No reason to postpone Bangladesh's LDC graduation in 2026: Debapriya
"The government can apply for a postponement only if there is any economic catastrophe," says the head of the White Paper committee
Bangladesh has fulfilled three conditions for graduating from the Least Developed Country (LDC) status, so there is no reason to postpone the country's graduation to a developing country, said Debapriya Bhattacharya, head of the committee on White Paper on State of the Bangladesh Economy, today (2 December).
Addressing a press conference organised by the committee at the planning ministry in Dhaka's Agargaon, he said, "Analysing statistics, we have seen that Bangladesh is above all the benchmarks for LDC graduation. So, there is no reason to postpone the graduation.
"The government can apply for a postponement only if there is any economic catastrophe."
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"A section of traders, who have been enjoying the benefits of duty-free exports, want to enjoy these facilities forever. We have seen their role in the last 15 years as well," said the prominent economist.
Dr Debapriya also said, the banking sector has seen the most looting. Second is physical infrastructure with 30 to 40% theft, third is the energy sector, and then there was a lot of looting in the ICT sector.
If the economic structure is not developed, the interim government's political-institutional reform initiatives may fail, he added.
He has emphasised the need for a two-year medium-term economic plan to strengthen global confidence.
Dr Debapriya underlined the urgency of rebuilding international confidence through transparency and actionable reforms.
"The next six months are critical," he cautioned, highlighting the necessity of establishing a clear roadmap ahead of the formulation of the next national budget. "This is a pivotal moment to translate intentions into tangible progress," he added.
Positive steps taken by the interim government to overcome the economic crisis are not being implemented; the government must be held accountable, said Debapriya Bhattacharya.
He also recommended holding a development forum with foreign lenders, investors and development partners.
Speaking at the briefing, White Paper Committee member Imran Matin also said 85% assets of the country are controlled by only 10% of the population.
If those above the poverty line abstain from work for two days a week, the poverty rate will double, he added.
Dr Mustafizur Rahman, member of the White Paper Preparation Committee, said, "Just saying we are trying is not enough. Rather, the government must work more responsibly. A clear message must be presented to the people about where economic reforms will take the value of money and inflation."
The fact that we have fallen into the middle-income trap is not being detected due to data discrepancies, said Dr Zahid Hossain.
Establishing a Data Commission
Dr Debapriya proposed forming a data commission to systematically evaluate and manage the country's statistical information. Until such a commission is established, he suggested relying on existing data, which indicates that Bangladesh meets all criteria for LDC graduation.
"If we fail to graduate from the LDC category next year, it may spark narratives questioning the nation's progress. Critics could argue that a strong foundation was left behind, only for the country to falter within two years," he said, stressing that there is no valid reason for Bangladesh to remain in the LDC group.
While the recommendations offer a comprehensive reform blueprint, Debapriya expressed cautious optimism about their implementation. "Only time will tell if the government will adopt our suggestions," he remarked, reflecting on the uncertain trajectory of the proposed measures.
Guide for Reform
The white paper, grounded in extensive research and collaboration, serves as both a critique and a roadmap. It examines systemic issues like corruption, inefficiencies, and institutional weaknesses, aiming to enhance transparency, accountability, and sustainable development in Bangladesh.
"This document is not just a critique but a guide. It seeks to instil confidence among citizens and international partners. Now is the time for the government to move beyond promises and deliver concrete reforms," Debapriya added.
The committee, formed on 28 August, was given three months to prepare the report, which aims to provide a clearer picture of the economy plagued by years of mismanagement and distorted data.
The committee, yesterday (1 December) submitted the 400-page document to Chief Adviser Professor Muhammad Yunus at his Tejgaon office in Dhaka.
According to the White Paper, during the 15 years of Sheikh Hasina regime, project costs rose by an average of 70%, and completion delays exceeded five years. Of the $60 billion invested in development projects through the Annual Development Programme (ADP), an estimated $14–24 billion (Tk1.61–2.80 lakh crore) was lost to corruption, including political extortion, bribery, and inflated budgets.
The White Paper report identifies widespread misappropriation of funds during land acquisitions and the appointment of politically favoured project directors as key factors undermining the efficiency of infrastructure and social investments.
