The United Nations has formed a special working group to reassess and enhance its assistance framework for countries moving out of the least developed country (LDC) status. Bangladesh and Nepal are awaiting a decision on their requests for a postponement of their graduation.
The newly established “Working Group on Smooth Transition for Graduating LDCs” will be overseen by the permanent representatives of Angola and Finland, as outlined in a recent declaration during the 81st United Nations General Assembly (UNGA).
This group is tasked with conducting a thorough evaluation of current provisions and support mechanisms, including those outlined in the Doha Programme of Action, such as the Sustainable Graduation Support Facility (iGRAD), and other relevant areas related to a seamless transition, per the UN.
Its responsibilities include analyzing the repercussions of graduation, especially the effects of losing LDC-specific international support mechanisms, drawing insights from country experiences and existing evaluations.
Moreover, the group will pinpoint the obstacles faced by countries transitioning out of the LDC category and their development partners in formulating, planning, and executing effective transition strategies.
Bangladesh, Nepal, and Cambodia are set to graduate from the LDC category by the end of November this year. However, both Bangladesh and Nepal have requested a deferral of their graduation.
Officials present at the UNGA sessions mentioned that the requests are being reviewed, and a decision could be reached by the General Assembly this month.
The ministerial declaration highlighted that LDCs could gain substantial advantages from a universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory, and fair multilateral trading system under the World Trade Organization.
It expressed worries about the increasing threats to the multilateral trading system, citing a global rise in trade restrictions, including tariffs that are not in line with WTO regulations, principles, and obligations, amidst escalating trade tensions and stalled multilateral talks.
