Nobel Laureate Mohammad Yunus Set to Enter Bangladesh Politics Soon

By Tajul Islam

On June 11, 2024, Reuters published an interview with Mohammad Yunus, the Nobel Peace laureate and founder of Grameen Bank, which has stirred significant political discourse in Bangladesh. Mohammad Yunus, globally renowned for his contributions to microfinance and poverty alleviation, hinted at his imminent entry into Bangladeshi politics, criticizing the current state of political affairs in the country. He stated, “Bangladesh has turned into a ‘one-party’ state as the ruling party stamps out political competition.”

Professor Yunus criticized the ruling Awami League, alleging that it monopolizes the political landscape. “Bangladesh doesn’t have any politics left,” he asserted. “There’s only one party which is active and occupies everything, does everything, gets to the elections in their way. They get their people elected in many different forms – proper candidates, dummy candidates, independent candidates – but all from the same party.” These statements reflect his profound dissatisfaction with the political status quo and hint at his ambitions to challenge it.

Mohammad Yunus, who received the Nobel Peace Prize in 2006 alongside Grameen Bank, has been a prominent figure on the international stage. Despite his acclaim, his journey has not been without controversy. The Nobel Prize was jointly awarded to Yunus and Grameen Bank, with Taslima Begum of Chapainawabganj District, Shibganj Upazila accepting the award on behalf of the bank. However, her name has largely remained unmentioned in international media.

The timing and intent behind Professor Yunus’ recent interview raise some questions. There appears to be no immediate event that necessitated such a public critique of the government. His remarks suggest a deliberate effort to position himself politically, reminding the public of his past attempt to form a political party, “Nagarik Shakti” (Citizens’ Power). He posed a rhetorical question to the government: “Is it a crime for a citizen to try to make a political party?” This points to his previous foray into politics and signals his intent to revive his political ambitions.

Critics argue that Mohammad Yunus’ claims of eradicating poverty through microfinance have not materialized as promised. In 2006, upon receiving the Nobel Prize, Mohammad Yunus optimistically declared that he would send poverty to the museum within 15 years. However, 18 years later, poverty persists in Bangladesh, and Yunus faces criticism for the high-interest rates charged by Grameen Bank. The 2010 documentary “The Micro Debt” by Danish journalist Tom Heinemann exposed these issues, revealing that microcredit interest rates often ranged from 40 to 125 percent, far higher than conventional commercial bank loans.

In the film “The Micro Debt,” Tom Heinemann exposed the fraudulent practices of Mohammad Yunus. Nurul Kabir, the editor of the Dhaka New Age newspaper stated in an interview, “In a commercial bank in Bangladesh, if you take a loan, you have to pay around 12-13 percent interest. However, if you take a microcredit loan, the interest rates range from 40 percent to, in cases 125 percent. So, microcredit is a big, big business.”

The documentary highlighted the harsh realities faced by many borrowers. While microcredit was intended to help the poor start small businesses and improve their livelihoods, many found themselves trapped in a cycle of debt due to exorbitant interest rates. This critique has tainted Mohammad Yunus’ legacy, painting him as a figure who profited from the very people he aimed to help.

However, discussing these issues may not have any impact, as the government has not addressed Mohammad Yunus on these matters. It is important to note that Dr. Yunus, through Grameen Bank, secured millions of dollars in grants from various international organizations and countries, and conducted business by lending this money to ordinary people at interest rates of 40-45 percent.

Despite these criticisms, Prof. Yunus continues to be a significant figure in international media. He has been vocal in his opposition to the ruling Awami League and its leader, Prime Minister Sheikh Hasina. Tensions between Prof. Yunus and Sheikh Hasina are well-documented, with the Prime Minister reportedly calling him a “bloodsucker” of the poor and expressing a desire to “drown him in the Padma River.” These remarks underscore the deep animosity between the two.

Mohhammad Yunus has also been implicated in controversies surrounding the financing of the Padma Bridge, a major infrastructure project inaugurated by Prime Minister Sheikh Hasina in June 25, 2022. The bridge, which cost approximately 301.93 billion BDT, has been a point of pride for the government. It is a 6.15-kilometer-long bridge that connects the capital Dhaka with 21 southern and western districts, significantly enhancing communication and transportation.

However, there are allegations that Yunus played a role in obstructing financial support from the World Bank for the project, further straining his relationship with the government. The World Bank withdrew its $1.2 billion funding in 2012, citing concerns over corruption. Mohhammad Yunus’ opponents claim that he influenced this decision, a charge he has consistently denied.

The current political climate in Bangladesh is fraught with tension. Prof. Yunus’ criticisms align with the anti-government sentiments of opposition parties such as the Bangladesh Nationalist Party (BNP) and Jamaat-e-Islami. In a recent US State Department regular press briefing, BNP Chairperson Begum Khaleda Zia’s former deputy press secretary Mushfiqul Fazal Ansery raised concerns about the legal cases against Yunus. The US spokesperson responded, expressing concern that these cases might represent a misuse of Bangladesh’s labor laws to harass and intimidate Yunus.

Professor Yunus faces legal challenges related to alleged labour law violations at Grameen Telecom. In January, a Dhaka labour court sentenced Yunus and several others to six months’ imprisonment and imposed fines for these violations. Yunus, however, claims these cases are politically motivated. “We continue to closely monitor developments in the case against Dr. Yunus,” a US State Department spokesperson said. “We have expressed our concern that these cases may represent a misuse of Bangladesh’s labour laws to harass and intimidate Dr. Yunus.”

Dr. Yunus’ recent interview and political statements suggest he is preparing to re-enter the political arena. By criticizing the last election and questioning the legitimacy of the Awami League’s government, Mohammad Yunus is positioning himself as a voice of opposition. His comments indicate an intention to revive his political organization, Nagarik Shakti, and challenge the ruling party.

Also published on Medium.