MILANI-YUNUS ARTICLE
EMPOWERING AT THE MARGINS: The Parallel Purposes of Muhammad Yunus and Don Lorenzo Milani
By Marco Tavanti, Elizabeth Wilp and Julie Tavanti
** Reflections inspired by the Centennial Celebrations of Don Milani (1923–2023)
First published on August 8, 2024, during Muhammad Yunus’s tenure as Chief Adviser of Bangladesh’s interim government following student-led protests that led to Prime Minister Sheikh Hasina’s resignation.
Dr. Yunus as Professor, Entrepreneur, and Public Leader
“Muhammad Yunus has shown himself to be a leader who has managed to translate visions into practical action for the benefit of millions of people, not only in Bangladesh, but also in many other countries. Loans to poor people without any financial security had appeared to be an impossible idea. From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty.” — Norwegian Nobel Committee awarding the Nobel Peace Prize to Dr. Yunis in 2006.
Dr. Muhammad Yunus began his career as an economics professor, deeply aware of the transformative power of education. At Chittagong University he believed that education was not just a means to acquire knowledge, but a foundational tool for social and economic empowerment. However, his academic pursuits soon confronted him with the grim realities of poverty in Bangladesh. He observed that traditional banking systems excluded the poorest citizens, particularly women, from accessing financial services. This realization spurred him to innovate solutions that could empower the marginalized. As Yunus stated, “I believe that we can create a poverty-free world because poverty is not created by poor people. It has been created and sustained by the economic and social systems that we have designed for ourselves” (Nobel Lecture). His journey from academia to social entrepreneurship was driven by a vision to correct these systemic failures.
In 1983, Dr. Yunus founded the Grameen Bank with a revolutionary concept: that credit is a fundamental human right. His objective was to help poor people escape poverty by offering loans tailored to their needs and by instilling sound financial principles to foster self-reliance. Dr. Yunus’s approach was radical — he believed that even the most marginalized could succeed if given the right opportunities. “If you go out into the real world,” Dr. Yunus observed, “you cannot miss seeing that the poor are poor not because they are untrained or illiterate but because they cannot retain the returns of their labor. They have no control over capital” (Banker of the Poor). Through Grameen, Dr. Yunus demonstrated that empowering the poor, particularly women, could lift entire communities out of poverty, proving that traditional banking practices were deeply flawed.
Dr. Yunus’s leadership quickly transcended national boundaries, making him a global icon for poverty alleviation and economic empowerment. His work with Grameen Bank earned him the Nobel Peace Prize in 2006, highlighting his success in creating economic and social development from the grassroots. Dr. Yunus’s global influence grew as he continued to advocate for an inclusive economy, one that empowers the poor and offers opportunities for all. Reflecting on the broader impact of his work, Dr. Yunus said, “Once poverty is gone, we’ll need to build museums to display its horrors to future generations. They’ll wonder why poverty continued so long in human society — how a few people could live in luxury while billions dwelt in misery, deprivation, and despair” (Creating a World Without Poverty). His commitment to social entrepreneurship and financial inclusion has inspired countless initiatives worldwide, solidifying his legacy as a leader in the fight against poverty.
Dr. Yunus’s leadership is characterized by several key values, each of which has significantly shaped his approach to empowering the marginalized:
- Education as Empowerment: Dr. Yunus believed in the transformative power of education to uplift communities. He recognized that education not only imparts knowledge but also enables individuals to retain capital and gain societal recognition, essential steps in overcoming poverty.
- Economic Inclusion: Dr. Yunus was committed to creating financial systems that empower the poor, especially women. He argued, “Given the [situation] we have now, we have no other way but to redesign the whole system — recognizing the strength in non-collateralized loans for the poor people and the weakness in collateralized loans for the rich people” (Knowledge at Wharton).
