual Lecture,Professor Yunus commented; “It is an honorto be invited to speak at the Nelson MandelaAnnual Lecture. When I received theinvitation there was no question that I wouldattend. I wanted to be a part of the work ofthe Nelson Mandela Foundation, whichpromotes the vision, values and work ofPresident Nelson Mandela”.

Shahidul Alam / Drik / Majority WorldPortrait of Nobel Prize Laureate Professor Muhammad Yunus,

who won the Nobel Peace Prize in 2006.

The Nelson Mandela Foundation contributesto social justice by promoting our Founder’slegacy and ethos through the Centreof Memory and Dialogue. The MemoryProgramme focuses on the life and times ofNelson Mandela. At his instruction however,the Programme is not a mausoleum to anindividual but an inclusive, historical recordfrom which future generations will benefit.

The Dialogue Programme is designed tostimulate meaningful discussions aroundcritical social issues which range frompoverty, AIDS, gender equality, peace andreconciliation. The Nelson Mandela AnnualLecture is the flagship of this programme.

In essence Nelson Mandela devoted much ofhis life to overcoming the political andeconomic oppression of people. He possessesa unique ability to combine pragmatism andprinciple. While he has very firm beliefsabout what is right and wrong, it is his abilityto take practical steps, dictated by theconditions that he encounters, that hasenabled him to make such an impact on theworld around him.

‘Madiba’, as he is affectionately known in SouthAfrica, perfected the art of listening to others.The Sufi poet Celaladdin once said that “youspeak by listening”. As a leader Madibaabsorbed what others said, so that when heresponded it was based on what he had digestedand learnt from them. If people everywherecould learn to truly listen, to friend as well asenemy, they would empower themselves totaken on even the most difficult of challenges.

It seems fitting therefore for ProfessorMuhammad Yunus to be the keynote speakerat the 2009, Seventh Nelson Mandela AnnualLecture. Professor Yunus developed hisvision of creating a world without poverty,by listening to the people he sought to serve.Understanding their fundamental needs andaspirations helped him to pioneer atruly innovative way of overcoming themarginalisation of the poorest of the poor.

Today, the Grameen Bank which he founded,continues to combat poverty by investing in thepoor. His methodology and approach is beingreplicated all over the world. As economiescontract, the classic way of addressing under-

development, through mega projects that aredependent on massive, and inherentlyunsustainable development aid, no longer seemeffective. The developing world needs to findnew solutions. Perhaps these are to be found inmeasures that seek to empower the people mostaffected by poverty. Goverments may have torefine their role, using their powers and theresources available to them to create aconducive environment for people to do thingsfor themselves. In other words create thepolicies, the space, and supportive environmentfor our creativity to flourish and ourentrepreneurial spirit to emerge.

The Nelson Mandela Foundation welcomesProfessor Muhammad Yunus to South Africa.We know that in his address at the Lecture,and during his extensive interactions withgovernment, business, civil society andcommunities, he will share his vision andexperiences. We have no doubt that in doingso, he will challenge the ‘business as usual’notions that we may still harbour abouthow we go about eradicating poverty andovercoming inequality.

Achmat Dangor

An interview with Professor Yunus

“We must ensure that globalisation benefits not only the powerful, but also the men,

women and children whose lives are ravaged by poverty.” nelson mandela

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In an interview with the Nelson MandelaFoundation (NMF), Prof Yunus touches onthe eradication of poverty, the necessityof educating women to uplift a nation andthe inspiration he has received fromNelson Mandela.

Of all your successes, what is the onelegacy you wish to leave behind?The legacy I dream of leaving behind is tohave played a part in creating a poverty-freeworld. A poverty-free world is something thatI firmly believe is possible. The reason Ibelieve this is that poverty is not created bypoor people. It is artificially imposed on themby the system, through the institutions andpolicies that we have created. If we can createa framework which allows people to unleashtheir capacity and creativity, then there is noreason why anyone should remain poor.Grameen Bank, by providing credit to thepoor, helps to unlock that creativity. If wecreate more institutions that put poor peopleat the centre, then we can eradicate poverty.

You are also known for promotingeducation and leadership among women.What are your hopes for the developmentof young women in Africa?We learned very early on in our work withGrameen Bank that women hold the keyfor the development of the family andcommunity. Our focus, therefore, has alwaysbeen to work with them to empower women

as a way of empowering communities andchanging society. This experience hasconvinced me that we can only reallychange the world and overcome povertyif all countries educate and financiallyempower their women, particularly girlsand adolescents.

Microfinance institutions have already beenset up in countries all over Africa. This is animportant step, and these have to expand, bestrengthened and be made more sustainable.Educational facilities and employmentopportunities for young girls and womenneed to be expanded and strengthened.Women all over Africa, like those in my owncountry (Bangladesh), are dynamic andenterprising and given the opportunity theywould be the agents to help countries breakout of the cycle of poverty.

On returning to South Africa what are youmost looking forward to?I have been to South Africa five times, everytime I have been to South Africa I havebeen struck by the beauty and vibrancyof South Africa, and the energy andentrepreneurship of its people. It is a countrythat has a great present and an even greaterfuture. I am always happy to return. I lookforward to sharing my ideas and myexperience with the people of South Africa,particularly the young people. I’m also keento share my ideas of social business, and I

am glad the Foundation is making it possiblefor me to interact with members of thebusiness community. I look forward to seeingmore of your beautiful country too. And, ofcourse, I will be so very happy to seeMr Mandela again. My last visit was toJohannesburg in 2007 to celebrate the 89thbirthday of Madiba, and the launching ofthe Elders Project with him. That was a greatand memorable occasion for me.

