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Aidan Jones

Redwan Ahmed

Muhammad Yunus has worn many hats in his storied career: economist, Nobel laureate, pioneer of microfinance, and, more recently, nemesis of the now-deposed authoritarian Sheikh Hasina, who pursued him relentlessly through the courts.
But his latest role may be the most daunting yet: steward of a nation at a crossroads, tasked with rebuilding Bangladesh’s broken institutions, steering an anaemic economy hamstrung by corruption and mismanagement through a turbulent global trade environment and paving the way for elections he himself will not contest.
Yunus, 84, now serves as chief adviser to Bangladesh’s interim government. His mission? To undo the damage inflicted during Hasina’s 15-year reign and restore democratic norms.
Her regime “destroyed all institutions”, Yunus told This Week in Asia. The goal now, he said, was nothing less than to “lock the door for future such governments ever to evolve [again]”.
Hasina’s rule ended abruptly on August 5 last year, closing the chapter on a dynastic regime notorious for its political repression, untold fortunes siphoned off through cronyism, and allegations of torture and enforced disappearances.

Yet even in self-exile, she remains a thorn in the interim government’s side, hurling vitriolic insults and plotting a potential comeback from the sanctuary of neighbouring India.
Just this month, she accused Yunus of hatching a “foreign conspiracy” and using overseas funds to “destroy” the country. “Loan shark, power-hungry, money-hungry self-centred person,” she called him, virtually addressing a rally of her loyal Awami League.
But Yunus is undeterred. “Government must be about letting people come and help you dream things, do things, participate in it and feel comfortable with it,” he said, adding it must be “an assurance, an inspiration … so even if you don’t succeed, you feel comfortable that you tried together.”
The students who led demonstrations last July – which started in objection to a job quota scheme but snowballed into a nationwide revolt as Hasina’s security forces opened fire on peaceful protests – want elections as soon as possible. They also want justice.
Nine months after Hasina’s downfall, Bangladesh has a chance to dream again, Yunus told This Week in Asia. But the task ahead is gargantuan.

The interim government is working to enact reforms to curb corruption and dismantle entrenched patronage networks, as it also prepares for elections by next summer.
But the clamour and contention is already bubbling in a country born in the fires of a 1971 split from Pakistan – and where democracy has been curtailed by coups or autocrats.
Hasina’s downfall was both a reminder that nothing lasts forever in Bangladesh and a warning to its reformists not to underestimate the task at hand.
“Elections don’t solve everything,” Yunus said, explaining the need for root-and-branch reforms that expunge “this fascist regime” and close the “gaps in the institutions” that allowed Hasina, once a reform-minded populist, to transform into an autocrat.
‘He’s done well so far’
The euphoria of revolution has been diluted by anxiety over what lies ahead for South Asia’s third most populous nation – and its second largest economy.
Yunus’ supporters argue that the country is fortunate to have a statesman of his calibre at this critical crossroads.
They credit him with being a stabilising force in the dangerous days following Hasina’s ousting, taming runaway inflation, and energetically championing accountability and democracy at home, while promoting the nation’s economic potential abroad.
The genial US-educated Yunus, articulate and spry despite his age, has also won praise for his focus on Bangladesh’s youth – half of the nation’s 170 million people are under the age of 27.
“I don’t have much education to judge political matters. But I can tell you this – during the last Ramadan, food prices didn’t go beyond our reach,” said Anwar Hossain, a 34-year-old driver of an electric three-wheeler who was injured by birdshot during last year’s protests.
“To me, that’s a good sign the interim government might be working in our favour. I think he’s done well so far.”

