During the 1980s, Muhammad Yunus created the single most uniting set of rules that Microfinance

has ever been introduced to. Called the Sixteen Decisions, this list of demands worked to establish
a set of social and personal commitments, as put forth by his book, Creating a World Without
Poverty. Not only has this list of goals worked to set forth a standard by which banks and borrowers
can follow, but it has also established a set of morals and principles which can help the world of
microfinance to create a brotherhood-like society, unlike anything the world has ever experienced.

Introduced to every member, the list hopes to bind each individual to a code of honor and
aspirations.

The Sixteen Decisions:

1. The four principles of Grameen Bank Discipline, Unity, Courage, and Hard Work we shall follow
and advance in all walks of our lives.

Desperate times call for desperate measures, the exact opposite which humans should resort to. As
the first decision of the Microfinance standard, Yunus grounds his followers, making sure to convey
to borrowers that grasping for the impossible only leads to ones destruction. Lightly put, while
pursuing enormous goals, one cannot merely make a life-changing decision and fix everything. Baby
steps lead to running eventually.

2. We shall bring prosperity to our families.

Once again, Yunus takes the emphasis away from self, and focuses the working individuals on the
importance of family.
3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing
new houses as soon as possible.

One of the necessities of modern life, shelter is one of the most important aspects of impoverished
existence. Protecting families from poor weather, shelter also represents the sanctity of the home;
the better equipped, the more confident and self-assured its inhabitants will be. By improving living
conditions in a noticeable fashion, borrowers will literally be able to see the fruit of their labors.

4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.

5. During the plantation season, we shall plant as many seedlings as possible.

Thinking outside of the box is nothing new to the idea of Microfinance. By improving agricultural
conditions, as well as living conditions, lendees are able to provide themselves with homemade food
while also cutting grocery costs.

6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after
our health.

7. We shall educate our children and ensure that they can earn to pay for their education.

8. We shall always keep our children and the environment clean.

9. We shall build and use pit latrines.

10. We shall boil water before drinking or use alum to purify it. We shall use pitcher filters to remove
arsenic.

While common sense, this keeps the important things in life in focus. Confrontation from economic
independence may force business owners into tough situations, but by keeping the general welfare
of ones family and lifestyle in sight, sanity is maintained.
11. We shall not take any dowry at our sons weddings; neither shall we give any dowry in our
daughters weddings. We shall keep the center free from the curse of dowry. We shall not practice
child marriage.

A common tradition of rural societies, dowries have been employed throughout the centuries to
ensure the initial abundance and success of newly weds. Despite the generosity and goodwill
demonstrated by the elderly to their children, this redistribution of wealth only further strains the
economic freedoms of the village/town. By limiting ones resources, and distributing wealth to
another family unit which will probably operate through similar means (common town skills which
need not leave the proximity of the defined area), the amount of money amongst people will
continue to decrease. By obligating borrowers to abstain from this method of implicit self-
destruction, #11 forces new business owners to innovate and look to expand outside the customary
lines of trade and commerce.

12. We shall not inflict any injustice on anyone; neither shall we allow anyone to do so.

Once again keeping borrowers in the present, Yunus continues to stress humane treatment of others
in order to maintain a peaceful society.

13. For higher income we shall collectively undertake bigger investments.

14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help.

While seemingly contradictory to decision 11, Yunus is actually establishing a web of support
mandatory to the survival of each individual. A common practice in any microfinance organization is
group lending. Established first by the Grameen Bank, this method bound several individuals
together, making each other accountable for the others actions. Through this method, not only did
repayment rates increase, but bonds between the groups were established and lasting business
relationships were established for help and support.
15. If we come to know of any breach of discipline in any center, we shall all go there and help
restore discipline.

Discipline within microfinance institutions is key to the social ascendency of individuals. Without this
code, the lending centers would fail and borrowers would be exposed to a false sense of reality
where either conditions were either to easy or demanding. Enforcing this aspect upon MFIs,
therefore, is crucial to the elimination of poverty.

16. We shall take part in all social activities collectively.

The final point that Yunus emphasizes is that of the community. When borrowers find themselves in
situations where social exchange outside a community is limited, interaction among close groups is
key to collaborative efforts for improving social and economic conditions.

The sixteen decisions confront all three sectors of rural life: economic, political, and social. While
generic, these three areas encompass family obligations, ways to improve ones standard of living,
and methods of social advancement through collaborative efforts and interactions. Ultimately,
through the establishment of these 16 decisions, Muhammad Yunus has successfully laid a
framework for borrowers to build off of and establish the social, economic, and political ties that
modern business owners today take for granted.