What Happened
Bangladesh has formally requested a three-year deferral of its graduation from the Least Developed Country (LDC) category, citing significant economic challenges. The request was communicated in a letter from the Economic Relations Division (ERD) of the Bangladesh Government to the United Nations Committee for Development Policy (UN CDP) on February 18.
Why It Matters
The UN had previously approved Bangladesh’s graduation, which is scheduled for November 2026, after the country met the necessary criteria for income, human assets, and economic vulnerability. However, the interim government has expressed concerns that overlapping crises, including the lingering effects of the Covid-19 pandemic and the impact of the Russia-Ukraine war, have hindered the country’s readiness for this transition. Business leaders have also urged for a delay, fearing that graduating under the current timeline could adversely affect key sectors, particularly the readymade garment industry.
What’s Next
The Enhanced Monitoring Mechanism (EMM) of the UN CDP will evaluate Bangladesh’s request during a meeting scheduled from February 24 to 28. The EMM will consider recent socio-economic data and the progress of Bangladesh’s Smooth Transition Strategy. This evaluation will also include discussions on the graduation statuses of Nepal and Lao PDR, which are not seeking deferment.
