ABSTRACT

This chapter highlights a number of distinctive features which informs Bangladesh’s pathway towards sustainable graduation out of the group of the least developed countries (LDCs). The study has carried out projections for 2021 and 2024 concerning Bangladesh’s smooth graduation from the vantage point of the three graduation criteria. It anticipates costs and benefits originating from graduation, and articulates a set of strategies for sustainable LDC graduation of Bangladesh. While the estimates do indicate that Bangladesh is well on its way towards graduation, the study cautions that the country should be ready to address a number of challenges to be able to graduate with momentum, and for the graduation to be sustainable. The analysis shows that graduation will entail significant preference erosion for Bangladesh. For example, Bangladesh’s exports will face an increase of about 6.7 per cent tariff, on average; the resultant fall in Bangladesh’s potential export earnings could be to the tune of 8.7 per cent of its global exports. Bangladesh’s LDC graduation will be accompanied by declining concessional financing and loss of a number of international support measures. To address the attendant challenges, the study recommends a number of policy initiatives in areas of strengthening market access and competitive capacities, coping with an emerging global trading scenario, getting ready for the new aid regime and structural transformation of the economy.