An assignment on

International Business
Course Code : 3218
Course Credit : 03
Batch : 7B
Submitted to: Md.Arifur Rahman
Lecturer, Department of Business
Administration,
Northern University Bangladesh.
Submitted by: Priyanka Debnath
ID NO: BBA 061060276
Date of Submission: ar!h 2"# 200$
Table of Contents
%uestion no &ontents Pa'e
1. Legal systems 1-3
. !uman gro"th and development 3-#
Q:1 Comparatie stud! among "ommon la#$ "iil la# and
theo"rati" la#%
Ans:
$o ma%e on a comparative study a&out three %inds of la" at 'rst "e have to %no"
"hat is la"(
)La" means the "hole system of rules that everyone in a country or society must
&e o&ey*.
$he legal system is another dimension of the e+ternal environment that in,uences
&usiness. -anagers must &e a"are of the legal systems in the countries in "hich
they operate the nature of legal profession &oth domestic and international and the
legal relationship that e+ist &et"een countries. Legal system di.ers in term of the
nature of the system common la", civil la" and theocratic la".
All the citi/ens of the particular country must o&ey the la" and if any one &rea%s it
then the e+isting la"s punish the criminal. 0uch as 1n 0"eden it is against the la" to
hit a child.
Common la#:
2ommon la" is &ased on tradition, precedent, custom and usage. $he courts ful'll
an important role &y interpreting the la" according to those characteristics. 1n
common la" legal systems, the la" is created and3or re'ned &y 4udges5 a decision
in the case currently pending depends on decisions in previous cases and a.ects
the la" to &e applied in future cases. 6hen there is no authoritative statement of
the la", common la" 4udges have the authority and duty to ma%e la" &y creating
precedent. $he &ody of precedent is called 7common la"7 and it &inds future
decisions.
2ommon la" originally developed under the in8uisitorial system in 9ngland during
the 1th and 13th centuries, as the collective 4udicial decisions that "ere &ased in
tradition, custom and precedent. 0uch forms of legal institutions and culture &ear
resem&lance to those "hich e+isted historically in societies "here precedent and
custom have at times played a su&stantial role in the legal process, including
:ermanic la"

and particularly 1slamic la".
2ommon la" legal systems are in "idespread use, particularly in those nations
"hich trace their legal heritage to Britain, including the United ;ingdom, most of the
United 0tates and 2anada, and other former colonies of the British 9mpire &ut not in
1ndia "here legal system goes &y "ritten la".

Ciil la#:
Ciil la# or Continental la# or Romano&'ermani" la# is the predominant
system of la" in the "orld.$he civil la" system also called a codi'ed legal system,
is &ased on a detailed set of la"s that ma%e up a code.<ules for comducting
&usiness transactions are a part of the code. =ver #> countries, including
:ermany,?rance and @apan operate on a civil la" &asis.
2ivil la" has its roots in <oman la", 2anon la" and the 9nlightenment, alongside
in,uences from other religious la"s such as 1slamic la". $he legal systems in many
civil la" countries are &ased around one or several codes of la", "hich set out the
main principles that guide the la". $he most famous e+ample is perhaps the ?rench
2ivil 2ode, although the :erman BArgerliches :eset/&uch Bor B:BC and the 0"iss
2ivil 2ode are also landmar% events in the history of civil la".
$he civil la" systems of 0cotland and 0outh Africa are uncodi'ed, and the civil la"
systems of 0candinavian countries remain largely uncodi'ed.
$he main di.erence that is usually dra"n &et"een the t"o systems is that common
la" dra"s a&stract rules from speci'c cases, "hereas civil la" starts "ith a&stract
rules, "hich 4udges must then apply to the various cases &efore them.
Theo"rati" la#:
$his type of la" system is &ased on religious perspective.$he &est e+emple of this
la" is 1slamic la", "hich is found in muslim countries. 1slamic la" or 0hairDa, is
&ased on the follo"ing sources
$he ;oran, the sacred te+t.
$he 0unnah of decisions and sayings of the Erophet -uhammad.
$he "ritings of 1slamic scholars, "ho derive rulis &y analogy from the
principles esta&lished in the ;oran and the 0unnah.
$he consensus of -uslim countriesD legal commuities
A&out F percent of "orld population is 1slamic, it is important to understand ho"
1slam is teanslated into rules that govern economic transactions.$his is true for
1slamic countries- such as 1ra, 0udan and Ea%istan etc, "hich have &anned traditionl
commercial &an%ing and adopted 1slalmic &an%ing models- and for -uslims "ho live
in non-1slamic countries.0ince the tenth century A.D., 1slamic la" has remained
fro/en- it cannot change, modify or e+tended "ith changing iteams. 1slamic la" is
moral rather than a commercial la" and "as intended to govern all aspects of
life.-any -uslim countries have legal system that are a uni8ue &lend of the 1slamic
la" system and a common or civil la" system derived from previous colonial ties.
