Yunus wants ‘mediation mechanism’ in Asia to recover laundered money

He observes that political will for development cooperation has been weakening as the world faces an alarming shortfall in collective action

Chief Advisor Muhammad Yunus has called on Asia to “stand united” to build a system to retrieve and return money laundered from Bangladesh, which has been a “victim of corruption and illicit financial flows”.

Speaking at the Baoa Forum for Asia (BFA) on his four-day trip to China on Thursday, Yunus said: “These corrupt practices cost developing countries an estimated $1 trillion annually which is multiple times more than the total ODA they receive.”

“Asia should stand united to establish a multilateral mediation mechanism for asset recovery and return,” he said.

“This forum takes place at a critical juncture. Global governance under multilateralism is being questioned. Geopolitical tensions are rising. Climate change is escalating. Debt burdens are unsustainable. Humanitarian crises are growing.

“Political will for development cooperation is weakening. The world faces an alarming shortfall in collective action,” Yunus said.

Highlighting Asia's large population and the region's significant contribution to the global economy, Yunus pointed out that Asia is home to 60 percent of the world's population and 55 percent of the global GDP.

“Assumptions that shaped policies a decade ago are no longer relevant. The need for regional and global cooperation has never been more pressing.”

Yunus reminisced about the 2007 forum where he discussed microcredit.

“Today, I stand before you in a different capacity, representing a Bangladesh that underwent a historic transformation in July-August last year. The world witnessed a people united against oppression and corruption.”

“Our youth and citizens demonstrated exceptional resolve and strength to redefine the future of Bangladesh. To restore public trust we have initiated critical reforms. Independent commissions have been launched to reform the electoral system, judiciary, civil administration, and law enforcement. These reforms, when implemented, will bring about fundamental transformation of our nation.”

He brought up “multiple challenges” in building a new Bangladesh, saying these were also shared with other countries in Asia.

“In particular global financial market instability, political uncertainties, diplomatic tensions, and trade disruptions create volatility. Rising interest rates and debt servicing costs are deepening Asia's debt crisis.”

On the 2030 agenda, he said: “Only 24 percent of SDG [Sustainable Development Goals] targets have been met. Developing Asian countries face an SDG financing gap of 2.5 to 4 trillion US dollars annually. Beyond SDG financing, Asia also needs large-scale investments in infrastructure and economic diversification through responsible financing.”

He mentioned that food security was under “increasing pressure”, and rising prices of essential commodities were straining household budgets, especially for low-income families.

Yununs termed energy security “critical, especially for net-importing developing countries.”

“Energy supply disruptions drive inflation, economic instability, and debt distress. We must find sustainable energy solutions and scale up investments in renewables,” he elaborated.

He stressed that investing in health and education was crucial for human capital development.

“A well-educated, skilled workforce drives economic growth and innovation. Countries that invest in universal healthcare see better economic productivity. Digital education and vocational training must be expanded to equip our youth for the jobs of the future.

“Asian cultural diversity, with its rich tapestry of languages, traditions, philosophies, and customs, is a testament to the resilience and creativity of human civilisation. The philosophies of Islam, Confucianism, Buddhism, and Hinduism, among others, have shaped global thought, offering unique perspectives on morality, governance, and the human spirit,” he said.

Yunus said Asia's demographic dividend presented “immense potential.”

“A growing workforce, particularly young people, can drive innovation and productivity. We must provide them access to finance for entrepreneurship and sustainable solutions.

“Investing in human capital and an education system aligned with the evolving global job market will shape Asia's future competitiveness.”

Turning his attention to the role of women, he said: “Women's labour force participation in Asia remains low. Gender gaps persist in leadership and decision-making.

“We must remove barriers to women's economic empowerment and ensure equal access to opportunities.”

Among ongoing global crises, wars and conflicts “erode rights and disrupt economies,” he said.

“The genocide in Gaza continues despite global condemnation. The crisis in Palestine is not just an Arab or Muslim concern, it is a humanitarian issue. The continued tension in Ukraine is heavily tolling on the global supply chain. The protracted crisis in Myanmar threatens regional stability.”

On the Rohingya crisis, he said: “For more than seven years, Bangladesh has been hosting over 1.2 million forcibly displaced Rohingyas who are Myanmar nationals. We continue to bear significant social, economic, and environmental costs. The UN Secretary-General recently visited the camps in solidarity. While global efforts are drastically shrinking but continuing, Asian leaders must come together to ensure their safe and dignified repatriation to their home country, Myanmar.”

The chief advisor called for prioritising four key areas for Asia's future development: financial, trade, food and agricultural, and technological cooperation.