You were 24 years old when PresidentMandela was sentenced to life imprisonment(on 12 June 1964). Can you recall how hisimprisonment impacted on your own life inthat period and beyond?At that point in my life, I along with othersof my generation viewed President Mandelaas an icon fighting for freedom anddemocracy. His fights against apartheid inSouth Africa were rebellious as well as oneof the first instances I had seen of anyone sostrongly pursuing a fight for justice.Mandela's imprisonment gave me a sense ofhope that someone could believe in a causeso much that one is ready to forgo the rest ofhis life in jail. This in turn inspired along withothers of my generation me into a lifelongfight for causes that we felt strongly about,including my own country’s strugglefor liberation.

With so many examples of politicians andleaders falling for the trappings of office,

rather than being driven by the needs oftheir people, how do you think we can inspireyoung people to believe that an ‘alternative’type of governance is attainable?The only way to inspire the youngergenerations is to talk to them and educatethem and to lead by creating examples forthem. I think the new generation that isgrowing up in this globalised world are muchmore aware of our interconnectedness, alsoabout the importance of sharing the earth withthe next generation, the important value ofthinking not just of one’s self but of the widercommunity and the world. I think we live ata time when young people really do yearn foran alternative type of economic, political andgovernance structure to make sure eachperson has the opportunity to unleash his/herown creativity to the fullest extent.

Finally, what is your message to MrMandela in his 91st year?Happy 91st birthday President Mandela,what a privilege it is to know you! You arean inspiration not just to me, but to millionsaround the world. You have led your countrywhere injustice and violence prevailed toone of peace and democracy. Your untiringactivism for human rights and justicehas instilled hope in millions aroundthe world, that it is possible for us to livetogether in peace for our commonbetterment of humanity.

A Message from the CEO

Women hold the key for development, says Grameen Bank MD Prof Muhammad Yunus, ahead of the Seventh Nelson Mandela Annual Lecture

President Ellen Johnson Sirleaf 2008“When you won the elections, President Mandela’s dreams wereborn. Africans dreamed of the end of the exploitation of the past.They dreamed of having dignified economic opportunities toprovide for their families. They dreamed of sending their childrento decent schools. They dreamed of an end to gender disparities.They dreamed of competent governments that were accountableto the people. They dreamed of national reconciliation andnational unity. And they dreamed of living in peace and securitywith their neighbours. If someday I am remembered as one ofthe many dreamers who came in your wake who, unable to fillyour shoes, walked in your shadow to build a New Africa thenI can think of no other place to be in history. I can think of nobetter way to be remembered than one of those dreamers whofollowing President Mandela said with confidence that theAfrican Renaissance, the New Africa, is at hand.”

The Nelson MandelaAnnual Lecture

Previous speakers and extracts from the Nelson Mandela Annual Lectures

Lecture was delivered by President EllenJohnson Sirleaf, on the 12th July 2008 inKliptown Soweto, and formed part of MrMandela’s 90th birthday celebrations.All six Nelson Mandela Annual Lectures areavailable on our website, our aim is to reachthe widest possible audience in order topromote and facilitate continued dialogue onthe critical issues raised.

The Nelson Mandela Foundation is honouredto have Professor Muhammad YunusFounder of Grameen Bank and NobelLaureate deliver the seventh Nelson MandelaAnnual Lecture.

Mr Kofi Annan 2007“There has been great change in Africa in the years since NelsonMandela walked out of prison. Even since 1999, the year he leftoffice, we have seen considerable progress on a number of fronts:progress in peace and security, where the number of civil warsand inter-state conflicts continues to decline; in development,where we see a rise in direct investment, trade and aid, andmeasurable progress toward the Millennium Development Goals;and lastly, in the spread of freedom and the strengthening ofhuman rights.”

President Thabo Mbeki 2006“Many years ago Nelson Mandela made it bold to say that ourcountry needs an ‘RDP of the soul’, the Reconstruction andDevelopment of its soul. He made this call as our country, in theaftermath of our liberation in 1994, was immersed in an effortto understand the elements of the Reconstruction andDevelopment Programme that had constituted the core of theElection Manifesto of the ANC in our first democratic elections.We should never allow ourselves the dangerous luxury ofcomplacency, believing that we are immune to the conflicts thatwe see and have seen in so many parts of the world.”

Archbishop Desmond Tutu 2004“We really do have much to celebrate and much for which to bethankful. Hey just look at us, which other country has a moralcolossus to match Nelson Mandela? We are the envy of everysingle nation on earth. He has become an icon of forgiveness,compassion and magnanimity and reconciliation for the entireglobe. How blessed we are that he was at the helm to guide ourship of state through the choppy waters of transition. Yes, we(South Africa) are a scintillating success waiting to happen. Wewill succeed because God wants us to succeed for the sake ofGod’s world. For we are so utterly improbably a beacon of hopefor the rest of the world.”

President Bill Clinton 2003“The life and work of Nelson Mandela has done much to help therest of us to see the promise as well as the problems of Africa.The promise manifests in more democratically electedgovernments than ever, in a new generation of leaders committedto understanding and unleashing your economic potential.For the first time in history the rest of the world is interested inworking not for or against Africa, but working with Africa,listening to you, looking to you, and learning from you.One lesson we all have to learn from Mr Mandela is how to builda community across divisions of race, religion and tribe.”

