125 Years Since Alfred Nobel's Death On This Day, Let's Unfold The Source Of The Nobel Prize Money
Every year, we hear a few fortunate names being honoured with the Nobel Prize. But have you ever wondered, where do the millions of prize money for this prize come from? Read on as we unfold this for you.
On this very day in 1896 (10th December), the great Swedish chemist, engineer, inventor, businessman, and philanthropist Alfred Nobel died in Italy. Besides his extraordinary contributions to the world of science, one thing that we all remember him for is the Nobel Prize.
Every year, we hear a few fortunate names being honoured with the Nobel Prize, in the fields of medicine, chemistry, peace, physics, literature, and economics. Each recipient is amongst the pioneers in their respective fields. But have you ever wondered, where do the millions of prize money for this prize come from? Read on as we unfold this for you.
It all dates back to 1895, just a year before Nobel breathed his last. On 27th November 1895, Nobel signed his third and last will at the Swedish-Norwegian Club in Paris.
After his death, when the will was opened, it caused a lot of controversies both in Sweden and internationally, because Nobel had left much of his wealth for the establishment of this Nobel prize. Even his family opposed the establishment of this Nobel Prize and in fact the prize awarders he had named refused to do what he had requested in his will. But fortunately, after 5 years, the first Nobel prize was awarded in the year 1901.
nobelprize.org
Where does the prize money come from?
Now coming to the prize money. As per A. Nobel¡¯s will, all of his remaining realizable assets are to be disbursed as follows- the capital, converted to safe securities by his executors, is to constitute a fund, the interest on which is to be distributed annually as prizes to those who, during the preceding year, have conferred the greatest benefit to humankind.
The interest is to be divided into five equal parts and distributed as follows: one part to the person who made the most important discovery or invention in the field of physics; one part to the person who made the most important chemical discovery or improvement; one part to the person who made the most important discovery within the domain of physiology or medicine; one part to the person who, in the field of literature, produced the most outstanding work in an idealistic direction; and one part to the person who has done the most or best to advance fellowship among nations, the abolition or reduction of standing armies, and the establishment and promotion of peace congresses.
Summing this up, the Nobel Prize comes from the majority of fortune left by Alfred Nobel, which was left for the establishment of this prize. The fortune left by Nobel, as per his will, was converted into a fund and invested in ¡®safe securities¡¯, against which interest is earned and used to give away as prize money to the winners every year.
Also Read: India's Greatest Scientists Who Never Won A Nobel Prize, Despite Their Contribution To Science
Who decides the prize winners?
As per Alfred Nobel¡¯s will itself, the prizes for physics and chemistry are to be awarded by the Swedish Academy of Sciences; that for physiological or medical achievements by the Karolinska Institute in Stockholm; that for literature by the Academy in Stockholm; and that for champions of peace by a committee of five persons to be selected by the Norwegian Storting.
Nobel also emphasized the importance of not giving any consideration to the recipient¡¯s nationality, and that the prize be awarded to the worthiest person, whether or not they are Scandinavian.
Also Read-Explained: How Nobel Prize Winners Are Chosen By The Award Committee
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