Bangladesh on Friday evening entered the graduation process of earning the official title of "developing country" from a "least developed country (LDC)" country. The UN Committee for Development Policy (CPD) handed over a letter to Bangladesh's Permanent Ambassador to the UN, Masud Bin Momen, announcing Bangladesh’s eligibility for graduation to the developing country status in New York.

Information posted on the UN website said Bangladesh, which has been on the UN Least Developed Countries (LDC) list since 1975, met the requirements to enter the graduation process of being a developing country in March, 2018.

The final graduation and the eventual earning of the title of "developing country" depend on meeting eligibility criteria scores in Gross National Income (GNI) per capita, the Human Assets Index (HAI) and the Economic Vulnerability (EVI) Index and other country-specific information.

The scores required for graduation from the LDC category are, a per capita GNI of USD 1,230 or above, an HAI of 66 or above and an EVI of 32 or below. Bangladesh’s current GNI per capita is USD 1,724, HAI is 72 and EVI 25.2.

“This has been made possible by the strong development strategy of Bangladesh, led by Prime Minister Sheikh Hasina,” said Masud Bin Momen while receiving the official letter.

“We are moving forward towards peace, prosperity and development following our motto: nobody lags behind. Digital Bangladesh is not only a slogan for us, but our people are getting its benefit,” he said.

He said Bangladesh is trying to gain the status of developed country by 2041 and thanks to the UN and other development partners for assisting the process.

CDP secretariat chief, Roland Mollerus, said the increase of GNI and development of social sectors, including health and education, has made it easier for the committee to recommend Bangladesh’s graduation.

High Representative for Least Developed, Landlocked, Small Island States, Fekitamoeloa Katoa Utoikamanu, said Bangladesh had created a strong foundation for development and poverty reduction.

Noted economist Mirza Azizul Islam said  Bangladesh was considered for graduation because it had passed the threshold in HAI and  EVI. The third threshold is expected to be conquered by the time of the 2024 review, he strongly believes.  “So, we have to adopt a strategy for smooth graduation during this period. And all, including government, private sector and civil society, have important roles in this respect,” said Mirza Azizul. He suggested product and market diversification, and increasing regional cooperation for market access. But there are challenges, he said, citing the end of preferential market access for Bangladesh’s products and increased cost of foreign loans as examples.

At present, Bangladesh enjoys preferential access of varying degrees to markets of more than 40 countries. The country’s exports will face an additional 6.7 per cent tariff once it graduates from the LDC status. Export may fall by 5.5 to 7.5 per cent as a result of withdrawal of preferential access, as per the projection made by the think-tank, Centre for Policy Dialogue (CPD)

 About overcoming that challenge, Mirza Azizul said time has come for Bangladesh to selectively venture into bilateral and regional trade and investment agreements, keeping the development of supply and value chains in the purview.

 “Because, once Bangladesh graduates, there will be no going back,” he added.