Bangladesh achieves being a developing country
Published: 03:00 PM, 27 February 2021 Updated: 07:47 PM, 27 February 2021
Bangladesh has received a final recommendation to move from the list of Least Developed Countries (LDCs) to developing countries. On the concluding day of the five-day meeting of the Committee for Development Policy held at the United Nations (UN) headquarters in New York on Friday afternoon local time, it was recommended that Bangladesh leave the LDCs and enter the developing world.
For this, Bangladesh has finally qualified to leave the LDCs as per the UN. At the same time, it was decided to recommend an additional two years to prepare for Bangladesh’s application, as a result, there was no obstacle for Bangladesh to move from an LDC to a developing country by 2026.
The United Nations Committee for Development Policy (CDP) recommends that a country exit the LDCs based on the per capita income, human resource and economic fragility indicators of the Least Developed Countries (LDCs). Along with Bangladesh, Nepal, Bhutan and Laos have finally been recognized for exiting the LDC.
In case of transition from a least developed country to a developing country, the duty-free market facilities that Bangladesh is getting in the global market, facilities in the pharmaceutical sector, intellectual property benefits and other benefits will be gradually withdrawn. However, if some challenges can be tackled – then various sectors will be created including investor attraction, improvement in credit rating, increase dignity in the global arena.
In 2018, Bangladesh achieved the required standards in terms of eligibility to leave the LDCs (per capita income, human resources, and economic fragility). This year, as per the review criteria of international standard, the average per capita income required $1222 – Bangladesh’s per capita income stood at $1827 last year.
The Human Resource (HR) index must have a score of 66 or higher, in this case, Bangladesh’s score stands at 75.3 at the end of 2020 – which is more than the required number.
The Economic Fragility index must have a score of 32 or less – Bangladesh’s score is 27.3.
Bangladesh was able to meet the required score in all three indices.
During this time of preparation, Bangladesh will be able to enjoy all the facilities available as a least developed country (LDC). Moreover, Bangladesh will get duty-free access to the European Union (EU) market for another three years after 2026, i.e., till 2029, under the current rules.
Bangladesh faced a formal review by the UN in the 2nd phase of its exit from the LDCs. On February 22-25, the UN CDP held a triennial review meeting for LDCs. In the 2nd phase, the CDP reviewed whether Bangladesh had met the required criteria to exit the LDC. A delegation led by Finance Minister AHM Mustafa Kamal represented Bangladesh.
In the first phase, in March 2018, Bangladesh received the CDP’s recommendation to be eligible to exit the LDC.
To out of the LDC – two consecutive reviews have to get from the CDP.
After receiving this recognition, a country remains as LDC for three more years. Then the journey began as a developing country. These three years were considered as the process of preparing to exit the LDC. As per that, Bangladesh is scheduled to leave LDC in 2024, however, the delegates recently called on the CDP to increase the transition period from 3-5 years at an expert group meeting. As a result, the desired goal will be achieved in 2026.