Yunus government steps into 3rd month: Navigating hope and challenges

It has been two months since Nobel laureate Dr Muhammad Yunus took charge of Bangladesh's interim government, a position he assumed after the dramatic resignation of prime minister Sheikh Hasina in August 2024.

In this short time, Yunus has faced immense pressure to stabilise a nation that had been engulfed in political unrest and economic turbulence. The former microfinance pioneer was expected to lead the country through a critical transitional period, but significant challenges remain.

Dr Yunus stepped into office during a time of mass protests, initially ignited by grievances over government job quotas but soon evolving into widespread dissatisfaction with Hasina's 15-year rule.

The protests, largely driven by students, led to her eventual departure from power as well as from the country and the interim appointment of Yunus, whose leadership has been seen as a beacon of hope for many Bangladeshis.

However, social unrest continues to dominate.

Within the first week of October alone, more than 7,000 people were arrested by law enforcement agencies in a bid to restore order. Persistent protests in the garment sector over wages, coupled with some scattered incidents over Hindu minority, attacks on shrines, and ethnic tensions in the Chattogram Hill Tracts, have added to the interim government's burden.

Despite Dr Muhammad's Yunus popularity among civil society as well as students and masses, his administration has been criticized for their inability to deliver quick and decisive action in response to these challenges.

Economically, Bangladesh remains fragile too.

Though Yunus has managed to secure international support, notably through pledges from global financial institutions and a well-received appearance at the United Nations General Assembly, the domestic picture is more complicated.

Rising inflation, unemployment, and concerns over non-performing loans in the banking sector are hampering the government's ability to drive recovery.

There are growing concerns that the financial sector, which had been teetering on collapse due to mismanagement and corruptions during Sheikh Hasina regime, may face further instability unless reforms are swiftly implemented.

Security remains another key issue. At one stage, the interim government had to empower armed forces with magistracy due to absence or lackluster attitude of police forces, widely blamed for killing of masses during July-August uprising.

The rise of extremist elements and instability in the Chattogram Hill Tracts have heightened tensions.

Yunus's central mandate is to lead the country toward free and fair elections after some required reforms.

His government has outlined a number of ambitious reforms aimed at ensuring transparency, combating corruption, and revamping the electoral process.

However, the process started at the far end of his second month in power. The six commissions formed for drafting reform proposals have been given 90 days.

Externally, Yunus got full support from the west, particularly US. Relations with China seem to be growing. China is a significant investor in Bangladesh's infrastructure projects and watching closely to see how Yunus's reforms will affect its interests in the country.

But, diplomatic relations with neighboring India remain delicate. As Sheikh Hasina had gotten full support during her illegitimate regime from India and she took shelter in Delhi, anti-India sentiment prevailed within Bangladesh.

Public expectations for Yunus's government remain high, particularly among the student and civil society groups that played a significant role in Hasina's downfall.

Trial of the immediate past regime for mass killings in July-August and past killings and enforced disappearance is a vital issue-- whether his government will carry out the trial or left for next elected government.

Domestically, other issues are also keeping pressure.

The garment sector, which employs millions, continues to be a flashpoint for unrest. Worker rights and deteriorating working conditions have fueled ongoing protests, highlighting the deep economic inequalities that Yunus's administration is committed to address.

The stock market has also shown volatility, with confidence shaken due to continued political uncertainty and economic instability. Investors remain cautious, with many pulling out funds or holding back on new investments.

Adding to the interim government's challenges, severe flooding has affected large parts of Bangladesh in recent weeks. Torrential monsoon rains have submerged vast areas of farmland, displaced thousands of people, and disrupted essential services across the country.

This has further strained the government's resources and worsened food security issues, as crop production has been severely impacted.

Flood relief efforts have been criticised for being slow and inadequate, leaving many citizens frustrated with the government's disaster response.

Addressing the immediate and long-term effects of these floods will be yet another test of Yunus's leadership as he works to stabilize the nation amidst natural and political crises.

Simultaneously, the cost of daily necessities has reached unprecedented levels, further fueling discontent among ordinary citizens.

Prices of essential goods, such as food items, exacerbating the hardships already felt by lower and middle-income families.

Critics argue that Yunus's economic policies, while stabilizing in certain sectors, have not yet brought relief to those most affected by the price hikes.

Dr Yunus's leadership has brought hope to many, but the slow pace of reforms, persistent security concerns, and economic instability raise significant questions.