Bangladesh’s Interim Government and Corruption Claims

By Una Galani and Peter Thal Larsen

DAVOS, Switzerland (Reuters) – The head of Bangladesh’s interim government, Nobel laureate Muhammad Yunus, stated that the country’s high growth under ousted Prime Minister Sheikh Hasina was “fake” and criticized the world for not addressing her alleged corruption.

Yunus, 84, an economist and the 2006 Nobel Peace Prize winner, took over the interim government in August after Hasina fled to India following violent protests.

While Hasina has been credited with revitalizing the economy and garment industry during her 15 years in power, critics accuse her of human rights abuses and suppressing dissent.

Investigations into Hasina involve suspicions of crimes against humanity, genocide, murder, corruption, and money laundering, with Dhaka requesting New Delhi to extradite her. Hasina and her party deny the allegations, and New Delhi has not responded.

“She was in Davos telling everybody how to run a country. Nobody questioned that,” Yunus told Reuters at the World Economic Forum. “That’s not a good world system at all.”

Yunus emphasized that the global community shares the responsibility for Hasina’s actions, calling her reported economic growth rates “fake.” He highlighted the need for inclusive growth to combat wealth inequality.

In FY 2017/18, Bangladesh’s growth reached nearly 8%, up from about 5% in 2009 before the pandemic and war in Ukraine impacted the economy. The World Bank recognized Bangladesh as one of the fastest-growing economies in 2023, noting its transformation from poverty to lower-middle-income status since gaining independence in 1971.

The protests against government job quotas intensified in July, leading to a violent crackdown and global outcry. Students proposed Yunus as the chief adviser for holding fresh elections.

Although Yunus, known as the “banker to the poor” for his work with the Grameen Bank, aims to conduct elections by late 2025 or early 2026, he does not intend to run.

Prioritizing the quality of life for the poor over growth rates, Yunus seeks to avoid wealth concentration in the economy.

The relationship between Bangladesh and India has strained since Hasina’s ousting. Yunus has urged India to return Hasina to face allegations against her, emphasizing the importance of strong Bangladesh-India ties, which he believes is vital for both nations’ futures.