Muhammad Yunus, a Nobel Peace Prize-winning economist, has become the head of Bangladesh’s interim government. This change happened three days after Prime Minister Sheikh Hasina had to resign and flee to India.
Yunus, who is 84 years old, took the oath of office at the presidential palace in Dhaka on Thursday night. The ceremony included political leaders, civil society members, generals, and diplomats.
Yunus promised to support and protect the constitution and perform his duties sincerely. He was sworn in by President Mohammed Shahabuddin.
Along with Yunus, more than a dozen cabinet members, called advisers rather than ministers, were also sworn in. This interim government aims to restore peace and prepare for new elections. The new advisers include Nahid Islam and Asif Mahmud, leaders of the Students Against Discrimination group that led protests against Hasina. Other advisers are Touhid Hossain, a former foreign secretary, Hassan Ariff, a former attorney general, Syeda Rizwana Hasan, an environmental lawyer, and Asif Nazrul, a law professor and writer. Adilur Rahman Khan, a human rights activist who had been sentenced to jail by Hasina’s government, was also sworn in.
No one from Hasina’s Awami League party attended the ceremony. Hasina resigned after nationwide protests started in July against a quota system for government jobs. Critics said the system unfairly favored people connected to her party. The protests grew larger, leading to more than 300 deaths, mostly among students, in the ensuing violence.
All About Dr Muhammad Yunus
Muhammad Yunus, born on June 28, 1940, is a Bangladeshi entrepreneur, banker, economist, politician, and civil society leader. Since August 2024, he has been the Chief Adviser of Bangladesh’s interim government. Yunus received the Nobel Peace Prize in 2006 for founding Grameen Bank and creating the idea of microcredit, which helps poor people get small loans. He has also won other honors, including the US Presidential Medal of Freedom in 2009 and the Congressional Gold Medal in 2010. Yunus is one of only seven people who have won all three of these prestigious awards.
From 2012 to 2018, Yunus was the Chancellor of Glasgow Caledonian University. Before that, he taught economics at Chittagong University. He has written several books on finance and is a founding board member of Grameen America and Grameen Foundation, which support microcredit.
Yunus served on the board of the United Nations Foundation from 1998 to 2021. In 2022, he worked with the Global Esports Federation to develop esports for social good.
In August 2024, after the Bangladeshi president dissolved parliament, Yunus was appointed as the head of the interim government. This followed student protests and the resignation of former Prime Minister Sheikh Hasina. Yunus returned to Bangladesh after being acquitted of labor code violations, which were seen as politically motivated.
Early Life and Education
Muhammad Yunus was born in Bathua village, Chittagong District, Bangladesh, on June 28, 1940. He was the third of nine children. His father was a jeweler and his mother was Sufia Khatun. Yunus moved to Chittagong city in 1944 and attended Lamabazar Primary School. After his mother’s mental health declined in 1949, Yunus went on to pass his matriculation exam from Chittagong Collegiate School, ranking 16th out of 39,000 students. He was active in scouting and cultural activities during his school years. Yunus graduated from Dhaka University with a BA in 1960 and an MA in 1961.
Career
After graduation, Yunus worked as a research assistant and later as a lecturer in economics at Chittagong College. He also started a successful packaging business. In 1965, he received a Fulbright scholarship to study in the US and earned a PhD in economics from Vanderbilt University in 1971. Yunus taught at Middle Tennessee State University from 1969 to 1972.
During the 1971 Bangladesh Liberation War, Yunus helped raise support for the cause in the US. After the war, he returned to Bangladesh, worked on the Planning Commission, and then became head of the Economics department at Chittagong University. Observing the 1974 famine, he started a rural economic program and developed the Nabajug Tebhaga Khamar project, which was later adopted by the government. Yunus also introduced the Gram Sarkar program to support local governance.
Grameen Bank
In 1976, Yunus discovered that small loans could greatly help poor people in Jobra village. He lent $27 to 42 women, who made small profits. This led to the creation of Grameen Bank in 1983, which has since issued billions in loans to millions of borrowers. The bank’s “solidarity groups” ensure repayment and support among members.
Grameen Bank expanded into other areas like fishing and agriculture, leading to the formation of Grameen Motsho and Grameen Krishi. The Grameen initiative now includes various ventures, such as Grameen Software Limited and Grameenphone, which has provided cell phones to rural poor in Bangladesh.
Recognition
Yunus won the 2006 Nobel Peace Prize for his efforts with Grameen Bank. He used part of his prize money to create a company for affordable, nutritious food and to set up a university and eye hospital in Bangladesh. He is recognized globally and has received numerous awards and honorary degrees. He has been listed among the greatest entrepreneurs and influential thinkers and has played an advisory role in the Paris 2024 Olympics, promoting social business principles.
Political Career
In early 2006, Yunus joined a campaign with other civil society members, including Rehman Sobhan and Kamal Hossain, to support honest candidates in Bangladesh’s national elections. By the end of that year, Yunus considered starting a political party. On February 11, 2007, he wrote an open letter in the Daily Star, asking for public input on his plan to create a party focused on good governance and leadership. On February 18, 2007, he announced his intention to start a political party called Citizens’ Power (Nagorik Shakti). There was speculation that the army supported his move into politics, but on May 3, 2007, Yunus decided to abandon these plans after meeting with the interim government head, Fakhruddin Ahmed.
