With the rapid developments that our nation has undergone over the past decade, not to mention our ever-climbing GDP, we have been able to defy all odds and exceed all expectations in our march towards becoming a middle income nation.
Of course, that does not mean that the battle has been won -- for Bangladesh’s LDC graduation stands to see it lose $6.38 billion in exports. During the post-LDC period, local exporters will face 8.91% duty and a possibility of losing 26.28% export to the EU, our biggest export destination.
The story will be similar in practically every other country that Bangladesh has trade relations with. Unless the status quo is changed, of course.
One of the biggest faults with our current export basket is its lack of any diversity. Bangladesh still relies on the RMG sector as the engine of its economy, and while this particular industry has supported our development over the years, it is high time that the administration took measures to minimize reliance on it.
It is also of paramount importance for the administration to have the right provisions and agreements in place with our trade partners in the run up to our graduation. Even the slightest of discrepancies in the fine print can ultimately hurt our economy. The government would also be well advised to learn from the six other nations which have graduated from LDC status over the last 30 years.
Also Read
Bangladesh’s rapid development meant that not enough time was given to us in order to take the necessary steps in mitigating any shocks to our economy. But now that the stage has been set and we are ready to shed our LDC status, we must take all the necessary precautions to ensure that we graduate smoothly.