The United Nations Committee for Development Policy (CDP) has recommended graduation of Bangladesh from the category of Least Developed Country (LDC) as it fulfilled the eligibility criteria in terms of per capita income, human assets and economic and environmental vulnerability.
This is the second consecutive time since 2018 that the CDP has made recommendation for Bangladesh for graduation from LDC category.
The decision was taken during the triennial review meeting of the CDP held between 22-26 February.
The announcement was made by the Chief of the CDP subgroup on LDCs Taffere Tesfachew in an online briefing on Friday.
The CDP decides on the LDC status of a country based on three criteria- per capita income, a human assets index and an economic vulnerability index.
A country must achieve at least two of the three criteria at two consecutive triennial reviews to be considered for graduation.
It has met for the second time all the three eligibility criteria for graduating from the LDC category to the category of developing nations.
The proposal will be sent to the United Nations Economic and Social Council (ECOSOC) for endorsement in June to be finally approved by the UN General Assembly (UNGA) in September this year.
Bangladesh will get time upto 2026 to prepare for the transition to the status of a developing country.
Usually countries are given three years for transition but this year due to the Corona pandemic, Bangladesh has been given five years for the process.
Graduation from LDC has double edged impact on countries. On the one hand certain preferential provisions in export, provision of subsidy to agriculture and infant industries and access to climate finance are likely to cease after transition from LDC.
On the other hand, enhanced confidence of international financial bodies, improved credit rating and higher FDI are expected to benefit Bangladesh after the transition period is completed. (AIR)