Under Yunus, Dhaka has been striking trade deals, touting Bangladesh’s young, determined workforce and its strategic location – flanked by China and India, with access to the Bay of Bengal reaching down to Southeast Asia – as key reasons to invest in its ports and special economic zones.
Growth is forecast to reach about 3.8 per cent this year, even as Washington’s tariffs threaten to devastate the country’s crucial US$7 billion garment industry.
And remittances hit a record US$3.3 billion last month – a sign, in part, of the diaspora’s faith in the country’s future.
“I don’t know much about the elections. But as long as we have a government that keeps prices low, fights corruption and takes care of us, I don’t care who sits on the throne,” Hossain said.
As long as we have a government that … takes care of us, I don’t care who sits on the throne
Anwar Hossain, Bangladeshi driver
Another narrative, espoused by allies of the former regime, paints the revolution as a catastrophe for the country.
Bangladesh, they claim, is now in slow-motion collapse, with chaotic and violent forces – including Islamism, communal tensions and crime – that Hasina had kept in check now running rampant.
Meanwhile, Hasina herself is in India. Long-time supporter of her government, Indian Prime Minister Narendra Modi, met her 10 times in the year before she was deposed.
Bangladeshi authorities want her to return to face trial and have asked Interpol to issue a red notice for her arrest – a sore point in Dhaka’s already mistrustful relationship with New Delhi.
Yunus met Modi in Bangkok during the BIMSTEC summit earlier this month, describing their 40-minute meeting as “very successful, very friendly” and saying he had pushed for Hasina’s repatriation
“They [India] said, ‘Yes, we got it, she is still with us,’ and I said, ‘How can we make sure she doesn’t make statements that irritate the people?’”

All the while, Indian media continues to report often spurious allegations of communal attacks on Hindus and warnings of an imminent Islamist takeover in Bangladesh. Incendiary language in a region fraught with ethnic and religious tensions.
Dhaka’s interim government says these narratives are aimed at destabilising a vulnerable nation and giving Hasina’s Awami League an opening to return in some form.
According to anti-corruption officials, billions of dollars were siphoned out of state coffers between 2009 and 2024, the years of Hasina’s reign. Her family, friends and allies were handed political patronage and state contracts, with vast sums funnelled into a political network that kept her in power as her associates lived in the lap of luxury in Dubai, London and New York.
Among those implicated in the corruption allegations is British Labour MP Tulip Siddiq, Hasina’s niece. Bangladesh’s anti-corruption watchdog accuses her of pressuring Hasina to allocate prime Dhaka real estate to her mother and siblings. Siddiq has denied any wrongdoing, describing the claims as a “politically motivated smear campaign”.

Still, the interim government maintains that Hasina enabled corruption on a massive scale by deliberately skewing all state institutions, from the courts to anti-corruption bodies and even the boards of banks, which were stacked with regime loyalists.
“The new board started issuing loans to their favourites – any amount that you want, literally using the bank as a kind of booty that you distribute among your friends and relatives,” Yunus said.
“Now we have a broken banking system … unpaid loans piled up, we don’t know where to begin, our job is to reenergise the banking system, redesign the banking system,” he added. “That’s a big task for us.”
China to the rescue?
It’s not just the banks, either. The economy has been overheating, with inflation peaking at over 10 per cent in December.
In Dhaka’s markets, the price of onions has surged to 70 taka (60 US cents) per kilogram, up from 55 taka just a week ago. Rice prices have also climbed, while a litre of bottled soybean oil now costs 189 taka (US$1.54) after a recent 14 taka increase.
A nation dependent on remittances and garment sales for foreign exchange is also feeling the squeeze of US tariffs, both threatened and enacted, as it braces for the broader economic body blow to global growth forecast from President Donald Trump ripping up the decades-old rules of international commerce.
The ripple effects are already being felt. Earlier this month, India abruptly cancelled a transshipment agreement that had allowed Bangladesh’s exports – predominantly from the garment industry – to be exported through Indian ports. Delhi cited “significant congestion” as the reason.
If the global economy contracts as forecast, it could mean fewer opportunities for Bangladesh’s estimated 10 million overseas workers – often called “remittance warriors” – and shrinking demand for its exports.

Yunus, however, remains unfazed by the disruptions to global trade caused by the White House, dismissing fears that they could derail Asia’s rise.
“I’m not giving up on Asia’s ‘moment’. Asia is rising, because the population is rising and the businesses are flourishing,” Yunus said.
“This is a good occasion to revisit and build a new thing,” he added. “We should take this as an opportunity to redesign it, make it better than it used to be.”
The trade turmoil has jolted to life BIMSTEC, a subregional economic grouping encompassing Bangladesh and its Bay of Bengal neighbours, potentially offering some insulation from the 37 per cent tariff Trump’s new tariff regime would impose on the country.
There is even talk of Bangladesh joining, or at least becoming a partner, of the Association of Southeast Asian Nations.