- Trust in the Marginalized: Dr. Yunus had profound faith in the potential of marginalized communities. “The decision to lend to a poor person is a decision to trust that person,” (Quote) he noted, emphasizing the core principle behind microfinance: that those living in poverty can be trusted and empowered to change their circumstances.
- Social Responsibility: Dr.Yunus advocated for an economy that serves everyone, particularly the underprivileged. He emphasized the need for social businesses — enterprises that prioritize social goals over profit. As he put it, “There is the expression of selfishness and there is the expression of selflessness — but economists or theoreticians never touched that part. They said: ‘Go and become a philanthropist.’ I said, ‘No, I can do that in the business world, create a different kind of business — a business based on selflessness.’” (Creating a World Without Poverty).
Dr. Muhammad Yunus, globally renowned for his pioneering work in microfinance, has expanded his legacy by championing social change through innovative social businesses like Grameen Danone Foods Ltd., which provides affordable, nutritious yogurt to rural children in Bangladesh. His belief in sustainable solutions over traditional charity exemplifies his commitment to blending business with social goals, creating an inclusive economy that empowers the marginalized. Recently, Dr. Yunus’s leadership took a new turn as he became the Chief Adviser of Bangladesh’s caretaker government, tasked with restoring stability and guiding the country towards democratic renewal. In a powerful address, he vowed to bring democracy, justice, and human rights to all citizens, emphasizing his intent to govern with the guidance of the very students who supported his rise. Dr. Yunus’s enduring vision for a just society continues to inspire and drive transformative change, reinforcing his role as a leader committed to empowering people at every level.
Microfinance as Empowerment at the Margins
“The poor themselves can create a poverty-free world. All we have to do is to free them from the chains that we have put around them!” ― Dr. Muhammad Yunus
The emergence of microfinance marked a pivotal shift in the battle against poverty, with Dr. Muhammad Yunus leading the charge. Microfinance institutions (MFIs) offer crucial financial services — including microloans, microsavings, and microinsurance — to individuals traditionally excluded from conventional banking. The Grameen Bank, founded by Dr. Yunus, became the gold standard for MFIs worldwide, demonstrating that lending to the poor can be both viable and transformative.
Microfinance is particularly impactful in empowering women, who often face systemic barriers in accessing financial resources. By providing women with the capital needed to start or expand small businesses, MFIs enable them to generate income, gain financial independence, and improve their social standing. The true value of microfinance lies in its alignment with core principles of integrity, fairness, and trust. As Dr. Yunus has emphasized, microfinance must remain true to its mission of serving the poor, avoiding the pitfalls of exploitative practices that turn it into a profit-driven enterprise rather than a tool for empowerment.
MFIs have played a critical role in promoting social empowerment, especially among poor and rural women. They provide not just financial services, but also a supportive environment that fosters women’s autonomy and decision-making power. Numerous studies have shown that participation in MFIs significantly enhances women’s control over income spending, mobility, and household decision-making. This empowerment extends beyond economics, affecting family dynamics, social standing, and even broader community development. The following are some of the recognized values and characteristics of microfinance:
- Accessibility: Microfinance is distinguished by its focus on accessibility, delivering financial services to individuals who are often excluded from traditional banking systems. This approach ensures that even the most marginalized populations, who typically lack collateral or credit history, can access the capital they need to improve their economic circumstances. By removing these barriers, microfinance institutions (MFIs) provide a critical lifeline to those who might otherwise remain trapped in poverty.
- Empowerment: A central tenet of microfinance is empowerment, particularly the empowerment of poor women. MFIs focus on uplifting these individuals by providing them with the resources to become entrepreneurs and active decision-makers within their households and communities. This empowerment extends beyond mere financial assistance, fostering greater autonomy and enhancing the social status of women who often face systemic discrimination in traditional economic structures.
- Sustainability: Sustainability is another key characteristic of microfinance. By encouraging economic independence and self-reliance, MFIs promote interventions that have lasting impacts. Small-scale financial services, such as microloans and microsavings, are designed to support long-term economic stability rather than short-term relief. This sustainable approach helps individuals build a foundation for ongoing success, reducing the likelihood of returning to poverty.
