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Muhammad Yunus (born 28 June 1940) is a Bangladeshi economist, entrepreneur, and civil society leader who has been serving as the Chief Adviser of the Yunus ministry since 8 August 2024. Yunus pioneered the modern concept of microcredit and microfinance, for which he was awarded the Nobel Peace Prize in 2006 as the first Bangladeshi. He is the founder of Grameen Bank.
Born in Hathazari, Chittagong, Yunus passed his matriculation and intermediate examinations from Chittagong Collegiate School and Chittagong College, respectively. He completed his BA from University of Dhaka and joined as a lecturer in Chittagong College. He obtained his PhD in economics from Vanderbilt University in the United States.
After the devastating famine of 1974, Yunus started to work on poverty elevation in Bangladesh. He began experimenting with microfinance in the late 1970s. In 1983, the Grameen Bank was established. The success of the Grameen microfinance model inspired similar efforts in about 100 developing world and even in developed countries including the United States. Yunus was awarded the Nobel Peace Prize in 2006 for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance. Yunus has received several other national and international honors, including the United States Presidential Medal of Freedom in 2009 and the Congressional Gold Medal in 2010.
In 2012, Yunus became Chancellor of Glasgow Caledonian University in Scotland, a position he held until 2018. Previously, he was a professor of economics at Chittagong University in Bangladesh. He published several books related to his finance work. He is a founding board member of Grameen America and Grameen Foundation, which supports microcredit. Yunus also served in the board of directors of the United Nations Foundation, a public charity to support United Nations causes, from 1998 to 2021. In 2022, he partnered with Global Esports Federation as part of the Esports for Development (E4D) movement to support the development of esports.
Following the overthrow of Sheikh Hasina, President Mohammed Shahabuddin gave Yunus a mandate to form an interim government, acceding to calls from student leaders for his appointment. His government has appointed a Constitutional Reform Commission to draft revisions to the Constitution of Bangladesh and has pledged the convocation of a constituent assembly. His name was listed in The 500 Most Influential Muslims in 2024. In 2025, he was named one of Time Magazine's 100 Most Influential People in the World.
During the Bangladesh Liberation War in 1971, Yunus founded a citizen's committee and ran the Bangladesh Information Center, with other Bangladeshis in the United States, to raise support for liberation. He also published the Bangladesh Newsletter from his home in Nashville. After the War, he returned to Bangladesh and was appointed to the government's Planning Commission headed by Nurul Islam. However, he found the job boring and resigned to join Chittagong University as head of the Economics department. After observing the famine of 1974, he became involved in poverty reduction and established a rural economic programme as a research project. In 1975, he developed a Nabajug Tebhaga Khamar () which the government adopted as the Packaged Input Programme. To make the project more effective, Yunus and his associates proposed the Gram Sarkar () programme. Introduced by President Ziaur Rahman in the late 1970s, the government formed 40,392 village governments as a fourth layer of government in 2003. On 2 August 2005, in response to a petition by Bangladesh Legal Aid and Services Trust (BLAST), the High Court declared village governments illegal and unconstitutional.
His concept of microcredit for supporting innovators in multiple developing countries also inspired programmes such as the Info lady Social Entrepreneurship Programme.
In December 1976, Yunus finally secured a loan from the government Janata Bank to lend to the poor in Jobra. The institution continued to operate, securing loans from other banks for its projects. By 1982, it had 28,000 members. On 1 October 1983, the pilot project began operation as a full-fledged bank for poor Bangladeshis and was renamed Grameen Bank ("Village Bank"). By July 2007, Grameen had issued US$6.38 billion to 7.4 million borrowers. To ensure repayment, the bank uses a system of "solidarity groups". These small informal groups apply together for loans and its members act as co-guarantors of repayment and support one another's efforts at economic self-advancement.
In the late 1980s, Grameen started to diversify by attending to underutilized fishing ponds and irrigation pumps like deep tube wells. In 1989, these diversified interests started growing into separate organisations. The fisheries project became Grameen Motsho ("Grameen Fisheries Foundation") and the irrigation project became Grameen Krishi ("Grameen Agriculture Foundation"). In time, the Grameen initiative grew into a multi-faceted group of profitable and non-profit ventures, including major projects like Grameen Trust and Grameen Fund, which runs equity projects like Grameen Software Limited, Grameen CyberNet Limited, and Grameen Knitwear Limited, as well as Grameen Telecom, which has a stake in Grameenphone (GP), the biggest private phone company in Bangladesh. From its start in March 1997 to 2007, GP's Village Phone ( Polli Phone) project had brought cell-phone ownership to 260,000 rural poor in over 50,000 villages.
