Bangladesh must prioritise quality enhancement and compliance with international standards to maintain export competitiveness in the post-LDC period, said the national strategy paper on LDC graduation.
The current economic model of Bangladesh, driven by export-oriented garments and a protected import-competing sector and based on low wages and minimal regulations, has reached its peak, it added.
The next phase of structural transformation is required to consider what is known as high-road economic development, mentioned the strategy paper titled the ‘Smooth Transition Strategy (STS)’.
The major features of the strategy were shared during the ‘Validation Workshop on Bangladesh’s National Smooth Transition Strategy’ held today at a hotel in the capital.
Economic Relations Division (ERD) and United Nations Department of Economic and Social Affairs (UN DESA) jointly organized the workshop.
Finance Adviser Dr. Salehuddin Ahmed attended the workshop as chief guest. 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 Lewis were present as special guests.
Member of the UN Committee for Development Policy Taffere Tesfachew attended the event as guest of honor. ERD Secretary Md. Shahriar Kader Siddiky chaired the event.
Speaking on the occasion, finance adviser Dr. Salehuddin Ahmed emphasized on increasing productivity, ensuring decent working environment and adopting new technology to prepare the country for LDC graduation.
He also accentuated the need for ensuring equitable and inclusive growth to make LDC graduation sustainable.
Special Envoy on International Affairs to the Chief Adviser Lutfey Siddiqi, in his speech, said that Bangladesh’s journey towards LDC graduation also gives credence and thrust to the reform agenda of the interim government.
Principal Secretary M Siraz Uddin Miah put emphasis on easing the business environment, facilitating the customs procedure, and enhancing productivity through technological upgradation and skill enhancement to increase the competitiveness of the local products.
Principal Coordinator (SDG) Lamiya Morshed said that the Smooth Transition Strategy can set the stage for aligning the LDC graduation roadmap with the SDGs implementation process.
ERD Secretary Md. Shahriar Kader Siddiky emphasised on the collaborative efforts of all the relevant stakeholders for effective implementation of STS.
Member of the UN Committee for Development Policy and the Rapporteur for Bangladesh Taffere Tesfachew said that Bangladesh can be a role model for other LDCs.
UN Resident Coordinator in Bangladesh 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.
Additional Secretary of ERD and the Project Director of SSGP A. H. M. Jahangir delivered the welcome remarks at the event.
President of Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) Syed Nasim Manzur and the Chief Representative of JICA Bangladesh Ichiguchi Tomohide joined the workshop as panel discussants.
During the workshop, the national consultant for STS Dr. M. A. Razzaque delivered a presentation highlighting the various aspects of the final draft of the STS.
It is notable that Bangladesh is currently scheduled to graduate from the LDC status on 24th November 2026 following a five years’ preparatory period.
It is recommended by the United Nations that a graduating LDC should prepare a national Smooth Transition Strategy (STS) during the preparatory period in cooperation with its development and trading partners and with targeted assistance from the UN system.
Accordingly, Bangladesh recently started the process of STS formulation in collaboration with UN DESA. As part of this process, the validation workshop was organized to share and validate the final draft of the STS as well as the associated action plan with the relevant stakeholders and to receive their feedback and recommendations.
STS focuses on five strategic pillars. These are 1) ensuring macroeconomic stability, 2) securing trade preferences and favourable transition measures, 3) promoting export diversification and competitiveness, 4) building productive capacity, and 5) fostering partnerships and international cooperation.
It incorporates a time-bound action plan designed to ensure a smooth transition, prioritising and expediting the implementation of necessary reforms to achieve sustainable graduation.
To make the most of the new opportunities to be created by LDC graduation, STS has also put emphasis on enhancing productivity, investing in skills development, fostering innovation, adopting sustainable business practices, and achieving inclusive growth.
It has also called for rationalization of the current tariff structure, creating a level playing field for all exporters and intensely engaging with the major trading partners for securing trade preferences for an extended period.
Representatives from various government ministries and divisions as well as representatives from the private sector, think-tanks and civil society organizations participated in the workshop.
