As Nobel laureate Yunus skirts jail in Bangladesh, fears for his future

Famed social entrepreneur Muhammad Yunus narrowly avoided imprisonment yesterday, after a court in Bangladesh extended his bail in a case on alleged labor law violations. But as the long-running feud between the Nobel laureate and Bangladesh’s Prime Minister Sheikh Hasina escalates, his supporters fear the respite may be brief. Yunus is widely credited as the pioneer of microfinance, the concept of granting small loans to help poor people to start sustainable businesses. The model has been adopted across the world and earned Yunus global recognition. In 2006, Yunus and the organization he founded, Grameen Bank, were jointly awarded the Nobel Peace Prize for helping to lift thousands out of poverty. But in recent years, his widespread influence and popularity among high-profile figures in the West has been seen as a threat in his home country. In 2011, he was forced out as managing director of Grameen Bank, and in January he was handed a suspended jail sentence for alleged labor law violations — a crime which he says he did not commit and which supporters have decried as part of a broader vendetta against him by the ruling government. “The criminal cases against Dr. Yunus are definitely politically motivated,” said Asif Nazrul, a law professor at Dhaka University. “The ruling regime has a tight grip on all the institutions that are involved in filing those cases.” The situation came to a head last month, as offices housing several independent social enterprises founded by the world-famous economist were seized. At a press briefing held outside the building on Feb. 15, Yunus said that 20 to 30 men claiming to be from Grameen Bank had forced their way inside in an “unlawful” takeover attempt, occupying the building for four days. At its own press conference days later, Grameen Bank confirmed the takeover of seven entities. The current government-appointed chairman of the bank, Saiful Majid, contested that the takeover was unlawful, claiming that the entities had been established with funds from Grameen Bank. “This is not the truth,” said Saskia Bruysten, who in 2011 co-founded the social business nonprofit Yunus Social Business and who has worked in partnership with Yunus for over a decade. “Grameen Bank does not have any right to control these other companies. They’re separate legal entities,” she told Devex. She accused the government of “trying to find reasons to take away perfectly functioning companies, for a political vendetta.” “Once the government starts taking over private companies, that’s when trust in the institutions will be eroded in Bangladesh.” --— Saskia Bruysten, co-founder, Yunus Social Business Dangerous popularity Yunus founded the microcredit enterprise which would later become Grameen Bank in 1976, offering credit to those who would otherwise be ineligible for bank loans — and in particular targeting women, whom he saw as playing a central role in the well-being of the family. In the intervening years, Grameen Bank has offered loans to over two million members, 94% of whom are women. While the efficacy of the microfinance model has since been questioned by some economists, Yunus’ efforts have been hailed as transformative in Bangladesh, spurring what The Norwegian Nobel Committee referred to as “economic and social development from below.” In an interview with the Los Angeles Times in 2000, Hasina praised microcredit as having had “the biggest impact on women who have started their own businesses.” But the year after winning the Nobel prize, Yunus briefly toyed with the idea of leading his own political party, in what may have been his biggest mistake — setting him up as a potential political rival in the eyes of Hasina, who takes personal credit for the significant economic growth seen by Bangladesh in recent years. The sustained popularity of Yunus in the West has solidified the perception that he is a threat, Nazrul believes. The ruling government is “clinging onto power based on very fake and debatable elections,” he said. The last two elections in Bangladesh have been condemned as undemocratic by Western countries, following accusations of ballot rigging and voter intimidation. “They always have the fear that if there is strong pressure from Western countries or the international donor community [to oust Hasina or influence domestic politics], then they might use the popularity and influence of Yunus,” Nazrul said, though he believes those concerns are unfounded as Yunus rarely comments on political issues. Now 83, Yunus confirmed in an interview with CNN that he had no political ambitions. “All I wanted to do was help the people,” he said. “I’m not interested in joining politics.” But Hasina appears to be unconvinced, accusing him of being a “bloodsucker of the poor” and calling for him to be “plunged into the Padma River.” “He should just be plunged in a bit and then pulled up so that he does not die, and then pulled