What next after LDC graduation?

WITH graduation from LDC status knocking at our doors, Bangladesh has much to celebrate. Some of the development strategies implemented in Bangladesh have been used as models in other developing countries. Now that the country is about to enter the rank of developing nations, the government and private sector need to review some of the development strategies to ensure continual growth in the coming years.

One of the worries among businesspeople about exiting the LDC status is that Bangladesh may lose some preferential access to the markets of other developing countries. This could lower our export earnings. Therefore the country needs to look at other strategies to encourage exports and growth, and to prevent the country from falling into a 'middle-income' trap.

The whole infrastructure system of the country needs an overhaul. Dhaka needs a better airport that can handle increased flow of traffic and passengers. The railway network needs modernisation, and the highways of the country should be upgraded. The river routes can be used as a 'natural highway' and so, they need to be dredged and kept navigable throughout the year. While the government has taken steps to build a metro-rail and elevated expressway which are to be located in Dhaka, it needs to focus on developing the infrastructure of secondary cities so that economic growth is more even across the country.

The country also needs to focus on creating a higher quality labour force. The education system of the country needs to be updated. The government should create some 'research-intensive' universities, where students and faculties can collaborate with one another and come up with new ideas.

All this can help propel economic growth and prevent the country from being trapped into 'developing country' status.

T M Tonmoy Islam

Assistant Professor of Economics

Elon University