Abstract
Bangladesh's Economic Diplomacy Dealing with post LDC challenges
Graduation from the Least Developed Country (LDC) group to developing country status will
be considered a great achievement in our development journey, and it will definitely improve
Bangladesh's image on the global stage. Though Bangladesh has to face difficulties to keep
up with the progress of economic development as it depends on aids, gsp preferences,
concession on tariff etc.
Challenges
We must keep in mind that trade is a key tool for growth that has led to globalisation.
However, once we have graduated to a developing country, we will confront certain
difficulties in this area. For example, we will no longer be able to export duty-free and
quota-free to European Union countries, and will face charges and diminished export
incentives. Importers of Bangladeshi goods may additionally tighten rules on trade-related
intellectual property rights (TRIPS). Foreign aid (from bilateral and multilateral sources) may
become more difficult to obtain, and some importing countries may refuse to accept export
subsidies and monetary support. Bangladesh was once a "International Development
Association (IDA) only" country, and we borrowed from the World Bank on more difficult
terms. After graduation, the advantages of being an IDA-only country will wane. Other
multilateral aid institutions will undergo similar transformations. Bangladesh must seek out
free trade agreements, such as the one that exists between Vietnam and the European
Union. We'll also need to make better and more efficient use of our economic zones and
export processing zones (EPZs), ideally by diversifying exports.
Diplomacy to overcome challenges
Bangladesh's recent move toward securing bilateral and regional free trade agreements to
compensate for the loss of preferential market access is, incidentally, a welcome step.
Graduation's good impact is unquestionably an alternative to special treatment. Bangladesh
must also pursue negotiations for preferential market access under the South-South
cooperation clauses. Bangladesh will have to navigate the shift with caution so that it may
embrace its new position with gusto. While it must maintain current development, it must
also generate enough dynamism to "graduate with a momentum" in order for the graduation
to be sustainable. The authorities must devise a strategy for addressing the issues that the
country will face after graduation throughout the next five years of transition. The most
crucial task would be to offset the negative effects of ISM withdrawal while the government
works to seek a two-year grace period from the international community.
Conclusion
It might be prestigious to get out of LDC countries but Bangladesh has to face lot of
difficulties to adapt with the post LDC period. Bangladesh needs to prepare themselves for
the upcoming challenging making negotiations, creating opportunity for bilateral treaties and
so [Link], it needs to shift its production and labor power to different dimensions to
maintain development growth.