Since early July 2024, Bangladesh has witnessed a significant shift in its political landscape following the outbreak of protest waves that initially called for the abolition of the government job quota system. This system disproportionately benefited the descendants of fighters from the 1971 independence war against Pakistan. The protests evolved and expanded in scope, leading to widespread political violence in the streets of Bangladesh, with demands escalating to the removal of Prime Minister Sheikh Hasina. These protests culminated in the appointment of Nobel Peace Prize laureate Muhammad Yunus as the interim Prime Minister of the country following Sheikh Hasina’s resignation and her escape abroad.
It is noteworthy that Yunus, known globally as the “Banker to the Poor,” is a prominent figure in finance. He has significantly improved the lives of millions of Bangladeshis through his founding of the Grameen Bank, which financed small enterprises. His appointment to this position marks an unprecedented step in the history of Bangladesh, coming at a time when the country is suffering from deep political divisions and social unrest.
Widespread Acceptance
Yunus’s selection came after a meeting that included student protest leaders, military leaders, civil society members, and business leaders, with no representative from Hasina’s party present. This meeting holds deep implications beyond a mere political transition; Yunus is not only a globally recognized economic figure but also a symbol of integrity and transparency in the face of corruption and authoritarianism. These implications can be summarized as follows:
- Success in Containing Popular Protests: The student protests against the quota system, which were relatively peaceful until July 15, 2024, turned into widespread violent clashes with authorities. The country witnessed violent confrontations between opposing students and the police, army, and counter-protesters from the Bangladesh Chhatra League, the student wing of Sheikh Hasina’s Awami League party. Despite a Supreme Court ruling against the quota system, student protest organizers clarified that the ruling did not signal the end of the protests, which had taken on a broader anti-government tone, especially after the police crackdown. Many called for Sheikh Hasina’s resignation, leading her to flee the Prime Minister’s office in Dhaka, with Army Chief General Waqar Zaman announcing her resignation.
- Widespread Societal Acceptance of Yunus’s Character: Yunus was the preferred choice among protesting students, military leaders, businessmen, and civil society leaders. His appointment reflects the Bangladeshi people’s desire for radical political change. Additionally, Yunus’s acceptance of the position in response to widespread popular demands reinforces the idea that he came to fulfill the people’s will rather than narrow political interests, especially as he has long been a critic of the former Prime Minister. In this context, Yunus’s selection signifies a clear shift in the process of appointing the head of government. Whereas political parties previously decided in consultation with the military who would assume the Prime Minister’s office, this time, other political forces joined in decision-making. Students emerged as a power center, with two student leaders reaching ministerial positions in the new interim government. It is noteworthy that Yunus’s appointment goes beyond the scope of the current constitution. While it seemed that political leaders and military chiefs were operating on the basis that Bangladeshi President Mohammed Shahabuddin was the executive head, they quickly realized that all actions under the new developments derived their legitimacy from the student-led movement. The students played a decisive role in appointing Yunus, as they were clear in their rejection of any military-led government, prompting political leadership to seek a figure trusted by civil society who could calm the situation and restore stability.
- Yunus’s Ability to Manage Economic and Social Reforms: Yunus, with his economic and social background, may play a role in laying the foundations for managing economic and social reform, given the deteriorating living standards of the Bangladeshi people. As a social entrepreneur and Nobel Peace Prize-winning banker in 2006 for his pioneering work in microfinance, Yunus previously helped alleviate poverty in Bangladesh, and his model has been widely adopted worldwide. Notably, Yunus and his Grameen Bank won the Nobel Peace Prize after lending a total of around $6 billion in housing, student, and small business loans. By 2022, it was reported that 9.5 million Bangladeshis had accessed Grameen finance, the vast majority of them women. Accordingly, Yunus represents an opportunity for significant reforms in Bangladesh. He is capable of addressing the economic challenges facing the country by enhancing the microfinance sector and supporting small businesses, which is crucial for improving the living standards of the poor and middle classes.
- Overcoming Political and Judicial Pursuits Against the New Prime Minister: Yunus’s return to Bangladesh as Prime Minister undoubtedly represents a significant vindication of all charges leveled against him by Hasina’s regime, which had been ongoing since 2007 when Yunus had a brief stint in politics, announcing plans to form a political party before abandoning them after a few months. Since then, he faced numerous legal cases, believed to be part of Hasina’s personal vendetta against him, as Yunus repeatedly clashed with her over the years. Despite Hasina’s insistence that her actions against Yunus were not politically motivated, she went so far as to accuse him of “sucking the blood of the poor,” despite his efforts to help them improve their living standards. In the following years, Yunus faced multiple legal cases, the latest in January 2024 when a Bangladeshi court sentenced him to six months in prison for violating labor laws. However, before he was sworn in, the court overturned his conviction in this case. It remains unclear what will happen to his other trials now that Hasina is out of power, but it is certain they will be handled with greater transparency and fairness, free from the political harassment of the previous regime.
