Bangladesh must brace for stricter global standards post-LDC: SANEM

As Bangladesh nears its graduation from the group of Least Developed Countries (LDCs), Executive Director of the South Asian Network on Economic Modeling (SANEM) Dr Selim Raihan yesterday (29 July) said that the country must urgently prepare for heightened global regulatory demands, especially around sustainability and governance standards.

Speaking at the launch of the SANEM Sustainability Centre in Dhaka, Dr Raihan stressed the growing importance of Environmental, Social and Governance (ESG) measures for Bangladesh's export sectors.

"Sustainability is no longer a choice—it's a requirement, especially for the ready-made garments (RMG) industry and other emerging export sectors," said Dr Raihan, who is also a professor of economics at the University of Dhaka.

He went on to say, "The question is whether our exporters, policymakers, researchers and development partners are aligned and ready to meet these challenges."

Dr Raihan cautioned that the global shift toward sustainable trade practices—driven by policies like the EU Green Deal and digital product passports—could pose steep compliance costs. "Without proper coordination, these costs may unfairly fall on the most vulnerable, particularly workers," he added.

The newly launched SANEM Sustainability Centre aims to serve as a research and dialogue hub focused on building capacity and informing evidence-based policymaking around sustainability issues in Bangladesh and South Asia.

Delivering the keynote presentation, SANEM Programme Director Zubayer Hossen said the Centre will work on ESG issues, sustainable supply chains, and environmental accountability to help Bangladesh meet both domestic development goals and international benchmarks.

Lutfey Siddiqi, special envoy for international affairs to the chief adviser, attended the event as the chief guest.

He emphasised the need for a coherent national sustainability strategy, pointing to disconnect between traditional business practices and environmental priorities. "We're dealing with a coordination failure. It's time we bring all actors into the same room to build a common language and actionable strategy," he said.

Additional Secretary of the Ministry of Commerce Md Abdur Rahim Khan, speaking as special guest, said research-backed initiatives like SANEM's could fill crucial gaps in policy planning. "The global market is moving fast. Bangladesh cannot afford to fall behind when it comes to sustainability and circularity in the supply chain," he said.

Officials from key ministries, development agencies, international organisations, and private sector leaders also attended the event, expressing the hope that the Centre will promote collaborative solutions to pressing environmental and economic challenges.