The success of the Grameen microfinance model inspired similar efforts in about 100 developing world and even in developed countries including the United States. Many microcredit projects retain Grameen's emphasis of lending to women. More than 94% of Grameen loans have gone to women, who suffer disproportionately from poverty and who are more likely than men to devote their earnings to their families.
For his work with Grameen, Yunus was named an Global Academy Member in 2001. According to Rashidul Bari, the Grameen's social business model has gone from being theory to an inspiring practice adopted globally by leading universities, entrepreneurs, social business and corporations.
Yunus is a member of the Africa Progress Panel (APP), a group of ten distinguished individuals who advocate at the highest levels for equitable and sustainable development in Africa. Every year, the Panel releases a report, the Africa Progress Report, that outlines an issue of immediate importance to the continent and suggests a set of associated policies. In July 2009, Yunus became a member of the SNV Netherlands Development Organisation International Advisory Board to support the organisation's poverty reduction work. Since 2010, Yunus has served as a Commissioner for the Broadband Commission for Digital Development, a UN initiative which seeks to use broadband internet services to accelerate social and economic development. In March 2016, he was appointed by United Nations Secretary-General Ban Ki-moon to the High-Level Commission on Health Employment and Economic Growth, which was co-chaired by presidents François Hollande of France and Jacob Zuma of South Africa. Following the Rohingya genocide in 2016–2017, Yunus urged Myanmar to end violence against Rohingya people.
Muhammad Yunus was appointed as the transitional leader of the interim government on 7 August 2024 by president Mohammed Shahabuddin. On 8 August 2024, he took the oath and has been serving as the Chief Advisor of the interim government. After the oath, he visited injured people in Dhaka Medical College. On 10 August 2024, he visited the home and family members of Abu Sayed. He also visited injured student protesters in the Rangpur Medical College. Following communal violence after Hasina's resignation, Yunus threatened to resign if the violence continued and vowed to crack down on conspirators of the attacks.
As Chief Adviser, Yunus has pledged to continue providing humanitarian aid to Rohingya refugees in Bangladesh and support the garment industry amid disruptions caused by the unrest prior to his appointment.
On 16 December 2024, Yunus announced that general elections would be held in late 2025 or early 2026.
In his capacity as Chief Adviser of Bangladesh's interim government, Muhammad Yunus has taken initiatives to enhance the country’s digital infrastructure and support inclusive economic growth.
In March 2025, Yunus announced that Bangladesh would finalize a commercial agreement with SpaceX's Starlink within three months. The initiative aims to deliver reliable satellite internet across the nation and prevent political disruptions from leading to internet blackouts, as happened in the past.
Yunus emphasized that satellite internet through Starlink would allow broader access to education, health services, and entrepreneurship, especially in rural and underserved regions. He also expressed interest in collaborating with Elon Musk to unlock Bangladesh’s potential through digital innovation.
In April 2025, Yunus addressed the 81st session of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), reaffirming Bangladesh’s commitment to building a climate-resilient and inclusive digital economy. He highlighted the government's investments in green infrastructure, sustainable housing, and nature-based solutions to support vulnerable populations.
On 15 February 2011, the Finance Minister of Bangladesh, Abul Maal Abdul Muhith, declared that Yunus should "stay away" from Grameen Bank while it is being investigated. On 2 March 2011, Muzammel Huq, a former Bank employee, whom the government had appointed chairman in January, announced that Yunus had been fired as managing director of the Bank. However, Bank General Manager Jannat-E Quanine issued a statement that Yunus was "continuing in his office" pending review of the legal issues surrounding the controversy.
