UN body leaves Bangladesh’s LDC graduation extension request to General Assembly

The United Nations Economic and Social Council (Ecosoc) has referred Bangladesh's request to postpone its graduation from least developed country status by three years to the UN General Assembly without making any specific recommendation on the matter.

At a meeting yesterday (21 July), the 54-member body unanimously decided to forward Bangladesh's request for an extension of the preparatory period for its graduation to the General Assembly for a final decision, according to a press release issued by Bangladesh's Permanent Mission to the UN.

Bangladesh is currently scheduled to graduate from least developed country status on 24 November this year. Citing the domestic political transition and external economic pressures stemming from the wars in Iran and Ukraine, Prime Minister Tarique Rahman had earlier urged the UN Committee for Development Policy (UNCDP) to defer the country's graduation by three years.

Although a crisis assessment by the UNCDP confirmed that Bangladesh continues to meet all three graduation criteria – per capita income, economic vulnerability, and human assets – it acknowledged the request from the head of government and advised Ecosoc that a shorter extension by the General Assembly would be appropriate.

In its recommendation, the UNCDP stated: "The Committee is of the view that an extension of the preparatory period by the General Assembly would be appropriate."

Ecosoc stops short of endorsing extension

According to officials from the finance and commerce ministries, Ecosoc had the opportunity to discuss the matter and make its own recommendation to the General Assembly after receiving the UNCDP's assessment. However, the council opted instead to forward the committee's report without adding any specific recommendation of its own.

As a result, the officials believe that the preparatory period for Bangladesh's LDC graduation may be extended for a "shorter period". In this context, they clarified that a shorter period refers to a duration less than the three years anticipated by Bangladesh.

Several officials from the Economic Relations Division and the commerce ministry, speaking on condition of anonymity, said Bangladesh had expected stronger backing from Ecosoc. They warned that the absence of an explicit recommendation could prompt some member states to raise questions when the issue reaches the General Assembly.

"One option available to Ecosoc was to recommend the extension and present arguments in support of it. However, the 54-member body did not do so, which may cast doubt on Bangladesh's expectation of securing a three-year extension," one official said.

Bangladesh and Nepal seek delay

Bangladesh, Nepal and Laos are all scheduled to graduate from least developed country status this year. Following Bangladesh's request for a delay, Nepal also submitted a similar application.

Addressing the Ecosoc meeting, Bangladesh's Permanent Representative to the United Nations, Ambassador Salahuddin Noman Chowdhury, outlined the rationale for extending the preparatory period by three years on behalf of Bangladesh and Nepal.

He argued additional time was essential to ensure a smooth, sustainable and resilient transition from least developed country status.

According to the press release, the ambassador said that if the General Assembly approved an extension, Bangladesh would use the additional time to implement necessary policy measures and reforms and strengthen its preparations for the post-graduation period.

Laos presses ahead with graduation

Unlike Bangladesh and Nepal, landlocked Laos is set to graduate this year despite facing significant economic challenges.

The country, which has a population of about 80 lakh and a per capita income of $2,150, has an economy largely dependent on mineral resources, hydropower and agriculture. Although Laos remains one of Southeast Asia's poorest countries and continues to grapple with high inflation and external debt pressures, its economy has recently shown signs of recovery, with growth reaching about 5%.

Laos has also leveraged its hydropower capacity to export electricity on a large scale to neighbouring Thailand, Vietnam and China, making power exports one of its principal sources of income.