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Bangladesh, the South Asian country that's home to nearly one hundred and seventy million people, has a new government.

Bangladesh, the South Asian country that's home to nearly one hundred and seventy million people, has a new government.

This Bangladesh has been reborn. Our resolve is to see it move ahead at a very rapid pace. That is what we want to protect.

This Bangladesh has been reborn. Our resolve is to see it move ahead at a very rapid pace. That is what we want to protect.

After weeks of protests that led to some four hundred deaths, Prime Minister Sheik Hasina was forced to step down and flee the country, putting an abrupt end to her fifteen years in power.

After weeks of protests that led to some four hundred deaths, Prime Minister Sheik Hasina was forced to step down and flee the country, putting an abrupt end to her fifteen years in power.

That this is not just.

That this is not just.

The end of the Titan shake Asina.

The end of the Titan shake Asina.

With this, we put an end to the mafia state that she hastrated.

With this, we put an end to the mafia state that she hastrated.

In a startling turn of events, Nobel Prize winning economist Mohammed Unis stepped into the leadership vacuum. Yes, the same Mohammed Unis who we reported just last month was facing nearly two hundred criminal charges that his supporters believed were politically motivated. Earlier, Yunis told Bloomberg that he didn't have political aspirations, but after Hassina's departure, he was chosen to be the chief advisor of the interim government.

In a startling turn of events, Nobel Prize winning economist Mohammed Unis stepped into the leadership vacuum. Yes, the same Mohammed Unis who we reported just last month was facing nearly two hundred criminal charges that his supporters believed were politically motivated. Earlier, Yunis told Bloomberg that he didn't have political aspirations, but after Hassina's departure, he was chosen to be the chief advisor of the interim government.

We must protect this freedom and not only protect it, but take the fruits of this freedom to every household. Otherwise this freedom has no value.

We must protect this freedom and not only protect it, but take the fruits of this freedom to every household. Otherwise this freedom has no value.

What happens next in Bangladesh is being closely watched by international investors who've come to see the country as a potential rising economy.

What happens next in Bangladesh is being closely watched by international investors who've come to see the country as a potential rising economy.

Bangladesh, when it was inaugurated as a nation as an independent nation in the nineteen seventies, was something like the second poorest country on Earth. Now it's a lower middle income economy, so it seemed as a fairly robust success story in the region. And I think that that reputation is what's at stake.

Bangladesh, when it was inaugurated as a nation as an independent nation in the nineteen seventies, was something like the second poorest country on Earth. Now it's a lower middle income economy, so it seemed as a fairly robust success story in the region. And I think that that reputation is what's at stake.

Bloomberg reporter Kai Schultz has been closely covering the events in Bangladesh over the last few months, and he says one thing Muhammad Unis's interim government will need to do is to shore up confidence in the country.

Bloomberg reporter Kai Schultz has been closely covering the events in Bangladesh over the last few months, and he says one thing Muhammad Unis's interim government will need to do is to shore up confidence in the country.

One of the things that Unice and his interim government will want to do is just ensure the international community that this is still a place to park their money, that it's a country that still has a very positive trajectory.

One of the things that Unice and his interim government will want to do is just ensure the international community that this is still a place to park their money, that it's a country that still has a very positive trajectory.

Welcome to the Big Take Asia from Bloomberg News. I'm wanh today on the show how student protesters toppled a fifteen year rule in Bangladesh and what's next for Bangladesh's economy. Kai, we spoke last month about the celebrated economist Muhammad Yunis, whom you met earlier this year in Bangladesh. He was then fighting very serious criminal charges that his supporters believed were being driven by former Prime Minister Shai Casina, And now weeks later, we have such a dramatic turn. Hassina's resigned abruptly and has fled the country, while Unice is now in charge of an interim government. Did anyone see this coming?

Welcome to the Big Take Asia from Bloomberg News. I'm wanh today on the show how student protesters toppled a fifteen year rule in Bangladesh and what's next for Bangladesh's economy. Kai, we spoke last month about the celebrated economist Muhammad Yunis, whom you met earlier this year in Bangladesh. He was then fighting very serious criminal charges that his supporters believed were being driven by former Prime Minister Shai Casina, And now weeks later, we have such a dramatic turn. Hassina's resigned abruptly and has fled the country, while Unice is now in charge of an interim government. Did anyone see this coming?

