Bangladeshi Banker Wins Nobel Peace Prize

The Nobel Committee has announced the winner of the Nobel Peace Prize for this year, and I couldn't agree more with their choice if I'd done the choosing myself. The winner is Muhammad Yunus, a 65 year old banker from Bangladesh, who will share the award with the bank he created in 1983 - Grameen Bank [grameen means rural in Bengali].

Yunus first came up with his idea of microloans for people in abject poverty in 1974. Yunus began to give very small unsecured loans [averaging about $200] to people in poverty so they could help themselves. These loans went to help the person to establish a small business or way to make money so they could work their way out of poverty. The loan would be used to buy items such as spinning wheels, basketmaking supplies, rickshaws, etc..

In 1983, Yunus created Grameen Bank to handle the microloans. The bank has lent more than $5.72 billion to more than 6 million people. About 97% of their borrowers are women. Some might think these unsecured loans to poverty-stricken people would be bad business [can you imagine an American bank loaning money to someone in poverty], but they would be wrong. The bank has a repayment rate of 99%.

There are now microloan programs in many countries, but the original idea started with Muhammad Yunus in Bangladesh. Yunus is responsible for helping millions to throw off the shackles of poverty. He didn't give these people a handout - he gave them a loan that provided work, dignity and a brighter future.

I applaud the Nobel Committee's selection of Muhammad Yunus to receive the Nobel Peace Prize. The prize could not have gone to a more deserving person.