According to Andrew Curry at The New Republic he will ...

Yunus will be awarded a Nobel Peace Prize for his work this Sunday in Stockholm. The honor is proof that small-scale lending to "the bottom of the pyramid"--or so-called "microfinance"--has become the hottest idea for solving poverty to hit the development community in decades. But following Yunus's vision is the best way to doom a promising movement to failure.

The problem isn't Grameen's size or its borrowers, but its philosophy: Yunus is firmly anti-profit. "Maybe banks can make a profit from [loaning money to the poor]. ... But this is what loan sharks do," Yunus said after his Nobel win was announced in October. "We have enough enterprises generating money for profit. I would rather think that the rich can set up social enterprises." Yunus even objects to the term "microfinance," preferring the profit-neutral "microcredit."

This principled allergy to profiting from the poor may be part of the reason why Grameen still depends on NGO grants and its founder's incredible charisma to stay afloat. Indeed, Grameen is glorified philanthropy, not banking. If small-scale financial services are to be a long-term solution to the problem of poverty, they need to embrace profit.

Some interesting points in the article. What are your thoughts?

In other microfinance news:

*ACCION Partners with Ecobank to Expand Microfinance In West and Central Africa, at Social Funds.

*Indian entrepreneurs Vikram Akula, founder of SKS Microfinance, and Sameer Sawarkar of Neurosynaptic Comm were awarded the 2006 Global Indus Technovators award for their grassroots effort in India.

*New Microfinance Technology to Aid Poor in Central America, at BusinessWire.