9ven though 1slamic la" is '+ed, 1slamic scholars and 4urists are constantly
de&ating its application in di.erent mordern settings.
$hough 1slamic economy doesnot permits to ta%e interest &ut 1slamic &an%s also
create in,unce in 1nternational &an%ing Bsuch as Ban% AlfalaC and &usiness systems
to adopt their o"n tecni8ues. ?or e+emple, a company needs to &orro" money to
purchase merchandise. 1t can approach a &an%, "hich "ould &uy the goods and sell
them to the company, "hich "e pay the &an% at a future date at an agreed-upon
mar%up. Also &an%s can structure loans so that they share in the pro'ts rather than
receive interest. $here are appro+imately F> 1slamic &an%s in # -uslims and 1G
non--uslims countries "hich manage funds of H>> &illion. $hatDs "hy many
"estern &an%s such as at 2iti&an%, @.E -organ, Deutsche Ban% and ABN A-<= Ban%
of the Netherlands have the 1slamic units.
The Islami" (inan"ial )!stem
6hile elimination of 7<i&a7 or interest in all its forms is an important feature of the
1slamic 'nancial system. According to 1slamic la" , &an%s can not charge interest.
1nstead, &an%s have tFo structure fees into their loans to allo" them to ma%e a
pro't. 1slamic &an%ing is much more. 1n essence, it aims to eliminate e+ploitation
and to esta&lish a 4ust society &y the application of the 0hariah or 1slamic la" to the
operations of &an%s and other 'nancial institutions. $o ensure compliance to the
0hariah, 1slamic &an%s use the services of religious &oards comprised of 0hariah
scholars.

Institute of Islami" Ban*ing and Insuran"e
0ince its esta&lishment in 1II1, the 1nstitute of 1slamic Ban%ing and 1nsurance has
&een e+panding its services to meet the gro"ing needs of 1slamic 'nancial
institutions, economists, 4urists and researchers.
$he lastest important addition to the 1nstituteJs "ide range of services has &een the
0hariah Advisory Unit. $his Unit o.ers a consultancy service to 'nancial institutions
"hich desire to operate in accordance "ith the 1slamic principles or set up
independent 1slamic 'nancial units.

The Religious Board
The religious boards have both supervisory and consultative functions. Since the Shariah
scholars on the religious boards carry great responsibility, it is important that only high calibre
scholars are appointed to such boards.
)hariah la# 5
$he day-to-day application of 0hariah &y religious &oards is t"o-fold. ?irst, the
religious &oard revie"s the operations of the 'nancial institution to ensure that they
comply "ith the 0hariah. $his is, to a large e+tent, an investigatory role. 1n the
increasingly comple+ and sophisticated "orld of modern 'nance, the religious &oard
endeavours to ans"er the 8uestion "hether or not proposals for ne" transactions or
products conform to the 0hariah, and o.ers constructive and creative
recommendations.

An 1slamic 'nancial institution is re8uired to esta&lish operating procedures to
ensure that no form of investment or &usiness activity is underta%en that has not
&een approved in advance &y the religious &oard.

Also, the management is required to periodically report and certify to the religious board that the
actual investments and business activities undertaken by the institution conform to forms
previously approved by the religious board.
Australia
MCCA (Muslim Community Co-operative, Australia)
MCCU (Muslim Community Credit Union)
Bahamas
Akida Islamic Bank International Ltd
Bank Al Ta!a Ltd
"ar al Mal al Islami Trust, #assau
Islamic Investment Company o$ the %ul$ Ltd, #assau&
Istishara Consultin' Trust, Bahamas
Massra$ (aysal Islamic Bank ) Trust, Bahamas Ltd&
