Fallen Nobel Laureate, Rising Politician: The Muhammad Yunus Story

In a stunning turn of events, Bangladesh’s Nobel laureate Muhammad Yunus announced on Tuesday his willingness to lead an interim government a day after the military took control as mass protests forced longtime ruler Sheikh Hasina to flee the country. President Mohammad Shahabuddin appointed Yunus as the head of the interim government following Hasina’s abrupt resignation. This dramatic shift in leadership comes after weeks of violent demonstrations that shook the nation.

Yet, earlier this year, Yunus had declared at a press conference, “I’m not a politician. This is the last thing I will ever do.”

The 84-year-old has been pushed into the political limelight as Bangladesh seeks stability amid one of the biggest crises in the nation’s history.

"If action is needed in Bangladesh, for my country and for the courage of my people, then I will take it," he told AFP in a statement. He also called for "free elections", after student leaders called for him to lead the interim government.

President’s Press Secretary Md Joynal Abedin, informed the media that the decision was made in a meeting of President Shahabuddin with chiefs of the three services and a 13-member delegation of the Anti-Discrimination Student Movement at Bangabhaban on Tuesday. The other members of the interim government will be finalised after discussion with various political parties, he added.

Yunus, an economist, is known for his pioneering work in microcredit and founding Grameen Bank. He is credited with lifting millions out of poverty and earning the wide respect of millions of Bangladeshis. Currently, he is out of the country, but he welcomed the ouster of Sheikh Hasina’s regime, describing the development as the “second liberation” of the country.

Hasina, who had been in office since 2009, was accused of rigging elections in January and saw a massive uprising against her government as millions of students took to the streets over the past few weeks demanding her exit. The students are protesting against civil service job quotas. 

Nearly 300 people were killed as security forces sought to curb the unrest, but the protests grew, resulting in Hasina fleeing the country after the military turned against her.

A Nobel Legacy

Yunus received the Nobel Peace Prize in 2006 for his anti-poverty campaign through the Grameen Bank, a mode; which was replicated across continents. In 1983, Yunus established Grameen Bank to offer small loans to entrepreneurs who were typically ineligible for traditional credit.

In a 2004 interview with The Associated Press, the economist described a significant moment that led him to create Grameen Bank. He recounted meeting a poor woman who was weaving bamboo stools but was having difficulty repaying her debts. This encounter, he said, triggered his “eureka moment” for establishing the bank, as he was taken aback by the contrast between her evident talent and her financial struggles.

He was born in 1940 in Chittagong, a port city in Bangladesh. After earning his PhD from Vanderbilt University in the United States and briefly teaching there, he returned to Bangladesh.

Struggle with legal battles

The economist’s entry into active politics comes after years of legal battles. Yunus has been in a protracted row with Hasina’s government for uncertain reasons. Bangladesh authorities launched a series of investigations against him after she came to power in 2008. He has faced nearly 200 charges, including allegations of money laundering, which he and his supporters claim were politically motivated by Hasina’s government.

According to his supporters, Hasina became enraged when Yunus announced in 2007 that he would form a political party when the country was governed by military-backed rule and Hasina was in prison. However, Yunus never pursued his plan, but he criticised Bangladeshi politicians, alleging they were only interested in money.

In 2011, authorities started scrutinizing the statutory Grameen Bank’s activities and fired Yunus as its founding managing director on charges of violating the government retirement regulation. He was charged in dozens of cases.

Hasina accused Yunus of using coercion and other methods to collect loans from poor rural women while he was at the helm of Grameen Bank. However, Yunus denied those allegations.

In 2013, he faced trial for allegedly accepting funds without government approval, including his Nobel Prize award and royalties from a book.

Additional complications emerged from allegations linked to other businesses he founded, including Grameen Telecom, which is part of Bangladesh's largest mobile network, GrameenPhone, a subsidiary of the Norwegian telecom giant Telenor. In 2023, former employees of Grameen Telecom filed a lawsuit claiming that Yunus had misappropriated their job benefits, a claim he denied.

In January this year, Yunus was sentenced to six months of imprisonment by a court on charges of a labour law violation. He has pleaded not guilty and is currently out on bail.

In recent weeks, Yunus has publicly criticised the violence and described Hasina’s actions as a threat to democracy. Now, as he enters into his new role, the challenge for the 84-year-old economist is to stabilize a country in a political crisis. It remains unclear whether Yunus will continue in a temporary leadership position or withdraw after the elections.