Bangladesh Gets Three More Years to Prepare for LDC Graduation, New Date 24 November 2029

The United Nations General Assembly has given Bangladesh three more years to prepare for graduation from the list of least developed countries (LDCs). Under the new decision, Bangladesh will have until 24 November 2029 to prepare for graduation. However, making effective use of the extra time will depend on overcoming structural weaknesses in the economy, carrying reforms forward and increasing export capacity.

The 81st session of the General Assembly began on Thursday at 3 pm New York time (1 am Bangladesh time), chaired by Foreign Minister Khalilur Rahman. The special feature of the session was completing the process of adopting and approving the UN resolutions on the LDC graduation of Bangladesh and Nepal.

Uruguay, a member of the General Assembly, moved the proposal on behalf of Bangladesh. Members of the G-77 and China expressed their support. The General Assembly holds that graduation from the LDC list must take place in a way that is sustainable and irreversible, and that does not disrupt any country’s development plans, programmes and project implementation.

Earlier, draft resolution A/81/L.8, prepared on 20 October for presentation at the session, proposed extending the preparatory period for the graduation of Bangladesh and Nepal by three years, to 24 November 2029. At the session chaired by General Assembly President and Foreign Minister Khalilur Rahman, Nepal’s proposal was approved alongside Bangladesh’s. Nepal, like Bangladesh, will have until the same date to prepare.

Several reasons were cited in the proposal in favour of extending Bangladesh’s preparatory period. They include the recent political change and complexity, disruption to energy and goods supplies caused by international conflicts, uncertainty over global trade, and the lingering effects of past crises. Against this backdrop, the decision was taken, as an exceptional measure, to extend the preparatory period by a further three years.

The resolution states that during the extended preparatory period Bangladesh must advance internal reforms and continue implementing its national strategy for a smooth transition. It calls for work based on support from the UN system and cooperation with Bangladesh’s bilateral, regional and multilateral development partners and trade partners. Progress on these initiatives must be reported regularly; to that end, information on the relevant activities must be included in Bangladesh’s annual report submitted to the Committee for Development Policy (CDP).

The UN Committee for Development Policy (CDP) also said in its assessment that Bangladesh’s internal weaknesses could amplify the impact of global crises and limit the government’s capacity to respond. The CDP had also recommended deferring Bangladesh’s graduation.

Economists, however, believe that the extra time alone will not solve the problem. According to Dr Fahmida Khatun, distinguished fellow of the private research organisation Centre for Policy Dialogue (CPD), using this time for reform will be the main test for Bangladesh. She said: “The extra time will give Bangladesh temporary relief, but it cannot be a substitute for reform.” In her analysis, productivity, goods transport and supply systems, energy reliability, customs administration, skills and the use of technology must all be improved during this period. The diversification of export products and the creation of new markets must also be given importance.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described the UN decision as good news for Bangladesh’s export sector. He said the extra time must now be used to improve infrastructure and goods transport systems. Initiatives must also be taken to sign free trade agreements (FTAs) with countries where such agreements are needed.

Bangladesh has already achieved the required standards in the economic and social indicators set for LDC graduation. The big challenge now is to build the economic capacity to compete in international markets even after losing special trade benefits. The three extra years have created the opportunity to make those preparations; how much of it is used now depends on the implementation of reforms.