- Diverse Services: MFIs offer a diverse range of services to meet the varied needs of the poor. These services include microloans, which provide immediate capital for entrepreneurial ventures; microsavings, which allow individuals to securely save small amounts of money; and microinsurance, which offers protection against unforeseen risks. Additionally, crowdfunding platforms like Kiva have expanded the reach of microfinance, enabling individuals worldwide to contribute to microfinance projects and furthering the impact of these institutions.
In developing countries, the role of MFIs in women’s empowerment is particularly significant. By tailoring financial services to the specific needs of women, MFIs help bridge the gap between poverty and self-sufficiency. This approach not only supports individual women but also contributes to broader goals of poverty reduction and sustainable development, creating ripple effects that benefit entire communities.
Dr. Yunus and Don Milani’s Empowerment at the Margins
“They have no control over capital, and it is the ability to control capital that gives people the power to rise out of poverty.” — Dr. Muhammad Yunus
“In Don Lorenzo’s thinking, the school is capable of giving dignity to the poor and making them protagonists, helping them grow, making them free and aware. A school that knows how to take a stand, that honors politics and unions as two modern tools capable of defending the rights of the marginalized and of correcting an unjust world. A school that addresses historical, economic, and social problems — in other words, the problems of life, the work of millions of people. A school that is not selective, but demanding, committed, rigorous, and non-permissive, with a strong cultural foundation. A school that educates students in political and social engagement, but is not subordinate to anyone’s interests except the common pursuit of truth. A modern school that looks ahead, that scrutinizes the signs of the times, and only examines the past to the extent that it helps address the present and anticipate the future.” — Michele Gesualdi, La Parola Fa Eguali
Don Lorenzo Milani was far more than an educator; he was a revolutionary force in post-war Italy, dedicated to empowering the marginalized through education. He didn’t merely teach; he fought for an education system that would equip the poor with the tools to challenge and change the injustices that kept them oppressed. His approach was grounded in the belief that education must be critical, relevant, and deeply connected to the real struggles of life. This aligns with the global goals of the United Nations and UNESCO, which have long recognized that education is key to breaking the cycles of poverty (SDG 4). But Don Milani went further — he argued that education alone is not enough unless it also instills the ability to think critically and act with purpose. Don Milani’s emphasis on mastering language and critical thinking was a radical assertion that the poor, if given the tools, could rise to challenge the structures that oppressed them. This is echoed in his belief that “without language, there is no dignity, and therefore no freedom or justice,” a sentiment even recognized by the Pope during his visit to Barbiana in 2017. Education, for Don Milani, was about more than knowledge; it was about empowerment, the ability to navigate and dismantle the barriers that held people back. Dr. Muhammad Yunus shares this vision of empowerment, though his arena is the economy rather than the classroom. Dr. Yunus understood that microloans alone would not lift people out of poverty unless they were paired with financial literacy and entrepreneurial skills. Like Don Milani, Dr. Yunus recognized that true empowerment at the margins requires the development of human capacities, not just access to resources. Dr. Yunus’s microfinance institutions (MFIs) are not just about lending money; they are about teaching people how to use that money to transform their lives and communities.
Both Don Milani and Dr. Yunus saw the need for systemic change to truly empower the marginalized. Donn Milani used education as his tool, insisting that it must be rigorous, practical, and deeply connected to the realities of those it served. Dr. Yunus, on the other hand, challenged the very foundations of traditional capitalism, advocating for social businesses that prioritize human welfare over profit. Both men rejected the notion that poverty is a personal failing, instead attributing it to unjust social and economic systems that must be fundamentally reformed. We often assume that pulling someone out of poverty is the end of the story, but Dr. Yunus and Don Milani knew better. They understood that financial capital alone is insufficient without educational, social, and cultural capitals to truly empower individuals. Educational capital provides the knowledge and skills needed to challenge social structures, while social capital offers the networks and relationships that create opportunities. Cultural capital, the ability to navigate and leverage cultural norms, is equally vital for advancing in society.
