Muhammad Yunus speaks informally with faculty at Babson in March 2005

Last week it was announced that Muhammad Yunus - Banker to the Poor - was named this year's Nobel Peace Prize winner! 

On Martin Luther King, Jr. Legacy Day 2005, many of us heard Yunus speak and were captivated and inspired by the foresight that led Yunus to his legacy, The Grameen Bank, in Bangladesh, which he founded nearly 30 years ago. He started the concept of banking without collateral offering small loans for self-employment for the rural poor, especially women, who make up 95 percent of all borrowers.

The Nobel Institute honored Yunus and Grameen Bank with the Peace Prize for "their efforts to create economic and social development from below."

"Lasting peace can not 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," the Institute said.

In London's Financial Times (Weekend edition) this morning it was reported that Yunus plans to give the $1.4M prize money to causes such as an eye hospital and a drinking water project. Yunus told FT that eradicating poverty "can give you real peace. There is no self-respect and status when you are burdened with poverty." Read about the Grameen Foundation here.

Oh, to possess such humility and compassion! 

Finally, we are pleased to note that Yunus is a fellow board member with Babson's Dean Fritz Fleischmann.