Muhammad Yunus: Bangladesh’s ‘banker to the poor’ to become interim premier

Yunus, a microfinance pioneer who won the Nobel Prize in 2006, brings star power to the role and is a popular choice with many Western governments.

Published : Aug 07, 2024 20:09 IST - 4 MINS READ

Nobel laureate Muhammad Yunus, who was recommended by Bangladeshi student leaders as the head of the interim government in Bangladesh, waves at Charles de Gaulle airport in Paris on August 7.

Nobel laureate Muhammad Yunus, who was recommended by Bangladeshi student leaders as the head of the interim government in Bangladesh, waves at Charles de Gaulle airport in Paris on August 7. | Photo Credit: ABDUL SABOOR/REUTERS

In Muhammad Yunus, Bangladesh is pinning its hopes on one of the nation’s most acclaimed intellectuals to bring stability to a country scarred by coups and political upheaval. Yunus, whose work alleviating poverty won him a Nobel Peace Prize, was named the head of a new interim government on August 6 following the sudden ouster of Sheikh Hasina as Prime Minister a day before.

Though he has mostly stayed away from politics, Yunus is one of Bangladesh’s most famous faces and brings considerable clout with Western elites. “I’m looking forward to going back home, see what’s happening and how we can organise ourselves to get out of the trouble we are in,” he told reporters on August 7 before boarding a flight at Paris’ Charles de Gaulle airport for Dubai where he was to connect to Dhaka.

“Be calm and get ready to build the country,” he said in a statement earlier that day, urging calm after weeks of violence. “If we take the path of violence everything will be destroyed,” he added.

Bangladesh’s military chief Gen. Waker-Uz-Zaman said that the interim government headed by Yunus would be sworn in on the night of August 8. In a televised address on the afternoon of August 6, he said the responsible for the violence since Hasina’s resignation would be brought to justice.

The military chief, flanked by the chiefs of navy and air force, said that he spoke to Yunus and would receive him at the airport on August 8. Zaman said he was hopeful that Yunus would take the situation to a “beautiful democratic” process.

Remarkable turn of events

Restoring normalcy to Bangladesh will not be a small feat for Yunus. Over the past few weeks, clashes between protesters and security personnel cost the lives of more than 300 people, one of the worst outbreaks of violence in the nation’s history. And while Hasina lifted millions out of poverty through garment exports, economic growth has lately stalled in Bangladesh, prompting the International Monetary Fund to step in with bailout funds.

Also Read | Hasina’s exit poses a challenge to India, which shares a long, porous border with Bangladesh

The military-backed appointment of Yunus to temporarily lead Bangladesh is a remarkable turn of events for the economist. Over the past couple of years, Yunus has spent much of his time inside Dhaka’s courtrooms, fighting about 200 charges against him and his associates, including allegations of money laundering and graft. He and his supporters say Hasina’s government was behind the legal pressure and perhaps saw him as a threat to her power. She denied those accusations.

Yunus, 84, is best known for founding Grameen Bank and pioneering microcredit—providing tiny business loans to the world’s poorest people, most of them women. Though he has spent much of his life in the public eye, politics is largely unexplored terrain. In 2007, the Bangladeshi government splintered, and the military seized power. Yunus, who had never run for office, considered forming a new party to fill the vacuum, but ultimately scrapped the idea within a few weeks.

“I feel very uncomfortable with politics,” he said in an interview earlier this year.

Popular with the West

Yunus brings star power to the role and is a popular choice with many Western governments. His supporters span industries and continents. Over the years, he has cultivated friendships with European royals, business titans like Richard Branson, and the Clintons, who helped Yunus expand his microcredit initiatives to the US. His friends say he is a rare visionary with a genuine commitment to Bangladesh and uplifting the poor.

“He is the voice of the people left behind,” said Paul Polman, a former chief executive of Unilever Plc and a close friend. “He’s a moral leader. He’s not somebody who likes to talk about himself. He likes to talk about the people he serves.”

Also Read | Bangladesh’s student protests: A test for Sheikh Hasina’s leadership

That reputation has endeared him to many in Bangladesh, including the military, which had previously supported his first foray into politics. After winning the Nobel Peace Prize in 2006, thousands of Bangladeshis crowded venues just to hear him speak. Many still bow and touch their hearts when they see him. Over the past decade, Yunus has focussed on expanding dozens of social businesses, including ones that offer free healthcare, vocational training, and phone services to poorer Bangladeshis.

Whether Yunus pivots more deliberately into politics—or simply fills a hole before elections are held—remains unclear. As protesters swarmed Dhaka’s streets in recent weeks, Yunus spoke out publicly against the violence and characterised Hasina’s crackdown as a threat to democracy, but he made no mention of ambitions to take a more formal role in shaping a new government.

“I’m not a politician,” he said in the interview earlier this year. “This is the last thing I will ever do.”

(with inputs from agencies)

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