Bangladesh needs to update its international partnerships to ensure a sustainable and smooth graduation from the LDC status, according to a report released on Tuesday.
To meet its aspirations of achieving high-income status by 2041, Bangladesh needs to future-proof the state and endow it with up-to-date operational and implementation capacities, said the report.
“The moment is opportune to transition from an emphasis on nation-building to state development. And this should involve developing modern institutions by streamlining existing ones and injecting efficiency, accountability, and clarity of purpose,” according to the report.
The achievements attained by Bangladesh thus far, alongside the determination to sustain success through a focus on becoming an industrial and trade-oriented nation, exert and will drive further progress in establishing a contemporary, rule-based nation-state.
The report, titled "Production Transformation Policy Review of Bangladesh: Investing in the Future of A Trading Nation", was unveiled jointly by State Minister for Foreign Affairs Md Shahriar Alam, State Minister for ICT Zunaid Ahmed Palak, European Union Ambassador to Bangladesh Charles Whiteley, Director of OECD Development Centre Ragnhelour Elin Arnadottir, Senior Secretary of the Commerce Ministry Tapan Kanti Ghosh, FBCCI President Mahbubul Alam, and Bangladesh Competition Commission Member Hafizur Rahman.
Prime Minister's Adviser Salman F Rahman spoke as the chief guest at the opening session of the event.
Prime Minister Sheikh Hasina delivered special (video) remarks at the event. UN Resident Coordinator Gwyin Lewis and Deputy Secretary General of UNCTAD Pedro Manuel Moreno (by video message) also spoke at the opening session.
The study was coordinated by the OECD Development Centre in collaboration with UNCTAD.
The study’s findings show that half a century after independence, Bangladesh has achieved impressive progress.
The country has transformed from one of the poorest nations into a global textile manufacturing hub and a country that is capable of meeting its medical needs almost entirely through domestic pharmaceutical production.
Bangladesh will graduate from the LDC category in 2026 and aspires to be a high-income nation by 2041.
Meeting these objectives and addressing lingering challenges – such as climate change or boosting resource mobilisation– requires accelerating economic transformation through diversification and innovation.
Moreover, the report said, Bangladesh should update the policy toolbox to foster a diversified, innovative, and green industry.
The government has an important reform agenda ahead; the private sector and international partners will be instrumental in enabling Bangladesh to continue to succeed. Bangladesh has impressed the world with its achievements in a rather short span of time, according to the report.
Since its foundation as an independent country in 1971, Bangladesh has achieved remarkable progress. It stands among the fastest-growing economies globally and has demonstrated significant resilience to the global COVID-19 pandemic.
It has transformed into a manufacturing powerhouse in South Asia and despite facing industrial accidents, including the Rana Plaza accident in 2013, the country has demonstrated the ability to adapt and enhance worker safety as it increasingly commits itself to global sustainability standards, said the report.
Bangladesh has gained international recognition as a model for modern poverty reduction and is currently the largest country to graduate from the Least Developed Country (LDC) category.
Building on these accomplishments, the country is looking forward to economic diversification and sustainable development in the post-graduation era.
With a population of more than 170 million, Bangladesh ranks as the eighth most populous country globally, representing around 2 per cent of the world's population.
The report urged the private sector and international partners to adapt their mindsets and tools.
A revitalised government approach, coupled with innovation-oriented and entrepreneurial business practices, along with collaborative partnerships with all stakeholders, will be pivotal in enabling Bangladesh to sustain and further its accomplishments, reads the report.
From a country known for food scarcity, extreme poverty and natural disasters, Bangladesh is today a growing economy and a manufacturing hot-spot in South Asia, home to a globally relevant ready-made garments (RMG) export industry, according to the report.
In its 50-year anniversary of independence in 2021, Bangladesh has been recommended by the United Nations Committee for Development Policy (CDP) for graduation from the LDC category by fulfilling the three criteria used to grant countries access to LDC-specific international support measures (ISMs).
While this underscores a major achievement, the report said, it also entails some challenges such as the loss of preferential market access, which was specifically crafted to support these poor and vulnerable economies.
Among the distinctive features of Bangladesh, one notable fact is that the industry, particularly manufacturing, has held a central role in the country's development plans from the outset.
Being a densely populated and economically challenged nation, susceptible to natural disasters, and situated in an increasingly significant geostrategic region, the government has consistently regarded industry, in conjunction with a strategic outlook on outward migration and improvements in agricultural productivity, as a pivotal driver for sustaining growth, creating jobs, ensuring food security, and generating foreign exchange, according to the report.
