STEPPING INTO THE FUTURE: BANGLADESH'S PREPARATION FOR MIDDLEINCOME COUNTRY STATUS

Abstract

Bangladesh, a promising Lower Middle-Income Country, is poised to graduate from the status of Least Developed Country (LDC) by 2021, a significant milestone coinciding with the nation's golden jubilee of independence. The criteria for graduation include indicators such as gross national income (GNI), Human Assets Index (HAI), and the Economic Vulnerability Index (EVI). The process of graduation holds economic implications, affecting a country's image, credit ratings, and investor perceptions. However, it also entails risks, including the withdrawal of international support measures, reduced preferential market access, and complications related to TRIPS agreements. Once a country enters the graduation track, it becomes an irreversible path. Bangladesh, therefore, requires robust international support in terms of knowledge, technologies, and capacities to navigate this transition successfully.

To facilitate a smooth transition from LDC to Middle-Income Country (MIC), the Bangladesh government must implement necessary measures to adapt to the changing economic landscape. Despite facing challenges, Bangladesh exhibits significant growth potential, with a fast-growing economy and average annual growth rate of 7% over the past decade. The country has already surpassed the graduation thresholds for both the Economic Vulnerability Index and the Human Asset Index. Moreover, it met the graduation threshold for Gross National Income per capita before the recent triennial review conducted by the United Nations in 2018.

This study contributes to the ongoing debate surrounding Bangladesh's graduation status. By addressing research questions regarding the country's current economic status as a middle-income country after graduation from LDC, as well as the challenges and potential pathways for sustainable graduation, this research aims to provide clarity on the classification of Bangladesh. The article reviews relevant literature