Weekend Long Read: Muhammad Yunus on Creating a ‘New Bangladesh’

Muhammad Yunus, a Bangladeshi economist known for founding the Grameen Bank and winning the Nobel Peace Prize in 2006, has recently transitioned into politics at the age of 84. He took office as the chief advisor of an interim government in Bangladesh following the resignation of Prime Minister Sheikh Hasina amid nationwide protests against her 15-year leadership. This role challenges Yunus to rebuild social order, reach a national consensus, and spearhead economic, political, and social reforms in the country, including economic recovery and development [para. 1][para. 2][para. 3].

To tackle these challenges, the interim government established 15 reform commissions to revamp the nation’s institutions, including the electoral system, police, judiciary, anti-corruption measures, public administration, constitutional amendments, healthcare, media, labor rights, and gender equality. Each commission is tasked with submitting reform proposals within 90 days, which Yunus will study via a National Consensus Commission he chairs. The resulting consensus will form the basis of a July Charter for all political parties to sign, leading to a general election under a new electoral system. Power will eventually transfer to a newly elected government to implement the reform agreements [para. 4][para. 5][para. 6].

Yunus shared these plans internationally at the World Economic Forum in Davos, where he engaged with numerous international figures to gain support for Bangladesh. He also conducted an interview with Caixin discussing his plans and the nation’s relationship with China, addressing issues like Bangladesh’s debts [para. 7][para. 8].

In the interview, Yunus described the challenges of transitioning from an activist to a government leader, emphasizing his focus on restoring law and order, revamping the economy, and combating the consequences of past governmental corruption. An immediate task is economic stabilization, such as restoring foreign exchange reserves depleted by the previous government's borrowing. He aims to ensure transparency in upcoming elections and consensus-driven reforms through the creation of reform commissions and a July Charter [para. 9][para. 10][para. 11].

Yunus also stressed the importance of openness and advocated for an economy inviting to international industries due to its large, capable, technology-oriented youth population. He seeks to foster an environment where Bangladesh becomes a production hub for various countries. Additionally, he holds firm his lifelong commitment to promoting environmental, social, and governance practices along with poverty alleviation strategies like those employed by Grameen Bank, underlining a vision of a "Three Zeros World" with zero emissions, unemployment, and wealth concentration [para. 22][para. 23][para. 24].

Bangladesh's relationship with China remains a crucial aspect, with recent meetings with Chinese officials focusing on economic collaboration, including discussions about rescheduling debt repayments. Yunus affirmed the strong ties between the countries, expressing hope for increased Chinese investments in Bangladesh's manufacturing sectors. He sees China playing a significant role in Bangladesh's future development [para. 25][para. 26][para. 27].

Regarding the United States, Yunus is cautious about the Trump administration's foreign policy, which will determine the bilateral relationship focus. He hopes for continued engagement but acknowledges uncertainty until the U.S. policy under Trump becomes clearer [para. 29].