In March 2011, Yunus petitioned the Bangladesh High Court challenging the legality of the decision by the Bangladesh Bank to remove him as managing director of Grameen Bank. The same day, nine elected directors of Grameen Bank filed a second petition. U.S. Senator John Kerry expressed his support to Yunus in a statement on 5 March 2011 and declared that he was "deeply concerned" by this affair. The same day in Bangladesh, thousands of people protested and formed human chains to support Yunus. The High Court hearing on the petitions, was planned for 6 March 2011 but postponed. On 8 March 2011, the Court confirmed Yunus's dismissal.
The lure of profits attracted some for-profit MFIs to hold initial public offerings (IPOs), including the largest Indian MFI, SKS Microfinance, which held an IPO in July 2010. In September 2010, Yunus criticised the IPO; in a debate with SKS founder Vikram Akula during the Clinton Global Initiative meeting, he said, "Microcredit is not about exciting people to make money off the poor. That's what you're doing. That's the wrong message completely." Calculations of actual interest rate vary, but one estimate puts average Grameen rates at about a 23% interest rate (comparable to the inflation rate). Also see what annual interest do NGOs earn from a fixed initial capital?
In January 2011, Yunus appeared in court in a defamation case filed by a local politician from a minor left-leaning party in 2007, complaining about a statement that Yunus made to the AFP news agency, "Politicians in Bangladesh only work for power. There is no ideology here". At the hearing, Yunus was granted bail and exempted from personal appearance at subsequent hearings.
These investigations fueled suspicion that many attacks might be politically motivated, due to difficult relations between Sheikh Hasina and Yunus since early 2007, when Yunus created his own political party, an effort he dropped in May 2007. In 2013, he faced a state-backed smear campaign that accused him of being un-Islamic and promoting homosexuality, after he signed a joint statement criticising the prosecution of gay people in Uganda in 2012 with three other nobel laureates.
Hasina launched a series of trials against Yunus. The former put the latter on trial in 2010 and ultimately removed him from Grameen Bank, citing his age. In 2013, he was tried a second time, because he had supposedly received earnings without the necessary government permission, including his Nobel Peace Prize earnings and royalties from his book sales. The series of trials against Yunus puzzled figures worldwide, from the 8.3 million underprivileged women served by Grameen Bank to U.S. President Barack Obama.
Vikas Bajaj wrote on 7 November 2013:
On 1 January 2024, a court in Bangladesh sentenced Yunus to a six-month prison term, along with three employees from Grameen Telecom for labor law violations. However, the court granted bail pending appeals. Amnesty International declared Yunus's conviction a "blatant abuse" of the justice system. The conviction was overturned on 7 August 2024 following an appeal. He has been acquitted in a graft case filed by the Anti-Corruption Commission (ACC) just four days after getting acquittal for the labour violations case.
Hasina thought she would win the Nobel Peace Prize for signing the 1997 Chittagong Hill Tracts peace treaty. On 9 March, Attorney General Mahbubey Alam expressed the government's attitude when he said, "Prime Minister Sheikh Hasina should have been awarded the Nobel Peace Prize". He went on to challenge the wisdom of the Nobel committee.
Yunus became subject to legal proceedings over three criminal cases. A criminal defamation case was filed against Yunus for criticising politicians in 2007. A food inspector filed another case against Yunus, alleging that yogurt manufactured by Grameen-Danone was adulteration. The final blow came on 3 March 2011. Bangladesh Bank informed Grameen in a letter that Yunus had been removed from Grameen, citing old age. Backed by nine boards of directors, 22 thousand employees, and 8.3 million Grameen borrowers, Yunus defied the government order, returned to Grameen's headquarters in Dhaka, and lodged an appeal at Dhaka High Court against the decision. However, Justice Mohammad Momtazuddin Ahmed and Justice Gobinda Chandra Tagore delivered the verdict against Yunus, claiming that Yunus's posting as the MD of Grameen since 1999 was illegal as he had reached the age of 60 by then. Backed by international leaders (e.g., Hillary and Bill Clinton), national leaders (e.g., Sir Fazle Hasan Abed) and 8.3 million Grameen borrowers, Yunus filed an appeal in Bangladesh Supreme Court against the High Court's verdict. The full bench of the Appellate Division headed by Chief Justice ABM Khairul Haque heard the appeal on 15 March 2011 and upheld Yunus's removal by the government.