Bahrain
ABC Investment ) *ervices Co +C
Al Amin Co& $or *ecurities and Investment (unds
Al,araka Islamic Investment Bank
Ara, Islamic Bank +&C
Bahrain Islamic Bank Bsc&
Bahrain Islamic Investment Co& Bsc& Closed
Bahrain Institute o$ Bankin' ) (inance
Bank Melli Iran
Chase Manhattan Bank #&A&
Citi Islamic Investment Bank (Citicorp)
"allah Al,araka (+urope) Ltd
"allah Al,arakah (Ireland) Ltd
(aysal Investment Bank o$ Bahrain
(aysal Islamic Bank o$ Bahrain (Massra$ (aisal Al Islami)
%ul$ International Bank B*C
Islamic Investment Company o$ the %ul$
Islamic Tradin' Company
ABC Islamic Bank
AB# Amro Bank
"eutsche Bank -ep o$$ice
Investors Bank
TAIB Bank o$ Bahrain
Turk %ul$ Merchant Bank
Bahrain Monetary A'ency
*hamil Bank
.halee/ Investment Company
(irst Islamic Investment Bank
Ban'ladesh
Al,araka Ban'ladesh Ltd ("allah Al Baraka %roup), "haka
Islami Bank Ban'ladesh Ltd, "haka
(aisal Islamic Bank
British 0ir'in Islands
I,n .haldoun International +uity (und Ltd
Brunei
Islamic Bank o$ Brunei Berhad
Islamic "evelopment Bank o$ Brunei Berhad
Ta,un' Amanah Islam Brunei
Canada
Islamic Co-operative 1ousin' Corporation Ltd, Toronto
Cayman Islands
I,n Ma/id +mer'in' Marketin' (und (International Investor %roup)
Al Ta!$eek Co& $or Investment (unds Ltd& *u,sidiary o$ Al,arka %roup 2"B%2
"enmark
(aisal (inance ("enmark) A3*
"/i,outi
Banue Al,araka "/i,outi
+'ypt
Al!atany Bank o$ +'ypt, Cairo
+'yptian Company $or Business and Trade *&A&+
+'yptian *audi (inance Bank ("allah Al Baraka), Cairo
%ul$ Company $or (inancial Investment
(aisal Islamic Bank o$ +'ypt, Cairo
Islamic Bank International $or Investment and "evelopment, Cairo
Islamic Investment and "evelopment Co&, Cairo
#ational Bank $or "evelopment, Cairo
(rance
Al'erian *audi Leasin' 1oldin' Co& ("allah Al Baraka %roup)
*ociete %eneral
Capital %uidance
B#4 4ari,as
%am,ia
Ara, %am,ian Islamic Bank
%ermany
Bank *epah, Iran
Commer5 Bank
"eutsche Bank
%uinea
Massra$ (aisal al Islami o$ %uinea, Conakry
Banue Islamiue de %uinee
India
Al Ameen Islamic (inancial ) Investment Corp& (India) Ltd&, .arnatka
Bank Muscat International (*6A%)
Al-(alah Investment Ltd
Indonesia
Al Barakah Islamic Investment Bank
Bank Muamalat Indonesia, 7akarta
"ar Al-Maal Al-Islami Trust
4T "anareksa (und Mana'ement, 7akarta
Iran
Bank .eshavar5i (A'ricultural Bank), Tehran
Bank Maskan Iran (1ousin' Bank), Tehran
Bank Mellat, Tehran
Bank Melli Iran, Tehran
Bank *aderat Iran, Tehran
Bank *anat 0a Maadan (Bank o$ Industry and Mines), Tehran
Bank *epah, Tehran
Bank Te/arat, Tehran
Ira
Irai Islamic ,ank $or Investment and "evelopment
Italy
Bank *epah, Iran
Ivory Coast
International Tradin' Co& o$ A$rica
7ordan
7ordan Islamic Bank (*u,sidiary o$ "allah Al Barka %roup)
7ordan Islamic Bank $or (inance and Investment, Amman
.u!ait
%ul$ Investment Corporation
The International Investment %roup
The International Investor, *a$at
.u!ait (inance 1ouse, *a$at
.u!ait Investment Co - "ar Al-Isethmar*ecurities 1ouse
Le,anon
Al Barakah Bank o$ Le,anon *&A&L
Ara, (inance 1ouse *&A&L& (Islamic Bank)
Le,anese Islamic Bank *&A&L&
Blom "evelopment Bank *&A&L&
Lu8em,our'
(aisal (inance (Lu8em,our') *&A
(aisal 1oldin', Lu8em,our'
Taka$ol *&A
Islamic (inance 1ouse Universal 1oldin' *&A
Malaysia
Adil Islamic %ro!th (und (Innosa,ah *ecurities *dn Bhd), La,uan
Ara, Malaysian Merchant Bank Berhad, .uala Lumpur
Bank Bumiputra Malaysia Berhad, .uala Lumpur
Bank Islam Malaysia Berhad, .uala Lumpur
Bank .er/asama -akyat Malaysia Berhad, .uala Lumpur
"allah Al Baraka (Malaysia) 1oldin' *dn Bhd
