Bangladesh's LDC graduation preparations weak: UN report

Bangladesh has significant shortcomings in its preparations to graduate from the list of Least Developed Countries (LDCs), a UN review report has found. With current macroeconomic instability and weak performance, discussions are increasingly focused on pre-graduation risks.

The report was presented at a meeting at the NEC conference room in Sher-e-Bangla Nagar on Sunday, April 5, chaired by Finance Minister Amir Khosru Mahmud Chowdhury. Mohammad Abdur Razzaq, chairman of research organisation RAPID, presented various aspects of the report on behalf of the UN Office of the High Representative for LDCs, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS).

The report states that political instability and prolonged economic crisis are hindering Bangladesh's socio-economic progress, putting LDC graduation at risk. There is also inadequate preparation to address potential trade losses after graduation, and financial preparedness is weak. Implementation of the smooth transition strategy is also not satisfactory.

Due to these preparation gaps, a request has already been made to the UN to defer the graduation timeline by three years, the report said.

Speaking after the meeting, Finance Minister Amir Khosru Mahmud Chowdhury said Bangladesh has no scope to proceed with LDC graduation in the current economic reality. He noted that the country's economy is currently in a weak state, and graduation will be reconsidered only after overcoming this situation.

Bangladesh had met all three LDC graduation criteria in the 2018 and 2021 triennial reviews. Graduation was initially set for 2024 but was extended to November 2026 due to the pandemic. However, efforts have now been made to further defer that timeline given the current situation.