Dhaka (AsiaNews) – Bangladesh's Muhammad Yunus, 66, the inventor of micro-credit and founder of Grameen Bank (Villages' Bank in Bangla), has been awarded the 2006 Nobel Peace Prize. PIME missionaries operating for years in the country explain that the choice of Yunus is doubly significant. On the one hand, there are the positive financial and economic aspects to his 'invention'; on the other, there are the moral and human components closely linked to Yunus himself, "a man of upstanding character, source of hope for all those who are honest". But they warn to beware "of not idealising" everything.

Yunus's work and prize

In its citation, the Norwegian Nobel Committee noted that the economist and his micro-credit bank were awarded the prestigious recognition "for their efforts to create economic and social development from below."

The statement goes on to say that "[a]cross cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development." And "[l]asting peace can not be achieved unless large population groups find ways in which to break out of poverty."

Micro-credit is based on small loans without collateral given to the poor to help them finance their small-scale activities. Founded in 1983, the Grameen Bank now has more than a thousand branches with 12,500 employees. It has 2.1 million clients in 37,000 villages; 94 per cent are women.

Micro-credit's pros and cons

A PIME missionary in Dhaka talked to AsiaNews about Yunus's award. "The work this man has put in is important because he sought a new and alternative approach to the problem of poverty, placing faith in the less fortunate by setting up a system that was not simply charity, giving away money for nothing. What he came up with pays attention to social aspects of the situation". However, the priest added that one should not over-idealise micro-credit. It "does not solve all the problems of poor countries" as the Norwegian Nobel Committee itself acknowledged in its citation.

And not all is well with the system. "Micro-credit has become big business. For some it has departed from its original goals and adopted a more capitalist outlook."

In many cases, it has been very strict in enforcing its rules. "Very poor people turn to micro-credit and when they cannot payback their loans to Grameen Bank they look for other sources of credit and end up poorer than before. Either one finds a benefactor or one loses everything. This is a widespread problem even though it is not a direct consequence of the micro-credit system."

For the missionary, the main value of Yunus's award lies in the fact that it gives hope to people in Bangladesh and in the rest of the world. "He is well respected in the country because of his integrity, commitment to people, and opposition to corruption. His bank and the companies he founded represent a positive element for the national economy."

The priest is convinced that "giving the Nobel Prize to Muhammad Yunus will give hope to the honest people both in corruption-ridden Bangladesh and around the world".