Professor Wangari Maathai 2005“During the last 30 years of working with the Green BeltMovement I saw the need to give our people values. The manwhose birthday we celebrate today exemplifies these values.For example, the value of the service for common good.How shall we motivate our men and women of the region, to bewilling to sacrifice and volunteer so that others may have itbetter? To adopt the values of commitment, persistence andpatience, and to stay with it until the goal is realised. To adopta love for a land and desire to protect it from desertification andother destructive processes?”

3

“I think things are going wrong not because of ‘market failure’. It is much deeper than that.

Let us be brave and admit that it is because of ‘conceptualisation failure’.” MUHAMMAD YUNUS

Mr Mandela at the 6th Nelson Mandela Annual Lecture

The Nelson Mandela Foundation (NMF),through its Centre of Memory and Dialogueseeks to contribute to a just society bypromoting the vision and work of its Founderand convening dialogue around criticalsocial issues.

Our Founder, Nelson Mandela based his entirelife on the principle of dialogue, the art oflistening and speaking to others; it is also theart of getting others to listen and speak to eachother. The NMF’s Centre of Memory andDialogue, encourages people to enter intodialogue – often about difficult subjects – inorder to address the challenges we face today.The Centre provides the historic resources anda safe, non-partisan space, physically andintellectually, where open and frank discoursecan take place. The Centre has convenedseveral dialogues in pursuit of this vision.The Nelson Mandela Annual Lecture is theflagship event of the Dialogue Programme.

It forms part of the annual celebrations ofMr Mandela’s birthday. The purpose of theAnnual Lecture is to honour Mr Mandela andprovide a platform for a leader of internationalstanding an opportunity to present their viewson a critical issue impacting society at large.

The inaugural Nelson Mandela Annual Lecturewas held on 19 July 2003, and was deliveredby President William Jefferson Clinton.The second Annual Lecture was delivered byNobel Peace Prize winner ArchbishopDesmond Tutu on 23 November 2004.The third Annual Lecture was delivered on 19July 2005 by Nobel Peace Prize winner,Professor Wangari Maathai MP, from Kenya.The fourth Annual Lecture was delivered on29 July 2006 by President Thabo Mbeki. Thefifth Annual Lecture was delivered by Mr KofiAnnan, the former Secretary-General of theUnited Nations and Nobel Peace Prize winneron the 22nd July 2007. The sixth Annual

By Shahidul AlamIt was 1988. The flood waters had reachedDhaka, and I needed a boat to get to the headoffice of the Grameen (Rural) Bank. A softspoken unassuming gentleman, casually clad,sat at a plain wooden table. There was no air-conditioning and the fresh breeze flowed freelythrough the open windows. My posh cameraseemed quite out of place here. Dr MuhammadYunus shook my hands warmly and wordsflowed easily from the man who had createdone of the most remarkable organisations inbanking history. The Grameen Bank gavemoney only to the poor. Loans to the landlesswere interest free. None of the debtors hadcollateral. 75% of the bank was owned bythe landless who could purchase shares ofTake 100 (about two pounds; each in 1988.Only one share was allowed per person).The bank boasted 346 branches and 3,000,000members, 64% of whom were women.Incredibly, about 98% of the loans werereturned! It was rapidly expanding and bythe following year, Yunus hoped to have500 branches.

An economics graduate from VanderbiltUniversity, Yunus had been teaching atTennessee State University when war brokeout in Bangladesh in 1971. He got activelyinvolved in the liberation movement andreturned to the newly created nation in 1972and took up teaching at Chittagong University.The famine in ‘74 touched him deeply.The sight of the dying in the streets made himquestion the validity of the economic theoriesthat he espoused. During this soul searchinghe mixed intimately with the villagers andlearnt of their habits, their values and theirproblems. One of them was a woman whomade moras (bamboo stools). She was skilledand conscientious and worked long hours.He was appalled when he discovered thatshe earned only eight annas (about one pence)for her daily labour! Angered and dismayed,he sought out the reasons for this shamefullyunfair setup.

It had long been claimed that laziness, lack ofskill and extreme conservativeness was theroot cause of poverty in Bangladesh. Here wasa woman who was skilled, worked extremelyhard and had taken the initiative of setting upa business for herself and was still being cruellyexploited. She did not have the money to buythe bamboo, so she had to borrow from thetrader. He paid a price for the finished stoolwhich was barely the price of the raw materials.She ended up with a penny a day!

With the help of a student Emnath, Yunusmade up a list of 42 people who worked undersimilar conditions. He paid out their total

capital requirement of Taka 826 (less than apound per head) from his own pocket. It wasa loan, but it was interest free. Aware that thiswas not the real solution to the problem, Yunusapproached his local bank manager. The manlaughed. The idea of giving money to the poor,and that too without collateral, was to himhilarious. Undeterred, Yunus approached theassistant general manager of Janata Bank,Chittagong. The manager was encouraging,but felt that in the absence of collateral, aguarantee by influential people in the villagewould be necessary. Yunus realised that thiswould eventually lead to some sort of a slavetrade. The bank was adamant, and eventuallyhe talked them into accepting him as theguarantor. The manager was reluctant in thebeginning, but felt he could take the risk, thesum being so small.

