Nobel laureate and interim leader of Bangladesh Muhammad Yunus meets with President Joe Biden at the 2024 UNGA/ANI

By Anil Wasif

September 26, 2024

(This piece is an update to the pre-bilateral scene-setter published September 23)

The United Nations General Assembly (UNGA) high-level week has felt busier this year. Historic agreements are being ratified, global citizens are active, and the youth have turned up the volume on conversations that matter more. Power is at play.

Amid this charged atmosphere, the Tuesday bilateral between US President Joe Biden and Nobel laureate and interim Bangladesh leader Muhammad Yunus carried asymmetrical, even poignant weight. The meeting stood out not just for its diplomatic significance and status as the strongest evidence yet of Yunus’s reputational restoration on the international stage, but for what it signals about the future of US-Bangladesh relations and South Asia’s shifting geopolitics.

For years, Washington’s relationship with Dhaka under the recently deposed autocrat Sheikh Hasina was tenuous. Sanctions on Bangladesh’s elite security force, the Rapid Action Battalion (RAB), over human rights abuses, including extrajudicial killings, cast a long shadow. Visa restrictions followed. With Yunus now acting as the interim Chief Adviser of Bangladesh, there’s a window to reset.

Muhammad Yunus is no ordinary political figure. His reputation for grassroots economic change and his international standing as the father of microfinance through Grameen Bank  offer the Biden administration a partner capable of helping Bangladesh navigate its precarious political moment​.

In his bilateral with Canadian Prime Minister Justin Trudeau on Tuesday, Yunus handed the poll-battered leader The Art of Triumph, an art book of paintings by Bangladeshi students painted during and after the country’s recent pro-democracy revolution. “The two discussed the outcomes of the Summit of the Future and the importance of accelerating progress toward the UN Sustainable Development Goals,” per the PMO readout of their meeting.

Yunus’ return to the global stage at the UNGA symbolizes a significant moment of redemption after he endured over a decade of politically motivated legal harassment under Sheikh Hasina’s government. Since 2011, Yunus has faced numerous lawsuits, ranging from labor law violations to corruption allegations, all of which were widely regarded as efforts to tarnish his global standing. The accusations, according to global leaders and rights organizations such as Amnesty International, were politically motivated due to Yunus’ perceived threat to Hasina’s authority as a popular, pro-democracy figure. In 2023, over 170 global leaders, including more than 100 Nobel laureates, signed an open letter urging the Bangladeshi government to cease its “judicial harassment” of Yunus. This included a full-page paid ad in The New York Times, underscoring Yunus’ international stature and the global outcry against his persecution.

Despite these challenges, Yunus has remained a symbol of resilience and his reappearance at the UNGA as the interim Chief Adviser of Bangladesh marks a moment of both political vindication and renewed global relevance.

In his speech during the General Debate in Assembly Hall on the 27th, which coincides with the 50th anniversary of Bangladesh’s membership in the United Nations, Yunus is slated to present a vision for a “new Bangladesh”. His address is expected to focus on the recent mass uprisings in Bangladesh, advocating for a pro-people, democratic state, and touching on key global issues like peacekeeping, climate change, the Rohingya crisis, and sustainable development goals (SDGs). Yunus’ goal remains aligned with previous policy and doubles down on new prerogatives to showcase Bangladesh as an emerging nation committed to inclusive growth, democracy, and justice, reinforcing the reforms being spearheaded by his interim government.

The streets of New York are buzzing with more than diplomatic niceties — there’s a palpable sense of transformation. And Yunus, as the interim leader of a nation at a critical juncture, is here with more than just a political mandate. He embodies the possibility of bridging Bangladesh’s democratic shortcomings with its economic potential. The backdrop of this meeting is clear: Biden’s administration has been vocal in advocating for democratic norms globally, and Bangladesh, despite strides in economic development, has been under scrutiny for backsliding in this area. Yunus, with his track record, gives Biden a unique opportunity — a chance to balance strategic interests with the promotion of democratic values.

Bangladesh’s economy, despite its political turbulence, is a rising force. It’s attracting investors who see the potential of a country averaging nearly 7% growth annually. Foreign direct investment (FDI) reached USD 3.48 billion in 2022, fueled by opportunities in the garment sector, digital economy, and renewable energy projects.​ American businesses are watching closely, eyeing new ventures in telecommunications and energy. Yunus and Biden’s talks may very well open doors for deeper economic collaboration. Already, sectors like telecommunications, energy, and infrastructure are drawing attention, with Bangladesh being seen as a critical player in diversifying supply chains, especially as companies look for alternatives to China​.

