Bangladesh is scheduled to graduate from the category of Least Developed Country (LDC) in November 2026. This significant transition follows the country’s fulfillment of all three required criteria for graduation, assessed triennially by the United Nations Committee for Development Policy (CDP): Gross National Income (GNI) per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI). These indicators evaluate economic health, human development, and resilience to external shocks. Bangladesh first met these criteria in 2018, and again in February 2021, securing the final recommendation for graduation from the LDC category—a status it has held for 46 years.
Bangladesh has achieved several key strategic milestones in its development journey. In 2015, the country successfully met the Millennium Development Goals (MDGs), followed by the realization of Digital Bangladesh in 2021. Looking ahead, Bangladesh aims to attain Upper Middle-Income Country status by 2030 and to establish a SMART Bangladesh by 2041. Additionally, the Delta Plan 2100 focuses on leveraging the Blue Economy to position Bangladesh as a major global trade player by the end of the century. These milestones not only highlight the country’s achievements but also lay the foundation for navigating the post-LDC scenario.
As Bangladesh moves toward its official LDC graduation in 2026, the nation faces both transformative opportunities and critical challenges. The graduation marks a commendable leap forward, driven by sustained economic growth and significant developmental strides, including advancements in the Information and Communication Technology (ICT) sector under Vision 2041. However, transitioning into developing-country status will alter the dynamics of international aid, trade preferences, and economic policies. It is therefore crucial for Bangladesh to recalibrate its strategies—especially to protect and accelerate the growth of the ICT sector.
Understanding the Post-LDC Landscape Graduation from LDC status brings an end to several international concessions that previously supported the growth of emerging industries. These include exemptions under various World Trade Organization (WTO) agreements that granted competitive advantages. For the ICT sector—one of the pillars of Bangladesh’s development strategy—this shift requires a strong and adaptive framework to withstand intensified global competition and fewer trade benefits.
Strategic Vision and Economic Projections
Bangladesh’s long-term visions have provided a strong foundation for sustained economic growth. The Digital Bangladesh initiative (2021), the target of upper-middle-income status (2030), and the SMART Bangladesh vision (2041) reflect pragmatic and forward-looking economic planning. Projections indicate that by 2050, Bangladesh is expected to become the 23rd largest economy in the world, highlighting its growing strength and strategic relevance in the Asian market.
The ICT sector has played a pivotal role in this progress. In the fiscal year 2022–23, Bangladesh reported a GDP growth rate of 6.03%, with ICT serving as a major growth driver. The government has set an ambitious target to increase ICT exports from US$1.8 billion to US$5 billion by 2029—a goal that will require coordinated policy support, improved competitiveness, and enhanced innovation.
New Challenges in the Post-LDC Era
1. Intellectual Property and Innovation
The post-LDC transition will require stronger intellectual property (IP) protection to foster innovation and safeguard technological advancements. Incidents such as the cracking of the Bijoy keyboard underscore the urgent need for more robust IP laws, enforcement, and dedicated research and development (R&D) funding to support homegrown innovations.
2. Global Market Integration
As global competition intensifies, Bangladesh must ensure deeper integration with international markets. This includes upgrading ICT product quality, adhering to global standards, and developing capacity in high-demand domains such as cybersecurity, data analytics, artificial intelligence, and cloud computing.
3. Trade Policy and Market Access
Post-graduation, Bangladesh will lose several preferential trade arrangements. Therefore, negotiating new trade agreements—reflecting the country’s developing-country status—will be essential. Securing market access for ICT products will depend on Bangladesh’s ability to leverage its economic and geopolitical strengths.
4. Sectoral Reforms for Competitiveness
Reforms in customs, the judiciary, and technology-related regulatory systems are necessary to support ICT sector growth. Reducing bureaucratic delays and improving operational efficiency will help attract foreign investment and strengthen global partnerships.
A Roadmap for Sustainable Growth
International Branding and Collaboration
To stay competitive, Bangladeshi ICT companies must strengthen international alliances, which will support global branding, reduce production costs through economies of scale, and enhance market reach.
Revamping Trade Policies
Bangladesh must renegotiate trade agreements to secure favorable terms that support strategic industries. A resilient trade policy framework is essential to remain competitive in global markets.
Innovation and R&D Investments
Increased investment in research and development is critical. Innovation-driven growth will help Bangladesh develop advanced technologies and diversify its ICT product portfolio.
Developing a Skilled Workforce
A future-ready ICT sector requires a highly skilled workforce. Training must expand to include technical expertise, global market knowledge, and a strong understanding of IP rights and international trade regulations.
Cybersecurity and Public Awareness
As digital adoption increases, cybersecurity becomes a national priority. Public education on cyber risks and protection mechanisms is essential to safeguard both individuals and businesses.
Conclusion
Bangladesh’s impending LDC graduation marks a historic milestone—one that brings new challenges but also tremendous opportunities. With strategic planning, investment in technology and human capital, and strong policy support, Bangladesh can transform these challenges into drivers of innovation and economic expansion. A collaborative national effort—across government, industry, and society—will be vital to ensuring that the ICT sector not only adapts to the post-LDC environment but emerges stronger than before, contributing to a prosperous and technologically advanced future.
28 April 2024
M. Rashidul Hasan
CEO and Managing Director, Systech Digital
Published in The Financial Express