Quality and standards key to post-LDC success: Nat’l strategy paper

Bangladesh must prioritise quality enhancement and compliance with international standards to maintain export competitiveness after graduating from the Least Developed Country (LDC) status, according to the Smooth Transition Strategy (STS).

The key aspects of the strategy were discussed during a workshop titled "Validation Workshop on Bangladesh's National Smooth Transition Strategy" held in the capital today (24 November).

The workshop, organised by the Economic Relations Division (ERD) and the United Nations Department of Economic and Social Affairs (UN DESA), was attended by high-level government officials, UN representatives, and experts.

Bangladesh is scheduled to graduate from LDC status on 24 November 2026, following a five-year preparatory period.

The United Nations recommends that graduating LDCs prepare a national Smooth Transition Strategy to guide the process.

The STS paper outlines five strategic pillars: ensuring macroeconomic stability, securing trade preferences and favourable transition measures, promoting export diversification and competitiveness, building productive capacity, and fostering international partnerships.

The strategy also includes a time-bound action plan focusing on implementing reforms to ensure a smooth transition and sustainable growth.

Bangladesh's current economic model, driven by low wages, minimal regulations, and a reliance on export-oriented garments, has reached its peak, the strategy highlights.

It calls for a shift towards "high-road economic development," prioritising productivity enhancement, skill development, innovation, and compliance with international standards.

Chief guest Finance Adviser Salehuddin Ahmed stressed the need for increased productivity, a decent working environment, and the adoption of advanced technology.

He also emphasised the importance of equitable and inclusive growth for sustainable graduation.

Special Envoy on International Affairs to the chief adviser, Lutfey Siddiqi, linked the LDC graduation process to broader reform initiatives.

Principal Secretary to the chief adviser, Siraz Uddin Miah, highlighted the importance of easing the business environment, streamlining customs procedures, and boosting productivity through technological upgrades and skill development.

UN Resident Coordinator in Bangladesh Gwyn Lewis underscored the need for an enabling business environment, investment in human capital, and compliance with global standards to maximise the benefits of LDC graduation.

ERD Secretary Md Shahriar Kader Siddiky called for collaborative efforts from all stakeholders for the effective implementation of the STS.

MA Razzaque, the national consultant for the STS, presented the final draft of the strategy during the workshop, highlighting its key components and action plan.

Representatives from government ministries, the private sector, think tanks and civil society participated, providing feedback and recommendations.

Notably, the strategy emphasises export diversification, rationalisation of tariffs, and securing extended trade preferences from major trading partners.

It also encourages fostering innovation and adopting sustainable business practices to ensure inclusive growth.

The workshop featured prominent discussants, including Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh, and Ichiguchi Tomohide, chief representative of JICA Bangladesh.

Taffere Tesfachew, a member of the UN Committee for Development Policy, described Bangladesh as a potential role model for other LDCs undergoing the graduation process.