Bangladesh should not rush its LDC graduation
Bangladesh’s planned graduation from the United Nations list of least developed countries (LDCs) has long been seen as a milestone – a recognition of economic progress and improved human development.
Yet, as experts warned this week, celebrating too soon could come at a cost the country is ill-prepared to bear.
At a discussion organised by the Third World Network and Nagorik Uddyog, leading trade and legal specialists urged the government to consider delaying its transition to developing country status.
They argue that while meeting the UN’s technical criteria is an achievement, the real test lies in weathering the competitive shocks that follow.
Graduation would mean the loss of key preferential trade benefits in Bangladesh’s two biggest export markets, the United States and the European Union.
Higher tariffs on garments – the backbone of our economy – could erode competitiveness overnight.
Moreover, LDC exemptions on intellectual property rights allow our pharmaceutical sector to produce life-saving drugs without patent restrictions.
After graduation, patents will be mandatory, threatening higher prices for medicines and reduced investment in the sector.
The international precedent for delay is well established. Countries such as Myanmar and Timor-Leste have postponed their transitions, citing political instability or economic vulnerability, despite meeting the formal thresholds.
Bangladesh, too, has experienced major political changes and economic shocks since the graduation decision was made.
The disruption caused by global trade tensions, including former US President Donald Trump’s tariff policies – described as the most significant in two centuries – was not anticipated at the time.
Delaying is not a sign of weakness. Rather, it is an act of prudence – a strategic pause to ensure readiness.
As Sanya Reid Smith of the TWN noted, a request for delay can be submitted at any point before the UN General Assembly’s final approval.
The aim should not be to cling to LDC status indefinitely, but to ensure that once we leave, we can compete without jeopardising jobs, exports, or access to essential medicines.
Bangladesh’s progress is real, but so are the risks. Graduating unprepared would not be a step forward – it would be a stumble into economic headwinds.
The government must weigh the long-term stability of our trade, industry, and public health against the symbolic prestige of meeting a deadline. In development, as in life, timing is everything.