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"The said interest shall be divided into five equal parts, which shall be apportioned as follows: /- - -/ one part to the person who shall have done the most or the best work for fraternity between nations, the abolition or reduction of standing armies and for the holding and promotion of peace congresses."
(Excerpt from the will of Alfred Nobel)
Alfred Nobel was interested in social issues and was engaged in the peace movement. His acquaintance with Bertha von Suttner (who was later awarded the 1905 Nobel Peace Prize) influenced his own views on peace. Perhaps his peace interest was also because his inventions were used in warfare and assassination attempts? Peace was the fifth and final prize area that Nobel mentioned in his will.
The Nobel Peace Prize is awarded by a committee of five persons who are chosen by the Norwegian Storting (Parliament of Norway).