Nobel Peace Prize-winning economist Muhammad Yunus, known as the “banker to the poor,” will head an interim government in Bangladesh following weeks of deadly demonstrations that forced Prime Minister Sheikh Hasina to resign.
President of Bangladesh Mohammed Shahabuddin appointed Yunus, 84, on Tuesday – a day after the country’s government was overthrown amid violent protests against discriminatory job quotas. Sheikh Hasina, who resigned as prime minister on Monday, fled to neighboring India.
Yunus, the founder of microfinance lender Grameen Bank, announced on Wednesday that he had agreed to lead the temporary government, answering the call of student protesters.
“When I was contacted on behalf of the students, I didn’t agree at first. I told them I have a lot of work to finish. But the students repeatedly requested me,” the Daily Star quoted Yunus as saying.
“If the students can sacrifice so much, if the people of the country can sacrifice so much, then I also have some responsibility. Then I told the students that I can take the responsibility,” he added.
Born in Bangladesh, Yunus received a Fulbright scholarship to study economics at Vanderbilt University in the US, where he received a PhD in economics. He then became an assistant professor at Middle Tennessee State University before returning to Bangladesh to head the economics department at Chittagong University.
Yunus pioneered the concept of microfinance and jointly received the Nobel Peace Prize with his Grameen Bank in 2006 “for their efforts to create economic and social development from below.”
In 2009, Yunus was awarded the US Presidential Medal of Freedom and, in 2013, he was granted the Congressional Gold Medal, the highest civilian award in the US.
The decision to name him chief adviser of the interim government of Bangladesh followed a meeting between the country’s president, military, and student leaders.
The move was lauded in Washington, which welcomed the announcement, adding that the US greatly values its relationship with the people of Bangladesh. Speaking to reporters on Tuesday, US State Department Spokesperson Matthew Miller said the White House was monitoring the situation in the country carefully.
“All decisions regarding the interim government should be made with respect to democratic principles, rule of law and the will of the Bangladeshi people,” he said.
Yunus has been a vocal opponent of Hasina, who accused him of “sucking blood from the poor” by imposing exorbitant interest rates on micro-loans.
The celebrated economist was marred in controversy when he was indicted in January by a Bangladeshi court on charges of embezzling more than $2 million from his non-profit Grameen Telecom welfare fund. Yunus has denied all accusations.