Journey of a micro-economist: From Nobel Laureate to Head of Bangladesh's interim government

New Delhi: The Nobel Prize-winning microfinance pioneer returned to Dhaka, landing at Hazrat Shah Jalal Airport from France on August 8, to assume the role of head of Bangladesh's new interim government. 

This significant development follows the resignation of Prime Minister Sheikh Hasina, who fled the country, marking the end of her 15-year autocratic rule.

Let us explore the full story of this micro-economist's remarkable journey from winning the Nobel Prize to leading Bangladesh during its critical period of transition.

Dr Muhammad Yunus is renowned for his significant contribution to social and economic development, particularly through the concept of microcredit.

Born on June 28, 1940, in Chittagong, British India (now Bangladesh), he earned a BA and an MA in Economics from Dhaka University and a Ph.D. in Economics from Vanderbilt University in the United States.

Dr Yunus began his career as an economics professor at Middle Tennessee State University and later at Chittagong University.

In the 1970s, he started experimenting with providing small loans to impoverished villagers without requiring collateral. This initiative led to the establishment of Grameen Bank in 1983, which focused on microcredit to empower the poor, particularly women.

Nobel Peace Prize 2006

Dr Yunus and Grameen Bank were awarded the Nobel Peace Prize in 2006 for their efforts to create economic and social development from below. The Nobel Committee recognised their role in promoting microcredit, which has been instrumental in alleviating poverty worldwide.

Transition to Politics

Political Ambitions: In 2007, amidst political turmoil in Bangladesh, he announced his intention to enter politics by forming a new political party called Nagorik Shakti (Citizen Power). His political ambitions faced significant challenges, including opposition from established political parties and a lack of sufficient public support. 

In 2011, Hasina's government removed him as head of Grameen Bank, saying that at 73, he had stayed on past the legal retirement age of 60. Thousands of Bangladeshis formed a human chain to protest his sacking.

In January 2024 this year, Dr Yunus was sentenced to six months in prison for violations of labour law. He and 13 others were also indicted by a Bangladesh court in June on charges of embezzlement of 252.2 million taka ($2 million) from the workers' welfare fund of a telecoms company he founded.

Although he was not jailed in either case, Dr Yunus faces more than 100 other cases on graft and other charges. He denies any involvement and during an interview with Reuters, dismissed the accusations as "very flimsy, made-up stories".

"Bangladesh doesn't have any politics left," Dr Yunus said in June, criticising Hasina. "There's only one party that is active and occupies everything, does everything and gets to the elections in their way."

Dr Yunus remains active in promoting the concept of social business, an enterprise aimed at solving social problems rather than maximising profit. He has established several organisations and initiatives based on this principle. He has received numerous awards and honours worldwide, recognising his innovative approach to poverty alleviation and economic development.

His work with microfinance has inspired similar initiatives globally, contributing to the financial inclusion of millions of people. He has been a vocal advocate for social business as a sustainable model for addressing poverty alleviation. 

Before taking over the office on Thursday, Dr Yunus congratulated the student protesters and said they had made “our second Victory Day possible," and appealed to them and other stakeholders to remain peaceful, while condemning any violence since Hasina’s resignation.

Hope he is able to restore peace and normalcy in our neighbouring country Bangladesh.