Lem,a'a Urusan "an Ta,un' 1a/i ((und), .uala Lumpur
Malayan Bankin' Berhad (May,ank), .uala Lumpur
Multi-4urpose Bank Berhad, .uala Lumpur
United Malayan Bankin' Corp& Berhad, .uala Lumpur
Bank Muamalat Berhad, Malaysia
*ecurities Commission
La,uan 6$$shore (inancial *ervices Authority (L6(*A)
Islamic ,ankin' ) Taka$ul "ept, Bank #e'ara Malaysia
Malaysian ,anks !ith Islamic !indo!s
Commercial Banks9
A$$in Bank Berhad
Alliance Bank Berhad
Ara,-Malaysian Bank Berhad
Bank Utama (Malaysia) Berhad
Citi,ank Berhad
+6# Bank Berhad
1on' Leon' Bank Berhad
1*BC Bank (M) Berhad
Malayan Bankin' Berhad
6CBC Bank (Malaysia) Berhad
4u,lic Bank Berhad
-1B Bank Berhad
*outhern Bank Berhad
*tandard Chartered Bank Malaysia Berhad
(inance Companies9
Alliance (inance Berhad
Ara,-Malaysian (inance Berhad
Asia Commercial (inance Berhad
+6# (inance Berhad
1on' Leon' (inance Berhad
.e!an'an Bersatu Berhad
May,an (inance Berhad
MB$ (inance Berhad
4u,lic (inance Berhad
United Merchant (inance Berhad
Merchant Banks9
Alliance Merchant (inance Berhad
Ara,-Malaysian Merchant Bank Berhad
Aseam,ankers Malaysia Berhad
Malaysian International Merchant Bank Berhad
A$$in Merchant Bank Berhad
"iscount 1ouses9
A,rar "iscounts Berhad
A$$in "iscount Berhad
Amanah *hort "eposits Berhad
BBMB "iscount 1ouse Berhad
.A( "iscounts Berhad
Malaysia "iscount Berhad
May,an "iscount Berhad
Mauritania
Banue Ala,araka Mauritaninne Islamiue ("allah Al Baraka %roup), Mauritania
Morocco
(aisal (inance Maroc *&A
The #etherlands
(aisal (inance (#etherlands ) B&0
(aisal (inance (#etherlands Antilles) #&0
#i'er
Banue Islamiue "u #i'er, #iamey
#i'eria
1a,i, #i'eria Bank Ltd
Ahmed :akari ) Co
6man
Bank Muscat International
Bank *aderat Iran, Muscat
6man Ara, Bank
4akistan
Al (aysal Investment Bank Ltd, Islama,ad
Al To!$eek Investment Bank Ltd ("allah Al Baraka %roup), Lahore
(aysal Bank Ltd, 4akistan
#ational Investment Trust Ltd&, .arachi
*hamil Bank
Mee5an Bank Limited
4alestine
Ara, Islamic Bank
Ara, Islamic International Bank (AIIB) 4lc
Cairo Amman Bank
4alestine International Bank
The 4alestine Islamic Bank
;atar
Islamic Investment Company o$ the %ul$ Ltd, *har/ah
;atar International Islamic Bank, "oha
;atar Islamic Bank *A;, "oha
-ussia
BA"- Bank
*audi Ara,ia
Al,araka Investment and "evelopment Co&, 7eddah
Al -a/hi Bankin' and Investment Corp&, -iyadh
Ara, Leasin' International (inance (ALI() Ltd
(aysal Islamic Bank o$ Bahrain +&C&, "ammam
Islamic "evelopment Bank, 7eddah&
#ational Commercial Bank Ltd, 7eddah
-iyad Bank
*audi American Bank, 7eddah
*audi 1olland Bank
Bank Al 7a5ira
*ene'al
Banue Islamiue "u *ene'al
*outh A$rica
Al,araka Bank Ltd, "ur,an ("allah Al Baraka %roup)
*rilanka
Amana Investments Limited
ABC Investments Limited
Ceylinco 4ro$it *harin' Corporation
First Global Investment Limited
*udan
Al Baraka Al *udani, .hartoum& ("allah Al Baraka %roup)
Al *hamal Islamic Bank
Al Tadamon Islamic Bank, .hartoum
Animal -esources Bank
+l %har, Islamic Bank (Islamic Bank $or <estern *udan)
(aisal Islamic Bank o$ *udan, .hartoum
Islamic Bank o$ <estern *udan, .hartoum
Islamic Co-operative "evelopment Bank, .hartoum
*udanese Islamic Bank
*!it5erland
Cupola Asset Mana'ement *A, %eneva
"ar Al Maal Al Islami Trust, %eneva
(aisal (inance (*!it5erland) *A, %eneva
4an Islamic Consultancy *ervices Istishara *A, %eneva
4ictet ) Cie
Tunisia
Beit +ttam!il al Tunisi al *audi, Tunis ("allah Al Baraka %roup)
B&+&*&T& -e-Insurance ("allah Al Baraka %roup)
Turkey
Al,arakah Turkish (inance 1ouse Istan,ul
+min *i'orts A&*
(aisal (inance Institution, Istan,ul&
(aisal Islamic Bank o$ .i,ris Ltd, Turkey
