Bangladesh’s Nobel laureate Muhammad Yunus has been chosen to lead the country’s interim government following the resignation and departure of the long-serving prime minister, Sheikh Hasina, amidst widespread public unrest.
Known for his pioneering work in microfinance and his vocal criticism of Hasina’s administration, Yunus, often referred to as the “banker to the poorest of the poor,” will serve as the caretaker prime minister until new elections are held. The decision was reached during a meeting late Tuesday that brought together student protest leaders, military officials, civil society representatives, and business leaders.
Hasina’s flight from the country on Monday came after weeks of escalating protests against a quota system for government jobs. The demonstrations expanded into broader challenges against her 15-year rule, which saw Bangladesh experience economic growth but also witnessed a growing authoritarian tendency in governance.
Hasina’s departure has plunged Bangladesh into a political crisis. The army has assumed temporary control, although its role in an interim government remains unclear after the president dissolved Parliament on Tuesday to prepare for elections.
Student leaders who spearheaded the protests had advocated for Yunus, currently serving as an advisor to the organizers, to lead the interim government.
While Yunus was not immediately available for comment, Nahid Islam, a key student leader, confirmed his acceptance of the leadership role during discussions with the students. Yunus, 83, is a well-known critic and political adversary of Hasina.
Yunus described Hasina’s resignation as the country’s “second liberation day.” In the past, Hasina had referred to him as a “bloodsucker.”
Yunus, an economist and banker by profession, was awarded the Nobel Peace Prize in 2006 for his innovative use of microcredit to support impoverished individuals, particularly women. The Nobel Peace Prize committee acknowledged Yunus and his Grameen Bank “for their efforts to create economic and social development from below.”
Yunus founded Grameen Bank in 1983 to provide small loans to entrepreneurs who traditionally would not qualify for financial assistance. The bank’s success in alleviating poverty inspired similar microfinancing initiatives in other nations.
Yunus encountered difficulties with Hasina’s administration in 2008 when investigations were initiated against him. He had previously announced plans to form a political party in 2007 when the country was under the control of a military-backed government, but he did not follow through with his intention.
During these investigations, Hasina accused Yunus of employing force and other methods to recover loans from impoverished rural women in his capacity as head of Grameen Bank. Yunus refuted these accusations.
Hasina’s government commenced a review of the bank’s operations in 2011, resulting in Yunus’ dismissal as managing director for allegedly violating government retirement regulations. He faced legal proceedings in 2013 on charges of receiving funds without official authorization, including his Nobel Prize winnings and royalties from a book.
He later faced additional charges related to other companies he established, including Grameen Telecom, which is part of the country’s largest mobile phone company, GrameenPhone, a subsidiary of the Norwegian telecom giant Telenor. In 2023, former Grameen Telecom employees filed a lawsuit against Yunus, alleging that he misappropriated their employment benefits. Yunus denied these accusations.
Earlier this year, a special judge’s court in Bangladesh indicted Yunus and 13 others on charges stemming from a $2 million embezzlement case. Yunus pleaded not guilty and is currently out on bail.
Yunus’ supporters maintain that he has been targeted due to his strained relationship with Hasina.
Yunus was born in 1940 in Chittagong, a port city in Bangladesh. He earned his PhD from Vanderbilt University in the United States and briefly taught there before returning to Bangladesh.
In a 2004 interview with , Yunus recounted a “eureka moment” that led to the establishment of Grameen Bank, when he encountered a poor woman weaving bamboo stools who struggled to repay her debts.
“I couldn’t understand how she could be so poor when she was making such beautiful things,” he recalled in the interview.