Nobel Peace Prize Goes To Microcredit Pioneer

The Nobel Peace prize was awarded today to Muhammad Yunus and the bank that he founded, the Grameen Bank of Bangladesh. The Grameen Bank aims to give microloans to destitute women to help them build businesses. According to the announcement in the NY Times, "the selection seemed to embody two connected ideas that are gaining ground among development experts: that attacking poverty is essential to peace, and that private enterprise is essential to attacking poverty."

These types of loans, some as low as $20, are considered too risky for most 'regular' banks and the amount too small for them to bother with. But Grameen Bank has loaned about $5.72 billion in these types of loans and has seen a profit in all but three years from when they started in 1983. In fact, last year the showed a $15 million profit.

See the NY Times article for more information about the power of microlending to give people a chance to turn their lives around and help their communities at the same time.