DHAKA, March 1, 2021 (BSS) – Dhaka Chamber of Commerce and Industry (DCCI)
has welcomed the endorsement of Bangladesh’s graduation from the Least
Developed Country (LDC).
The trade body mentioned that this recognition was achieved with the
frontier and dynamic leadership of Prime Minister Sheikh Hasina. Through
tremendous progress in all aspects of socio-economic state of the country
during the last decade, the present government has initiated paradigm shift
in Bangladesh’s economy, said a press release.
The United Nations Committee for Development Policy (UN CDP) has recently
recommended Bangladesh’s graduation from LDC.
The decision came after the second triennial review of the LDC category of
UN CDP.
DCCI informed that Bangladesh has met, for the second time, all three
eligibility criteria for graduation involving income per capita ($1,827
against the threshold $1,230), human assets index (75.3 points out of 66),
and economic vulnerability index (27.3 point less than 32).
DCCI felt that it as an honour for Bangladesh as the country received this
prestigious recognition in the glorious year of golden jubilee of its
independence and birth centenary of Bangabandhu Sheikh Mujibur Rahman.
“Bangladesh, even in the tough time during the Covid-19, managed to
sustain its economic growth and balance the live and livelihood to a large
extent. The very timely initiative of the government to rescue the pandemic
affected businesses through stimulus incentives was appreciated by all. The
second review of UN CDP and their endorsement justify consistent economic
development, firm resilience and commitment to the legacy of Bangabandhu’s
Sonar Bangla aligning with various game-changing visions of the government,
believed DCCI,” the body mentioned.
It is inevitable that every country graduating from LDC status had to face
some challenges with no exception to Bangladesh.
As an LDC, Bangladesh will enjoy duty free quota free access in the EU and
other market up to 2026 but later graduation, Bangladesh will face the
challenges of industrial compliance and strong standard of IPR and TRIPS
agreement.
Moreover, as a Middle income country, Bangladesh will compete with other
similar countries in the export market as well experience erosion of
preferences and privileges in the export market, loss of subsidy in various
home grown infant industries.
Despite having these challenges, graduation will generate ample of
opportunities. After the successful graduation, the credit rating and
worthiness of Bangladesh will be elevated, private sector would be
competitive, foreign investors’ confidence and foreign investment trend would
soar considering strong IPR infrastructure above all streams of international
borrowing at a competitive rate.
To overcome the challenges and smooth transition of Bangladesh until 2026,
DCCI recommends Government to sign FTA, PTA with potential countries or RTA
with economic blocs, take preparation to implement the terms and conditions
of TRIPS agreements, establish high-value product design and innovation
centres with disruptive technology, international quality assurance
certification, new market development especially in the Southeast Asia,
Africa, necessary policy and institutional reforms to increase private and
Foreign investment, modernization, automation of revenue structure for higher
Tax to GDP ratio and efficient supply chain and logistics infrastructure.
These are expected to leverage our economic graduation and gain its
dividends for the best interests of the country.