Development is the precondition for establishing peace. So peace is impossible without development which means that there is a close relation between development and peace. Whenever development is ensured, peace is automatically established at that time. In this way, development always helps to sustain peace. Whereas poverty is a course which diminishes an individual’s faith in his capability and, in turn perpetuates inequality. The inequality threatens the social fabrics, and jeopardizes peace and security in any society. With reference to this connection, “micro credit is not a panacea for all poverty reduction problems but it is the beginning to an end, and not an end by itself.”[1]
Poverty might be alleviated through an adoption of master plans and conventional strategy. The bigger thought was that poverty struck a below at the micro level.[2]
According to the Norwegian Nobel Committee, “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.”[3]
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