On 4 October 2013, Bangladesh's cabinet approved the draft of a new law that would give the country's central bank greater control over Grameen Bank, raising the stakes in the long-running dispute. The Grameen Bank Act 2013 was approved at a cabinet meeting chaired by Prime Minister Sheikh Hasina and was passed by parliament on 7 November 2013. It replaced the Grameen Bank Ordinance, the law that underpinned the creation of Grameen Bank as a specialised microcredit institution in 1983. The New York Times reported in August 2013:
In 1967, while Yunus attended Vanderbilt University, he met Vera Forostenko, a student of Russian literature at Vanderbilt University and daughter of Russian immigrants to Trenton, New Jersey, United States. They were married in 1970. Yunus's marriage with Vera ended within months of the birth of their baby girl, Monica Yunus, in 1979 in Chittagong, as Vera returned to New Jersey claiming that Bangladesh was not a good place to raise a baby. Monica Yunus became an operatic soprano based in New York City. Yunus later married Afrozi Yunus, who was then a researcher in physics at Manchester University. She was later appointed as a professor of physics at Jahangirnagar University. Their daughter Deena Afroz Yunus was born in 1986.
Yunus's brother Muhammad Ibrahim is a former professor of physics at the University of Dhaka and the founder of The Center for Mass Education in Science (CMES), which brings science education to adolescent girls in villages. His other brother Muhammad Jahangir (d. 2019) was a television presenter and a social activist in Bangladesh.
Yunus was the first Bangladeshi to ever get a Nobel Prize. He established Grameen Bank in 1983, which plays a significant role in poverty alleviation in various countries of the world including Bangladesh. In 2006, he and the Grameen Bank he founded jointly won the Nobel Peace Prize. After receiving the news of the important award, Yunus announced that he would use part of his share of the $1.4 million (equivalent to $ million in ) award money to create a Grameen Danone for the poor; while the rest would go towards establishing the Yunus Science and Technology University in his home district as well as setting up an eye hospital for the poor in Bangladesh.
Former U.S. president Bill Clinton was a vocal advocate for the awarding of the Nobel Prize to Yunus. He expressed this in Rolling Stone magazine as well as in his autobiography My Life. In a speech given at University of California, Berkeley in 2002, President Clinton described Yunus as "a man who long ago should have won the Nobel Prize in I'll keep saying that until they finally give it to him." Conversely, The Economist stated explicitly that while Yunus was doing excellent work to fight poverty, it was not appropriate to award him the Peace Prize, stating: "... the Nobel committee could have made a braver, more difficult, choice by declaring that there would be no recipient at all."
He is one of only seven persons to have won the Nobel Peace Prize, Presidential Medal of Freedom, and the Congressional Gold Medal. Other notable awards include the Ramon Magsaysay Award in 1984, the World Food Prize, the International Simon Bolivar Prize (1996), the Prince of Asturias Award for Concord and the Sydney Peace Prize in 1998, and the Seoul Peace Prize in 2006. Additionally, Yunus has been awarded 70 honorary doctorate degrees from universities across 27 countries, and 113 international awards from 26 countries including state honours from 10 countries. Bangladesh government brought out a commemorative stamp to honour his Nobel Award.
Yunus was named by Fortune Magazine in March 2012 as one of 12 greatest entrepreneurs of the current era. In its citation, Fortune Magazine said "Yunus' idea inspired countless numbers of young people to devote themselves to social causes all over the world."
In January 2008, Houston, Texas declared 14 January as "Muhammad Yunus Day".
Yunus was named among the most desired thinkers the world should listen to by the FP 100 (world's most influential elite) in the December 2009 issue of Foreign Policy magazine.
In 2010, the British magazine New Statesman listed Yunus at 40th in the list of "The World's 50 Most Influential Figures 2010".
Yunus received 70 honorary doctorate degrees from universities from Albania, Argentina, Australia, Bangladesh, Belgium, Bolivia, Brazil, Canada, Costa Rica, China, Greece, India, Italy, Ireland, Japan, Korea, Lebanon, Malaysia, Mexico, Peru, Russia, South Africa, Spain, Thailand, Turkey, the United Kingdom, and the United States. United Nations Secretary-General Ban Ki-moon invited Yunus to serve as an MDG Advocate. Yunus sits on the Board of United Nations Foundation, Schwab Foundation, Prince Albert II of Monaco Foundation, Grameen Credit Agricole Microcredit Foundation. He has been a member of Fondation Chirac's honour committee, ever since the foundation was launched in 2008 by former French president Jacques Chirac in order to promote world peace.
