Muhammad Yunus: Bangladesh’s ‘Banker to the Poor’

AFP/APP

Dhaka: Nobel-winning microfinance pioneer Muhammad Yunus will lead Bangladesh’s interim government following the ouster of Premier Sheikh Hasina, who had previously targeted him in speeches and legal battles.

At 84, Yunus, known as the “banker to the poorest of the poor,” was awarded the Nobel Peace Prize in 2006 for his innovative work in microfinance. His efforts involved providing small loans to rural women, enabling them to invest in farming tools or business equipment and enhance their livelihoods.

Yunus’s Grameen Bank was praised for its role in fostering rapid economic growth in Bangladesh and has inspired similar initiatives in numerous developing countries. During his Nobel lecture, Yunus emphasized that “human beings are not born to suffer the misery of hunger and poverty,” urging his audience to envision a world where deprivation is a thing of the past.

Despite his achievements, Yunus faced hostility from Hasina, who accused him of “sucking blood” from the poor. Hasina’s 15-year rule was marked by increasing intolerance of dissent, leading to her abrupt resignation and departure from Bangladesh on Monday. Yunus’s high profile made him a potential rival, exacerbating the conflict.

In 2007, Yunus attempted to establish a “Citizen Power” party to address Bangladesh’s contentious political climate, but he abandoned this effort within months. His challenge to the ruling elite generated lasting enmity. He faced over 100 criminal cases and a smear campaign from a state-led Islamic agency that accused him of promoting homosexuality.

In 2011, the government forced Yunus out of Grameen Bank, a decision upheld by Bangladesh’s top court. Earlier this year, Yunus and three colleagues were sentenced to six months in jail by a Dhaka labor court for allegedly failing to create a workers’ welfare fund. They were released on bail pending appeal, and a Dhaka court recently acquitted him.

Student leaders, whose protests led to Hasina’s ouster, met with the military and President Mohammed Shahabuddin to decide on forming an interim government with Yunus as its chief.

Yunus, who is expected to be sworn in as chief adviser, has called for “free elections” within months and urged against violence, emphasizing the need for calm and constructive efforts to rebuild the country.

Born in Chittagong in 1940 to a successful goldsmith, Yunus was inspired by his mother, who helped anyone in need. After returning to Chittagong University to head the economics department, Yunus was deeply moved by the severe famine affecting the country.

He found it difficult to teach theoretical economics while poverty was rampant around him and sought immediate ways to help.

In 1983, Yunus founded Grameen Bank after experimenting with ways to provide credit to those excluded from traditional banking. The bank now serves over nine million clients, with more than 97 percent of borrowers being women.

Yunus has received numerous accolades, including the US Presidential Medal of Freedom from Barack Obama. He is set to assume office as chief adviser of the interim government on Thursday.