Dr. Yunus, like Don Milani, advocates for an education that is relevant to the world’s needs. He believes that education should empower students to “become pilots of their own destinies,” rather than merely preparing them for jobs within existing structures. His influence has spread globally, with over 100 universities in 39 countries establishing Yunus Social Business Centres to further this vision of education as a launchpad for social change. Dr. Yunus’s views on employment are as radical as Don Milani’s approach to education. He criticizes the “passenger mentality” that society instills, encouraging people to seek comfort rather than take control of their lives and the future of the planet. He urges younger generations to reject the guidance of those who created the current global challenges and instead to take charge as the pilots of their destinies through social entrepreneurship and transformative leadership. This shared vision of empowerment and self-determination is the legacy of both Dr. Yunus and Don Lorenzo Milani — two leaders who believed in the transformative power of education and economic opportunity to create a just and equitable world.
Capitals for the People and Empowering the Poor
“Human beings are much bigger than just making money. […] We have designed a capitalist system wrong. We assume human beings are one-dimensional, all they do is make money, so we’ve created a money-centric world. […] They have no control over capital, and it is the ability to control capital that gives people the power to rise out of poverty.” — Dr. Muhammad Yunus
“La povertà dei poveri non si misura a pane, a casa, a caldo. Si misura sul grado di cultura e sulla funzione sociale. […] La distinzione in classi sociali non si può dunque fare sull’imponibile catastale, ma su valori culturali” — Don Lorenzo Milani
Muhammad Yunus and Don Lorenzo Milani shared a transformative vision of empowerment that aimed to reform capitalism from within rather than simply critique it. Both leaders opposed the exploitative economic dynamics that marginalize the poor and perpetuate inequality. They recognized the importance of better education and jobs in improving lives but advocated for economic, political, and educational systems grounded in responsibility, inclusion, and the empowerment of the poor, rather than their exploitation. As Dr. Yunus once stated, “Poverty is not created by the poor. It has been created and sustained by the economic and social systems that we have designed for ourselves.” This reflects his belief that it is the systems, not the people, that require reform. If Dr. Yunus and Don Milani were to collaborate today, they would argue that any economic system — whether rooted in capitalism, communism, or another ideology — must be harnessed to uplift all segments of society, not just the privileged few. They would contend that the true purpose of economic systems should be to create opportunities for the lower and middle classes to improve their conditions, rather than maintaining the status quo of privilege. Donn Milani, who viewed education as a fundamental tool for social justice, would likely insist that a responsible capitalist system must prioritize access to quality education as a means of empowering the marginalized and creating a more equitable society.
Hernando de Soto’s work in “The Mystery of Capital” aligns closely with the visions of Muhammad Yunus and Don Lorenzo Milani, all of whom advocate for an economic system that empowers rather than excludes the poor. De Soto argues that the poor are often trapped outside the capitalist system because they lack the legal and institutional frameworks necessary to capitalize on their assets. Without formal property rights and recognition, their wealth remains “dead capital,” unable to be leveraged for economic growth. De Soto’s insights underscore the need for systemic reforms that provide the poor with secure property rights and the ability to fully participate in the economy. By addressing these foundational issues, we can empower the poor to lift themselves out of poverty and foster sustainable economic growth, thereby creating a more inclusive and effective economic system.
