Today, August 8, is the one-year anniversary of Muhammad Yunus heading the government of Bangladesh. In a bizarre twist of fate, the great moral leader went from impending arrest on fake charges after years of harassment by the corrupt, human rights abusing autocrat, Prime Minister Sheikh Hasina, to being asked to lead the interim government of the country. This followed the month-long protests led by young people, 1,400 of whom were murdered by security forces on orders from Hasina. Ultimately, she had to flee for her life and got refuge in India on August 5, 2024. The student leaders begged the then-84-year-old Yunus to lead an interim government until there was a newly elected government. Not wanting to be distracted from his life’s work — ending poverty — he resisted, but finally agreed and took the oath of office on August 8.
At the time, as a more than casual observer of Bangladesh, the eighth most populous country in the world, it all made sense to me. Yunus was the only person who had the credibility to be an honest broker by Bangladeshis as well as the rest of the world. Bangladeshis are eager to create a new Bangladesh, a democratic one. But after 15 years of autocratic rule, it will take reform of every institution of government.
The Bangladeshis lived for 15 years with government intimidation preventing freedom of speech. There was no rule of law, no due process. It is sobering that we here in the United States seem undecided about the merits of democracy, rights for all and due process. In Bangladesh, they are willing to die for the chance of having such a democracy.
Yunus pioneered the concept of microfinance. He started the Grameen Bank, which makes loans to the poor of Bangladesh without collateral to start their own businesses. His idea has proven more successful than conventional banks. Microfinance has now spread to over 100 countries, including the U.S., where Grameen America has 38 branches in 29 cities. Yunus is one of only seven people to have won the Nobel Prize, the U.S. Congressional Gold Medal and the Presidential Medal of Freedom.
I have known Yunus for over three decades and have visited Bangladesh three times this year. You may have heard the expression “never meet your heroes,” meaning that in person, they will be disappointing. Yunus is the exception.
Yunus appeals to our higher selves, our “better angels.” He says that “poverty should only exist in museums.” He introduced a new concept of "social business" as a way to use capitalism to end poverty. He campaigns for the 3 Zeros — zero poverty, zero unemployment and zero net carbon emissions — and tells us how to get there.
Yunus is one of our “world-historical individuals.” He is the Gandhi or the Martin Luther King of our time. I have wondered how such moral leaders would do as political leaders. I assumed it would be not well. Political leaders cannot be leaders — we won’t let them. As soon as they try to lead us, we vote them out. Read the book “Profiles in Courage.” We want our political leaders to follow us. As much as you may dislike politicians, you cannot have democracy without them!
So how has Yunus, the political leader of Bangladesh, done so far? Now I do note that this situation is unique. Yunus did not have to campaign for this job, and he is not burdened by wanting elective office. He is just a patriot to his country wanting to do the best job he can.
What he has accomplished is quite remarkable. Immediately, there was freedom of speech and freedom of the press. Under Hasina, you could be imprisoned for “likes” on social media criticizing the government. Yunus welcomed criticism. Right out of the blocks, there were forces trying to undermine the interim government. Hasina’s political party, the Awami League, wanted to regain power. India had a sweet deal under Hasina with Bangladesh as a vassal state and were eager to exert influence to go back to what had been. There have been massive amounts of social media disinformation.
After years of immense corruption, the banking system was on the verge of collapse. The banks have now been stabilized. Yunus seeks the return of the $234 billion stolen by Hasina and her cronies, which has been squirreled away abroad. Rising export earnings and increased remittances (sent back home from Bangladeshis working abroad) have helped stabilize foreign reserves. Inflation has gone from almost 12% to below 9%.
The interim government has had many wins. Bangladesh secured an agreement with Myanmar to repatriate 180,000 Rohingya refugees. Yunus made a visit to China. Loans have been pledged by China, the IMF, the Asia Development Bank, Japan and the World Bank. In addition, $260 million in investments have been promised by more than 450 investors from over 40 countries. The tariff deal with the Trump administration resulted in a better-than-expected result of 20%.
Yunus created 11 reform commissions aimed at creating a democratic Bangladesh. These include reforms to the Constitution, electoral system, police administration, judiciary, anti-corruption efforts and public administration. He wants the various political parties to sign off on which recommended reforms they endorse in a transparent way prior to elections.
Human Rights Watch has criticized the Yunus government for “falling short in implementing its challenging human rights agenda.” Certainly, many have taken advantage of the opportunity for violent political payback. One thing to keep in mind: The Army, the police, and the rank and file of all government institutions are largely the same people as those serving the last regime. The worst actors fled the country last year or have been arrested, but as one high government official told me, “You can’t fire everyone!”
Bangladeshis are hopeful and at the same time anxious about their future. Many do not want Yunus to go. They see Bangladesh finally going in a positive direction. At the same time, there is a feeling that if Yunus cannot fix the country, then no one can. They are afraid that reforms will not take place after the elections in April 2026, and it will be back to a corrupt “business as usual.”
If that happens, will young people take to the streets again and risk their lives? Stay tuned. Bangladesh is in a hopeful state, and the U.S. should do everything we can to help Bangladesh to a democratic future.