The United Nations Committee for Development Policy (CDP) has recommended the graduation of Bangladesh from the category of Least Developed Country (LDC). Bangladesh has 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 the recommendation for Bangladesh for graduation from the LDC category. Myanmar and Lao PDR also met the criteria for the 2nd time.
Bangladesh will get time up to 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. On the other hand, enhanced confidence of international financial bodies, improved credit rating and higher FDI is expected to benefit Bangladesh after the transition period is completed.
About the United Nations Committee for Development Policy:
- 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.
- Graduation from LDC has a 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 transitioning from LDC.
Important takeaways for all competitive exams:
- Prime Minister of Bangladesh: Sheikh Hasina; Capital: Dhaka; Currency: Taka.
- President of Bangladesh: Abdul Hamid.