1.Benefits of being LDC. 2.Benefits of Graduation. 3.Effects of Graduation. 4.Preparation of Bangladesh. 5.A Proposal:LDCs Trade Agreement

1. “Graduation of Bangladesh from LDCs to
Developing countries”
Presented by
1. Mohammad Alim Ullah Khan
2.Md. Iqbal Hussain
3. Mukta Gowshami
4. Asis Kumar Bose
Assistant Commissioner & Executive Magistrate
Office of Deputy Commissioner, Naogaon

2. Definition & Background
*Least developed countries (LDCs) states the countries having very low
per capita income, underdeveloped socioeconomical structure & low
human advancement rate to achieve sustainable development.
*CDP (Committee for Development Policy) of United nation endorsed
the term LDCs in 1971 and Bangladesh was included in 1975.
*At Present there are currently 47 countries on the list of LDCs & 6
countries has already been delisted.
*Inclusion & Exclusion of LDCs is reviewed in every three years by
the CDP & ECOSOC.
*LDCs receives unconditional aid & assistances, Loans with low
interest rate from several agencies and Bank.

3. LICs vs LDCs
World Bank Classification UN Classification
Based on level of
Development
Based on economic and
social indicators
1.low-income countries
(LIC)
2.Medium-income countries
(MIC) and
3.High-income countries
(HIC).
1.Developed,
2.Developing and
3.Least developed (LDC)
countries.

4. LDC Inclusion/Exclusion Criteria
*“Graduation from the LDC countries means that a country has
reached to such a level of development that it does not requires
any LDC specific support from the international community”
(CDP Background Paper No. 14, 2012).
Criteria Inclusion
criteria
Exclusion
Criteria
Gross National
Income
(GNI) per capita
$1,025 or below
(GNI) per capita
$1,230 or above
Human Assets
Index
(HAI) 60 or
below
(HAI) 66 or
above
Economic
Vulnerability
Index
(EVI) 36 or
above
(EVI) 32 or
below

5. LDC graduation: Journey of Bangladesh
*In 2018, Bangladesh has been recommended for the graduation from
LDCs by CDP & ECOSOC.
*CDP started regular reviewing and ECOSOC analyzed the progress
from 2018-2121 for final recommendation.
* For official declaration as a Developing country, CDP & ECOSOC
will review the progress for another 3 years (2021-2024).
* Due to Covid-19 Pandemic situation, we will get extra to 2 years for
preparing ourselves.
*In 2026, Bangladesh will be officially declared as Developing country.

6. LDC graduation: How Bangladesh is unique
Bangladesh is the 1st country in the history of LDC countries,
meet all 3(Three) entire criteria to be considered as developing
countries graduated from LDCs.
Criteria Exclusion Criteria Bangladesh in 2021
Gross National
Income
(GNI) per
capita $1,230 or
above
$2,227
Human Assets
Index
(HAI) 66 or
above
75.4
Economic
Vulnerability
Index
(EVI) 32 or
below
27

7. From Bottomless basket to Vibrant Economy:
*Bangladesh is the 35th (nominal GDP rank) largest in the world
in nominal terms, and 29th largest(PPP GDP rank)
*it is classified among the Next Eleven emerging market middle
income economies and a frontier market.
*7th highest GDP growth rate 8.3% in 2019. Due to Covid-19
pandemic it has been reduced. But still a good figure 6.8%.
*Per Capita income is $2,227.

8. From Bottomless basket to Vibrant Economy:

9. Effect of graduation from LDC
*No more Duty-free access.
*No Longer Financial assistance & Grants.
* No Low interest Loans under ODA (Official Development
Assistance).
*Pulling out the benefits of Technology Transfer.
*Losses of Export Earning is about $ 2.7 billion.

10. Benefits of LDCs vs Graduation
Benefits of Being LDCs Benefits of Graduation
from LDCs
Price Advantages Sovereign rating
Provision of rules of Origin Foreign loans with less
conditions
Recipient of aid &
Assistances.
Loan for Private sector
Technology Transfer Increase in Foreign Direct
Investment
Climate Change Fund Increase in Import & Export
Enjoyment of Copyrights &
Patent Law

11. Benefits of Being LDCs
*Price Advantages: Bangladesh enjoys 12% preferential margin on its
export to the European Countries
*Provision of rules of Origin: Relaxation (One stage Transformation)
in provision of rules of origin in exporting commodities to EU
countries
*Recipient of aid & Assistances.
*Technology Transfer to the LDC under the article 66.2 of TRIPS
(Trade Related Intellectual Property Rights.)
*Climate Change Fund: Assistance from LDC fund constituted under
UNFCC to mitigate the effect of climate change.
*Enjoyment of Copyrights & Patent Law: Transitional period up to
2033 according to TRIPS agreement.
*Scholarship, Fellowship & Travel incentives: Various types of
scholarships and fellowships & travel intensives for the citizens of
LDC.

