Bangladesh’s Grameen Bank founder wins Nobel Peace Prize
PTI
Dhaka, Oct 13:
Bangladeshi economist, Mr Mohammad Yunus and the Grameen Bank founded by him were today awarded the Nobel Peace Prize for their work in helping millions, especially women, in the country overcome poverty through a system of small-scale loans.
The 66-year-old Mr Yunus, the first Bangladeshi to win a Nobel prize, said, “I think this is a wonderful recognition of our efforts at Grameen Bank, and for all the women who work for us and who have made Grameen Bank a success.
“I am proud for the whole country,” a beaming Mr Yunus told reporters at his home here. The award will “inspire him to complete his future plans”, said the economist whose Grameen Bank was honoured with India’s Gandhi Peace Prize in 2000.
Announcing the award, the Nobel committee in Oslo said it was given for efforts by Mr Yunus and the bank to “create economic and social development from below”.
“Across cultures and civilisations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development,” the Nobel commitee said in its citation.
Mr Yunus first learnt about winning the prize from a Norwegian TV station, which called him to say he might get the award and then told him to hold the telephone line. Soon after, a voice from the other end confirmed he had won the Nobel Peace Prize.
His home was thronged by friends, colleagues and well-wishers as news of his winning the award spread across Dhaka. The Prime Minister, Mr Khaleda Zia congratulated him and said his achievement would boost Bangladesh’s image. She wished him many successful years ahead.
Asked why the Nobel Foundation had given him the peace prize and not the one for economics, Mr Yunus said, “Economics and peace is directly linked. Unrest in many parts of the world is linked to economics.”
Grameen Bank was created in 1976 and became a formal bank in 1983 under a special law passed by the government for its creation. Its website says it has 6.61 million borrowers, 97 per cent of whom are women.
The Nobel committee, in its citation, said, “Economic growth and political democracy cannot achieve their full potential unless the female half of humanity participates on an equal footing with the male.”
The bank pioneered the concept of micro-credit, or extending small loans without collateral to borrowers too poor to qualify for traditional bank loans.
Since its inception, Grameen Bank has extended loans worth a total of $5.72 billion and $5.07 billion has been repaid. Over the past 12 months, it has given out loans worth $58.87 million a month, its website said.
Others who crowded the Grameen Bank office here said Bangladesh had got a new and positive identity with Mr Yunus winning the honour.
The winner of many international awards, including the Magsaysay Award in 1984, Mr Yunus was rumoured to be in the running for the Nobel prize in economics for the past three years.
Grameen Bank today has over 2,200 branches in more than 71,000 villages and its concept has been copied in many other countries.
Besides the bank, Mr Yunus has created several other companies like Grameen Phone (a mobile phoen company) and Grameen Communications (a rural Internet service provider).
Mr Yunus, who beat 191 other candidates including India’s Sri Sri Ravishanker, the founder of the Art of Living movement, said he was looking forward to making the trip to Oslo on December 10 to receive the award.
Candidates are never identified by the five-member awards committee, but it was widely believed that Ravi Shanker, human rights activists like Ms Lida Yusupova in Chechnya and Ms Rebiya Kadee of northwest China and peace brokers like Mr Maarti Ahtisaar were on its list.
The prize includes 10 million Swedish kronor (US $1.4 million).
Mr Yunus said he would invest the cash into his financing offers for the poor.
The peace prize is the sixth and last Nobel prize announced this year.