Yunus has become a well-known international figure. He has delivered numerous lectures around the world, and has appeared on popular television shows, including The Daily Show with Jon Stewart and The Oprah Winfrey Show in 2006, The Colbert Report in 2008, Real Time with Bill Maher in 2009 and The Simpsons in 2010. On Google+, Yunus was one of the most followed people worldwide, with over two million followers until Google closed its operations in 2019.
He has played a key advisory role in the Paris 2024 Olympics, promoting social business principles and encouraging sustainable, socially responsible projects. His influence led to initiatives like prioritizing social businesses in public tenders and integrating social housing into the ' village redevelopment.
Footnotes
Citations
Food adulteration case
On 27 January 2011, Yunus appeared in court in a food-adulteration case filed by the Dhaka City Corporation (DCC) Food Safety Court, accusing him of producing an "adulterated" yogurt whose fat content was below the legal minimum. This yogurt is produced by Grameen Danone, a social business joint venture between Grameen Bank and Danone that aims to provide opportunities for street vendors who sell the yogurt and to improve child nutrition with the nutrient-fortified yogurt. According to Yunus' lawyer, the allegations are "false and baseless".
Trials
Yunus faced 174 lawsuits in Bangladesh, 172 of which were civil cases. Allegations included labour law violations, corruption, and money laundering, which Yunus alleged were politically motivated.
The government of Bangladesh has played its trump card in its long-running campaign against Grameen Bank and its founder Muhammad Yunus. Last week, legislators passed a law that effectively nationalizes the bank, which pioneered the idea of making small loans to poor women, by wresting control of it from the 8.4 million rural women that own a majority of its shares.
Background
For many years, Yunus remained a follower of Hasina's father, Sheikh Mujib, Former President of Bangladesh. While teaching at Middle Tennessee State University, Yunus founded the Bangladesh Citizens' Committee (BCC) as a response to West Pakistan's aggression against Bangladesh. After the outbreak of the war of liberation, the BCC selected Yunus to become editor of its Bangladesh News Letter. Inspired by the birth of Bangladesh in 1971, Yunus returned home in 1972. The relationship continued after Mujib's death. Yunus maintained a professional relationship with Hasina. Yunus appointed Hasina—along with U.S. First Lady Hillary Clinton—as co-chair of a microcredit summit held 2–4 February 1997. At this event, 50 heads of state and high-level officials from 137 nations gathered in Washington, DC, to discuss solutions to poverty. At this event, Hasina had nothing but praise for Yunus. In her statement she praised, "the outstanding work done by Professor Yunus and the Grameen Bank he founded. ... The success of the Grameen Bank has created optimism about the viability of banks engaged in extending micro-credit to the poor". The inaugural ceremony of Grameen Phone, Bangladesh's largest telephone service, took place at Hasina's office on 26 March 1997. Using Grameen Phone, Hasina made the first call to Thorbjorn Jagland, the then-Norwegian prime minister. When her conversation ended, she received another call, from Laily Begum, a Grameen Phone employee. However, this long relationship ended in 2007 after Yunus disclosed his intention to form a political party, Nagorik Shakti.
Change of Hasina's opinion about Yunus
The Awami League government of Sheikh Hasina campaigned against Grameen and Yunus. The New York Times reported, "Her actions appear to be retaliation for Mr. Yunus's announcement in 2007 that he would seek public office, even though he never went through with his plans". According to Times of India, one other factor contributed to her decision against Yunus: the Nobel Peace Prize.
Historical description
On 11 January 2007, Army General officer Moeen U Ahmed staged a military coup. Meanwhile, Yunus turned down his request to become the nation's fourth Chief Advisor after Khaleda Zia's term ended. Yunus, however, suggested the general pick Fakhruddin Ahmed for the job. Fakhruddin took office on 11 January 2007 and made it clear on his first day that he intended not only to arrange a free and fair election but also to clean up corruption. While Khaleda and Hasina criticised Fakruddin and claimed that it was not his job to clean up corruption, Yunus expressed his satisfaction. In an interview with the AFP news agency, Yunus remarked "There is no ideology here." Hasina had a harsh reaction to Yunus's comments, calling him a "usurer who has not only failed to eradicate poverty but has also nurtured poverty." This was Hasina's first public statement against Yunus. Later Yunus announced the name of this prospective political party, Nagorik Shakti (Citizens' Power), saying he had a mission to enter the political arena in his nation in hope of changing its identity from "bottomless basket" to "rising tiger". However, on 3 May, Yunus published a third open letter and put his political ambitions to rest.
