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Graduation Should Propel Progress, Not Invite New Risks

By Rabab Fatima Opinion 2025-12-02, 12:00am

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As we gather in Doha for the High-Level Meeting on Forging Ambitious Global Partnerships for Sustainable and Resilient Graduation of Least Developed Countries, the stakes could not be higher. A record fourteen countries—equally divided between Asia and Africa—are now on track for graduation. Graduation from the Least Developed Country (LDC) category is a landmark national achievement, reflecting hard-won progress in income, human development, and resilience. Yet for many, this milestone also brings new vulnerabilities that risk eroding the very gains that made graduation possible.

Since the creation of the LDC category in 1971, only eight countries have successfully graduated. Today, 44 remain—representing 14% of the world’s population but contributing less than 1.3% to global GDP. The Doha Programme of Action (DPoA) sets an ambitious but achievable goal: enabling at least 15 additional countries to graduate by 2031. Crucially, the DPoA stresses that graduation must be sustainable, resilient, and irreversible. It should be a springboard for transformation, not a moment that exposes countries to new risks.

Graduation with Momentum

Graduation often triggers a major shift in international support. As preferential trade arrangements, concessional financing, and technical assistance begin to phase out, countries may face rising fiscal pressures, reduced competitiveness, and greater exposure to external shocks. Without well-sequenced and forward-looking transition planning, progress toward the Sustainable Development Goals (SDGs) may slow, and national systems could become strained.

Yet these challenges also present opportunities. With the right policies, partnerships, and incentives, graduation can accelerate structural transformation, open doors to new financing windows, strengthen institutions, and create pathways to diversified, resilient, and inclusive growth. The task before us is to manage risks while capitalising on these opportunities—ensuring every country graduates with momentum.

Smooth Transition Strategies: A National Imperative

The DPoA urges every graduating country to develop inclusive, nationally owned Smooth Transition Strategies (STS) well ahead of graduation. These strategies must be integrated into national development plans and SDG frameworks to ensure coherence and resilience. They should prioritise diversification, human capital development, and adaptive governance, while placing women, youth, and local communities at the heart of planning and oversight. STS must be living documents—flexible, participatory, and supported by robust monitoring and adequate financing.

Reinvigorated Global Partnerships: The Essential Pillar

No country can navigate this transition alone. The DPoA calls for an incentive-based international support structure extending beyond graduation. For LDCs heavily dependent on trade preferences, the withdrawal of preferential market access must be carefully sequenced to avoid sudden economic disruptions. For climate-vulnerable SIDS and LLDCs, improved access to climate finance, debt solutions, and resilience-building support is essential for navigating post-graduation challenges.

Deepened South–South and triangular cooperation, innovative financing instruments, blended finance, and stronger private-sector engagement will be crucial in expanding productive capacities and creating opportunities in digital transformation, green and blue economies, and regional market integration.

iGRAD: A Transformative Tool

The operationalisation of the Sustainable Graduation Support Facility—iGRAD—is a significant step forward. By offering tailored advisory services, capacity-building, and peer learning, iGRAD can help countries anticipate risks, manage transitions, and sustain development momentum. Its effectiveness, however, will depend on strong political backing and adequate, predictable funding from development partners.

Graduation as a Catalyst for Transformation

Graduation should mark the beginning of a new chapter—one defined by resilience and opportunity. With coherent national strategies and strengthened global partnerships, graduation can become a catalyst for inclusive and sustainable development. Let us use this moment in Doha to reaffirm our collective commitment: no country should graduate into vulnerability. Working together, we can ensure graduation fulfils its promise—for communities, economies, and generations to come.

Rabab Fatima is the UN Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States.