Dhaka:Bangladesh is urged to use its additional three-year transition period before graduating from the Least Developed Country (LDC) category as an opportunity for structural economic transformation. Eminent economist Professor Mustafizur Rahman emphasized today that the country should prioritize this transformation over seeking further extensions of international trade preferences.
According to Bangladesh Sangbad Sangstha, Dr. Rahman, a Distinguished Fellow of the Centre for Policy Dialogue (CPD), stated at a media dialogue that LDC graduation should be viewed as a catalyst for structural change. He highlighted the need for export diversification, investment in new industries, improved infrastructure, and stronger institutional capacity to remain competitive in the post-2029 global trading environment.
Dr. Rahman noted that Bangladesh's graduation would be unprecedented in terms of its population and economic size. He pointed out that the country cannot simply follow the experiences of earlier graduating nations and must develop its own strategies to address the challenges. The global shift in manufacturing and supply chains presents an opportunity for Bangladesh to expand its export market, especially as China moves towards high-value industries.
However, Dr. Rahman expressed concern that Bangladesh's export composition remains heavily reliant on cotton-based products, while global demand is shifting towards man-made fibres and non-cotton products. He stressed the need for investment in synthetic yarn production and modern textile processing to diversify exports.
He also underscored the importance of making LDC graduation inclusive by extending policy support to micro, cottage, small, and medium enterprises (MSMEs). Highlighting the potential in electronics, semiconductor assembly, service exports, and the global 'Silver Economy', Dr. Rahman called for improved environmental, labour, and social compliance to maintain international market access.
Dr. Rahman emphasized the strategic role of the Matarbari-Moheshkhali Integrated Development Initiative (MIDI) in transforming Bangladesh’s industrial landscape and attracting foreign direct investment. He stressed the importance of major infrastructure development to connect industrial production with ports and logistics facilities, thereby reducing business costs and enhancing export competitiveness.
Finally, Dr. Rahman highlighted the need for improved economic statistics for effective policymaking and recommended reviewing and updating the existing Smooth Transition Strategy (STS) for LDC graduation. The media dialogue was attended by other notable figures from CPD, including Dr. Debapriya Bhattacharya, Dr. Nazneen Ahmed, and Towfiqul Islam Khan.