Econintersect: As reported by GEI News on March 3, the Bangladesh Government ordered Nobel prize-winning development economist Muhammad Yunus removed as a managing director of Gameen Bank. The bank’s Board of Directors sided with Yunus and filed a high court petition to reject the government action. Yunus founded Gameen bank.
The high court has ruled today (Tuesday, April 5, 2011) in support of the government and against Yunus.From the Guardian:
Muhammad Yunus, the Nobel prize-winning development economist, appears to have lost his bitter battle with the Bangladeshi government for control of the pioneering microlender Grameen Bank, which he founded nearly three decades ago.
Bangladesh‘s chief justice, ABM Khairul Haque, ruled out an appeal by Yunus against a decision last month by the central bank to ban him from continuing as a managing director, a post he has held since 2000.
“The appeal is dismissed,” Haque told a crowded courtroom of the country’s supreme court on Tuesday.
Yunus pioneered the issuance of microfinance loans to the impoverished of Bangladesh starting over 30 years ago. The Grameen Bank, from which Board of Directors the government has sought to remove Yunus, was founded by Yunus to provide a fromal institution for microfinance. The government ordered Yunus removed from the board last year for “violation of the law that governed the bank.”
The law violated is that Yunus was required to retire at age 60. He is 70.
According to an article in the LA Times Yunus may have been the target of petty jealousy. There may also have been elemnts of political retribution involved because in 2007 Yunus had tried to form a political party in opposition to the party currently in control of the Bangladesh government. Yunus has been an outspoken critic of government corruption.
GEI News reported previously of various reactions to the situation including a statement of “dismay” from the U.S. government. See link below (Sources).
Sources: Guardian, GEI News and Los Angeles Times
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