Ihlas (inance 1ouse
.u!ait-Turket +vka$ (inance 1ouse
Asya (inans .urumu A&*
United Ara, +mirates
A,u "ha,i Islamic Bank
Bank Muscat International (*6A%)
"u,ai Islamic Bank, "u,ai
%ul$ International Bank, Bahrain
Islamic Investment Company o$ the %ul$ Ltd, A,u "ha,i&
Islamic Investment Company o$ the %ul$ Ltd, *har/ah *u,sidiary o$ "ar Al Maal Islami Trust
#ational Bank o$ *har/ah
1*BC, "u,ai
#ational Bank o$ "u,ai
United .in'dom
Al,araka International Ltd, London
Al,araka Investment Co& Ltd, London
Al -a/hi Investment Corporation, London
Al *a$a Investment (und
Bank *epah, Iran
"allah Al Baraka (U.) Ltd&, London
Taka$ul (U.) Ltd, London
Barclays Capital
1*BC Amanah (inance
ABCIB Islamic Asset Mana'ement, Ara, Bankin' Corp
United .in'dom ,anks !ith Islamic !indo!s
ABC International Bank, London
+urope Ara, Bank 4lc, London
-iyadh Bank , London
Citi,ank International 4lc, London
Cedel International, London
"a!nay "ay %lo,al Investment Ltd
%lo,al Islamic (inance, 1*BC Investment Bank 4lc
%ul$ International Bank Bsc, Bahrain
Islamic Bank o$ Britain
Lloyds T*B 4lc Bank
The 1alal Mutual Investment Company 4lc
IB7 International, London (*u,sidiary o$ Industrial Bank o$ 7apan)
7& Aron ) Co& (%oldman *achs International (inance) Ltd&, London
Islamic Investment Bankin' Unit (IIBU), United Bank o$ .u!ait, London
Ireland
Al Mee5an Commodity (und 4lc, "u,lin
7ersey, U. (=>?@)
The Islamic Investment Company, *t 1elier&
M(AI (7ersey) Limited ($ormerly - Massra$ (aysal Al-Islami Ltd, 7ersey)
United *tates o$ America
A,rar Investments, Inc&, *tam$ord CT
Al-Baraka Bancorp Inc& Chica'o
Al-Madina -ealty, Inc&, +n'le!ood #7
Al-Man5il Islamic (inancial *ervices
Amana Mutual (unds Trust, *tate *t& Bellin'ham <A
Ameen 1ousin' Co-operative, *an (rancisco
American (inance 1ouse
Bank *epah, Iran
BMI (inance ) Investment %roup, #e! 7ersey
"o! 7ones Islamic Inde8 (und o$ the Allied Asset Advisors (unds
(ailaka Investments, Inc&, Chica'o IL
(uloos Incorporated, Toledo 61
1udson Investors (und, Inc&, Cli$ton #7
M*I (inance Corporation, Inc&, 1ouston TA
*amad %roup, Inc&, "ayton 61
*hared +uities 1omes, Indianapolis I#
1*BC, U*A
M+( Money, U*A
Islamic Credit Union o$ Minnesota, (ICUM)
United Mort'a'e
Bemen
Islamic Bank o$ Bemen $or (inance and Investment, *ana
*a,a Islamic Bank, *ana
(aisal Islamic Bank
Bemen Islamic Bank, *ana
Bemen #ational Investment Co&, *ana
In the perspective of BANGLADESH:
The condition of some institutes according to micro-finance activities. The programs are
targeted at the functionally landless rural poor
Introduction and Industry Coverage:
In Bangladesh there are mainly four types of institutions involved in micro-finance activities.
These are ! "rameen Bank #"B!, a member o$ned speciali%ed institution, &! around '(( )on-
"overnmental *rgani%ations #)"*! like B+A,, -roshika, ASA, B.+*-Tangail, B//S,
,*0/,, S.S, T1SS, Action- Aid etc. 2! ,ommercial and Speciali%ed banks like Bangladesh
3rishi Bank #B3B!, +a4shahi 3rishi .nnayan Bank #+A3.B! and 5! "overnment sponsored
micro finance pro4ects6 -rograms like B+0B, S$anirvar Bangladesh, +0-& and others $hich
are run through several ministries vi%., 1inistry of 7omen 8 ,hildren Affairs, 1inistry of 9outh
8 Sports, 1inistry of Social 7elfare etc. All the programs are targeted at the functionally
landless rural poor. All the 1:Is provide mostly small, un-collaterali%ed one-year term loans to
individuals belonging to 4ointly liable peer groups, and they use similar on-site loan
disbursement and $eekly collection methods by forming village organi%ations or centers.
