Many in Norway were calling the award a victory for the fight against poverty. The Peace Prize generally is seen as giving an enormous lift to the causes championed by its winner.
Not only will Yunus and the Grameen Bank, which makes tiny loans to the poorest of the world's poor, now get a large cash infusion for their efforts, but they'll get the international recognition that may lead to further support in the years ahead.
The Nobel Peace Prize carries with it a cash award equal this year to SEK 10 million, well over USD 1 million. The Nobel Committee decreed that the award is to be shared in two equal parts, meaning that Yunus personally will receive SEK 5 million and the Grameen Bank will also receive SEK 5 million.
Yunus, who founded the bank while a professor at the University of Chittagong in Bangladesh, has already said he intends to plough the money back into the financing operations, and invest in better computer equipment to enhance finacing activity.
Grameen means "rural" or "village" in the language of Bangladesh and the Grameen Bank defies conventional banking practice by removing the need for collateral. It says its lending of small amounts is based on "mutual trust, accountability, participation and creativity."
As of May 2006, it had 2,226 branches in more than 70,000 villages, along with 6.6 million borrowers, 97 percent of whom are women.
The Norwegian Nobel Committee said it awarded the Peace Prize to Yunus and the Grameen Bank because "lasting peace can't be created unless large portions of the population find ways to break out of poverty. Microcredit is such a way."
Observers said the award showed that the Nobel Committee now operates with a broad perspective of how peace can be created, and isn't afraid to go in new directions.
