Bangladesh likely to graduate from LDC group by 2025, UNCTAD says

DHAKA, Bangladesh, July 18 (BSS) - Bangladesh is expected to graduate from the LDC group by 2025 if it could sustain its GDP growth from 6.5 to 6.7 percent per year, an United Nations Conference on Trade and Development (UNCTAD)report said.

The report titled "the least developed countries report-
2008" on the growth, poverty and the terms of development
partnership was published today simultaneously around the globe.

According to the report, Bangladesh has been ranked first in
terms of remittances earnings and second in export performance
among 50 Least Developed Countries (LDCs) during fiscal 2005-06.

The report observed that Bangladesh performance is well in
terms of GDP growth and relatively less dependent on aid compared
of other LDCs. "But the overall resource gap remains weak
compared to other developing countries", it said.

Out of 50 LDCs, the report observed, only 19 countries
achieved more than 6 percent real GDP growth in 2005-06 while
Bangladesh has been raked 15th with a growth rate of 6.5 percent.

The overall economic growth rate in LDCs averaged 7.7
percent in 2005-06, the highest in 30 years due to rapid
population increase and other factors, the report said.

The LDC category was established in 1971 and since then only
two countries- Botswana in 1994 and Cape Verde in 2007 have
graduated from the category.

A total of 50 countries were designated as LDCs in 21
December 2007 based on low income, human assets and economic
vulnerability.

Terming the food security crisis across the globe as the most
threat to the LDCs, the report said, the record growth of the
LDCs might not be sustainable as the LDCs have to expend more
money to ensure food security in the coming years.

The UNCTAD report said the aid constituted over 10 percent of
GDP in 14 countries while Bangladesh constituted only 1.7 percent
of real GDP in 2006.

The report recommended formulating a renewed Aid Management
Policy (AMP)to reduce transaction costs and strengthening state
capacities for effective use of foreign aid.

The UNCTAD report pointed out that Bangladesh has been one
of the most successful LDC country in terms of poverty reduction
strategy paper(PRSP) and its PRSP is the most technically
sophisticated among those of other countries.

By 2025, Bangladesh could achieve millennium development
goals (MDG) on primary education, child mortality, access to
sanitation, the report said noting that LDCs are generally off
track to achieve a few MDGs.

Based on the UNCTAD report, Centre for Policy Dialogue (CPD)
said Bangladesh has a chance to upgrade itself from the LDC
status by 2025 by increasing its productive capacity.

" Bangladesh policy should start at the development end
rather than the trade end, of the relationship between trade and
development to achieve the goal", said CPD Executive Director Dr
Mustafizur Rahman in a press conference held at its office in the
city.