- Attempt to Exclude Hasina’s Party from the Political Scene: Sixteen people joined the interim government, most of them from civil society, including two student protest leaders: Naheed Islam and Asif Mahmood, who led anti-government protests. Additionally, government members were chosen in discussions between student leaders, civilians, and military leaders, while the Awami League party did not participate in the interim government or nominate candidates for ministerial positions. In a Facebook post, Sheikh Hasina’s son Sajeeb Wazed Joy stated that the party had not given up and was ready to engage in talks with opponents and the interim government, promising that his family and party would continue participating in politics. This was a shift from his earlier stance after Hasina stepped down, leading many to believe that Joy might be his mother’s successor among the party’s supporters. Joy also added in his post that “if we want to build a new Bangladesh, it will not be possible without the Awami League. The Awami League is the oldest, most democratic, and largest party in Bangladesh. The Awami League is not dead, and it cannot be eradicated.”
Key Issues
Muhammad Yunus’s appointment as interim Prime Minister does not necessarily mean that the task ahead will be easy, given the short time frame. On the contrary, the challenges he faces are significant and multi-dimensional, requiring him to make decisive and swift decisions to ensure a smooth and safe transition of power. The main issues he faces can be summarized as follows:
- Restoring Political Stability in the Country: After weeks of violent protests that claimed the lives of hundreds, Yunus’s primary challenge is to restore law and order, prepare for new elections, and address the trust deficit between the people and the state. He must also firmly deal with internal security issues and ensure the country does not descend further into chaos. In his first speech after assuming his new position, Yunus stated that “the first thing we need to do is restore law and order,” adding that “hatred and chaos are enemies of democracy.” He called on Bangladeshis to “prepare to build the country,” describing the day of Hasina’s resignation as “the second liberation day” for the country.
- Aligning with the Demands of Popular Protests: After the protest movement erupted over the quota system that allocated civil service jobs to specific groups, particularly the descendants of veterans, the new interim government must show solidarity with its people and protect the most vulnerable groups, especially by building on the gains of these protests, which succeeded in forcing the previous government to resume the earlier Supreme Court ruling. Recently, it ruled that 93% of public sector jobs be allocated based on merit, with 5% reserved for veterans’ families and 2% for ethnic minorities or people with disabilities. This was a major victory for student protesters after days of unrest across the country, especially as they have many other demands under consideration by government authorities, including urgent and transparent investigations into political and human rights abuses committed by Hasina’s government.
- Addressing Economic and Social Challenges: Reforming Bangladesh’s economy will be a key task for the interim government, with Yunus’s economic background playing an important role, particularly in combating corruption and revitalizing economic growth. As corruption has escalated, negatively impacting the business environment, the nonprofit organization Civicus, which monitors civil liberties worldwide, downgraded Bangladesh in 2023 to a “closed state,” the worst rating it can give. This was due to the government’s crackdown on opposition members and supporters before the national elections, which could negatively affect foreign investors’ confidence in a country that has been economically strained for several years. Given the societal challenges, recent protests and political tensions have highlighted longstanding difficulties, particularly unemployment. Although Bangladesh is one of the world’s fastest-growing economies, this growth has not translated into real job opportunities for university graduates, with estimates indicating that around 18 million young Bangladeshis are looking for work. University graduates face higher unemployment rates than their less-educated counterparts, with only 30% of graduates working in jobs requiring their university education. In this context, Yunus will have to develop quick and effective solutions to the unemployment crisis to avoid another wave of unrest.
- Providing a Neutral and Honest Alternative for the Future: Over the past years, Yunus has made statements in which he affirmed that “political failure has pushed the country into poverty,” calling for a shift towards a more democratic and inclusive Bangladesh. This, according to him, requires protecting human rights and adhering to the rule of law, which contradicts Sheikh Hasina’s policy, who pushed Bangladesh into a state of complete political repression. As an interim Prime Minister, Yunus is well-positioned to lead this change and develop a plan to achieve lasting peace. He has the opportunity to build a future that respects the rule of law and upholds justice and human rights. However, his challenge lies in avoiding becoming merely a transitional figure with no significant impact on the long-term stability and security of Bangladesh.
- Preventing an Armed Conflict with India: In recent years, the government of Sheikh Hasina has come under heavy criticism from India due to its alleged support for radical Islamic groups operating in Bangladesh, which have long sought to infiltrate Indian territories to destabilize the country. Despite Hasina’s government denying these accusations, many Indian officials see her as a primary factor behind the rise of extremism in the region, with Indian intelligence agencies claiming that some Bangladeshi militants involved in cross-border attacks are being harbored in safe havens in Bangladesh. As interim Prime Minister, Yunus will have to address these issues quickly to avoid further conflict with neighboring India. Maintaining good relations with India will be crucial for Yunus as he seeks to stabilize the country.
Conclusion
Muhammad Yunus’s appointment as Prime Minister is a significant turning point in Bangladesh’s political and economic history. His selection reflects the people’s desire for change and a move towards a more transparent, democratic, and economically sound government. However, the challenges ahead are formidable. Yunus must navigate complex political, economic, and social issues while maintaining peace and stability in a deeply divided nation.
