Fazle Hasan Abed created BRAC, originally known as Bangladesh Rural Advancement Committee, as a temporary relief organization to help with recovery from the 1970 typhoon that killed about 500,000 people and the subsequent war fought in 1971 to win independence from Pakistan.
Bangladesh was once listed as the second poorest country in the world.
BRAC has grown into one of the world's largest nongovernmental organizations focused on alleviating poverty. It is estimated to have helped more than 150 million people out of poverty in Africa and Asia and is expanding efforts to 10 additional countries.
Agriculture Secretary Tom Vilsack announced the prize on Wednesday at the State Department in Washington. Abed will be awarded the prize at a ceremony in October.
The World Food Prize was created by Nobel laureate Norman Borlaug in 1986 to recognize scientists and others who have improved the quality and availability of food. The foundation that awards the $250,000 prize is based in Iowa.
Abed said the initial focus of BRAC was on alleviating high child and infant mortality rates by providing social services including health care.
He also saw the need to empower women and get them to see they could also contribute to the national economy, so he helped teach them to farm efficiently and grow surplus crops to sell.
The United Nations Development Program reports Bangladesh has reduced poverty from 56.7 per cent in 1991-1992 to 31.5 percent in 2010, the latest year data is available.
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