Nobody saw this coming. It's been a complete shock. It's wild that Unice is the leader of the interim government, precisely because he was such a target of Hassina's administration, or at least it was perceived that way by him in his camp. He faced life imprisonment and now he's ruling over a massive country and many now are hoping that this ushers in a new era for the country, but with so much uncertainty, it's hard to say.

Nobody saw this coming. It's been a complete shock. It's wild that Unice is the leader of the interim government, precisely because he was such a target of Hassina's administration, or at least it was perceived that way by him in his camp. He faced life imprisonment and now he's ruling over a massive country and many now are hoping that this ushers in a new era for the country, but with so much uncertainty, it's hard to say.

Okay. So take us back to the protests in July that led to the Prime Minister's ouster. What got people to the streets.

Okay. So take us back to the protests in July that led to the Prime Minister's ouster. What got people to the streets.

The protests started with fairly narrow to points. Mostly they were on the streets contesting a law that preserves government jobs for specific groups.

The protests started with fairly narrow to points. Mostly they were on the streets contesting a law that preserves government jobs for specific groups.

So wait, why did protesters care so much about these jobs?

So wait, why did protesters care so much about these jobs?

So under the quota system, about thirty percent of jobs were reserved for the families of veterans who fought in Bangladesh's War of independence. Hasina's party, the Iwami League, was instrumental at that time in pushing for Bangladesh to become an independent nation. So many students felt like this system favored loyalists of hers. And Bangladesh's economy has lately slowed, there's still a sense, particularly among young people, that quality jobs are in short supply. So the protest movement was largely led by students, at least initially.

So under the quota system, about thirty percent of jobs were reserved for the families of veterans who fought in Bangladesh's War of independence. Hasina's party, the Iwami League, was instrumental at that time in pushing for Bangladesh to become an independent nation. So many students felt like this system favored loyalists of hers. And Bangladesh's economy has lately slowed, there's still a sense, particularly among young people, that quality jobs are in short supply. So the protest movement was largely led by students, at least initially.

And how did the then prime minister has seen it react to the protests and criticism.

And how did the then prime minister has seen it react to the protests and criticism.

Sure, Hassina reacted with force in those early days.

Sure, Hassina reacted with force in those early days.

The army has now been deployed in the country's capital to enforce a strict curfew with a shoot on site order.

The army has now been deployed in the country's capital to enforce a strict curfew with a shoot on site order.

And the way they cracked down was by deputizing the police. Eventually, the army shutting down communication so that people couldn't as easily organize.

And the way they cracked down was by deputizing the police. Eventually, the army shutting down communication so that people couldn't as easily organize.

With the government imposing a nationwide internet blackout. The US embasc and a statement saying reports indicate hundreds have been injured, adding the situation is extremely volatile.

With the government imposing a nationwide internet blackout. The US embasc and a statement saying reports indicate hundreds have been injured, adding the situation is extremely volatile.

For several days, WhatsApp was basically unusable, so internet services, phone communications, all of that was cut, and the protests became very violent. According to figures that we have, which are pulled from a variety of sources, including hospitals, several hundred people were killed, perhaps more than four hundred.

For several days, WhatsApp was basically unusable, so internet services, phone communications, all of that was cut, and the protests became very violent. According to figures that we have, which are pulled from a variety of sources, including hospitals, several hundred people were killed, perhaps more than four hundred.

Okay, so you've got Prime Minister ship Casina. She's been ruling Bangladesh with an ironclad fist and took a really strong stance against these protests, forcefully suppressed the demonstrations, and then weeks after she's basically resigned abruptly fled the country. What was a turning point here?

Okay, so you've got Prime Minister ship Casina. She's been ruling Bangladesh with an ironclad fist and took a really strong stance against these protests, forcefully suppressed the demonstrations, and then weeks after she's basically resigned abruptly fled the country. What was a turning point here?