)"*s started credit program in mid eighties and their activities increased noticeably higher after
;;( #,0:, &(((!. 7ith the increasing number of collateral free micro credit disbursement by
1:Is, some )ationali%ed ,ommercial Banks #),Bs!, and Speciali%ed Banks like B3B and
+A3.Bhave been encouraged to provide a considerable amount of their rural credit to the poor
$ithout security. <o$ever, the amount is much less compared to the deposit mobili%ation from
the rural sector of the country. Today, some of the -rivate ,ommercial Banks #-,Bs! have also
started direct and linkage programs $ith )"*s. Total loan disbursement #cumulative! by these
four kinds of institutions till 0ecember &(( $as taka 525.'' billion= of $hich disbursement
under "overnment program $as taka 2>.>> billion #?.@;A!, "rameen Bank disbursed taka
'5. billion #2'.5@A!, other Banks and 1:-)"*s disbursed taka >?.5 billion #?A! and taka
@5.&@ billion #2>.?(A! respectively . +ecovery rate of all these organi%ations eBcluding formal
banks and government sponsored programs stood at ;' percent.
All the non-government organi%ations are involved in micro-finance activity but they are not
under the same regulatory authority 6 monitoring agency. Therefore, there is no single source of
information about them. <o$ever, ,redit and 0evelopment :orum #,0:! an )"* $ho collects
information of 1:-)"*s reveals that @&; 1:-)"*s have mobili%ed about 2.?' million poor
people #.&5A of the total population $ho are under absolute poverty!, among them .?'
million are female and only & million are male. *ut of 2.?' million of poor people near about ;
million are outstanding borro$ers. About ;(A of the borro$ers of those 1:-)"*s are from
rural area and only (A are from urban area. These 1:-)"*s disbursed taka @5.&@ billion
$ith outstanding loan amount of taka &'.?? billion. The outstanding amount of micro-finance
eBtended under government program is taka >.5@ billion, the outstanding balance of "rameen
Bank is taka &.>2 billion and that of other banks is taka >.'' billion. "rameen Bank, B+A,,
ASA and -roshika are top four 1:Is in terms of loan disbursement, outstanding loan and saving
mobili%ation #figure-&!. It has been seen that top 5 institutions including "rameen Bank served
more than >(A of the market.
Sources of Fund and Financia Sustaina!iity:
Initially foreign donation $as the ma4or source of fund for these organi%ations, contribution of
$hich stood to near about '(A of the total fund until ;;@. But after ;;@ it had declined
sharply and became only >A of the total fund in 0ecember &(( . 7ith the declining trend of
foreign donation, the 1:-)"*s have concentrated on accumulating funds from internal sources
such as saving mobili%ation from their members. Therefore, it has been seen that membersC
saving has increased over time and in 0ecember &(( it has contributed &'A of total +evolving
Doan :und. The contribution of service charge in +evolving Doan :und has also increased $ith
the decreasing rate of foreign donation. )o$ the contribution of service charge in +evolving
Doan :und in terms of percentage is same as that of foreign donation.


At present, one of the ma4or sources of funds of the )"*-1:Is is the savings of its members.
They do not accept deposits from the general public like that of formal financial institutions. The
interest rate they offer to the members for saving mobili%ation is less than the interest rate
offered by government and commercial banks. In spite of that as of 0ecember &((, the ma4or
sources of fund of @&; 1:-)"*s $ere membersC savings and that $as &5.2A of the total +D:=
-3S: supplied &2.5;A and direct foreign donation $as >.2@A . <o$ever, a significant portion
of the funding #@.>@A! $as actually generated from service charges. Service charges vary from
?A to 2>A depending on the method follo$ed by the 1:Is.
Though direct donation from international donors comprise only >.2@A of total +evolving Doan
:und #+D:!, 1:-)"*s are getting soft loan and subsidies from other sources like "*B, -3S:
and other big national and international )"*s6banks. Their membersC savings, service charges
and o$n fund #2A! comprise only 55.5A of the +D: that does not seem enough to make up the
cost of their loan operation $hich is about '(A of their total eBpenditure. Therefore, it is obvious
that this sector is highly subsidi%ed by different donor and sympathetic groups. It is also $idely
believed that the large 1:-)"*s are also engaged in other profitable businesses from $hich
they earn handsome profit and also use a part of it for cross subsidi%ation of their micro finance
activities. Annual financial reports of "rameen Bank and some other )"*-1:I sho$ that their
program is not financially sustainable $ithout subsidi%ed loan or donation.

I"pact of #icro$finance Services on Borro%ers and on the Econo"y
There are a fe$ studies on this impact assessment of micro-finance, findings of those studies are
as follo$sE
. The dependency of poor people on the moneylender or richer people has been reduced
substantially in the society and people are getting access to institutional sources for credit. /ven
the formal sectors have been keeping confidence on the poor for lending money, $hich is a
qualitative change in the rural society due to micro-finance intervention.
&. /mployment opportunities of the poor have increased to a great eBtent in terms of both
longer $orking hours and ne$ employment. The targeted households that are eligible for
participation in micro-finance programs have a higher probability of being self-employed than
their counterparts in non-program villages.