While India remains Bangladesh’s closest ally, Bangladesh has increasingly been courted by China, particularly through investment and infrastructure projects under the BRI.

As important, Bangladesh’s strategic position, sandwiched between South and Southeast Asia, is a hot zone in the US-China power struggle. As China deepens its Belt and Road Initiative (BRI) investments in the region, the US is looking to strengthen alliances. Bangladesh, with Yunus at the helm of an interim government pushing for democratic reforms, could be a key ally. For Biden, engaging with Yunus is more than a diplomatic gesture — it’s a calculated move in the larger Indo-Pacific chessboard​.

Washington is keenly aware that Bangladesh’s proximity to both India and China makes it a strategic geopolitical player. While India remains Bangladesh’s closest ally, Bangladesh has increasingly been courted by China, particularly through investment and infrastructure projects under the BRI. Biden’s team, cognizant of these shifting dynamics, likely views Yunus as an opportunity to secure Bangladesh’s political and economic alignment with the West. In recent years, China’s influence in Bangladesh has grown, especially in the infrastructure and energy sectors, as Beijing has invested billions in critical projects.

But Yunus, with his global stature, provides an opening for Washington to reassert its influence and ensure Bangladesh remains within the democratic fold — a goal shared by the people of a country repressed for years under Hasina’s rule. At a time when global power balances are in flux, the stakes are higher than ever.

And those stakes go beyond geopolitics. For Yunus, the meeting with Biden is as much about Bangladesh’s internal politics as it is about international relations. Bangladesh’s economy, while growing, remains heavily reliant on the garment sector, which accounts for over 80% of its exports​.

As a pioneer in social business and poverty alleviation, Yunus has always championed the idea that economic growth must be inclusive. For him, the future of Bangladesh’s economy must diversify beyond garments, towards sectors like technology, agriculture, and renewable energy. Biden, whose administration has prioritized green energy and digital infrastructure in its global economic agenda, likely found common ground here. Together, Yunus and Biden may look to chart a course that pushes Bangladesh’s economy toward a more diversified, sustainable future.

The US has a long history of meeting with interim leaders during times of political transition in key regions. In Egypt, following the 2011 ousting of President Hosni Mubarak, the US engaged with the Supreme Council of the Armed Forces (SCAF) as they led the country through its democratic transition. Similarly, after Libya’s Muammar Gaddafi was toppled in 2011, the US worked closely with the National Transitional Council (NTC) to support Libya’s post-revolutionary governance. These engagements reflect Washington’s broader strategy of stabilizing regions through diplomacy while promoting democratic norms. However, these interventions have had mixed results, with Egypt’s eventual return to military rule under Abdel Fattah el-Sisi and Libya’s ongoing instability despite initial support. Yunus’s meeting with Biden mirrors these previous encounters, where the US seeks to secure its strategic interests while fostering democratic governance​.

What’s at stake is much larger than a bilateral conversation. It’s about whether Yunus, with his Nobel-backed credibility now fully restored in the wake of Hasina’s departure, can deliver the political stability Bangladesh needs while maintaining its impressive economic growth. Can he ensure the upcoming elections are free and fair? Will the US, long a champion of democracy and human rights, stay committed to Bangladesh’s transition or merely engage in short-term diplomacy?

New York’s energy echoes the urgency of these questions. World leaders are here to make deals, but the power dynamics shaping the future of nations like Bangladesh is where the real game is being played. And in that game, Yunus, armed with his experience in poverty reduction and economic empowerment, finds himself at the center of a high-stakes moment. Whether this meeting serves as a launching point for deeper engagement or simply a diplomatic check-in, its outcomes will ripple through the halls of power in Dhaka and Washington alike.

Policy Contributing Writer Anil Wasif is research manager at Infrastructure Ontario. He sits on the advisory board of the Max Bell School of Public Policy at McGill University and the Governing Council at the University of Toronto. He is Trustee and Director of Strategy at BL (BacharLorai), an international non-profit organization, empowering Bangladeshi communities worldwide, and is the Official Civil Society Representative of BL to the United Nations. His opinions are his own, and do not reflect the views of any organizations with which he is affiliated.