LDC-specific preferences may shrink in future due to global shifts, warns Anisuzzaman
Business leaders, however, voiced concerns over readiness, urged the government to defer Bangladesh’s LDC graduation by three years, citing energy security and infrastructure gaps as pressing obstacles.
Highlights
- LDC support measures may shrink with global slowdown
- Bangladesh urged to cut reliance on LDC facilities
- Call to raise wages and improve worker training
- Eco-friendly energy stressed for export competitiveness
- ERD says transition roadmap must be implemented
- Business leaders seek three-year deferment of graduation
International support measures (ISMs) dedicated to Least Developed Countries (LDCs) may be squeezed in the coming days due to the changing global economic scenario, Special Assistant to the Chief Adviser for the Ministry of Finance Anisuzzaman Chowdhury has warned.
Speaking as chief guest at a seminar on "LDC Graduation and Structural Transformation" held today (16 September) in the capital's NEC 2 Conference Room, he stressed the need for Bangladesh to reduce reliance on LDC-specific ISMs and prepare to sustain its competitive edge without such privileges, reads a ministry press release.
Keep updated, follow The Business Standard's Google news channel
"Whether the country remains an LDC or not, ISMs will be difficult to access in the future due to global economic contraction," Anisuzzaman said.
He also urged the private sector to raise industrial workers' wages, provide adequate training to boost productivity, and explore cheap, eco-friendly energy solutions to ensure compliance in global markets.
The seminar was organised by the Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) and chaired by ERD Secretary Md Shahriar Kader Siddiky.
In his remarks, Siddiky said that to accelerate structural transformation, the role of the international community, including governments, development institutions, and private sector actors is crucial in supporting LDCs through providing technical assistance, financial support, trade facilitation, and access to global markets.
He also pointed out that Bangladesh's Smooth Transition Strategy (STS) has already provided a roadmap for coordinated action, which should now be translated into action.
Dr Zulfan Tadjoeddin, associate professor at Western Sydney University of Australia, delivered the keynote, identifying geopolitical tensions, trust deficits, and democratic weaknesses as major barriers to structural transformation in South and Southeast Asian LDCs.
He called for reforms to address low productivity, citizen empowerment, and navigating geopolitical challenges.
Panellists, including Centre for Policy Dialogue (CPD) Distinguished Fellow Professor Mustafizur Rahman, Bangladesh Institute of Development Studies (BIDS) Research Director Dr Kazi Iqbal, and SSGP Project Adviser Abdul Baki, stressed the importance of timely graduation supported by structural transformation.
Business leaders, however, voiced concerns over readiness. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan, Bangladesh Trade and Tariff Commission Chairman Dr Moinul Khan and Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) President Syed Nasim Manzur urged the government to defer Bangladesh's LDC graduation by three years, citing energy security and infrastructure gaps as pressing obstacles.
Bangladesh is set to graduate from LDC status on 24 November 2026. Experts agreed that successful graduation requires shifting resources to higher-productivity sectors, enhancing technological capacity, and diversifying the economy.
Additional Secretary of ERD and Project Director of SSGP AHM Jahangir delivered the welcome address of the event.
Senior officials from government ministries, research institutions, trade bodies, and think tanks also participated in the event.
