Nobel laureate and microfinance pioneer Muhammad Yunus has taken charge as the head of the interim government in Bangladesh on August 8 evening as the country battles its biggest political crisis since gaining Independence in 1971. Yunus was attending the Paris Olympics as the country got engulfed in massive unrest and violence. That Yunus will be playing a major role in the military-backed interim government was quite evident within hours of former Prime Minister Sheikh Hasina’s resignation and departure from the country on August 5. He was nominated by student leaders as the chief adviser of the interim government after deadly protests engulfed the country.
A well-known social entrepreneur, banker, and economist, Yunus is also hailed as the ‘father of microfinance’ for founding the Grameen Bank in 1983 and becoming the pioneer of microcredit and microfinance concepts. The bank aimed at empowering the poor by providing small loans to help them become self-reliant. By providing small loans without any guarantees, known as microcredit, the bank introduced a revolutionary model for poverty alleviation worldwide. In 2006, Muhammad Yunus and Grameen Bank were awarded the Nobel Peace Prize for their work to create economic and social development from below. Inspired by the success of the Grameen Bank in Bangladesh, many other countries also adopted its model.
Although Yunus was a well-known figure in Bangladesh, he had largely stayed away from the political arena. However, he decided to venture into politics in February 2007 by founding ‘Nogarik Shakti’ (citizens’ power) and pledged to include only individuals with a “clean reputation” in the party. Aiming at the 2008 elections, Yunus recruited prominent figures, including some renowned journalists, to his party. However, there were claims that his political venture had the backing of the military. Hasina perceived Yunus as a political threat and, without directly naming him, stated that newcomers in politics are usually dangerous and should be approached with suspicion as they can do the nation more harm than good. Just 76 days after founding the party, Yunus announced his exit from politics in May 2007.
The key tasks for Yunus now are restoring peace in Bangladesh and preparing for new elections following weeks of violence. He will have to work out ways and means to clear the path for the interim administration and meet the expectations of the protesters. He will also have to ensure the protection and well-being of minorities in the country. But with Yunus, a fierce Hasina critic, taking the helm, India will now grapple with the possibility of China and Pakistan, India’s top foes, trying to exert influence in Bangladesh. The changing dynamics in the neighbourhood and the South Asian region as a whole could have drastic implications for India’s foreign policy and it may face another neighbour harbouring hostile elements.