12. Benefits of Graduation from LDCs
*Sovereign rating: LDC means risky, unstable, poor communication network,
underdeveloped country. Hence, our 'sovereign rating' was very poor.
Graduation from LDC will increase our sovereign rating and acceptability in
the developed world.
• Foreign loans with less conditions: Being LDC we get foreign loans with
lower rate interest but consisting of multiple conditions. After graduation our
interest rate will be increased but rate of condition will be decreased 2-3 times.
* Loan for Private sector: IFC (international Finance Corporation) of World
Bank as well as recognized Bank does not provide any loans to any companies
of LDC countries. Graduation from LDC helps us to overcome this problem.
*Increase in Foreign Direct Investment: Graduation from LDC means we
are now economically more stable. This will helps us to attract more FDI
compared to previous status.
*Increase in import-export: Being LDC, the cost of LC (Letter of Credit)
confirmation & insurance is higher. Graduation from LDC will subsequently
reduce the LC cost & insurance. Hence, our import-export based companies
will grow more.

13. Beyond the Dreams: Insights of Bangladesh
*Modern Infrastructure: After the graduation, international
trade will be more competitive. The government is already
moving ahead of developing several projects to cope up with the
situation.
-10 Mega projects like Padma Bridge, Metro Rail, Four lane
Highway towards Chottogram port etc.
-100 special economic zones, high-tech parks, software park,
World trade center, 2nd optical fiber submarine communication &
Bangabandhu Satellite etc.
-Construction of another state-of-the-art international terminal &
airport, 2nd sea port in Payra.
-Construction of modern environment & labour-friendly factories
through using green energy & ensuring labour rights.

14. Beyond the Dreams: Insights of Bangladesh
*Export Market at same competitive price: To protect our
current market, we have to export at current competitive price
even after paying tarrif. To avail this
-Renovation of our Customs department in sea port & airport
-Introduction of fast-track material handling in sea
port/Airport/Land port by authority to avoid demurrages.
-All the export-oriented proceedings expect inspection should be
completed all factory premises including online transaction.
-Introduction of in house inspection & in house customs
clearance for emergency goods.
-Hassle free nationwide logistic support like Toll-free
transportation.
-Introduction of freezing, cool & cold temperature compartment
in Railway like China.

15. Beyond the Dreams: Insights of Bangladesh
*Economic Diplomacy & Free Trade Area: To smell the sense of
preferential quota system in another way, Bangladesh is presently
exploring bilateral/regional free trade agreements with their current
major Business partner. In world economy this is called “Vietnam
Strategy.”
*Extend the period of Tariff Benefits: The tariff benefits are
supposed to be lifted after 2026 & 2027 in European Union. But due to
our diplomatic intervention, EU has extended the period to 2031. So, it
is a matter of hope for us.
*Exploring Marketing Hub instead of new market:
- We need to explore countries with good port facilities so that it can be
used as regional/streamline warehouse of our goods.
-It will help us to deliver our goods from a single point and cover huge
land area within a shortest possible period. Strategy of China in
Djibouti is a good example of exploring marketing Hub.

16. Beyond the Dreams: Insights of Bangladesh
* Developing ancillary Industries: We have made a tremendous
progress in Cement & Steel Rod Industries, Petrochemical sector, Yarn
production, Raw materials in Pharmaceutical industries.
-Govt should encourage mostly Forward-Backward linkage industries
in our 100 exclusive economic zones.
* Continuation of Digital Government:
-Uninterrupted power supply, uninterrupted transportation, efficient
port management, efficient manpower management should be
continued.
-Well persuasion of concentric development plan like Eighth Five-Year
Plan (2021-25), Second Perspective Plan (2021-41), Delta Plan-2100
etc.
*Graduation Support Facilities: A proposal has already been raised
by CDP & ECOSOC that LDC graduating countries will get the
provision of all existing LDC preferences up to 12 years after official
declaration. All LDC countries should work hand to hand for the
approval of this proposal.

17. A Proposal: ‘LDCs Trade Agreement’
-Number of total listed & delisted LDCs are 53(16 land locked &
11 small islands)
-LDC countries shares boundaries with 73 countries.
-Total GDP is about $1500 Billion.
-Total Population 1.1 Billion.
*A proposal of establishing a trade agreement among all LDC
countries(47) and graduate countries(6) to support each other
aiming at
-Reduced or free tariff/customs/duty/tax/vat for import and
export.
-One stop solution for establishing new manufacturing plant in
member countries.
-Privileges for overseas office setup in member state.
-Using seaport for a specific period with free of cost
-Using Border port of member countries for exporting goods to
Border sharing countries.

18. THANK YOU