The system worked, all the loans wererepaid and more people were offered loans.Yunus suggested that it was time the bank tookover the responsibility themselves and lent outmoney directly to the villagers. “So I tried toestablish that this could be done as a businessproposition. I became vocal against the bankinginstitutions, arguing that they were making therich people richer and keeping the poor peoplepoor through something called collateral.Only a few people could have access to funds.The bankers were not convinced. Finally theychallenged me to do it over a whole district,not just a few villages. They said if I could doit over a whole district, and still come backwith a good recovery, then they would

reconsider. I accepted their challenge.They asked me to go far away, to wherepeople would not recognise me as a teacherbut would instead think I was a banker. So Iwent to a far flung district in 1978, and startedworking there.” It worked beautifully. Theyhad almost a 100% recovery. The small loansmade a big difference to the people, but thebanks still dragged their feet. Yunus realisedthat if he went back to the University, theproject would die. He suggested the formationof a new bank. One owned by the peoplethemselves. The banks were skeptical, but hegot a lot of public support, and eventual1y inOctober ‘83, an independent bank called theGrameen Bank was formed.

Dr Yunus is modest about his own contribution.Asked if the bank would survive without him,he smiled “Look at what we have achieved,could it ever have been possible withoutdedication at all levels ?” There is a moreimportant reason for the bank’s survival.Contrary to most other viable commercialbanks, profit is not its only motive, this one istruly designed to serve the people. Alwaysquick to accept innovations, Professor Yunuswas the first person to order an email accountwhen we setup Bangladesh’s first email servicein the early nineties. He was user number six,the first five accounts being Drik’s internalnumbers. Later he ordered the entire Grameenoffice to be networked and had generic emailaddresses issued to key personnel. The banknow has nearly eight million members, 97%of whom are women. With 2,556 branches, the

bank provides services in 84,388 villages,covering more than 100 percent of the totalvillages in Bangladesh. Figures any commercialbanker would be proud of. Since then otherGrameen entities under the more recentlyformed Grameen Foundation have beenborn. Grameen Phone, a highly successfultelecommunications company has providedphones to rural women, many of whom havebecome successful entrepreneurs. The mayorof Houston has declared the 14th JanuaryMuhammad Yunus Day. While the manyawards and accolades given to Yunus extendsto the other side of the spectrum, the higheststate honour from Saudi Arabia.

However both the Grameen Bank and micro-credit have had critics. The high rate of interestis seen to be exploitative by many. There havebeen accusations that the methods of recovery,often by overzealous bank officials, have ledto extreme hardship. The skyscraper that nowhouses the bank, many feel, distance it fromthe poor it represents. The close links withClinton and Turner, and the uncritical positiontaken by Yunus in his public interactions withthem, has also been viewed with suspicion.Yunus makes light of these observations.Regarding the criticism of his model, he hasa simple answer. “I make no claims to havinga perfect system. The problem has to be solved.Should someone come up with a better solution,I would happily adopt it.”

Bangladesh has largely been known for floodsfamine and other disasters. Yunus has providedBangladesh with a pride it badly needs.Many had hoped that he would enter politics,providing an alternative to power hungrypoliticians that people have lost trust in. Whilehe has steered away from mainstream politics,Yunus was an adviser to the caretakergovernment. That this popular teacher turnedbanker should be the Nobel Peace Prize winnerin 2006 is a source of great joy to Bangladeshis,but an honour they feel was long overdue.

The Wall Street Journal reported in 2006that 61 percent of all borrowers receivingsubprime mortgages had credit scores highenough to qualify for prime conventional loans.With wealthy nations struggling to deal withthe fallout of their clearly flawed economicmodels, Yunus’ claim that one should forgetmultibillion-dollar bailouts and look insteadat loans of much smaller size, backed withmore down to earth assets, cannot be takenlightly. Ducks, chickens and cows might be aless fashionable option, but if results are whatone goes by, this remarkable banker in oneof the poorest nations in the world might stillbe the saviour for the dollar kings ofWall Street.

Banking on the Poor“Dr Muhammad Yunus shook my hands warmly and words flowed easily from the manwho had created one of the most remarkable organisations in banking history”

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“my wish is that south africans never give up on the belief in goodness.” nelson mandela

Fatema in the home of an elderly villager, Noorjahan, who wants to call relativesliving in Dhaka, 40 miles away. Fatema bought a cellphone in 1998 througha non-profit set-up by Bangladesh’s Grameen Bank.By Shahidul Alam / Drik / Majority World

Dialogue to promote social cohesion

observes the first anniversary of

violence against non-nationals

The need for healing to overcome the divisionsof the past emerged as the central concern ata community conversation in Atteridgeville,near Pretoria, on June 20. Organised by theNelson Mandela Foundation as part ofits Dialogue for Justice Programme, thecommunity conversation in Atteridgeville wasthe first of a series of community dialogues inGauteng province to promote social cohesionin communities affected by violence andxenophobia. The NMF partners with the SonkeGender Justice Network, the Jesuit RefugeeServices, the Centre for the Study of Violenceand Reconciliation, the National Children’sand Violence Trust and the Somali Associationof South Africa.

