A CIA-Backed Coup? Nobel Laureate Yunus At Helm in Bangladesh

Muhammad Yunus, 84, on Wednesday (August 7), reportedly agreed to lead the military-backed caretaker government in Bangladesh. The banker and scholar, who is well-liked in the US, has faced over 100 lawsuits during the tenure of the previous government, which he believes were politically motivated. Former Prime Minister Sheikh Hasina once accused Yunus of exploiting the poor.

This change happened after widespread protests forced Hasina to resign and leave her position. Student protesters had taken action against her, also storming her residence, even as the country came under military control.

Hasina is the longest-serving woman prime minister in the world, having held office from 2009 to the present and earlier from 1996 to 2001. British media reports say her time in office has led to economic growth and development. However, some critics argue that the rich have gained more than others. Recently, Hasina was taken from Dhaka to India and is expected to seek asylum in another country.

KJ Noh, a scholar and journalist who studies Asia-Pacific geopolitics, spoke with Russian media Sputnik on August 6 about Yunus’s quick rise to power. Noh does not find it credible that a group of students could topple a government so quickly. He said it was common knowledge that the National Endowment for Democracy (NED)—a US non-profit organization that provides funding and support to various groups, including NGOs, to help foster democratic practices and institutions in different countries—had given millions to NGOs in Bangladesh—$4 million in just 2021. But, even though the funding was important, it was not enough on its own, he remarked.

Noh noted that the US had publicly expressed its views on Bangladesh’s political system. In early-January this year, the US stated that the election was “not free or fair” after Hasina secured her fifth term in office. He explained to Sputnik that Yunus had never had success in elections, or experience as a political leader. He had primarily been a banker, economist and professor. Therefore, the push for him to lead the interim government seemed questionable, especially considering that he was favoured by the US.

The analyst mentioned that Yunus had received a Fulbright scholarship, which, in the developing world, is often seen as a way for the CIA to identify promising individuals. He has had US training, held positions at American universities and has strong connections in the US. He has also received several US honours, including presidential and congressional awards. Most importantly, he supports US economic policy through his work in micro-lending.

Fulbright Scholarship & the CIA

The Fulbright scholarship is a prestigious programme that allows students, researchers and professionals to study, or conduct research abroad. Established by the US government, it aims to promote cultural exchange and mutual understanding between countries. Recipients of the scholarship gain valuable experience, enhance their education and build international connections, often leading to greater opportunities in their careers.

Although the CIA is not directly connected with Fulbright, some people believe that the scholarship programme can help identify promising individuals in developing countries. This idea stems from the historical context of US foreign policy during the Cold War, when various programmes were used to promote American interests abroad. Overall, the Fulbright programme focuses on education and cultural exchange.

The Micro-lending Controversy

According to the US State Department, Yunus was awarded a Fulbright scholarship to study in the US in 1965. He went on to earn his Ph.D in economics from Vanderbilt University in Tennessee in 1971. In 2006, he and a colleague received the Nobel Peace Prize for their work in microcredit, aimed at promoting economic and social development.

Noh pointed out that the idea behind micro-lending is to help reduce poverty, but it often leads to putting more debt on the poor. He argues that this approach essentially introduces debt into low-income communities, comparing it to a form of micro-loan sharking. Noh believes this method is harmful and highlights the contradictions within capitalism.

Yunus and the Ongoing Protests

Noh believes the ruling elite favour Yunus because he has been positively mentioned in WikiLeaks documents, indicating that US officials see potential in him. He feels that Yunus is now positioned to take on a significant role. Interestingly, he points out that the students, who are thought to have Islamist beliefs, are calling for someone like Yunus, known for micro-finance, despite the fact that micro-finance is often considered usury and not permissible in Islam.

How Does Micro-finance Work?

Micro-finance provides small loans to individuals who typically lack access to traditional banking services. These loans help people start or expand small businesses, improve their homes, or cover emergency expenses. Borrowers usually repay the loans in small instalments over time. Micro-finance also often includes financial education, helping borrowers manage their money effectively. While it aims to reduce poverty and promote entrepreneurship, some critics argue that it can lead to increased debt for the poor.

How Micro-finance Raises Debt

Micro-finance can increase debt for the poor by charging high interest rates and encouraging multiple loans. Borrowers may feel pressured to repay quickly, leading them to take more loans. Without proper financial education, many struggle to manage their debts, which can result in financial hardship.