Bangladesh status changed to a developing nation
7th Dec, 2021
The country Bangladesh has transitioned from a less-developed country (LDC) to a developing nation status.
What is LDC?
- The LDC classification was introduced by the UN in 1971 to identify countries that are “deemed highly disadvantaged in their development process, for structural, historical and also geographical reasons".
- LDCs are thus specially designated as those that “are in need of the highest degree of attention from the international community" as they represent the members of the international community that face the “risk of deeper poverty and remaining in a situation of underdevelopment".
- The LDC category identifies countries faced with crushing developmental challenges.
What are developing countries?
- There are no WTO definitions of “developed” and “developing” countries.
- Members announce for themselves whether they are “developed” or “developing” countries.
- However, other members can challenge the decision of a member to make use of provisions available to developing countries.
- A developing country is also known as a low and middle income country (LMIC).
- It is less developed than countries classified as “developed countries” but these nations are ranked higher than “less economically developed countries.”
- These countries are characterized by:
- being less developed industrially
- widespread poverty
- low education and literacy levels
- government corruption
- a lower Human Development Index when compared to other countries
- health risks such as having low access to safe water, as well as sanitation and hygiene problems
- The India-Bangladesh CEO Forum will meet soon for the first time, even as the two countries work towards finalising a Comprehensive Economic Partnership Agreement (CEPA) to deepen trade and economic ties as partners rather than competitors.
- India highlighted that improving connectivity is “imperative” for expanding and realising the potential for bilateral trade and investments.
- Bangladesh is India’s biggest trade partner in South Asia with a volume of over $10 billion.
- India has sent over one crore COVID-19 vaccine doses to the country and has extended concessional credit lines of about $8 billion, the highest for any single country.
- A bilateral textile industry forum has also been constituted to facilitate cooperation in the textile sector.
- India is also developing two Indian economic zones at Mirsarai and Mongla.
- India has identified five focus areas that could strengthen bilateral economic ties: