(Bloomberg) -- Nobel Prize-winning economist Muhammad Yunus was sworn in as the chief adviser of Bangladesh’s interim government, days after student-led protests forced the prime minister, Sheikh Hasina, to step down and flee the country.
Yunus, one of the South Asian nation’s most respected figures, landed at Dhaka airport in the afternoon and shook hands with the military chiefs and members of civil society. Yunus’s rank is equivalent to a prime minister, fulfilling a key demand of the student protesters.
Salehuddin Ahmed, a former Bangladesh Bank governor, was sworn in as an adviser, along with 12 others, including two protest leaders. Asif Nazrul, a law professor and one of the new advisers, said that the new administration will “ensure justice for all deaths during the police crackdown on student protests.”
“I express all my appreciation and gratitude to these young people who made it happen and who are responsible for bringing about the rebirth of the nation,” Yunus, 84, said at a brief press conference. He stopped to fight back tears, describing the death of an “extraordinarily brave” young man who went up against the police during the crackdown.
A key question now is when Yunus calls for elections or reveals a fresh political timeline for this nation of over 171 million people. The opposition is pushing for elections within the next 90 days, though the last military-backed interim government after 2007 coup stayed on for two years before relinquishing power.
Having an elected government in place is key for Bangladesh, which is seeking more funds from creditor countries like China and the International Monetary Fund, to arrest a decline in reserves. Bangladesh’s foreign exchange reserves fell to $20.5 billion at end-July from $21.8 billion a month earlier as the protests and curfews saw much of the economy ground to a halt, particularly the garment exports sector.
Despite the uncertainty, the Dhaka stock index headed for the biggest advance this week in at least a decade while the local currency has remained stable at around 117.5 per dollar as investors look for more cues on stability. S&P Global Ratings, which downgraded Bangladesh’s credit score deeper into junk in July, was more cautious, saying the political crisis will further hurt growth, the fiscal performance and foreign exchange reserves.
Seeking Revenge
Even with the scenes of jubilation across Bangladesh over the end of Hasina’s 15-year rule, there has been renewed violence. The police have gone on strike and there are reports of mobs hunting down leaders of Hasina’s Awami League and destroying their property as well as attacks against the Hindus, a religious minority.
“There is a great deal of hatred of the repressive apparatus she built,” the International Crisis Group said in a report on Tuesday. “A desire for vengeance was evident even before Hasina fled.”
Tarique Rahman, the son of BNP leader Khaleda Zia, spoke to a crowd of thousands in Dhaka on Wednesday via a video link from London, calling also for an end to violence. He said there should be no attacks on people because of their religious identity or people with any belief. “Anarchy is not an answer to anarchy,” he said.
The death toll from the protests and now the mob violence has hit 440. At the media briefing on Thursday, Yunus said “restoring law and order is our prime task.”
The attacks on Hindus, Christians, Buddhists and the often-persecuted Ahmadiyya Muslim sect “are part of a conspiracy,” he said. “We have to make sure there are no more attacks.”
It’s a reversal of fortunes for Yunus, who had fought charges brought against him and his associates. He and his supporters have said that Hasina’s government was behind the legal pressure and perhaps saw him as a threat to her power. Hasina, who once accused Yunus of “sucking blood from the poor,” has denied those accusations.
Hasina, who fled to India, has no plans to return to the country her family has led for decades, according to her son Sajeeb Wazed. The former leader’s son has accused Pakistan and the US of fanning the protests that ultimately pushed Hasina out.
(Updates with fresh details throughout)
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