According to Nobel's will, the Peace Prize shall be awarded to the person who in the preceding year "shall have done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses".
Alfred Nobel's will further specified that the prize be awarded by a committee of five people chosen by the Norwegian Parliament.
Nobel died in 1896 and he did not leave an explanation for choosing peace as a prize category. As he was a trained chemical engineer, the categories for chemistry and physics were obvious choices. The reasoning behind the peace prize is less clear. According to the Norwegian Nobel Committee, his friendship with Bertha von Suttner, a peace activist and later recipient of the prize, profoundly influenced his decision to include peace as a category. Some Nobel scholars suggest it was Nobel's way to compensate for developing destructive forces. His inventions included dynamite and ballistite, both of which were used violently during his lifetime. Ballistite was used in war and the Irish Republican Brotherhood, an Irish nationalist organization, carried out dynamite attacks in the 1880s. Nobel was also instrumental in turning Bofors from an iron and steel producer into an armaments company.
It is unclear why Nobel wished the Peace Prize to be administered in Norway, which was ruled in union with Sweden at the time of Nobel's death. The Norwegian Nobel Committee speculates that Nobel may have considered Norway better suited to awarding the prize, as it did not have the same militaristic traditions as Sweden. It also notes that at the end of the 19th century, the Norwegian parliament had become closely involved in the Inter-Parliamentary Union's efforts to resolve conflicts through mediation and arbitration.