The Yunus Paradox: Bangladesh’s Interim Authority And The Enduring Outsider

Last Updated:February 13, 2026, 12:21 IST

Muhammad Yunus’s journey, from a global icon and outsider reformer, to briefly getting Bangladesh's power, and then returning to outsider position again, has been “unprecedented”

Leading the February 12 elections, Muhammad Yunus, Chief Adviser of Bangladesh’s interim government, called it “the beginning of an unprecedented journey towards a new country".

“Some days come in the life of every nation that have far-reaching significance, when the future direction of a state, the character and stability of democracy and the fate of future generations are determined," Yunus said in an address to the nation two days ahead of the polls and the referendum on the implementation of the July Charter. “We will hand over the responsibility to the newly elected government with deep pleasure and pride… and return to our own jobs…," he said.

The Bangladesh Nationalist Party (BNP), led by Tarique Rahman, has won the country’s first election since the 2024 uprising, beating Jamaat-e-Islami, with deposed PM Sheikh Hasina’s now-disbanded Awami League debarred from the fray.

However, just like Bangladesh, Yunus’s journey, from a global icon and outsider reformer, to briefly entering national power, and then returning to outsider position again, has followed an unusual arc, which in a way has been “unprecedented".

The outsider economist

Yunus first rose to prominence not as a politician, but as an economist and social entrepreneur. He founded the Grameen Bank in 1983 and pioneered microcredit for the rural poor, winning the Nobel Peace Prize in 2006.

By the mid-2000s, Yunus was celebrated internationally, but remained politically unaffiliated. Amid the respect abroad, he stayed away from Bangladesh’s entrenched party system dominated by the Bangladesh Awami League, led by Sheikh Hasina, and the Bangladesh Nationalist Party (BNP), led by Khaleda Zia. He was seen as a moral reformer — but firmly outside the political establishment.

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The attempt to enter politics

In 2007, during a military-backed caretaker government, Yunus announced plans to form a new political party called Nagorik Shakti (Citizen Power). He positioned himself as a clean alternative to the two-party rivalry.

However, he faced scepticism from major parties. With the political climate being unstable, public enthusiasm didn’t translate into organisation. Within months, he abandoned the plan and returned to social enterprise — reinforcing his image as a reform-minded outsider rather than a political operator.

Fallout with the government

Soon, tensions grew between Yunus and Prime Minister Sheikh Hasina. In 2011, the government removed Yunus as managing director of Grameen Bank, citing age-limit rules. Supporters argued the move was politically motivated.

From then on, Yunus faced legal cases, regulatory pressure and political hostility. He became increasingly isolated within Bangladesh’s power structure — admired globally but politically marginalised at home.

Return to influence

After years on the sidelines, Yunus re-emerged during Bangladesh’s 2024 political upheaval, when mass protests forced then Prime Minister Sheikh Hasina to step down.

Amid the turmoil, protest leaders and civil society groups sought a neutral, respected figure. Yunus was appointed head of an interim government. This marked his first real governing role — not through party politics, but as a consensus crisis figure.

He then went from being a long-time outsider to a temporary national leader.

Back to outsider status

As the head of the interim government, Yunus’s position depended on transitional authority, public trust, military and institutional backing. As Bangladesh moves toward elections and party politics resumes, Yunus lacks a grassroots political machine, a parliamentary party and long-term political base, say analysts.

Once the interim phase ends, he is likely to return to a non-party, civil-society role — effectively becoming an outsider again in formal politics. Reports suggest that once the transition is complete, Yunus intends to return to his work at the Yunus Centre and the Grameen Bank, focusing on social business and poverty alleviation.

While Yunus himself has dismissed talk of a potential Presidential role, some political analysts and a proposed ‘National Consensus’ formula have suggested him as a candidate for the Presidency of Bangladesh — a largely ceremonial but prestigious role — to provide stability during the new government’s tenure.

News explainers The Yunus Paradox: Bangladesh’s Interim Authority And The Enduring Outsider

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