What Happened
Bangladesh has formally requested a three-year deferral of its graduation from the Least Developed Country (LDC) category, citing significant global and domestic economic challenges. This request was communicated in a letter sent to the United Nations Committee for Development Policy on February 18, 2023, by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) of the Bangladesh Government.
Why It Matters
The request comes as Bangladesh has met the necessary criteria for graduation, including per-capita income, human assets, and economic vulnerability. However, the country faces serious gaps in trade readiness and macroeconomic stability, which could jeopardize a smooth transition scheduled for November 2026. Business leaders have expressed concerns that the nation is unprepared for the loss of special trade privileges, particularly in the readymade garment sector, which is vital to its economy.
What’s Next
The UN Committee is set to review Bangladesh’s request from February 24 to 28, 2023. The outcome of this meeting will determine whether Bangladesh will receive the requested deferral, allowing more time to address the overlapping crises, including the lingering effects of the Covid-19 pandemic and the impact of the Russia-Ukraine war on global trade and finance.