For decades, such bold thinking has been a hallmark of Yunus’ career.
In the mid-1970s, he started giving small personal loans to Bangladeshi basketweavers, helping them at first survive and then thrive via injections of capital.
This laid the foundation for the Grameen Bank, a pioneering model of poverty alleviation through microloans that has since been replicated in over 100 countries. In 2006, Yunus was awarded the Nobel Peace Prize for his work.
Now, his interim government is looking to China for economic relief from US tariffs and as a diplomatic counterbalance to its uneasy relationship with India.
During a visit to Beijing last month, Yunus secured commitments for US$2.1 billion in Chinese investments, loans and grants for Bangladesh, while dozens of Chinese companies pledged US$1 billion to the Chinese Industrial Economic Zone in Chattogram, which has been under construction since 2016.

China also promised US$400 million in loans to upgrade the deep-sea Mongla port and accelerate talks on a potential free-trade agreement – a deal that could boost Bangladesh’s modest US$1 billion in exports to China.
“China is actively looking to reposition itself in the region, and Bangladesh is part of that recalibration,” said Dr Mubashar Hasan, a Bangladesh-born academic and political commentator currently based at the University of Oslo.
“They’ve invested heavily in the previous regime – this is a strategic continuation.”
For a country that urgently needs new infrastructure and jobs for its burgeoning youth population, foreign investment is a welcome prospect.
“If someone is willing to bring capital and create jobs, it’s a rational decision, not just a political one,” Hasan said, adding there was a calculated message to India behind Bangladesh’s deals with China: “We have options, and we’ll exercise them if you’re not ready to engage seriously.”
China is actively looking to reposition itself in the region, and Bangladesh is part of that recalibration
Dr Mubashar Hasan, political commentator
The idea behind the Chinese special economic zones is for firms to set up factories in Bangladesh and use its ports to reach markets across the Bay of Bengal.
Bangladesh has “a young, creative population. Hire our people,” Yunus said. “Relocate your industries to our country, bring your factory, produce here and serve the whole global market.”
Critics caution that the economic and environmental costs of Chinese investments are rarely assessed until it’s too late.
“The core issue with Chinese investments is their lack of proper social and environmental impact assessments, which are absolutely vital for a densely populated country like ours,” said Sharif Jamil, an environmental activist, member of the Waterkeeper Alliance’s board of directors and member secretary of DHORA, a civil society platform in Bangladesh.
“Unfortunately, the environment often isn’t their priority.”
“Bangladesh certainly needs investment and infrastructure development – but we must insist that these investments are inclusive, green and environmentally sustainable, and beneficial to our broader economy,” Jamil added.

Restless revolutionaries
For the student protesters who braved bullets and beatings to overthrow Hasina, the winds of change feel frustratingly stagnant as the old guard clings to power.
Faria Hossain, an economics student in Dhaka, acknowledges the progress made by the Yunus-led interim government but believes it has squandered a historic opportunity for deeper structural reforms.
“It’s clear he couldn’t implement large-scale reforms – perhaps because of entrenched bureaucrats who’ve served under the old regime for over 15 years,” she said.
“Some of them disguised themselves as pro-revolutionaries and secured powerful roles. In reality, they’ve obstructed several promising initiatives. The government may be aware, but rooting out civil servants is no easy task.”
The sense of unease runs deeper than bureaucratic inertia. Crime is on the rise and reports of communal tensions are adding to the uncertainty of daily life.

The clamour for quick elections to complete the nation’s reset are growing louder. Yunus, however, has resisted these demands, arguing that meaningful reforms require time to take root.
But as the months stretch on, Hasina and her loyalists are stirring up trouble from abroad, waiting for their moment to stage a political comeback.
“I’d give Professor Yunus an ‘A’ for intent and effort. But now we need elections, urgently,” Hossain said.
“Only a democratically elected government can wield the mandate – and sometimes, the ruthlessness – needed for lasting change. It might get better, it might get worse, but democracy requires that risk.”


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Bangladesh

Bangladesh’s new leader dreams big, with China’s backing

Bangladesh’s interim leader Muhammad Yunus. Illustration: Huy Truong

Bangladesh’s then-prime minister Sheikh Hasina addresses a rally in December 2023. Photo: AFP

Protesters run past a burning vehicle set on fire by demonstrators during a rally against Hasina and her government in Dhaka on August 4. Photo: AP

Workers sew garments at a garment factory in Savar, on the outskirts of Dhaka, on April 9. Photo: AFP

Yunus talks to India’s Prime Minister Narendra Modi on sidelines of the BIMSTEC summit in Bangkok on April 4. Photo: Bangladesh’s Chief Adviser Office of Interim Government / AFP

