An LDC Graduation Strategy to Navigate Bangladesh in Inhospitable Global and Regional Environment

Abstract

The global economy is experiencing a multitude of transitions in terms of economic and geopolitical rebalancing, ongoing technological change and emerging social and political risks. These transitions are expected to have far-reaching impacts on Bangladesh’s economy, which is becoming increasingly integrated with the global and regional economies. Bangladesh is expected to graduate from the least developed country (LDC) category in 2024, while maintaining access to LDC-specific international support measures until 2027. As Bangladesh braces for graduation and beyond, its strategies will need to be contextualised in this evolving global and regional order. To this end, pertinent issues such as declining availability of official development assistance (ODA), tepid global economic recovery and protectionist measures by developed countries, increasing automation and consequent labour market disruption, forfeiture of climate financing opportunities, rising terrorism and conflict, and proliferating illicit financial flows (IFFs) must be taken into cognisance.