The impacts of LDC graduation on the Bangladesh RMG industry and proposing approaches for long-term sustainability: a review

Abstract

This study explores the effects of Bangladesh's upcoming exclusion from the list of Least Developed Countries (LDCs) and how that will affect the Ready-made Garments (RMG) sector. The graduation of Bangladesh from LDC status in 2026 will be a crucial step in the socioeconomic development of the nation and will support its larger developmental objectives. In order to maintain the RMG industry's growth and competitiveness in the post-LDC period, the study evaluates the opportunities and challenges presented by this transition and suggest ways for doing so. The introduction of the paper places Bangladesh's historical path to graduation in a historical context and emphasizes the socioeconomic importance of this accomplishment. Specifically focused on the impact on trade preferences, preferential market access, and the loss of subsidy programs, it tackles the several repercussions of losing international support measures (ISMs) upon graduation. The study focuses on the possible risk of preference erosion in important export markets, which could have a substantial impact on Bangladesh's economy's RMG sector. The study uses a thorough desk review of secondary data collected from a variety of sources, including UN databases, trade associations, and governmental agencies. The study synthesizes key ideas from academic literature, policy documents, and expert perspectives. It further emphasizes the requirement for technological advancement and talent development within the RMG industry in order to guarantee continued growth, improved productivity, and market diversity. The study analyzes several obstacles and suggests a number of solutions for successfully navigating the post-LDC context. These suggestions include pursuing bilateral and multilateral trade agreements, participating in regional trade agreements, diversifying export goods, improving technological adoption, and promoting compliance with international standards. The report also emphasizes how crucial it is to maintain legislative measures for sustainable industrial development, such as the creation of backward connection industries. The possibility for Bangladesh to turn obstacles into opportunities and achieve long-term economic progress is reiterated in the paper's conclusion. By using its assets, overcoming challenges, and actively participating in different international forums, Bangladesh will accomplish its goal of being a developed nation by 2041. The study offers a thorough framework for tackling the various effects of LDC graduation and assuring the long-term expansion and competitiveness of the RMG sector.