Who is Muhammad Yunus, Chief Adviser to Bangladesh Interim Government?

August 7, 2024

Muhammad Yunus, who won the Nobel Peace Prize in 2006, has been appointed as the chief adviser to Bangladesh’s interim government. This happened after Prime Minister Sheikh Hasina resigned due to growing protests. The announcement was made by Army Chief Waker-uz-Zaman and is related to widespread unrest over government job quotas.

Who is Muhammad Yunus?

Yunus was born in 1940 in Chittagong. He is a respected economist with a PhD from Vanderbilt University. After Bangladesh gained independence, he returned and became the head of the economics department at Chittagong University. Yunus is famous for creating the concept of microcredit, which involves giving small, collateral-free loans to poor entrepreneurs who don’t have access to traditional banking.

The Birth of Grameen Bank

In 1983, Yunus founded Grameen Bank, which became a leader in microfinance. The bank has given out over $34 billion in loans to nearly 10 million people, with a 97% repayment rate. Grameen Bank’s success inspired similar models worldwide. Yunus and Grameen Bank received the Nobel Peace Prize for their work in promoting economic and social development.

Friction with Sheikh Hasina

Yunus’s relationship with Sheikh Hasina became strained after he considered starting a political party following his Nobel win, which she opposed. When she returned to power in 2009, her government launched investigations against Yunus, accusing him of exploiting borrowers.

Legal Challenges and Accusations

Yunus is facing several legal issues. In January, he received a six-month prison sentence for labour law violations but was soon granted bail. He is also being investigated for alleged tax evasion and improper financial transactions. In 2011, he was removed from his position as managing director of Grameen Bank due to retirement rule violations. These legal troubles have sparked international concern, with prominent figures like Barack Obama and Ban Ki-moon warning about the “judicial harassment” he faces.

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