So at one point, several days into the protests, Hassina's administration made a concession. The veterans quota was cut to five percent, and that seemed to quell a lot of the anger. The protests died down, but soon after, and it's unclear exactly why this occurred, the protesters returned, and when they returned, they wanted her to resign. And we think that part of the reason that these persisted was because by that point a few hundred people had already been killed, and Bangladeshi's were so tired of living in a country that they felt did not have a justice system that favored them, but had a justice system that favored the elite, and their agenda narrowed to a single bullet point, which was effectively to push her out. The streets of Dhaka were at their bloodiest. I think the day before she resigned, something like one hundred people alone were killed. And that's really the moment when a lot of security personnel felt like they could no longer protect Shei Casina and they could no longer stand behind her administration.

So at one point, several days into the protests, Hassina's administration made a concession. The veterans quota was cut to five percent, and that seemed to quell a lot of the anger. The protests died down, but soon after, and it's unclear exactly why this occurred, the protesters returned, and when they returned, they wanted her to resign. And we think that part of the reason that these persisted was because by that point a few hundred people had already been killed, and Bangladeshi's were so tired of living in a country that they felt did not have a justice system that favored them, but had a justice system that favored the elite, and their agenda narrowed to a single bullet point, which was effectively to push her out. The streets of Dhaka were at their bloodiest. I think the day before she resigned, something like one hundred people alone were killed. And that's really the moment when a lot of security personnel felt like they could no longer protect Shei Casina and they could no longer stand behind her administration.

So Hassina resigns and Mohammed Yunis, the Nobel Prize winning economist, steps in to lead the interim government at Bangladesh, backed by the military. What happens next here.

So Hassina resigns and Mohammed Yunis, the Nobel Prize winning economist, steps in to lead the interim government at Bangladesh, backed by the military. What happens next here.

What happens next is the interim government will start to put together an agenda to rebuild Bangladesh to take the country forward. Right now, ideally elections would be held within three or so months. I think it's a ninety day period. So there are a lot of moving pieces at the moment, herself may come back to Bangladesh and contest elections. But it could be a situation where they're held in three months, it could be a situation where they're held in two years. We really don't know.

What happens next is the interim government will start to put together an agenda to rebuild Bangladesh to take the country forward. Right now, ideally elections would be held within three or so months. I think it's a ninety day period. So there are a lot of moving pieces at the moment, herself may come back to Bangladesh and contest elections. But it could be a situation where they're held in three months, it could be a situation where they're held in two years. We really don't know.

I imagine that the next few weeks will be really important to re establish in a security for Bangladesh. What are the most important things that UNICE and the military need to do to get daily life in Bangladesh, you know, running smoothly again right now?

I imagine that the next few weeks will be really important to re establish in a security for Bangladesh. What are the most important things that UNICE and the military need to do to get daily life in Bangladesh, you know, running smoothly again right now?

A lot of services simply aren't working, so the police were on strike. Many businesses are still shuttered. They're worried about arsonists, about looters. After Shai Casina left, after she fled to India, the protests continued in some sort of spirit, and in many parts of the country they continued to be violent. So we've encountered reports of minority Hindus being attacked. There's a sense that if Bangladesh doesn't get a hold of the security situation, it could be another Pakistan in the sense that it could be a place that harbors Esamist extremists. And so I think that that will be top of the agenda in the immediate month for Unis and for the military establishing some sense of security at least in the capital and the bigger cities in Bangladesh.

A lot of services simply aren't working, so the police were on strike. Many businesses are still shuttered. They're worried about arsonists, about looters. After Shai Casina left, after she fled to India, the protests continued in some sort of spirit, and in many parts of the country they continued to be violent. So we've encountered reports of minority Hindus being attacked. There's a sense that if Bangladesh doesn't get a hold of the security situation, it could be another Pakistan in the sense that it could be a place that harbors Esamist extremists. And so I think that that will be top of the agenda in the immediate month for Unis and for the military establishing some sense of security at least in the capital and the bigger cities in Bangladesh.

And what are the risks here to Bangladesh's economy. It is the second largest garment exporter next to China.

And what are the risks here to Bangladesh's economy. It is the second largest garment exporter next to China.