up onto the bridge. That perhaps will teach him a lesson,” she said at a party conference. In a striking parallel, Hasina previously threatened to throw opposition party leader Khaleda Zia off the Padma Bridge. Zia was jailed in 2018 and remains under house arrest. Yunus now faces a similar fate, with roughly 190 cases lodged against him. A show of strength As the success of Grameen Bank grew, Yunus began to explore other social impact initiatives, founding enterprises such as health care provider Grameen Kalyan, which serves 7.5 million people, and Grameen Telecom, which holds a 34% share in Bangladesh’s largest mobile operator Grameenphone and is one of the largest companies in Bangladesh. Both are part of the Grameen Bank attempted takeover. Zahed Ur Rahman, a university professor, activist, and political commentator, believes that the government is using Grameen Bank to take control of Grameen Telecom “So they can have control of this huge revenue-generating organization,” he said. Currently, profits from the business are used to fund other social programs. “By harassing Yunus, the government is trying to send a message to all the people who talk, who write against this authoritarian regime.” --— Zahed Ur Rahman, a Bangladeshi university professor, activist, and political commentator “The money that they get every year from Grameenphone dividends, the Grameen organization uses to invest in new social businesses, to pay all kinds of social programs,” says Bruysten. She fears that in the event of a takeover by groups affiliated with the government, “that’s just going to stop.” “It is very possible that work that has been established over [a period of] 40 years, good work for the poorest in Bangladesh, can be destroyed within a couple of years,” she said. Rahman believes that the campaign against Yunus has escalated recently in reaction to increased U.S. pressure on Bangladesh in the lead-up to national elections, which took place in January. Last May, the U.S. government imposed sanctions on anyone engaging in “actions that undermine the democratic election process.” “Perhaps, from the government’s point of view, Yunus is working behind that [pressure from the U.S.] because he has some influence in the U.S. government,” said Rahman. “All authoritarian governments try to portray themselves as powerful. So they’re trying to show that they’re denying all the pressure, they are very powerful, they can negate U.S. pressure,” he said. A chilling effect The steps taken against Yunus will also have wider ramifications for Bangladesh, warned experts. “He’s a very renowned person, the only Nobel laureate,” Nazrul said. “If the government can target a person like him, others [working in civil society organizations] will think ‘Oh my god, we are much more vulnerable.’” Rahman agrees, adding that the prolonged campaign against Yunus has led many critics of the government to become less outspoken over the years. “I believe within a very short period mass self-censorship will be going on,” he said. “By harassing Yunus, the government is trying to send a message to all the people who talk, who write against this authoritarian regime.” Many activists and political analysts contacted by Devex were reluctant to speak on the record for fear of reprisals. CIVICUS has warned of “a serious and rapid decline in respect for civic freedoms” in Bangladesh. The U.S. Department of State noted that “the labor case was tried with unusual speed” and warned that the continued harassment of Yunus and “misuse of Bangladesh’s labor laws” could “dissuade future foreign direct investment” in the country. “Once the government starts taking over private companies, that’s when trust in the institutions will be eroded in Bangladesh,” Bruysten said. “That’s the point when people will stop investing in Bangladesh. And that’s a major problem because a lot of the jobs that have been created over the last couple of years, through the textile industry and other industries, will go away.” A geopolitical bargaining chip Despite Yunus being granted bail yesterday, Bruysten fears that he will still end up in jail, with another trial against him opening this week. “I am really desperately worried that he’s going to become the next Navalny,” she said. The spokesperson of U.N. Secretary-General António Guterres told reporters at a press conference last month: "We are very concerned about the reports that we have seen coming out of Bangladesh on issues related to him," adding that Yunus was a “valued partner.” But as Bangladesh asserts its independence from Western influence, Rahman said that ultimately this support from the West may work against Yunus. He fears that he may become a “bargaining chip” used by Bangladesh as the U.S. competes with China for influence in the country. “Perhaps [his popularity abroad is] another reason why he is facing this sort of harassment,” Rahman said, “Because the government made him a punching bag to prove its might to the whole world.”