A brilliant idea

Monday, Nov. 3, 2008 | 2:05 a.m.

Two years ago the Nobel Peace Prize was awarded to an economist and a bank he started in Bangladesh that provided women of that impoverished nation with loans that averaged only $27 to start their own businesses. The borrowers had to pay interest at market rates but didn’t need collateral. Thanks to the Nobel laureate, Muhammad Yunus, similar lending institutions known as microbanks began opening worldwide.

It’s good to know that the benefits of such lending have been recognized by 70 students who attend the private Meadows School in Las Vegas. Southern Nevadans should be proud that Meadows is believed to be the first high school in the United States to establish a microbank, at least of this size and scope.

As reported by Emily Richmond in the Las Vegas Sun on Tuesday, credit goes to Meadows senior Justin Blau, who decided to start the microbank while preparing for a debate competition on ways this country should address public health issues in Africa.

Thanks to his inspiration, Blau and his fellow students have raised $20,000 through the Meadows School MicroBank to help poor women in Latin America. An anonymous donor has pledged an additional $5,000.

This is a brilliant idea on many levels. The students will learn valuable life lessons — including how to handle money and deal with customers — that would normally be difficult to convey in a classroom setting. They will also get to experience the pleasure of helping others who are less fortunate, a selfless act the students will cherish their entire lives.

The women who receive the loans should benefit from the infusion of money by starting businesses that could help lift them out of poverty. The money could be used for something as simple as a sewing machine or a milk cow, but that’s how many successful entrepreneurs get their start — working from scratch.