Experts, economists, and policymakers have called for reforms and structural shifts to support Bangladesh's transition to the next phase of development, known as high-road economic development, as the country is preparing to graduate from the status of Least Developed Countries (LDC).
They urged the government to prioritise quality enhancement and ensure compliance with international standards to maintain export competitiveness in the post-LDC period.
The recommendations came at a validation workshop on National Smooth Transition Strategy jointly arranged by the Economic Relations Division (ERD) and the United Nations Department of Economic and Social Affairs (UN DESA) at a city hotel on Sunday.
Finance Adviser Dr. Salehuddin Ahmed attended the workshop as the chief guest, while Special Envoy on International Affairs to the chief adviser Lutfey Siddiqi, Principal Secretary to the chief adviser M Siraz Uddin Miah, Principal Coordinator (SDG) Lamiya Morshed, and the UN Resident Coordinator in Bangladesh Gwyn Lewiswere were present as special guests.
Member of the UN Committee for Development Policy (CDP) Taffere Tesfachew, President of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) Syed Nasim Manzur and Chief Representative of JICA Bangladesh Ichiguchi Tomohide spoke, among others, at the event chaired by ERD Secretary Shahriar Kader Siddiky.
Dr Salehuddin Ahmed laid emphasis on increasing productivity, ensuring decent working conditions and adopting advanced technology to prepare the country for LDC graduation. He also underscored the need for ensuring equitable and inclusive growth to make the LDC graduation sustainable.
Highlighting the country's challenges like large population, limited land and low productivity, he said that the interim government is working to address these issues.
"We have no personal agenda. The reforms we are carrying out now will leave a positive footprint for the next government. However, if we can't cope with the change, graduating to a middle-income country will not make sense," said the finance adviser.
Lutfey Siddiqi emphasised that Bangladesh's journey towards LDC graduation reinforces the need for robust reforms.
Principal Secretary M Siraz Uddin Miah put emphasis on easing business environment, facilitating the customs procedure, and enhancing productivity through technological upgradation and skill enhancement to increase the competitiveness of the local products.
Lamiya Morshed said Smooth Transition Strategy offers a roadmap to align the country's graduation with the Sustainable Development Goals.
During the workshop, National Consultant for Smooth Transition Strategy Dr M A Razzaque presented a keynote paper on the draft strategy.
He said that challenges will arise in various economic and non-economic sectors after the graduation.
Currently, in the LDC category, 75 per cent of Bangladesh's products receive duty-free export benefits which will no longer be available after the graduation while 20 per cent of duty on average may be imposed depending on the destination.
Bangladesh is set to graduate from LDC status in November 2026, following a five-year preparatory period. The United Nations has recommended that graduating countries develop a Smooth Transition Strategy during this time in partnership with development and trading partners, along with UN system support.
He said that the strategy focuses on five strategic pillars including ensuring macroeconomic stability, securing trade preferences and favourable transition measures, promoting export diversification and competitiveness, building productive capacity, and fostering partnerships and international cooperation.
Gwyn Lewis said that the opportunities of LDC graduation can be maximized by creating an enabling environment for businesses, improving productive capacity, increasing investment in human capital, and complying with international standards.
Syed Nasim Manzur said that the economy of Bangladesh is unique among LDCs as majority of export items from the country are utilizing preferential market access.
He urged policymakers to focus on non-RMG exports, warning that tariffs on items like jute, furniture, and light engineering could reduce export volumes by over 20 percent.
Chief Representative of JICA Bangladesh Ichiguchi Tomohide called for ensuring congenial business environment and said development of economic zones, export processing zones and high-tech parks should be expedited. He also suggested updating the Economic Zone Act and implementing a single one-stop service centre.
Representatives from various government ministries and divisions as well as private sector leaders, think tanks and civil society organisations participated in the workshop.
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