The garment exports industry has been disrupted, of course by the protests by curfews, so a number of factories have temporarily shuddered as these protests became very intense. Much of the industry is centralized around Dhaka, the capital where many of the protests were held, so there's been a bit of a spillover effect. Foreign direct investment has been falling pretty rapidly in Bangladesh for a few years. The desk suffered immensely from the pandemic and supply chain disruptions. Blangladesh Banks governor recently resigned. There's been enormous shakeup in the finance ministry, which is creating quite a bit of turbulence, at least in the present moment.

The garment exports industry has been disrupted, of course by the protests by curfews, so a number of factories have temporarily shuddered as these protests became very intense. Much of the industry is centralized around Dhaka, the capital where many of the protests were held, so there's been a bit of a spillover effect. Foreign direct investment has been falling pretty rapidly in Bangladesh for a few years. The desk suffered immensely from the pandemic and supply chain disruptions. Blangladesh Banks governor recently resigned. There's been enormous shakeup in the finance ministry, which is creating quite a bit of turbulence, at least in the present moment.

After the break, Bangladesh heads into an uncertain future with a reluctant leader. What does Muhammad Unis have planned for Bangladesh now that he's in charge kai This is a very dramatic turn of events in Bangladesh. When you visited Muhammad Unis earlier this year at his home in dot Com, he was facing a very different future. How did he go from facing life in prison to leading the country.

After the break, Bangladesh heads into an uncertain future with a reluctant leader. What does Muhammad Unis have planned for Bangladesh now that he's in charge kai This is a very dramatic turn of events in Bangladesh. When you visited Muhammad Unis earlier this year at his home in dot Com, he was facing a very different future. How did he go from facing life in prison to leading the country.

It's hard to know exactly why he was chosen. He was the person that student protesters wanted to lead this interim government. He's an intellectual, He's someone who is mostly apolitical, and I think that a lot of Bangladeshi's gravitate towards that they're tired of the same leaders with the same agendas, constantly fighting each other, and Professor Unis offers something different in that sense. But it's absolutely crazy that he is now completely out of the legal entanglements, at least for the time being that he previously faced. The charges against him have been dropped. He was once a chief threat to Hassina, at least in the eyes of many people who are close to her, and he's now in her seat.

It's hard to know exactly why he was chosen. He was the person that student protesters wanted to lead this interim government. He's an intellectual, He's someone who is mostly apolitical, and I think that a lot of Bangladeshi's gravitate towards that they're tired of the same leaders with the same agendas, constantly fighting each other, and Professor Unis offers something different in that sense. But it's absolutely crazy that he is now completely out of the legal entanglements, at least for the time being that he previously faced. The charges against him have been dropped. He was once a chief threat to Hassina, at least in the eyes of many people who are close to her, and he's now in her seat.

So one thing I wanted to touch upon is there is a bit of jeja vu here, right, this is not the first time that Yunis stepped into politics under turbulent circumstances.

So one thing I wanted to touch upon is there is a bit of jeja vu here, right, this is not the first time that Yunis stepped into politics under turbulent circumstances.

That's right, He briefly entered politics in two thousand and seven when Hassina was in jail, and she saw that as betrayal of sorts. He quickly stepped out. He realized that it was not for him, and he's insisted, including the interviews that I've conducted with him earlier this year, that he has no interest in politics.

That's right, He briefly entered politics in two thousand and seven when Hassina was in jail, and she saw that as betrayal of sorts. He quickly stepped out. He realized that it was not for him, and he's insisted, including the interviews that I've conducted with him earlier this year, that he has no interest in politics.

I said, look, I'm not a politicians.

I said, look, I'm not a politicians.

This is a lot of thing I will never do.

This is a lot of thing I will never do.

Yeah, and that was a conversation you had with him just earlier this year. What did you take away from that conversation.

Yeah, and that was a conversation you had with him just earlier this year. What did you take away from that conversation.

I took away that this is someone who's very dedicated to poverty alleviation. He did not strike me as someone who had political ambitions. It did not feel like that was just something he was saying to get Hassina off his back. My sense now is the student protesters asked him to be the interim head. That's something we do know as a fact. Whether he wanted to do it or whether he felt pressure to do it because the situation in Bangladesh was so unstable is still an open question. I think we'll have more clarity in the coming days, but for now, it's certainly a bit of an about face, and we'll see whether this is just a temporary step into the political arena or whether he might himself contest elections when they are held.