The community conversation was a small,intimate affair of about 100 people, comprisingrefugees and members of the community,particularly from the informal settlement ofJeffsville in Atteridgeville. The event coincidedwith World Refugee Day. To mark theoccasion, the Nelson Mandela Foundation

and its partners joined forces with theUnited Nations High Commissioner forRefugees and the South African Human RightsCommission to pay tribute to the courageand resilience of refugees and asylum seekersand to acknowledge their contribution to theeconomic, social and cultural advances inSouth Africa. This year’s World RefugeeDay theme, “Real People, Real Needs”, wasof particular relevance in South Africa on thefirst anniversary of the May 2008 violenceagainst non-nationals. It was therefore fittingthat as part of this year’s commemoration,space was created for migrant and localcommunity members to engage in dialogue.Stressing the importance of the communityconversations through which refugees andlocal communities could build trust and jointogether in addressing their common socio-economic challenges, Sanda Kimbimbi, theregional representative of the United NationsHigh Commissioner for Refugees, said,

“Words can inspire communities towards co-operation. Dialogues such as these foster anappreciation that refugees are real people withreal needs.” His sentiments were echoed byMs Dikaledi Lehobye, member of the MayoralCommittee (MMC) of the City of Tshwane.She lauded the community conversations asan excellent forum for the promotion of ubuntu(humanity) and the creation of a safer country.

Zonke Majodina, deputy chairperson of theSouth African Human Rights Commission,reiterated the need for building communitiesthat respect and promote social solidarity andcommended the support given by individuals,organisations and communities to displacedpersons during the May 2008 attacks.She acclaimed the advancement of humanrights principles set out in the Refugee Act buturged government to speed up the fullimplementation of the status determinationprovisions contained in the Act.

Mothomang Diaho, Head of the Foundation’sDialogue Programme, reminded participantsof South Africa’s proud tradition of resolvingcomplex issues through dialogue. She alsoreminded them that the Founder, NelsonMandela, in an address on World RefugeeDay in 1997, had reminded those gathered thatthe theme for that year, “Together in Search ofSolutions” was a call to all of us on the Africancontinent to unite in the face of this pressingglobal problem. She emphasised that theprocess of engagement encourages people tolisten, empathise and reach out to each other.

“This is where the experts keep quiet,” saidDiaho, “and let the community do the work.”

In keeping with this spirit, members of theAtteridgeville host and migrant communitiesengaged in dialogue. Working energetically insmall groups, they considered how events ofhistorical significance at the continental andnational levels also ushered in change at thecommunity level. Participants spoke at lengthof their expectations of the “new” South Africaand the social and economic challenges theynow face: increasing competition for scarceresources; growing poverty and economicdepression; lack of jobs and diminishingeconomic opportunity; a lack of communityand political leadership; and growing despairabout poor service delivery, to mention a few.

A number of participants spoke about thenegative ways in which these difficulties affectrelations within and between communitiesand their frustration at “not being heard”.Many, however, recognised that only jointaction, in the face of common challenges,would improve their situation. As oneparticipant remarked, “Change starts on theinside. Workshops and reports do not solve theproblem. What we need is dialogue so that wecan understand each other and can trulychange.” What stood out during the feedback

was the sincerity of the community towardsacknowledging the damage caused by violenceby South Africans and their migrantneighbours. Many of the explanations bylocals of the causes of the violence cameacross as genuine and marked the beginningof a process of reconciliation. One dominantperspective that emerged was a deeperunderstanding of the historical and structuralviolence within South Africa and the impactthis continues to have on South African society.For many migrants, understanding thehistorical roots of violence was a powerful eye-opener. As participants reflected on this, onerefugee challenged South Africans toheal themselves.

“We as refugees cannot expect to find aplace of refuge here if South Africans donot heal themselves,” he said. A memberof the Atteridgeville community asked forforgiveness from the migrant community forwhat had happened in 2008 during the attacks.The apology was immediately accepted. It isexpected that the ongoing communityconversations will contribute towards theprocess of reconciliation and that, in theforeseeable future, the community ofAtteridgeville will host a symbolic ceremonyas a first step for facilitating coexistence.Certainly this is what the community dialoguesare about – changing the future of thecommunity to live in social harmony. It wastherefore fitting for Jean Pierre Kalala,programme director of the event, to sum upthe inherent power of the dialogues with aquotation, with which all participants agreed:

“We can see the past but not influence it.Even though we do not see the future, wecan certainly influence it.”

Visit www.nelsonmandela.org for moreinformation on our Community Conversationsfocusing on Xenophobia and HIV/AIDS.

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“Poverty is unnecessary.” MUHAMMAD YUNUS

Healing starts with understanding history

At the height of the dual global economic andenvironmental crises that no part of the worldwill escape, least of all Africa, the NelsonMandela Foundation’s Promise of LeadershipBook, is a timely and relevant response to thechallenge of leadership in our times.

The book was borne out of the Foundation’sinaugural Promise of Leadership Dialogue,which brought together the network of AfricaLeadership Initiative Fellows, leaders pastand present, and other groups of young andemerging leaders from across the continentin March 2009. The delegates sharedknowledge and experience, debated currentaffairs issues, brainstormed new ideasand charted their hopes for Africa’s future.It is their meaningful discussions that formthe bases of this book.

Presented in seven chapters the book canvassesthe continent’s recent successes while warningagainst the failure to deliver on the promiseof leadership. The book proposes that it isdecisive, spirited, values-based leadership,as espoused by the likes of Nelson Mandelathat will ultimately transform the Africancontinent for the better and for all who livein it. The book contains more than 20authored contributions from respected thoughtleaders from the continent as well as abroad.The writings deal with gender issues,social entrepreneurship, youth leadership,environmental challenges, peace andreconciliation and media and society.

