Asia Society India Centre spoke with Dureen Shahnaz, part of the Asia 21 Next Generation Class of 2009, about her experience as a South Asian woman in the world of finance; her work and motivations and her insights into what it takes to be a good leader. She is the visionary founder of Impact Investment Exchange (IIX) and IIX Foundation, known for her groundbreaking work in social impact and impact investing.

Could you introduce yourself and tell us a bit about your work? What motivates your work in the financial services, entrepreneurship and the ‘social stock exchange’?

I’m Prof. Durreen Shahnaz, CEO and Founder of Impact Investment Exchange (IIX). My journey from Wall Street to the rural backstreets of Bangladesh has fueled my commitment to creating a more inclusive and equitable world. At IIX, I pioneered the world’s first social stock exchange, a platform that bridges finance and social good by connecting impact enterprises with mission-aligned investors. Our initiatives, such as the Women’s Livelihood Bond™ Series, empower marginalised women across Asia, reflecting our dedication to sustainable and equitable development. To date, we’ve mobilized close to US$500 million of investment in emerging markets across Asia, Africa, and the Pacific, positively impacting 160 million lives across 60 countries in the Global South.

My work is driven by a belief that finance can be a force for good. Traditional financial systems often overlook the potential of women, gender minorities, and underserved communities. By reimagining finance, we can unlock the transformative power of women, gender minorities and underserved communities to address global challenges like climate change and social inequality.

How are the entrepreneurship or impact investment landscapes different in Bangladesh and the U.S. – what can each learn from the other?

In Bangladesh, impact investing often focuses on grassroots, community-driven solutions that tackle pressing social challenges such as poverty, healthcare, and education. These initiatives emphasise doing more with less, fostering innovative and adaptable solutions that are finely tuned to the specific needs of local communities. This resourcefulness is a hallmark of the Bangladeshi approach, where limited financial resources often drive creativity and resilience. We can see the people's passion and resilience with the student-inspired revolution that is driving the country now.

In contrast, the U.S. boasts a more developed impact investment market, supported by an extensive infrastructure and a comprehensive regulatory framework. Entrepreneurs in the U.S. benefit from a robust ecosystem that includes venture capital, accelerators, and policies designed to support high-tech solutions and scalable business models. This well-established system facilitates the growth and expansion of impact-driven enterprises on a larger scale.

Both regions have much to learn from each other. The U.S. can draw valuable insights from Bangladesh’s grassroots approaches, particularly in addressing social issues with limited resources and a deep understanding of local contexts. Conversely, Bangladesh could benefit from adopting elements of the U.S.’s advanced financial infrastructure and practices that support scalability, provided these strategies are adapted to fit the local environment. While both landscapes have made significant strides, the disparities highlight the importance of continued collaboration and mutual learning to drive meaningful and sustainable change.

At this point in history when Bangladesh is going through crucial socio-economic changes, friends like the U.S. need to be with the people and the interim government led by my former boss and mentor, Prof Mohammed Yunus, Nobel Laureate and founder of Grameen Bank.

What, according to you, makes a good leader?

To me, a good leader embodies "Defiant Optimism"—a relentless drive to transform systems for the greater good paired with the resilient belief that change is not only necessary but also achievable. They are adaptable, courageous, and willing to overhaul existing structures to pave the way for a better future. Effective leadership is a blend of visionary thinking and resilience, where creating pathways for inclusion and sustainable growth is paramount. Such leaders embrace inclusivity, amplifying diverse voices to ensure everyone has a seat at the table.

At IIX, we live by the PREM framework—Passionate, Resilient, Equitable, and Maverick. This framework goes beyond being a set of values; it is a commitment to creating an environment where every voice is heard and valued. By infusing our work with these principles, we aim to be leaders who  inspire and engage and drive inclusive growth and meaningful impact.

Considering the intricacies of South Asian culture and experience, there is a gap in the available conventional wisdom on leadership and problem solving. It can be a challenge to adopt conventional ideas to work through situations that are in need of culturally specific solutions. As a leader, what has your experience been while addressing such complications?

Conventional wisdom often falls short when navigating the complex cultural landscape of South Asia. The region's rich tapestry of traditions, social dynamics, and values requires a leadership approach beyond generic strategies. My experience as a leader in this context has taught me the importance of deeply understanding and respecting these cultural intricacies. Success in South Asia often hinges on the ability to blend traditional practices with innovative solutions, ensuring that strategies are  effective and culturally resonant.

Addressing these complications involves more than just adapting existing frameworks; it requires a commitment to listening, learning, and engaging with the communities we serve. By aligning leadership approaches with the specific needs and values of the people, we can foster more sustainable and meaningful change. This nuanced approach to leadership is essential in South Asia, where the intersection of culture and progress is both a challenge and an opportunity for those committed to making a difference.

Given that mentorship is a significant part of the Asia 21 fellowship, how do you think it has contributed to your development as an emerging leader? How do you feel about mentoring aspiring, young leaders?

Mentorship is not just a responsibility; it's a privilege and a passion for me. I believe guiding the next generation of leaders is essential for cultivating innovation and driving meaningful change. Through mentorship, I aim to share my experiences and insights in a way that empowers young leaders to chart their paths with confidence and purpose. Their enthusiasm and fresh perspectives continually inspire me, reminding me of the boundless potential within each emerging leader.

What I find most rewarding about mentorship is its reciprocal nature. While I strive to help young leaders refine their skills and realize their vision, I, too, am enriched by the experience. Engaging with their ideas and challenges deepens my understanding of leadership and keeps me attuned to new ways of thinking. This cycle of mutual growth and inspiration makes mentorship such a transformative process for both mentor and mentee.

Who are some Asia 21 fellows, from your cohort and otherwise, whose leadership and work consistently inspires you?

The Asia 21 cohort is brimming with extraordinary changemakers, and I’m honored to be with such visionary leaders in the same cohort. Among them, Motoki Korenaga stands out as a source of continual inspiration. As Deputy Director at METI, he is at the forefront of Japan's efforts to revolutionize entrepreneurship and innovation. Motoki's commitment to nurturing a dynamic startup ecosystem in Japan is not just about fostering business—it's about laying the foundation for a future where creativity and technological advancement lead the way. His forward-thinking approach is exactly the kind of leadership we need to tackle today's complex challenges and pave the way for a more inclusive and sustainable world.

In addition, Nitin Das of Filmkaar Productions is a leader whose work continually moves and inspires me. His dedication to storytelling—bringing to light the narratives of those often overlooked—resonates deeply with my own passion for the arts. Nitin has a unique ability to harness the power of film entertain not just to entertain but also to provoke thought and inspire action. His work reminds me of the transformative potential of storytelling in shaping our understanding of the world and driving social change. I'm grateful to learn from his journey and witness his creativity's profound impact on our shared goals.