Bangladesh-Least Developed Country (LDC) to Developing Country (DC)

 

Timeline of LDC to DC:

1. Since 1975-Bangladesh had the Least Developed Country status
2. In 2015 Bangladesh recognized by World Bank as Low-Middle Income Country
3. In 2018- For the first time, United Nations has recognized Bangladesh as a Developing Country

Introduction:

Forty-seven years after its independence. Bangladesh is set to celebrate the status of a Developing Country in place of the existing Least Developed Country (LDC) trajectory. Bangladesh is becoming a Developing Country, as the size of its gross domestic product (GDP) and the per capita income has increased.

Bangladesh is one of the few developing countries that are on target to achieve most of the Millennium Development Goals and is considerably ahead of target with respect to some indicators. The economic growth rate rose significantly after 1990 but only reached 6 percent in 2004, and has never exceeded 7 percent Development experts have explained this discrepancy by attributing Bangladesh’s social development to the success of innovative, low-cost solutions, such as microfinance programs targeting women, massive social mobilization campaigns spearheaded by NGOs, the success of the labor-intensive, export-based garments industry, and the boost to earnings and human capital provided by labor migration and inward remittances. Bangladesh has earned a reputation in the global market for low-cost, high-quality manufacturing through its garments sector.

At present, the government has its eyes fixed on the horizon, working hard to realize the twin dreams of eradicating extreme poverty and achieving middle-income status by 2021 In the 2016 edition of its World Development Indicators, the World Bank took the decision to no longer distinguish between “developed” and “developing countries in the presentation of its data.

Bangladesh Meets all Three Criteria:

Gross National Income (GNI) per capita and Economic Indicators:

1. GDP per capita
2. Percentage of population below $1 a day
3. Official development assistance
4. Debt service

Human Assets Index (HAI) Indicators:

1. Under-five mortality rate
2. Percentage of population undernourished:
3. Maternal mortality ratio
4. Gross secondary school enrollment ratio
5. Adult literacy rate

Economic Vulnerability Index (EVI) Indicators:

1. Population.
2. Remoteness
3. Merchandise export concentration
4. Share of agriculture, forestry and fishing in GDP
5. Share of population in low elevated coastal areas
6. Instability of exports of goods and services
7. Victims of natural disaster
8. Instability of agricultural production

Required Status	Bangladesh Status:
GNI Per capita income $1230.	$1610
HAI Human Resources Index point-64.	72 points
EVI Economic Risk Point- under 36%.	25.2%

Factors behind Developing Country Status

Six straight years of economic growth exceeding 6% resulted in

1. Poverty Reduction
2. Social Inclusion and Gender Equality
3. Health and Education Coverage
4. Increasing Employment Opportunities
5. Boosting Exports.
6. Rapid Industrialization
7. Booming Power Sector
8. Access to Technology.

Challenges Ahead:

This is the first time in such a review where Bangladesh has met all three criteria of graduation that is GDP per capita, the human asset index, and also the vulnerability index. Still, there are lots of challenges such as challenges of

1. Climate change
2. Job creation
3. Effective urbanization inequality
4. Diversified economy

Bangladesh needs to invest in research and development. Needs to develop the technology sector, needs to Increase its competitiveness to increase its productivity. So, lots need to be done. However, the past experience is used as an indication, Bangladesh will achieve this goal of graduation along with the sustainable development goals of becoming a prosperous and developed nation.

Looking Forward

Bangladesh will have to focus on skills such as entrepreneurship, critical thinking, innovative thinking. risk-taking spirit and leadership as well as a traditional type of knowledge in science and language while educating to meet the challenges of the next stages of development Bangladesh will also have to: improve the quality of institutions, and quality of governance.

2021-Bangladesh Status review by Committee for Development Policy (CDP) United Nations

2024-Completion of graduation process at the United Nations Conference on Trade and Development (UNCTAD)

2041-Bangladesh aspires to become a Developed Country

Bangladesh’s Status will be reviewed again by the Committee for Development Policy CDP in 2021 and 2024 for completing the process of graduation, which has begun with the announcement of the country’s eligibility for getting out to the middle-income group from the LDC category.

Following the commendable progress over the past decade, Bangladesh now looks forward to even better days and aspires to become a developed country by 2041.