Dr. Yunus and Don Milani would likely agree that true economic empowerment requires a blend of financial, educational, social, cultural, and political capital. Dr. Yunus, for example, has championed microfinance as a way to provide financial capital to the poor but has always emphasized that this must be paired with financial literacy and entrepreneurship, recognizing that money alone is insufficient for sustainable change. He has declared that “the capitalist engine is broken” and insists that it’s time to create a new economic system that harnesses altruism alongside self-interest. This vision is already being realized by thousands of people and organizations worldwide, who have embraced his call for social businesses designed to serve human needs rather than accumulate wealth. These initiatives, from bringing solar energy to millions of homes in Bangladesh to empowering young entrepreneurs globally, illustrate the emerging civilization that Dr. Yunus describes in “A World of Three Zeros” — zero poverty, zero unemployment, and zero net carbon emissions. He invites young people, business leaders, and citizens alike to join this movement and help create a more equitable world.
Don Milani, similarly, believed that education must go beyond mere knowledge acquisition; it must also develop critical thinking and social awareness. He recognized how people themselves can change the world but only if equipped with proper tools from education. As Don Milani said, “The unjust world must be straightened out by the poor, and they will only do so when they have judged and condemned it with an open and awakened mind — something that only a poor person who has gone to school can have.” He saw education as the foundation upon which the poor could build their own paths out of poverty, much like how Dr. Yunus viewed microfinance as a way to enable the poor to take control of their economic futures. Both leaders understood that systemic change requires more than just financial intervention — it requires a holistic approach that includes education, social responsibility, and cultural awareness. Both leaders advocated for economic systems that prioritize the welfare of all citizens, not just the wealthy. They believed that a responsible capitalist system must be designed to serve the common good, ensuring that economic growth benefits everyone, particularly the most vulnerable. In examining the parallel visions of Dr. Muhammad Yunus and Don Lorenzo Milani, we see their shared commitment to empowering the marginalized through innovative and inclusive approaches to economics and education. Both leaders demonstrated that change at the margins can ripple outward to transform society as a whole, providing a blueprint for future efforts to create a more just and equitable world. As Dr. Yunus aptly put it, “We can create a poverty-free world if we collectively believe in it,” a sentiment that Don Milani would undoubtedly have endorsed in his own pursuit of social justice through education.
Suggested Citation: Tavanti, M., Wilp, E. & Tavanti, J. (2024, August 8). “Empowering at the Margins: The Parallel Purposes of Muhammad Yunus and Don Lorenzo Milani.” Medium (EduVators). https://medium.com/p/92533e49fda1/
Explore More: To explore the role of microfinance in poverty alleviation and empowerment, several key resources provide valuable insights and comprehensive analysis. Muhammad Yunus’s “Banker to the Poor: Micro-Lending and the Battle Against World Poverty” is an essential read, offering a firsthand account of the development and impact of microfinance, particularly through the Grameen Bank. “The Economics of Microfinance” by Beatriz Armendáriz and Jonathan Morduch provides an academic perspective, examining the economic theories and practices that underpin microfinance initiatives. For a broader understanding of microfinance’s global impact, “A Billion Bootstraps: Microcredit, Barefoot Banking, and The Business Solution for Ending Poverty” by Phil Smith and Eric Thurman explores how microfinance operates in different cultural and economic contexts. Additionally, “The Portfolios of the Poor: How the World’s Poor Live on $2 a Day” by Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven offers a detailed look at how microfinance fits into the daily lives of the poor, highlighting its role in managing financial instability. Finally, the CGAP (Consultative Group to Assist the Poor) website (www.cgap.org) is an excellent resource for the latest research, case studies, and data on microfinance and financial inclusion globally.
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About the Authors: Marco Tavanti is an Italian-born American professor who deeply appreciates Don Lorenzo Milani’s teaching methods. He learned about these methods near the Barbiana school early in his career. Marco’s work brings these impactful ideas into today’s teaching practices worldwide. Elizabeth Wilp is a researcher contributing to inclusive education, especially in curricula and classrooms with students from different cultures and backgrounds. Her research and experience provide important insights into how schools can be more effective and welcoming for all students. Julie Tavanti is a Chinese-born American student passionate about developing new ways to teach students who learn differently and helping more women get into STEM fields. Her unique background and dedication to diverse education shape her views and efforts.