Among the contributors are RwandanPresident Paul Kagame; President ofMozambique’s Foundation for Community

Development Graça Machel; NMF TrusteeMinister Tokyo Sexwale; Head of MicrosoftAfrica Dr Cheick Modibo Diarra; Chairpersonof South Africa’s National EmpowermentFund Ronnie Ntuli; Founder of the SynergosPeggy Dulany and Guinea’s special advisorto the Prime Minister Aïcha Bah Diallo.

Case studies ranging from reconciliationprogrammes in Sierra Leone to new mediainnovations in Kenya, add to the book’senlightening appeal. With its classic, coffee-table book design, the Promise of LeadershipBook seeks to inspire further dialogue aroundleadership in Africa and to see that men andwomen, young and veteran, across thecontinent, continue to engage and explorepossible solutions to our continent’s mostpressing challenges.

The Nelson Mandela Foundation launches The Promise of Leadership Book

books

Please visit Xarra books our onsite bookstoreto purchase your copy. Get more information atwww.xarrabooks.com or email info@xarrabooks.com

Participants at the community conversationin Atteridgeville, World RefugeeDay June 20, 2009

Participants at the community conversationin Atteridgeville, World RefugeeDay June 20, 2009

“Today we are challenged to end poverty and its attendant suffering.” nelson mandela

6

Putting Poverty in MuseumsDespite the distances that separate and theborders that divide, developing nations arefundamentally united in the constantstruggle to eliminate poverty and createsystemic and sustainable change for thebetterment of ‘third world’ livelihoods.Fitting then, that prior to being awardedthe 2006 Nobel Peace Prize, MuhammadYunus received due recognition for his work

in the fight against poverty from twoSouth African universities. The Universitiesof Natal (2003) and Venda in (2006) bothawarded Yunus honorary doctorates forchanging the plight of millions of poorpeople in Bangladesh by defyingconventional wisdom and starting a bankfor the poor. What began as an experimentin microlending has turned into a global

force of change. Yunus’ Grameen bank hasput financial power in the hands of the poor,restored personal dignity and helped tobuild stronger communities, not only inBangladesh but in South Africa and acrossthe developing world, as the banking modelcontinues to be replicated.The Nelson Mandela Foundation is proudto add its name to the list of institutions

and organisations in South Africa andacross the globe that continue to recognisethe significance of Yunus’ achievements aswell as those of Grameen Bank. His effortshave transformed the hope of a poverty-free world into a conceivable andachievable reality.

Museums are the only place where oneshould find poverty, says Prof MuhammadYunus, founder and managing director ofBangladesh’s largest people’s bank, GrameenBank. Awarded an honorary doctorate ineconomics from UNIVEN at the recentautumn graduation ceremony, Yunus said hestrongly believes that a poverty-free worldcan be created. “ALL we need to do is to helpeach person to unleash the energy and

creativity inside him or her. Once this can bedone, poverty will disappear very fast. Thecreation of an enabling environment for micro-credit programmes and social businessenterprises will play an important role in this.Then, the only place in the world wherepoverty may still exist will be in the povertymuseums, no longer in any human society.Here children can see it and be shocked thatpeople allowed suchan inhuman condition toexist for so many people for so long.”In 1974, Yunus found it difficult to teachelegant theories of economics in theclassroom against the back-drop of terriblefamine in Bangladesh.

“Suddenly I felt the emptiness of those theoriesin the face of crushing hunger and poverty.It brought me to the issue of poor peoples’struggle and helplessness in findingthe smallest amounts of money to make aliving, least of all paying high interest ratesto lenders.”

He then started a micro-lending operationfrom his own pocket. Against the advice ofbanks and government, he continued to giveout micro loans and in 1983 formed theGrameen Bank, meaning village bank,founded on principles of trust and solidarity.Today the bank gives loans to six million

poor people, 96 per cent women, in almostall the villages in Bangladesh. The borrowersown the bank. Cumulatively the bank hasgiven out total loans of about $5,3 billion, ofwhich $4,7 billion has been paid back.The repayment rate is 99% and the bankroutinely makes a profit. Yunus said the bankgives income generating loans, housing loans,student loans and micro enterprise loans topoor families. It also gives interest free loansto beggars and offers attractive savingsincluding pension fund and insuranceproducts to its members.

“I have long argued that credit should beaccepted as a human right. We encourageand support every conceivable interventionto help the poor fight poverty.” Theavailability of micro-credit to the poor shouldnot discourage or slow down any otherintervention but should be seen as bringingbetter mileage to all other interventions.

“I hope South Africa decides to become thefirst country in the world to declare itself apoverty-free country. I know it can beachieved if the people of this country set theirminds to it, and prepare the necessaryinstitutional arrangements for this. SouthAfrica could be the place where the very firstpoverty museum is built,” he said. Yunus has

received honorary doctorates from no fewerthan 22 universities around the globe,including the University of Toronto in Canada,Yale University in the US, the University ofBidhan Chandra Krishi Viswayvdyala inIndia and the University of KZN inSouth Africa. He has also received numerousinternational awards and serves on variousboards. It was therefore timely and mostappropriate that UNIVEN acknowledgethis international businessman who haschanged the plight of millions of poor peoplein Bangladesh. Yunus also facilitateda seminar on micro credit, organised byUNIVEN’s Institute for Entrepreneurship.

