Bangladesh must enhance quality standards and align with international norms to maintain export competitiveness in the post-LDC (Least Developed Country) graduation period, according to the ‘Smooth Transition Strategy’ (STS), the national strategy paper on LDC graduation.
The strategy highlights that the country’s current economic model, reliant on export-oriented garments and a protected import-competing sector driven by low wages and minimal regulations, has reached its limits. A shift towards "high-road economic development" is imperative for the next phase of structural transformation.
The major features of the strategy were shared during the ‘Validation Workshop on Bangladesh’s National Smooth Transition Strategy’ held on Sunday in the capital.
Economic Relations Division (ERD) and United Nations Department of Economic and Social Affairs (UN DESA) jointly organised the workshop.
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The major features of the STS were presented at the ‘Validation Workshop on Bangladesh’s National Smooth Transition Strategy’ held in Dhaka on Sunday. The event was jointly organized by the Economic Relations Division (ERD) and the United Nations Department of Economic and Social Affairs (UN DESA).
Key attendees included Finance Adviser Dr. Salehuddin Ahmed as the chief guest, along with prominent figures such as Special Envoy on International Affairs to the Chief Adviser Lutfey Siddiqi, Principal Secretary M Siraz Uddin Miah, Principal Coordinator (SDG) Lamiya Morshed, and UN Resident Coordinator in Bangladesh Gwyn Lewis.
The workshop also featured Taffere Tesfachew, Member of the UN Committee for Development Policy, as the Guest of Honour. ERD Secretary Md. Shahriar Kader Siddiky chaired the event, emphasizing collaborative efforts for the effective implementation of the STS.
Speaking on the occasion, Finance Adviser Dr. Salehuddin Ahmed emphasised on increasing productivity, ensuring decent working environment and adopting new technology to prepare the country for LDC graduation.
He also accentuated the need for ensuring equitable and inclusive growth to make LDC graduation sustainable.
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Special Envoy on International Affairs Lutfey Siddiqi said that Bangladesh’s journey towards LDC graduation also gives credence and thrust to the reform agenda of the interim government.
Principal Secretary M Siraz Uddin Miah put emphasis on easing the business environment, facilitating the customs procedure, and enhancing productivity through technological upgradation and skill enhancement to increase the competitiveness of the local products.
Principal Coordinator (SDG) Lamiya Morshed said that the Smooth Transition Strategy can set the stage for aligning Bangladesh’s LDC graduation roadmap with the SDGs implementation process.
ERD Secretary Md. Shahriar Kader Siddiky, in his speech, emphasised on the collaborative efforts of all the relevant stakeholders for effective implementation of STS.
Member of the UN Committee for Development Policy and the Rapporteur for Bangladesh Taffere Tesfachew said that Bangladesh can be a role model for other LDCs.
UN Resident Coordinator in Bangladesh Gwyn Lewis said that the opportunities of LDC graduation can be maximized by creating an enabling environment for businesses, improving productive capacity, increasing investment in human capital, and complying with international standards.
Additional Secretary of ERD and the Project Director of SSGP A.H.M. Jahangir delivered the welcome remarks of the event.
President of Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) Syed Nasim Manzur and the Chief Representative of JICA Bangladesh Ichiguchi Tomohide joined the workshop as panel discussants.
During the workshop, the national consultant for STS Dr. M.A. Razzaque delivered a presentation highlighting the various aspects of the final draft of the STS.
Bangladesh is scheduled to graduate from the LDC status on November 24, 2026 following a five years’ preparatory period.
It is recommended by the United Nations that a graduating LDC should prepare a national Smooth Transition Strategy (STS) during the preparatory period in cooperation with its development and trading partners and with targeted assistance from the UN system.
Accordingly, Bangladesh recently started the process of STS formulation in collaboration with UN DESA. As part of this process, the validation workshop was organised to share and validate the final draft of the STS as well as the associated action plan with the relevant stakeholders and to receive their feedback and recommendations.
STS focuses on five strategic pillars. These are 1) ensuring macroeconomic stability, 2) securing trade preferences and favourable transition measures, 3) promoting export diversification and competitiveness, 4) building productive capacity, and 5) fostering partnerships and international cooperation.
It incorporates a time-bound action plan designed to ensure a smooth transition, prioritising and expediting the implementation of necessary reforms to achieve sustainable graduation.
To make the most of the new opportunities to be created by LDC graduation, STS has also put emphasis on enhancing productivity, investing in skills development, fostering innovation, adopting sustainable business practices, and achieving inclusive growth.
It has also called for rationalization of the current tariff structure, creating a level playing field for all exporters and intensely engaging with the major trading partners for securing trade preferences for an extended period.
Representatives from various government ministries and divisions as well as representatives from the private sector, think tanks and civil society organisations participated in the workshop.