Prof. Muhammad Yunus at Nobel Peace Center, Oslo
Source: Huff Post.
By Muhammad Yunus, Nobel Laureate in Economics
The current financial crisis makes it very clear that our current financial system is not sustainable. This is the opportune time to re-imagine and re-design it using a new set of objectives.
The global financial crisis has demonstrated serious shortcomings with our banking system. It has converted the marketplace into a casino. It’s no longer business; it’s outright gambling, excessive greed and irresponsible capitalism. It has encouraged irresponsible behaviour among individuals who influence the marketplace. This is where social business comes in. Social business offers ethical guidelines: non-dividend companies that address social goals — taking care of the basic deficiency of present day version of capitalism.
Credit markets were originally created to serve human needs; to provide businesses and individuals with capital to start or expand businesses or fulfill other financial needs. In recent years, however, the credit market has been distorted by a handful of people and companies with a different goal in mind — to earn unreasonable financial returns through clever feats of financial engineering.
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