Nobel Peace Prize

This year's Nobel Prizes are unique. Two economists have received the Prize, but in different fields. Edmund Phelps received the Nobel in Economics, while Muhammad Yunus received the Nobel Peace Prize. Personally, I am more happy for Muhammad Yunus getting the prize. I have never heard an economist getting a Nobel Peace Prize.

Not many people know that he is Ph. D. in Economics from one of the better schools in the U. S., Vanderbilt University.

So what's so special about this guy ? This is the guy, who created the whole cult of "micro- credit" through an organizational innovation called "Grammen", which literally menas 'rural'.

This organization lends money to the poor people, who are completely ignored by the formal banking sector for various reasons. As a result, these people have no other option but to go to money- lenders, who devise credit contracts in such a way to ensure perpetual poverty for not only the borrower but also his/ her subsequent generations. Grammeen lends precisely to such people.

It's a fascinating story to read. Do read "Banker to the Poor" written by yunus himself, which is a sort of autobiogarphy. Its just amazing.