Some 150 delegates from micro credit,research, academic and poverty focusedinstitutions, NGO’s, government bodiesand donor agencies attended the seminar.The Institute was formed in 2003 and focusedon poverty alleviation in rural areas throughthe provision on academic, short cycleinnovation programmes in micro credit,women development and entrepreneurshipand poverty research activities. Research onthe needs of SMME’s in the Vhembe District,short cycled training courses for microentrepreneurs and counselling and businesssupport are also offered.

DescriptionIn the last two decades, free markets have

swept the globe. But traditional capitalismhas been unable to solve problems like

inequality and poverty. In MuhammadYunus’ groundbreaking sequel to

Banker to the Poor, he outlines theconcept of social business—

business where the creativevision of the entrepreneur is

applied to todays mostserious problems: feeding

the poor, housing the

homeless, healing the sick, and protecting theplanet. Creating a World Without Povertyreveals the next phase in a hopeful economicand social revolution that is already underway.

About the AuthorMuhammad Yunus, a native of Bangladesh,is the founder and managing director ofGrameen Bank, a pioneer of microcredit, aneconomic movement that has helped liftmillions of families around the world outof poverty. Yunus and Grameen Bank werethe recipients of the 2006 Nobel Peace Prize.

books

Creating a World Without PovertySocial Business and the Future of CapitalismMuhammad Yunus with Karl Weber

Article on Prof Yunus’ honorary doctorate 2006courtesy of the University of Venda.

Please visit Xarra books at our onsite bookstore.Prof Yunus will be signing books at our onsite bookstore from 16h00 - 16h30.

By Shahidul Alam / Drik / Majority WorldPortrait of Nobel Prize Laureate Professor Muhammad Yunus,who won the Nobel Peace Prize in 2006.

By Shahidul Alam / Drik / Majority WorldPortrait of Nobel Prize Laureate Professor Muhammad Yunus,who won the Nobel Peace Prize in 2006.

Prof Yunus also took sometime to viewthe Centre of Memory archives.

DescriptionIn 1983, against the advice of banking andgovernment officials, Professor Yunusestablished Grameen, a bank devoted toproviding the poorest of Bangladesh withminiscule loans. His objective was not just tohelp the poor survive, but to create the spark

of personal initiative and enterprise that wouldhelp them lift themselves out of povertyforever. It was an idea born on a day in 1976when he loaned the equivalent of $27 from hisown pocket to forty-two people living in a tinyvillage in Bangladesh. They were stool makerswho only needed enough credit to purchasethe raw materials for their trade. Yunus’s loanhelped them break the devastating cycle ofpoverty and changed their lives forever.His solution to world poverty, founded onthe belief that credit is a fundamental humanright, is brilliantly simple: loan poor peoplemoney, promote a few sound financialprinciples to live by, and they will helpthemselves. Yunus’ theories work. GrameenBank has provided over 3.8 billion dollars to2.4 million families in rural Bangladesh.Nearly 95 percent of Yunus’ clients are womenand loan repayment is almost 100 percent. Andmore than 250 institutions in nearly 100countries around the world operate micro-credit programs based on the Grameenmethodology. Grameen has been, and remains,at the forefront of a burgeoning worldmovement toward microlending in povertystricken communities.

7

“POOR PEOPLE ARE NOT ASKING FOR CHARITY. CHARITY IS NOT A SOLUTION TO POVERTY.” MUHAMMAD YUNUS

1. Professor Muhammad Yunus at the Hector Pieterson MuseumJuly 7, 2009 – Professor Muhammad Yunusbegan his trip to South Africa with a heritagetour today, visiting some of Johannesburg’smost significant social landmarks. The NobelLaureate, and founder and Managing Directorof Grameen Bank, is in the country to deliverthe Seventh Nelson Mandela Annual Lecture.He will speak about the eradication of povertythrough investing in marginalised people.The first stop on the heritage tour wasConstitution Hill.

2. At Constitution HillConstitution Hill, where South Africa’sConstitutional Court is located, is the site ofone of South Africa’s most notorious prisons,

No 4 Jail. Mahatma Gandhi and NelsonMandela were among the political prisonerskept here at various times. Prof Yunus wasguided through Constitution Hill by the NelsonMandela Foundation’s Head of Memory,Verne Harris. “This was a site where manypeople were imprisoned, including NelsonMandela, Ahmed Kathrada and Walter Sisulu,”explained Harris. From there the heritagetour moved on to The Green House Project.This conservatory, located in a small cornerof Joubert Park in Johannesburg, is a projectcombining community involvement andeducation with environmentally friendlybuilding principles.

3. At The Green House Project“The Green House Project was started by young

environmental activists who felt they neededa different medium to push environmentallyfriendly policies,” explained Mabule Mokhine,the programmes co-ordinator at The GreenHouse Project. After a quick drive through thecentral business district of Johannesburg, ProfYunus went to Mandela House, Mr Mandela’sold family home. Situated in Orlando West, asuburb of South Africa’s biggest township,Soweto, Mandela House is where Mr Mandelaand his then wife Winnie Madikizela-Mandelalived before Mr Mandela’s incarcerationon Robben Island. The house has been turnedinto a museum.

