The development turnaround in Nepal and Bangladesh is an inspiring story for South Asia

News: The United Nations General Assembly has adopted a historic resolution to include Bangladesh, Nepal and Laos in the list of developing countries from the category of the least developed countries.

What are the criteria to qualify in the developing countries’ category?

Countries must meet at least two of the below criteria in order to qualify for inclusion in the developing countries’ category.

– Per capita Gross National Income of $1,018 and above.

– A high score of 60 on the Human Assets Index, which includes a health index and education index.

– A low score of 36 on the Economic & Environmental Vulnerability Index.

What are the pros and cons of this move?

Negative implications

– Disruption in a country’s development: As an LDC, a country gets trade related concessions including market access, and development assistance, technical assistance and special pathways to participate in international processes.

But when such benefits are withdrawn suddenly on account of a country’s development from LDC to Developing country status, it could impact its growth.

Positive implications

The inclusion of Nepal and Bangladesh as developing countries, plus the scheduled graduation of Bhutan in 2023, are all positive developments for the South Asian region.

The improvement in the economic and social prospects of the people of a country can benefit other nations, particularly those in its neighbourhood.

What protections have been given to Nepal and Bangladesh to ensure they don’t slip back to LDC status?

Graduating countries such as Nepal and Bangladesh are given a transition period during which most of the benefits available to LDCs remain available to graduating countries.

Usually, the transition period is three years, but this time, in view of the economic, social and other disruptions caused by Covid-9, the UN General Assembly has taken the right step by giving five years.

Source: This post is based on the article “The development turnaround in Nepal and Bangladesh is an inspiring story for South Asia” published in Indian Express on 29th Nov 2021.