Dhaka:Distinguished Fellow of the Centre for Policy Dialogue (CPD), Dr. Debapriya Bhattacharya, emphasized the need for Bangladesh to exhibit "exceptional" performance following the country's three-year extension for its Least Developed Country (LDC) graduation. This extension, granted by the UN General Assembly, pushes the graduation to November 24, 2029, marking it as a singular concession rather than a precedent.
According to United News of Bangladesh, Dr. Debapriya clarified that the UN Committee for Development Policy (CDP) will not support any further extensions beyond this period. The recent political transitions in Bangladesh, along with external shocks, have affected the government's capacity, which the UN recognized as factors for the extension. However, the current framework for LDC graduation does not consider domestic political changes as a reason for extension, highlighting that the focus should be on capacity rather than political will.
Dr. Debapriya noted that Bangladesh had already met all three criteria for graduation by wide margins in 2024, shifting the focus from eligibility to preparedness. The resolution accompanying the extension requires the Ministry of Finance to report annually to the CDP, indicating the necessity for significant domestic reforms. The UN Resident Coordinator in Dhaka is expected to assist in monitoring progress.
The economist critiqued the government's press note on the extension for omitting crucial details such as the "exceptional basis" of the extension and the CDP's reform expectations. He urged the finance ministry to publish a detailed action plan, including milestones and accountability.
Dr. Debapriya outlined a reform pathway in four areas—public financial management, energy, social protection, and logistics—to enhance export diversification, productivity, and competitiveness. He suggested shifting the coordination of the Smooth Transition Strategy (STS) from the Economic Relations Division to the Prime Minister's Office and recommended presenting the STS and the 2026-2029 roadmap to Parliament.
He also proposed the creation of a public STS dashboard for regular progress updates and urged the government to identify and phase out measures exclusive to LDCs, such as export cash incentives, before the 2029 deadline. On trade, Dr. Debapriya emphasized the importance of advancing agreements with the European Union and Japan, as well as the accession to the Regional Comprehensive Economic Partnership (RCEP).
The CPD plans to monitor STS reforms, including public finance and banking, through its Bangladesh Reform Tracker, providing annual progress assessments until the graduation deadline.
Source United News of Bangladesh