Bangladesh's LDC graduation and the growing engagement of the World Bank

In accordance with the resolution passed by the United Nations General Assembly in November of 2021, Bangladesh is scheduled to transition out of the category of least developed countries (LDCs) on November 24, 2026. This development comes approximately five decades after Bangladesh joined this group of developing nations in December 1975. 

The World Trade Organization's Twelfth Ministerial Conference (WTO-MC12), which took place from June 12-17, 2022, in Geneva, served as a crucial indicator of the international community's willingness to assist the graduating Least Developed Countries (LDCs) in their pursuit of sustainable graduation. 

The outcome of the MC12 emphasises that Bangladesh, as a graduating LDC, must prioritise its own tasks to ensure sustainable graduation with momentum. Bangladesh's successful attainment of all three graduation criteria, namely GNI Per Capita, Human Asset Index, and Economic Vulnerability Index, indicates the country's noteworthy performance with several crucial socioeconomic development indicators. 

The achievement of sustainable graduation from the category of Least Developed Countries (LDCs) will depend on Bangladesh's aptitude to capitalise on the emerging global prospects amidst the rapidly shifting and developing geoeconomic landscape and its competence to tackle the predicaments arising from the graduation.

Therefore, the Prime Minister of Bangladesh, Sheikh Hasina, has requested increased collaboration with the World Bank to facilitate the country's seamless progression towards becoming a developing nation, its subsequent graduation to an upper-middle income country, and the successful execution of its Delta Plan-2100. 

She urged the World Bank to assist our initiatives aimed at enhancing human capital and institutional capacity development to facilitate a seamless transition. 

According to her statement, it is imperative to maintain and sustain the crucial International Development Association (IDA) window. Markedly, on April 28, the prime minister travelled to Washington, DC, to attend a World Bank event commemorating Bangladesh's 50-year collaboration with the organisation. And according to the previous statements, this visit will facilitate the graduation of Bangladesh for her robust presence at the events.

Earlier, the government established a committee of significant stature at the Prime Minister's Office, comprising seven specialised sub-committees tasked with devising an Action Plan that includes specific recommendations. The argument presented is that although Bangladesh must advocate for a fresh set of International Standard Industrial Classification of All Economic Activities (ISIC) codes in the World Trade Organisation (WTO) for the Least Developed Countries (LDCs) that are graduating, it is crucial to prioritise the implementation of tangible measures. This ensures that by November 2026, the nation is suitably equipped and poised to graduate with assurance and vigour.

Urging with clarity

This time, the Prime Minister delivered a speech during the plenary session of an event entitled 'Reflection on 50 years of World Bank-Bangladesh Partnership' held at the headquarters of the World Bank in Washington, DC, on May 1, 2023. The individual's attendance at the World Bank headquarters signifies their continued reliance on the institution. 

According to the PM, Bangladesh's ability to overcome emerging challenges just and sustainably will be crucial for our success in the upcoming two decades. David Malpass, the President of the World Bank Group, has expressed the organisation's commitment to assisting Bangladesh as it confronts a difficult global climate in its pursuit of achieving upper-middle-income status by 2031. 

According to his statement, it is believed that Bangladesh has the potential to attain its growth objectives by implementing appropriate policies and taking prompt action. It was possible for the leadership. Besides, the impressive progress of Bangladesh can be attributed to its citizens' unwavering determination and perseverance, as well as a collective commitment to fostering a prosperous society. The president expressed his pride in the partnership and anticipation for the upcoming chapter in collaboration with PM Hasina.

Ensuring development

David Malpass expressed on Twitter that Bangladesh's innovative strategies for poverty reduction, women's empowerment, and climate change adaptation could serve as valuable models for numerous countries. She convened with the executive board of the World Bank and presented an opening address which showed the development trajectory of Bangladesh. After her discourse, several members of the WB board inquired about various matters on the developmental trajectory of Bangladesh, as reported by a World Bank representative who was in attendance at the gathering.

A token of further collaboration

A financial agreement worth $2.25 billion was executed between Bangladesh and the World Bank for the execution of five projects. Besides, during the plenary session, the Prime Minister of Bangladesh presented five distinct recommendations to the World Bank for their contemplation.

She said Bangladesh will continue investing in infrastructure and logistics to realise its vision of becoming a high-income economy by 2041. She added that she expected the World Bank's support. The Prime Minister of Bangladesh has also stated that the country has harmonised its national objective of attaining upper middle-income status by 2031 with the United Nations Sustainable Development Goals. 

She also expressed prevailing anticipation for augmented, concessional, and inventive funding from the World Bank and other development collaborators to facilitate the implementation of Sustainable Development Goals (SDGs).

Showcasing capacity and soliciting further support

According to the Bangladesh PM, the confluence of various global crises, including the pandemic, armed conflicts, and climate emergency, has significantly strained most developing economies while Bangladesh maintained a sustained development. She noted that certain development partners have opted to augment their lending expenses and rates of interest, despite the ongoing crises, thereby deviating from their fundamental objectives. Therefore, the PM urges the World Bank and other development partners to identify feasible substitutes to enhance the resilience of economies in the face of emerging challenges.

According to her statement, Bangladesh expresses its aspiration that the World Bank's amplified involvement in climate action would effectively tackle the significant financial discrepancies within the framework of the Paris Agreement.

Calling for equitable allocation of funds

The PM emphasised the significance of equitable allocation of funds towards both climate mitigation and adaptation. Additionally, the PM highlighted Bangladesh's exemplary disaster management and readiness performance, positioning the country as a global leader in this area. PM Sheikh Hasina characterised Bangladesh as a dynamic testing ground for climate adaptation measures. 

She extended an invitation to the World Bank and other development collaborators to participate in the execution of initiatives outlined in the Bangladesh Delta Plan 2100.

Regarding the Rohingya crisis, the Prime Minister of Bangladesh has stated that the country has collaborated with the United Nations and other global organisations to facilitate the safe, dignified, and voluntary repatriation of Rohingya refugees to Myanmar. 

However, it is noteworthy that, as of the present, no individuals have returned to Myanmar. Hence, the current scenario is becoming progressively challenging for Bangladesh, as the PM urged, with escalating security ramifications for the surrounding area. The PM showed gratitude to the World Bank for their participation in the humanitarian initiative and the provision of a grant of $590 million for the Rohingya and affected communities.

As per the PM, Bangladesh has provided refuge to the Rohingya population who have been displaced from Myanmar due to forceful circumstances for four decades, resulting in a total of 1.2 million individuals seeking asylum.

Bangladesh's imminent departure from the group of least developed countries (LDCs) represents a critical turning point in the nation's socioeconomic progress. The World Bank's assertive engagement and Bangladesh's successful completion of the graduation requirements show Bangladesh's outstanding development and commitment to promoting sustainable growth. During her visit to the World Bank's headquarters, Prime Minister Sheikh Hasina presented financial agreements and recommendations for consideration, further strengthening the relationship between Bangladesh and the organisation. 

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