Bangladesh's high growth under ousted PM Hasina was 'fake', interim head Yunus says

Bangladesh’s interim leader Muhammad Yunus on Thursday condemned ousted Prime Minister Sheikh Hasina's claims of economic success during her 15 years in power, calling the growth “fake” and accusing the global community of failing to question her alleged corruption.

“She was in Davos telling everybody how to run a country. Nobody questioned that,” Yunus said during an interview with Reuters at the World Economic Forum’s annual meeting. “That’s not a good world system at all. The whole world is responsible for making that happen.”

Yunus, 84, assumed leadership of the South Asian nation in August after student-led protests ousted Hasina, forcing her to seek refuge in India.

India's Prime Minister Narendra Modi shakes hands with Sheikh Hasina, then Bangladesh's premier, in New Delhi last year. AFP

Her government had been credited with boosting Bangladesh’s economic growth, particularly its garments industry, but also faced allegations of human rights violations and corruption.

“She said, our growth rate surpasses everybody else. Fake growth rate, completely,” Yunus remarked, without detailing his claims but urging for “broad-based and inclusive growth” to reduce wealth inequality.

Bangladesh’s growth peaked at nearly 8% in the financial year 2017/18, compared to 5% when Hasina took office in 2009.

The World Bank labeled the nation one of the fastest-growing economies in 2023. However, Yunus suggested the focus should shift to improving the quality of life for the poorest citizens.

Hasina’s legacy under fire

Hasina, who led Bangladesh since 2009, is now under investigation for crimes against humanity, genocide, corruption, and money laundering. Dhaka has requested India extradite her to face trial, but New Delhi has yet to respond.

Former Bangladeshi Prime Minister Sheikh Hasina. AFP

Ties between the neighboring countries have become strained, with Yunus describing the rift as personally painful. “Bangladesh-India relationship should be the strongest possible,” he said, lamenting Hasina’s presence in New Delhi.

The Nobel laureate and founder of the Grameen Bank, known for his microfinance initiatives to uplift the rural poor, emphasized his disinterest in pursuing power long-term. He has pledged elections by late 2025 or early 2026.

Student-led uprising and rising tensions

Hasina’s fall followed violent crackdowns on student protests that began over government job quotas.

Protesters recommended Yunus as the interim government head. While Yunus has garnered praise for his integrity, his comments criticizing India’s backing of Hasina and his praise for China as a “long-term friend” reflect shifting dynamics in the region.

Chief Adviser Bangladesh Government Muhammad Yunus attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 22, 2025.Reuters

For Yunus, economic transformation must move beyond numbers. “For me, personally, I’m not very driven by growth rates,” he said. “I would rather bring an economy that avoids the whole idea of wealth concentration.”

As Yunus oversees Bangladesh’s delicate political transition, questions linger over how the nation will navigate its divided legacy under Hasina and its increasingly strained ties with India.