Dhaka, April 6 (IANS) Bangladesh faces significant challenges in preparing to graduate from the Least Developed Countries (LDCs) list amid current macroeconomic instability and weak performance even as discussions continue on pre-graduation risks, local media reported.
Bangladesh’s Finance Minister Amir Khosru Mahmud Chowdhury chaired a meeting on LDC graduation held in Dhaka on Sunday. During the meeting, the UN-OHRLLS (United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States) presented a review report assessing Bangladesh’s preparedness, underscoring the key gaps in preparation.
Mohammad Abdur Razzaque, Chairman of the Dhaka based organisation RAPID (Research and Policy Integration for Development), presented various aspects of the UN report.
The report highlights multiple shortcomings and risks in Bangladesh’s preparation for LDC graduation, warning that difficult political transitions and prolonged economic crises are undermining the country’s socio-economic achievements and putting graduation at risk, leading Bangladeshi daily Prothom Alo reported.
There is also lack of preparation to tackle potential trade losses following graduation. Moreover, given the current macroeconomic instability and sluggish performance, reportedly raising concerns over pre-graduation risks.
According to the UN report, Bangladesh’s financial preparedness to meet the challenges of LDC graduation remains weak, with limited implementation of the Smooth Transition Strategy (STS).
The report indicates that citing insufficient preparedness, a three year extension for Bangladesh’s LDC graduation has been requested.
Speaking after the meeting, Bangladesh’s Finance Minister Chowdhury said that given the current circumstances, Bangladesh cannot proceed with graduation from LDC status.
Describing the state of the economy as very poor, he noted that any consideration of LDC graduation would come only after addressing the difficult economic situation inherited from the previous Muhammad Yunus led interim government, Prothom Alo reported.
Following the Bangladesh Nationalist Party (BNP) government assuming office, Bangladesh sent a letter to the UN in February requesting a delay in LDC graduation, a position Chowdhury reiterated on Sunday.
The United Nations classifies the world’s less advanced developing countries as Least Developed Countries (LDCs) granting them various forms of support and concessions from the international community aimed at promoting development and eventual graduation.
The Committee for Development Policy (CDP), under the UN Economic and Social Council (ECOSOC), recommends which countries should transition out of LDC status.
LDC countries are evaluated every three years, with graduation eligibility determined by three criteria: per capita income, human resources, and economic and environmental vulnerability.
–IANS
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