In July 2007, Nelson Mandela and other leaders created a group called The Elders in Johannesburg, aiming to address global issues. Yunus was a founding member but stepped down in September 2009 due to work commitments. He is also part of the Africa Progress Panel (APP), which advocates for sustainable development in Africa. Since 2010, Yunus has been a Commissioner for the Broadband Commission for Digital Development, a UN initiative to use internet services for social and economic growth. In March 2016, the UN Secretary-General appointed him to the High-Level Commission on Health Employment and Economic Growth. Yunus also spoke out against violence against Rohingya Muslims after the 2016–2017 genocide.
Resignation of Sheikh Hasina
During the 2024 Bangladesh quota reform movement protests, Yunus supported the students and criticized the government. After Sheikh Hasina resigned and left for India in August 2024, Yunus was announced as the chief adviser of the interim government. He was officially appointed on August 7, 2024, by President Mohammed Shahabuddin and was expected to be inaugurated on August 8 after returning from Paris.
Chief Advisor of Bangladesh
Since August 8, 2024, Yunus has served as the Chief Advisor of the 2024 Bangladesh interim government.
Controversies
In January 2011, the second Hasina ministry reviewed Grameen Bank’s activities. Many international leaders defended Yunus, forming a network called “Friends of Grameen.” On February 15, 2011, Bangladesh’s Finance Minister suggested Yunus stay away from the bank during the investigation. On March 2, 2011, Yunus was removed as managing director of Grameen Bank, though a bank statement claimed he was still in office pending legal review. Yunus challenged this in the High Court, but the court confirmed his dismissal on March 8, 2011.
In 2011, Yunus faced accusations of ‘loan sharking’ and criticisms of microfinance effectiveness. Concerns arose about some microfinance institutions using harsh repayment methods. Yunus criticized the commercialization of microcredit, saying it led to new forms of exploitation.
Political motivations were suspected behind the allegations. The Bangladeshi government’s investigations into Grameen Bank led to Yunus being barred from the World Economic Forum and faced legal troubles including defamation and accusations of mismanagement.
Allegations Involving Partners
In January 2011, Yunus faced a court case over producing adulterated yogurt through Grameen Danone, a joint venture aimed at improving child nutrition. He denied these allegations as false. An independent commission later reported that Yunus misused his authority and questioned the legal status of Grameen Bank.
Trials
Yunus faced 174 lawsuits in Bangladesh, mainly civil cases, due to allegations of labor law violations, corruption, and money laundering, which he claimed were politically motivated. In January 2024, a court sentenced him to six months in prison for labor law violations, but this conviction was overturned on August 7, 2024, following an appeal.
Background
Yunus was a supporter of Sheikh Mujib, Bangladesh’s founding father, and became involved in national issues during the liberation war. He later maintained a professional relationship with Sheikh Hasina. Their relationship soured after Yunus attempted to start a political party in 2007. The Awami League government later targeted Yunus and Grameen Bank, with reports suggesting that this was retaliation for Yunus’s political ambitions and his Nobel Peace Prize win.
Historical Description
On January 11, 2007, Army General Moeen U Ahmed led a military coup. At that time, Yunus declined the offer to become the nation’s fourth Chief Advisor after Khaleda Zia’s term ended. Instead, Yunus recommended Fakhruddin Ahmed for the position. Fakhruddin assumed office on the same day and promised to organize a fair election and fight corruption. While Khaleda and Hasina criticized Fakhruddin for focusing on corruption, Yunus supported him. Yunus remarked to AFP that there was no ideology involved. Hasina harshly criticized Yunus, calling him a “usurer” who failed to reduce poverty and contributed to it. This was Hasina’s first public criticism of Yunus. Later, Yunus announced his political party, Nagorik Shakti (Citizen’s Power), aiming to change the nation’s image from a “bottomless basket” to a “rising tiger.” However, he ended his political ambitions on May 3 with a third open letter.
Proceedings
In December 2010, the Bangladesh government charged Yunus with transferring about $100 million to a Grameen Bank sister company in 1996. Yunus denied these allegations, and the Norwegian government found him innocent. Yunus faced legal challenges from three cases: one for criticizing politicians in 2007, another for alleged adulteration in Grameen-Danone yogurt, and finally, for being removed from Grameen Bank on March 3, 2011, due to old age. Despite support from board members, employees, and borrowers, Yunus was removed as Managing Director. The High Court and later the Supreme Court upheld his removal.
From 2012
On August 2, 2012, Sheikh Hasina approved the “Grameen Bank Ordinance 2012,” increasing government control over the bank, which was previously managed by nine elected women borrowers. Hasina ordered a new investigation into Yunus’s financial activities, which many saw as an attack on his reputation. She also claimed Yunus received earnings without government permission. On October 4, 2013, Bangladesh’s cabinet approved a law giving the central bank more control over Grameen Bank. The Grameen Bank Act 2013, passed on November 7, 2013, replaced the original law and aimed to break up Grameen Bank into 19 regional lenders. The government started an investigation and planned to take over and dismantle the bank.
Personal Life
In 1967, while Yunus was at Vanderbilt University, he met Vera Forostenko, a student of Russian literature. They married in 1970, but their marriage ended after the birth of their daughter, Monica Yunus, in 1979. Vera returned to New Jersey, saying Bangladesh was not suitable for raising a child. Monica became an operatic soprano in New York City. Yunus later married Afrozi Yunus, a physics researcher who became a professor at Jahangirnagar University. They had a daughter, Deena Afroz Yunus, born in 1986.
Yunus’s brother, Muhammad Ibrahim, was a professor of physics at Dhaka University and founded The Center for Mass Education in Science. His other brother, Muhammad Jahangir, who passed away in 2019, was a television presenter and social activist in Bangladesh.
Read more: HUGE NEWS! Ford & Toyota Just DITCHED Dealers & SHOCKED The Entire Car Industry!