Proceedings
The Bangladesh government launched the first trial against Yunus in December 2010, alleging that in 1996 he had transferred approximately $100 million to a sister company of Grameen Bank. Yunus denied the allegations and he was found innocent by the Norwegian government.
From 2012
On 2 August 2012, Sheikh Hasina approved a draft of "Grameen Bank Ordinance 2012" to increase government control over the bank. That power resided with the bank's directors—nine poor women who were elected by 8.3 million Grameen borrowers. Hasina also ordered a fresh investigation into Yunus's activities and financial transactions in his later years as managing director of Grameen, but people saw the move as an attempt to destroy his image. The prime minister also alleged that Yunus had received his earnings without the necessary permission from the government, including his Nobel Peace Prize earnings and book royalties.
Since then, the government has started an investigation into the bank and is now planning to take over Grameen—a majority of whose shares are owned by its borrowers—and break it up into 19 regional lenders.
Criticism over government privileges (2024–2025)
Following his appointment as chief adviser, Yunus faced criticism after several Grameen-affiliated institutions received government approvals and benefits. These included approval for Grameen University, tax waivers and a reduction in government shareholding in Grameen Bank, and licenses for manpower export and a digital wallet. The dismissal of labor law violation and money laundering cases against him during this period also raised concerns from some quarters regarding transparency and conflicts of interest.
Personal life
Yunus identifies as a Muslim and has expressed the importance that salah and Ishq-e-Muhammadi holds to him in his personal life. His father, Haji Muhammad Dula Mia Saudagar, completed Hajj three times and was a disciple of two prominent Sufis of Chittagong. Yunus continues to actively display a normative orthodox Sunnite aqidah, whilst rejecting superstition. He encourages the public to engage in Dua directly to Allah, whom Yunus publicly recognises as the supreme source of assistance and support, and as the master of Taqdir. Yunus has also referred to the Qur'an as the "guide for mankind" and acknowledged the concept of ummah in his public speeches.
Yunus Centre
The Yunus Centre, located in Dhaka, Bangladesh, is a think tank focused on social business, poverty alleviation, and sustainability. Founded in 2008 and chaired by Dr Yunus, it promotes his philosophy of social business and serves as a resource center for related initiatives. The centre's activities include poverty eradication campaigns, research and publications, support for social business Startup company, organizing the Global Social Business Summit, and developing academic programs on social business with international universities.
Publications
(2025). 9783642280351, Springer. ISBN 9783642280351
Documentaries
Awards and recognitions
Yunus was awarded the 2006 Nobel Peace Prize, along with Grameen Bank, for their efforts to create economic and social development:
See also
Further reading
External links
Categories: Official Website, 1940 Births, Living People, Academic Staff Of The University Of Chittagong, Yunus Interim Government Advisors, Chief Advisors Of Bangladesh, Agriculture And Food Award Winners, Bangladeshi Bankers, Bangladeshi Businesspeople, Bangladeshi Economists, Bangladeshi Nobel Laureates, Bangladeshi Sunni Muslims, Chittagong College Alumni, Chittagong Collegiate School And College Alumni, Development Specialists, Huffpost Writers And Columnists, International Simón Bolívar Prize Recipients, Microfinance People, Middle Tennessee State University Faculty, Nobel Peace Prize Laureates, People Associated With Glasgow Caledonian University, People From Hathazari Upazila, People In International Development, Pfeffer Peace Prize Laureates, Presidential Medal Of Freedom Recipients, Congressional Gold Medal Recipients, Ramon Magsaysay Award Winners, Recipients Of The Independence Award, Social Entrepreneurs, United Nations Foundation, University Of Dhaka Alumni, Vanderbilt University Alumni, Winners Of The Nikkei Asia Prize, The Elders
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