2. The labor force participation rate #D:-+! for more employment opportunity of the
participants $as found higher than the non-participants. Before nineties the $age rate for $omen
labor force did not get importance because of social back$ardness, $omen labor $as sold at a
very lo$ non-bargaining rate. This $as equally true in case of male labor force before the
eighties. But $ith time passing situations have changed noticeably= it is recogni%ed that there is
no$ a days a serious scarcity of labor in rural areas, especially in the peak season and this
shortage even hampers agricultural production. The intervention of micro-finance in the rural
market is one of the main reasons for this change. Therefore, the labor force of rural areas no$
has the ability to influence rural $age rate.
5. As the main target group of micro-finance is $omen, they have gained a special financial
po$er over men. Though $omen are dominated by men culturally, their access to get credit and
do their o$n business has increased their confidence on their o$n ability. This is especially true
for the rural poor $omen of the country. )o$ more and more rural $omen move outside their
home after 4oining micro-finance program. They no$ go to office, banks, market and other
places $ithout a male company. This is a positive indicator of $omen empo$erment.
'. There is a controversy about the impact of micro-finance on poverty alleviation. The
poverty rate of the country did not decrease significantly in last fe$ years. It did not increase
though. The main focus of micro-finance is to alleviate poverty, but it could not reach the
poorest of the poor till no$. *ne of the reasons might be the failure to reach the hard-core poor
by these programs. because this group of the population first needs money for consumption.
7ithout solving these problems they are not able to invest credit for cash flo$, $hich they need
to repay the loan in time. Therefore, it has been seen that there are big successes of micro-finance
at micro level that do not sho$ any significant impact at macro level. In the recent literature it is
often mentioned as the problem of F1acro-1icro 1is-matchG #Sen, &((!.
+i,eren"e bet#een "ommon la# and "iil la#:
2ommon La" is "hen a person has committed a crime against the state Beg
ro&&ery, rape, murderC. 2ommon la" is often punisha&le &y prison sentences and
the li%e.
2ivil La" is "hen a person has committed a crime against another person Beg
&reach of contract, trespass, etcC. 2ivil o.ences are usually punisha&le &y 'nes and
the li%e.
$here are cases, of course, that can &e dealt "ith under &oth 2ommon and 2ivil
La". ?or e+ample, if you &eat someone up, you can &e charged under common la"
Bas it is considered a crime against the state - that "hole Jdanger to societyJ thingC,
and the person you &eat up could actually sue you in a 2ivil case for any in4ury,
e+penses, loss of income on their &ehalf that has resulted from your assault.
1n 9ngland, common la" is the customary la" of the land, as distinct from statute
la" "hich is made &y Earliament. 2ommon la" covers &oth criminal and civil
matters5 for e+ample, murder is a crime at common la".
2ivil la" usually means that part of the la" dealing "ith non-criminal matters, e.g.
the la" of contract, tort, etc. $he term is also used to mean <oman la" and modern
legal codes derived from <oman la" Be.g. most of the legal systems of continental
9uropeC.
The .3 and its former colonies have ,ommon Da$ systems $hereas :rance, "ermany etc have
,ivil Da$ systems. The difference is that a ,ivil Da$ country has a body of la$ #passed by
-arliament! that can be referred to in each individual case and there is no such thing as binding
precedent
In ,ommon Da$ systems the la$ continually evolves in addition to being amended by la$s
passed by -arliament. If a higher court has previously interpreted a statute in a particular la$ this
cannot be overridden by a lo$er court - the decision of the higher court is a binding precedent.
Concusion
All the 1:Is provide mostly small, un-collaterali%ed one-year term loans to individuals
belonging to 4ointly liable peer groups, and they use similar on-site loan disbursement and
$eekly collection methods by forming village organi%ations or centers.
They have been encouraged to provide a considerable amount of their rural credit to the poor
$ithout security. <o$ever, the amount is much less compared to the deposit mobili%ation from
the rural sector of the country.
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Q-2: Defne human growth and human development.
-uman gro#th:
!uman gro"th is far from &eing a simple and uniform process of &ecoming
taller or larger.
-uman deelopment:
$he process of gro"th and change that ta%e place &et"een gro"th and maturity.
$he revie" of life in the poorest countries of the "orld reminds us of the importance
of ade8uate incomes in meeting &asic needs as "ell as the fact that life involves
more than mar%et incomes.
:ro"th and development are related "ith four factors5
1. !uman resources
. 2apital formation
3. Natural resources
L. $echnological change.
.//01.//2 -uman +eelopment Inde3 ran*ings
High Human Development
1. 1celand
. Nor"ay
3. Australia
L. 2anada
F. 1reland
G. 0"eden
#. 0"it/erland
M. @apan
I. Netherlands
1>.?rance
Medium Human Development
#1.Dominica
#.0aint Lucia
#3.;a/a%hstan
#L.Nene/uela, <ep. Bov.