I took away that this is someone who's very dedicated to poverty alleviation. He did not strike me as someone who had political ambitions. It did not feel like that was just something he was saying to get Hassina off his back. My sense now is the student protesters asked him to be the interim head. That's something we do know as a fact. Whether he wanted to do it or whether he felt pressure to do it because the situation in Bangladesh was so unstable is still an open question. I think we'll have more clarity in the coming days, but for now, it's certainly a bit of an about face, and we'll see whether this is just a temporary step into the political arena or whether he might himself contest elections when they are held.

And how do you think this turbulent episode has changed how the world looks at Bangladesh.

And how do you think this turbulent episode has changed how the world looks at Bangladesh.

I think that there's been an impression, at least within governments, that Bangladesh has slid toward a more authoritarian model. But at the same time, it's still one of the few Muslim democracies in the world. It's a country of contradictory elements. Shee Casina was one of Asia's longest serving leaders. She presided over a pretty secularized nation, a place where religious minorities could worship in peace. So there's a sense that Bangadesh was a special nation is a special nation, that it's a place that's made enormous strides to improve its economy and to move up the value chain. But I think with these latest protests there's much darker impression that the country could become far less stable, and so there's a lot less optimism, at least at the moment.

I think that there's been an impression, at least within governments, that Bangladesh has slid toward a more authoritarian model. But at the same time, it's still one of the few Muslim democracies in the world. It's a country of contradictory elements. Shee Casina was one of Asia's longest serving leaders. She presided over a pretty secularized nation, a place where religious minorities could worship in peace. So there's a sense that Bangadesh was a special nation is a special nation, that it's a place that's made enormous strides to improve its economy and to move up the value chain. But I think with these latest protests there's much darker impression that the country could become far less stable, and so there's a lot less optimism, at least at the moment.

So when will we actually have a sense of what the future looks like for Bangladesh?

So when will we actually have a sense of what the future looks like for Bangladesh?

Right now? Unice's interim government has focused most of their rhetoric on restoring peace to the streets. Once we have a better sense for their actual agenda, I think we'll have more clarity on number one, how long the interim government could be in place and how long it may take for elections to be held. And number two, whether the two traditional parties in Bangladesh, the Iwami League and the B and P the are likely to be the powerbrokers in the future, or whether units could be starting a new movement for the country in a new political agenda. Really for Bangladesh, but for now it's a watch and see situation.

Right now? Unice's interim government has focused most of their rhetoric on restoring peace to the streets. Once we have a better sense for their actual agenda, I think we'll have more clarity on number one, how long the interim government could be in place and how long it may take for elections to be held. And number two, whether the two traditional parties in Bangladesh, the Iwami League and the B and P the are likely to be the powerbrokers in the future, or whether units could be starting a new movement for the country in a new political agenda. Really for Bangladesh, but for now it's a watch and see situation.

This is The Big Take Asia from Bloomberg News. I'm wanh. This episode was produced by Young Young Naomi, Jessica Beck and Alex Zuguiera, who also mixed it. It was fact checked by Thomas Slut and edited by Caitlin Kenny. Special thanks to Andy Mukherjee. Our senior producers are Niamishaven and Kim gettlsen. Our senior editor is Elizabeth Ponso. Nicole Beemster Bower is our executive producer, and Sage Bauman is Bloomberg's head of Podcasts. Please follow and review The Big take Asia wherever you listen to podcasts. It helps new listeners find the show. See you next time.

This is The Big Take Asia from Bloomberg News. I'm wanh. This episode was produced by Young Young Naomi, Jessica Beck and Alex Zuguiera, who also mixed it. It was fact checked by Thomas Slut and edited by Caitlin Kenny. Special thanks to Andy Mukherjee. Our senior producers are Niamishaven and Kim gettlsen. Our senior editor is Elizabeth Ponso. Nicole Beemster Bower is our executive producer, and Sage Bauman is Bloomberg's head of Podcasts. Please follow and review The Big take Asia wherever you listen to podcasts. It helps new listeners find the show. See you next time.