4. At Mandela HouseProf Yunus then visited the Hector PietersonMuseum, the site at which students involved

in the June 16, 1976 student uprising weregunned down by apartheid police. “It wasreally great to be able to see these sitesand have the history explained to me,” saidProf Yunus. With a hectic schedule aheadof him, Prof Yunus spoke of the necessityto continue dialogue with various groupsin South Africa, in particular the “youth andthe business community”.

“We need to look at new ways of doingbusiness. There is a lot of frustration at themoment with the way the old system has failedus ... No one can figure out what’s going tohappen. I have been talking about my ideasfor a long time, but no one was listening.Now, with the economic crisis, I should havea more sympathetic audience”.

Annual Lecture speaker soaks up South African historyDay one of Prof Yunus’ visit spent viewing some of Johannesburg’s heritage sites

Banker to the poorMicro-lending and the battle against world poverty

On day two Annual Lecture speaker meets the press and tours the

Nelson Mandela Foundation Centre of Memory and Dialogue

Prof Yunus and Achmat Dangor of theNelson Mandela Foundation at the pressconference with the South African Press.

NMF/BLUE MEDIA

NMF/BLUE MEDIA NMF/BLUE MEDIA

21 3 4

Copies of Banker to the Poor on sale at Xarrabooks our onsite bookstore.

The Nelson Mandela Foundation wishes to thank

the following donors and sponsors for the support

of the Seventh Nelson Mandela Annual Lecture

8

The Nelson Mandela Foundation is a not-for-profit organisation established in 1999 tosupport its Founder’s ongoing engagementin worthy causes on his retirement as Presidentof South Africa. The Foundation is registeredas a trust, with its board of trustees comprisingprominent South Africans selected bythe Founder.

The Nelson Mandela Centre of Memory andDialogue was inaugurated by Nelson Mandelaon 21 September 2004, and endorsed as thecore work of the Foundation in 2006.The Nelson Mandela Foundation, through itsNelson Mandela Centre of Memory andDialogue, contributes to the making of a justsociety by promoting the vision and work ofits Founder and convening dialogue aroundcritical social issues.

Dialogue For JusticeThe Centre of Memory and Dialogue aimsto develop and sustain dialogue around MrMandela’s legacy. It is committed to utilisingthe history, experience, values, vision andleadership of its Founder to provide anonpartisan platform for public discourse oncritical social issues. Achieving communityparticipation in decision making, even at policylevels, is prioritised. The Centre aims to

perpetuate and re-invigorate the culture ofengagement using the examples set byMr Mandela of inclusive and open dialoguethat South Africa is famous for.

Drawing on the rich traditions of transf-ormative dialogue, problem-solving and socialrenewal that made possible South Africa’sremarkable transition, the Centre:I Aims to facilitate greater understanding

and awareness about the problems facedby people, particularly in South Africaand Africa, and the possible solutionsavailable to them

I Utilises comprehensive methodologies topromote dialogue between stakeholders

I Convenes result-oriented stakeholderdialogue on key social issues identifiedthrough continuous engagementwith partners

Memory For JusticeMemory resources documenting the life andtimes of Nelson Mandela are to be found inan extraordinary range of locations, bothwithin South Africa and internationally. TheCentre of Memory and Dialogue provides aunique facility which:

I Locates, documents and ensures thepreservation of these scattered resources

I Collects and curates Mr Mandela’s personalarchive

I Promotes public access to these resourcesand fosters dialogue around them

I Ensures that all initiatives in the name ofNelson Mandela are true to his legacy.

Memory is not an end in itself. Its significancelies in its use. The Centre of Memory andDialogue seeks to reach both global audiencesand those systemically disadvantaged withinSouth Africa by:

I Undertaking outreach programmes,including travelling exhibitions, books,comic series, and internships

I Ensuring web-based access to informationthrough its web portal

I Supporting digitisation initiatives designedto broaden access to resources

I Facilitating research by individuals andinstitutions.

We believe that the vehicle for sharingmemory effectively, for growing it, and forengaging it in the promotion of justice, isdialogue. We actively open our memory work– on the life and times of Nelson Mandela, theevents and the people he influenced or wasinfluenced by – to debate and discussion, andwe draw on this memory work in conveningdialogue on critical social issues that presenta threat to justice in society.

The Nelson Mandela Foundation Centre of Memory and Dialogue

Tel: +27 11 728 1000 I Email: nmf@nelsonmandela.org I www.nelsonmandela.org

The Nelson Mandela Foundation Trustees

Prof G J Gerwel I Mr A M Kathrada I Mr C F Liebenberg I Mrs I Menell I Prof N S Ndebele I Dr M A Ramphele I Minister T G Sexwale

Audi L’Ormarins Nashua Central Rupert & Rothschild

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The Nelson Mandela Foundation and the46664 campaign are calling for Mandela Dayon 18 July, to be recognised as an annualinternational day of humanitarian actionin celebration of Nelson Mandela’s lifeand legacy.

Mr Mandela has given 67 years of his life inservice. On Mandela Day we ask individualsto give at least 67 minutes of their time inservice to their communities in whichever way

they choose. Although the 67 minutes call issymbolic, we urge people to become involvedin good works on an ongoing basis, therebyhelping to create a global movement for good.

Mandela Day, is not a holiday but a global callto action. As Madiba has often reminded us,

“it’s in our hands” to create a better world.For more go to www.mandeladay.com

MANDELA DAY 18 JULY

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NMF community conversations focusingon HIV/AIDS

(Chairperson)