LDC graduation demands urgent structural reforms: Selim Raihan

Bangladesh’s smooth transition from Least Developed Country (LDC) status in 2026 requires urgent structural reforms, Sanem Executive Director and University of Dhaka Professor Selim Raihan has said, cautioning that delays in policy action could weaken the country’s long-term competitiveness.

Raihan emphasised that graduation should be taken as an opportunity rather than a burden, and that the three-year extension period if granted must be used purposefully, with clear sequencing and prioritisation of actions under Bangladesh’s Smooth Transition Strategy (STS).

He made the remarks at a discussion event titled ‘Bangladesh’s Economic Transition: Trade, Competitiveness, and Structural Reform’ held yesterday (12 April) at BRAC Centre Inn in Dhaka, reads a press release.

The South Asian Network on Economic Modeling (Sanem) and the Department of Foreign Affairs and Trade (DFAT) of the Australian Government organised the event.

Raihan said Bangladesh’s trade and industrial policies remain misaligned, with trade policy largely reactive and tariff-focused while industrial policy relies on fragmented incentives. He warned that this disconnect has constrained diversification and slowed movement up global value chains.

He further underscored vulnerabilities ahead of LDC graduation in 2026, noting structural weaknesses in fiscal space, institutional capacity and export concentration.

On the leather sector, he pointed to environmental and governance failures, including the stalled Savar CETP, which have prevented value addition and global certification access.

Raihan also said the cost of inaction would be a gradual erosion of competitiveness, resilience and opportunity, urging coordinated policy alignment for sustainable transformation.