Use LDC Transition Period Well, UN Report Tells BD

Bangladesh should make full use of its remaining pre-graduation period to strengthen preparations for its transition from the least developed country (LDC) category, according to a new UN-backed readiness assessment.

The report says the country must continue implementing priority actions under its smooth transition strategy, regardless of whether it formally seeks additional time before graduation.

It notes that if Bangladesh wants to secure more time, it will need intensive and coordinated diplomacy, including early engagement with the relevant UN bodies and strong support from the UN General Assembly.

The assessment also stresses the need to involve major development and trading partners in the process and to clearly show that any extension would be used to accelerate reforms through specific and time-bound measures, rather than simply delay adjustment.

Bangladesh is scheduled to graduate from the LDC category on 24 November 2026, marking a major milestone in its development journey after making notable progress in income, human development and structural resilience.

To support a smooth and sustainable transition, the government requested the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) to facilitate an independent readiness assessment.

In response, the UN body commissioned the assessment through consultations with government agencies, the private sector, civil society, development partners and other stakeholders in Bangladesh.

The report was prepared by two independent experts, Mohammad Abdur Razzaque and Daniel Gay, who have long experience in LDC graduation, trade and development.

Rather than re-evaluating Bangladesh’s eligibility for graduation, the report focuses on how prepared the country is to manage the transition in a way that protects development gains, addresses vulnerabilities and builds a more competitive, inclusive and resilient economy.

It says nearly all stakeholders consulted expressed concern that Bangladesh is approaching graduation at a time of macroeconomic strain, rising vulnerability and political transition, which have reduced policy flexibility and weakened implementation capacity.

In that context, many stakeholders felt that additional preparation time, if used in a focused and disciplined way, could help reduce the risk of sudden shocks and protect hard-earned development gains.

The report also refers to a recent high-level global meeting, where an outcome document acknowledged that countries preparing for LDC graduation may need at least five years to ensure a smooth transition.

It further noted that, given growing global and domestic uncertainties, an additional three-year extension could be justified depending on a country’s vulnerabilities and exposure to shocks.

On the issue of graduation, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said the government is not considering any immediate move, stressing that Bangladesh would proceed only after ensuring adequate economic readiness.

He said the government remains focused on strengthening the economy in line with its policy priorities before taking the next step on graduation.