#F.2olom&ia
#G.U%raine
##.0amoa
#M.$hailand
#I.Dominican <epu&lic
M>.Beli/e
11.?inland
1.United 0tates
13.0pain
1L.Denmar%
1F.Austria
1G.United ;ingdom
1#.Belgium
1M.Lu+em&ourg
1I.Ne" Oealand
>.1taly
1.!ong ;ong, 2hina B0A<C
.:ermany
3.1srael
L.:reece
F.0ingapore
G.;orea, <ep. of
#.0lovenia
M.2yprus
I.Eortugal
3>.Brunei Darussalam
31.Bar&ados
3.2/ech <epu&lic
33.;u"ait
3L.-alta
3F.Patar
3G.!ungary
3#.Eoland
3M.Argentina
M1.2hina
M.:renada
M3.Armenia
ML.$ur%ey
MF.0uriname
MG.@ordan
M#.Eeru
MM.Le&anon
MI.9cuador
I>.Ehilippines
I1.$unisia
I.0aint Nincent and the :renadines
I3.?i4i
IL.1ran, 1slamic <ep. of
IF.Earaguay
IG.:eorgia
I#.:uyana
IM.A/er&ai4an
II.0ri Lan%a
1>>. -aldives
1>1. @amaica
1>. 2ape Nerde
1>3. 9l 0alvador
1>L. Algeria
1>F. Niet Nam
1>G. =ccupied Ealestinian
$erritories
1>#. 1ndonesia
3I.United Ara& 9mirates
L>.2hile
L1.Bahrain
L.0lova%ia
L3.Lithuania
LL.9stonia
LF.Latvia
LG.Uruguay
L#.2roatia
LM.2osta <ica
LI.Bahamas
F>.0eychelles
F1.2u&a
F.-e+ico
F3.Bulgaria
FL.0aint ;itts and Nevis
FF.$onga
FG.Li&yan Ara& @amahiriya
F#.Antigua and Bar&uda
FM.=man
FI.$rinidad and $o&ago
G>.<omania
G1.0audi Ara&ia
G.Eanama
G3.-alaysia
GL.Belarus
GF.-auritius
GG.Bosnia and !er/egovina
1>M. 0yrian Ara& <epu&lic
1>I. $ur%menistan
11>. Nicaragua
111. -oldova
11. 9gypt
113. U/&e%istan
11L. -ongolia
11F. !onduras
11G. ;yrgy/stan
11#. Bolivia
11M. :uatemala
11I. :a&on
1>. Nanuatu
11. 0outh Africa
1. $a4i%istan
13. 0Qo $omR and Erincipe
1L. Bots"ana
1F. Nami&ia
1G. -orocco
1#. 98uatorial :uinea
1M. 1ndia
1I. 0olomon 1slands
13>. Lao, EeopleJs Dem. <ep.
131. 2am&odia
13. -yanmar
133. Bhutan
13L. 2omoros
13F. :hana
G#.<ussian ?ederation
GM.Al&ania
GI.-acedonia, $?S<
#>.Bra/il
13G. Ea%istan
13#. -auritania
13M. Lesotho
13I. 2ongo
1L>. Bangladesh
1L1. 0"a/iland
1L. Nepal
1L3. -adagascar
1LL. 2ameroon
1LF. Eapua Ne" :uinea
1LG. !aiti
1L#. 0udan
1LM. ;enya
1LI. D4i&outi
1F>. $imor-Leste
1F1. Oim&a&"e
1F. $ogo
1F3. Semen
1FL. Uganda
1FF. :am&ia
4o# -uman +eelopment
1FG. 0enegal
1F#. 9ritrea
1FM. Nigeria
1FI. $an/ania, U. <ep. of
1G>. :uinea
1G1. <"anda
1G. Angola
1G3. Benin
1GL. -ala"i
1GF. Oam&ia
1GG. 2Tte dJ1voire
1G#. Burundi
1GM. 2ongo, Dem. <ep.
1GI. 9thiopia
1#>. 2had
1#1. 2entral African <epu&lic
1#. -o/am&i8ue
1#3. -ali
1#L. Niger
1#F. :uinea-Bissau
1#G. Bur%ina ?aso
1##. 0ierra Leone

-uman deelopment:
$he revie" of life in the poorest countries of the "orld reminds us of the importance
of ade8uate incomes in meeting &asic needs as "ell as the fact that life involves
more than mar%et incomes. $houghtful economists such as No&el Eri/e recipient
Amartya 0en and SaleDs :ustav <ainDs emphasi/e that other factors should &e
considered in appraising a countryDs progress. ?actors such as health and life
e+pectancy, school enrollment, adult literacy and independence of "omen are
important goals along "ith increasing per capita mar%et consumption.
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