In an unprecedented day of joy and pride for all Bengalis out there, the Norwegian Nobel Prize Committee decided to award the 2006 Nobel Peace Prize to Muhammad Yunus and the Grameen Corporation for working to eliminate the roots of poverty using the novel micro-credit technique.
This makes Dr. Yunus the first and only Bangladeshi to win the Nobel Prize, a feat which has prompted waves of celebration in Bangladesh and here at Tufts in Room 201 of Bush Hall!
Dr. Yunus has been awarded the prize for his fantastic ideas about using micro-credit to help those living in extreme poverty. His vision and action realized the seemingly impossible idea that loans can be offered to people who have no financial stability. He created Grameen Bank as a means to achieve this.
Grameen Bank turned the conventional method of banking on its head, awarding credit to the poorest of poor in rural Bangladesh - without collateral - based on trust, mutual interest, or accountability. It awarded money mainly to women interested in starting up their own businesses and fostered entrepreneurship in villages all across Bangladesh. It offered extremely competitive interest rates and counseling to borrowers on how to achieve their dream and run a business. According to its Web site, the bank had 6.61 million borrowers, as of May 2006. And 97 percent of them are women.
"With 2226 branches, GB provides services in 71,371 villages, covering 100 percent of the total villages in Bangladesh," the site reads. The bank has over 25 million borrowers worldwide and has become a role model for many other NGOs, government and financial institutions trying to ignite economic prosperity.
The Nobel Prize Foundation said in a press release, "Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Micro-credit is one such means. Development from below also serves to advance democracy and human rights." That is exactly what the visionary founder Dr. Yunus hoped for when he started his bank from a modest beginning. The press release continued, "Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development."
Dr. Yunus may be an economist, but he is one of the rare few who advocate economic development while keeping in mind the values of compassion and humanity. His project has enabled millions of women to escape oppression by their husbands, which is rampant in rural Bangladesh. It has given them independence and has made them understand the value of education. Their kids are growing up in a much more tolerant world, one that believes in values and education.
Grameen Corporation has made poverty alleviation realistic. Keeping credits as 'loans' and not donations increases the effectiveness with which the money is used. The corporation has shown how the world can benefit from helping the poor. Its assets in Bangladesh are estimated to be $5 billion. This has allowed it to expand to other community involvement services. Grameen Education has been working to increase literacy in Bangladesh, Grameen Energy seeks to research and increase the use of renewable energy in Bangladesh, and Grameen Communications brought mobile phones to Bangladesh.
The story and success of Dr. Yunus should serve as an inspiration to not only Bangladeshis but to people everywhere. It should be a symbol that even the poorest of the poor can have a better life and that a man can come up from one of the most obscure corners of the world and lead the way towards peace for humanity. It shows everyone can be a hero for the world if they want to be.
Rezwan Khan is a freshman who has not yet declared a major.
