Yunus port upgrade plan sparks Bangladesh protests

DHAKA, Feb 24 (Reuters) Nobel laureate Muhammad Yunus's formation of a new political party has seriously divided Bangladeshis and raised questions about his agenda.

Yunus won the 2006 Nobel Peace Prize for helping poor women out of poverty by offering micro-credit through his Grameen Bank, earning the nickname ''banker to the poor''.

Bangladeshis irrespective of caste and creed felt national pride at Yunus's worldwide recognition, but he is now the centre of controversy after formally launching his party on Thursday.

Some say he aims to hand key parts of the economy to foreign capital.

Yunus -- who accuses the country's mainstream politicians of being mostly corrupt and inefficient -- said his Nagorik Shakti (citizens' power) party would contest all 300 parliamentary seats in the coming election and asked his followers to form committees in every village to pursue his political dreams.

''He has put the cart before the horse,'' leading businessman Abdul Awal Mintoo said today. ''First he should work on the structure of his party, announce its manifesto and then move to the grassroots to see if he is acceptable to them,'' Mintoo said.

''He is a surprise newcomer in politics, hoping to win state power riding on his popularity over winning the Nobel prize,'' said political analyst Badruddin Omar.

''But his chance of winning in politics is really slim,'' Omar said in a television interview.

Yunus said women and youth would be the lifeblood of his party, which seeks to bring good people on to a national political scene which has been rife with corruption, black money and misuse of power.

The general election planned for January 22 was postponed indefinitely. The interim government now running the country said it would set a new poll date after implementing reforms needed to ensure a free and fair vote.

PORT UPGRADE Yunus says the port of Chittagong, which handles 80 per cent of Bangladesh's foreign trade -- should be upgraded to a continental seaport in the nation's greater economic interest.

His critics say such an upgrade would need strong foreign involvement as Bangladesh lacks the expertise and funds to undertake the job. They accuse Yunus of trying to hand over the port to foreign entrepreneurs.

Yunus' plan to redevelop Chittagong drew immediate protests from political parties as well as rights and environment groups, who said the project would cut jobs and workers' rights and endanger national security.

The port lies close to the country's main naval base, an airport and other key installations, they said. Dhaka University Professor Serajul Islam Chowdhury said ''protection and expansion of capitalism is the ultimate goal of Yunus as all of his projects are business-oriented and deeply linked to capitalism''.

''If he becomes a redeemer, he will be one for the capitalists, not for the poor,'' today's Daily Star quoted Chowdhury as saying.

''Yunus entering politics proves that poverty alleviation is not possible through micro-credit, rather it requires structural and legal reforms,'' said Anu Mohammad, professor of economics at Jahangirnagar University, near Dhaka.

''His mission has changed from poverty alleviation to opening the port to foreign control,'' he told reporters.

REUTERS MS PM1540