(Front row, from left) Tulip Siddiq, Bangladesh’s then-prime minister Sheikh Hasina and Russian President Vladimir Putin attend a signing ceremony in Moscow in 2013. Photo: AP 

A Bangladeshi delivery worker poses for a picture on his bike after delivering a food order in Riyadh, Saudi Arabia, last year. Photo: AFP

Yunus with his Nobel Peace Prize medal and diploma in 2006. Photo: AP

Chinese President Xi Jinping shakes hands with Yunus during their meeting in Beijing last month. Photo: Xinhua/EPA-EFE

A student protester shouts slogans as demonstrators wave Bangladesh’s national flag during a rally in September to mark one month since the ousting of Sheikh Hasina. Photo: AFP

Security personnel stand guard as people march down a street during celebrations marking Bengali New Year in Dhaka on April 14. Photo: AFP

Bangladesh’s ‘remittance warriors’ deliver record US$3 billion boost

People buy clothes at a market in Dhaka. Bangladesh’s overseas workforce is estimated to be some 10 million strong. Photo: AFP

A Bangladeshi migrant worker in Singapore. Migrant workers’ remittances help sustain Bangladesh’s economy. Photo: AFP

A person exchanges Bangladeshi currency at a a money changer near the border with India. Photo: AFP

Muhammad Yunus, leader of Bangladesh’s interim government, shakes hands with Chinese President Xi Jinping in Beijing on Friday. Photo: Xinhua/EPA-EFE

Modi-Yunus meeting a ‘cooling-off moment’ in strained India-Bangladesh ties

Indian Prime Minister Narendra Modi (right) and Bangladesh’s interim government Chief Adviser Muhammad Yunus during a meeting on the sidelines of the 6th BIMSTEC summit in Bangkok, Thailand, on April 4. Photo: EPA-EFE/Indian Press Information Bureau

India’s Prime Minister Narendra Modi (second from right) talks to Muhammad Yunus (left), Bangladesh’s interim leader, during their bilateral meeting in Bangkok on April 4. Photo: AFP/Bangladesh’s Chief Adviser Office of Interim Government

Yunus with Chinese President Xi Jinping during their meeting in Beijing on March 28. Photo: EPA-EFE/Xinhua

What Yunus’ China trip means for Bangladesh-India ties: ‘deep optics’

Bangladeshi interim leader Muhammad Yunus (left) shakes hands with Chinese President Xi Jinping during their meeting in Beijing on Friday. Photo: Xinhua/EPA-EFE

China’s Xi Jinping and Bangladesh’s Muhammad Yunus meet at the Great Hall of the People in Beijing on Friday. Photo: Xinhua

A Rohingya refugee girl holds a jar with a USAID logo at a refugee camp in Cox’s Bazar, Bangladesh. More than 1 million Rohingya people are estimated to now live in Bangladesh. Photo: Reuters

The Teesta River in the Lachen valley, India’s Sikkim state, in October 2023. The river plays a vital role in the economy and ecology of the region. Photo: Indian Army / AFP

Can Bangladesh’s Yunus overcome legacy of Sheikh Hasina’s rule and deliver reform promises?

Nobel laureate and chief adviser of Bangladesh’s new interim government, Muhammad Yunus greets the public after laying a wreath at the National Martyrs’ Memorial in Dhaka on August 9, 2024. Photo: AFP

Anti-government protesters gather at Prime Minister Hasina’s palace in Dhaka in May 2024. Photo: dpa

Sheikh Hasina speaks during an interview at a hotel in New York, on September 22, 2022. Photo: AFP

Protesters set fire to the Dhanmondi-32 residence of Bangabandhu Sheikh Mujibur Rahman, father of the ousted PM Sheikh Hasina, in Dhaka, Bangladesh on February 5, 2025. Photo: Reuters

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A popular revolt that ousted the kleptocratic Sheikh Hasina thrust Muhammad Yunus, 84, into power. Now he’s looking to China for help


A popular revolt that ousted the kleptocratic Sheikh Hasina thrust Muhammad Yunus, 84, into power. Now he’s looking to China for help.


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}A popular revolt that ousted the kleptocratic Sheikh Hasina thrust Muhammad Yunus, 84, into power. Now he’s looking to China for help

A popular revolt that ousted the kleptocratic Sheikh Hasina thrust Muhammad Yunus, 84, into power. Now he’s looking to China for help