LDC status by 2024
CPD for focus on human resources dev
By focusing on the development of human resources, Bangladesh can graduate from the status of a least development country (LDC) by 2024, the Centre for Policy Dialogue (CPD) argued yesterday. The think-thank placed its observations during a media briefing on the launch of the LDCs Report 2016 by the United Nations Conference on Trade and Development (UNCTAD) at Brac Inn in the capital.
CPD research fellow Towfiqul Islam Khan, while presenting a paper on the UNCTAD report, noted, Bangladesh has already achieved one of the criteria in the report of 2016. Bangladesh has already attained the appropriate value of the economic vulnerability index (EVI), which is at present 25.1. To graduate from LDC status, the index must be under 32. The human asset index is now 63.8, which should have been more than 66. The gross national income is USD 1,190, which should have been at least USD 1,242 in the period 201113.
The human asset criterion can easily be attained by 2018, said Towfiqul Khan. If the two consecutive triennial reviews meet at least two of the three criteria, then a country can normally qualify for graduation from LDC status. So, if Bangladesh achieves the two criteria, it will be listed for graduation in the 2021 review. For the next three years, it will be under observation, Khan explained. So, we will finally graduate in 2024, Khan added.
He said how a country graduates is more important than when, but the opposite might be the case politically. This could give rise to tension between economic and political priorities, he observed.
Replying to different queries from journalists, Dr Debapriya Bhattacharya, the CPDs distinguished fellow, said graduation alone is not enough, as LDCs require graduation with momentum to lay the foundations for subsequent development. Also, there are some concerns whether Bangladesh would lose the facilities which it is currently enjoying as an LDC country. The answer is Bangladesh may enjoy LDC preferential treatment up to 2027 (if it graduates in 2024) to help with its smooth transition.
As an LDC, a country gets duty-free market access to developed countries, technical assistance, and flexibility in international treaties, among other benefits, he said, adding that Bangladesh would be able to enjoy that till 2027, provided it becomes a lower middle-income country in 2024.
He urged all not to confuse this UNCTAD report with Bangladeshs present economic status as a lower middle-income country.
Dr Bhattacharya said earlier many countries did not want to graduate from their LDC status as they feared losing official development assistance (ODA). Now they prefer such graduation because of two reasons. Firstly, the countries having LDC status have been disappointed with the non-disbursement and non-implementation of the promised ODA. At the same time, the international donors have started to feel fatigue about providing assistance for a prolonged period. Secondly, as Dr Bhattacharya said, developing countries have felt the increasing urge to exert political influence in the global arena, which prompts them to move upwards and graduate. So becoming a lower middle-income country would become a prestigious fact for Bangladesh, he said. CPD executive director Dr Mustafizur Rahman, CPD research director Dr Fahmida Khatun and CPD additional research director Dr Khondokar Golam Moazzem also attended the media briefing.
