The United Nations Committee for Development Policy (CDP) has recommended graduation of Bangladesh from the category of Least Developed Country (LDC) to developing country.
- Bangladesh has met for the second time all the three eligibility criteria for graduating from the LDC category.
- Once the UN General Assembly (UNGA) approves the proposal, Bangladesh will be called a developing nation.
Criteria for LDC status
- The UN-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.
- 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.
Impacts
- Graduation from LDC means certain preferential provisions in export, provision of subsidy to agriculture and infant industries and access to climate finance are likely to cease.
- Enhanced confidence of international financial bodies, improved credit rating and higher FDI .
(Source: AIR)
