The new government’s move to seek a three-year deferment of Bangladesh’s graduation from the Least Developed Country (LDC) category is, on the face of it, a prudent decision, one that numerous business leaders had been speaking of for years.

While the allure of graduation is undeniable and signals to the world that Bangladesh’s economy is moving up, the reality is that graduation would also mean the loss of preferential trade benefits that have long sustained our export economy. With an increasingly volatile world, the caution is understandable.

Businesses have repeatedly warned of the risks, and a deferment does buy our country some time, potentially to strengthen competitiveness, diversify exports, and prepare industries for a harsher global marketplace.

With that said, prudence cannot mask the uncomfortable truth: Bangladesh’s lack of readiness for graduation is a bad look. Bangladesh has met all UN criteria for graduation, showing resilience and progress. However, this desire for deferment underscores what Bangladesh has long struggled with: The gap in planning and execution. 

Despite the prudence of the decision, questions arise as to why the previous interim government did not flag the challenges the country would face after graduation. Moreover, such a hesitation now risks projecting Bangladesh as a nation reluctant to embrace the responsibilities of its own progress.

As such, while the potential deferment would be a shield and cushion the economy from immediate shocks, it must also be seen as a setback because it delays our ambitions of moving up the ladder of development. 

We are a country that has been aspiring to middle-income status and beyond, and as such, the optics of postponement are troubling. If the delay is indeed necessary, we leave no room for further errors in planning and must prepare decisively. 

Strategic caution is necessary, but ambition demands readiness as well. Economic progress comes with its share of responsibilities and challenges and cannot be postponed indefinitely.