United Nations Committee for Development Policy (CDP)
Part of: GS Prelims and GS-II- International Relations
In news:
The United Nations Committee for Development Policy (CDP) has recommended Bangladesh to be removed from the category of Least Developed Country (LDC).
Key takeaways
Bangladesh has fulfilled the eligibility criteria in terms of per capita income, human assets and economic and environmental vulnerability.
This is the second consecutive time since 2018 that the CDP has made recommendation for Bangladesh.
The CDP decides on the LDC status of a country based on three criteria- (1) per capita income; (2) human assets index and economic vulnerability index.
A country must achieve at least two of the three criteria at two consecutive triennial reviews to be considered for graduation.
The proposal will be sent to the United Nations Economic and Social Council (ECOSOC) for endorsement in June to be finally approved by the UN General Assembly (UNGA) in September 2021.
Impacts: (1)Preferential provisions in export, provision of subsidy to agriculture and infant industries and access to climate finance are likely to stop after transition from LDC; (2) enhanced confidence of international financial bodies, improved credit rating and higher FDI are expected to benefit Bangladesh after the transition period is completed.
Important value additions
The Committee for Development Policy
It is a subsidiary body of the United Nations Economic and Social Council (ECOSOC).
Function: To provide independent advice to the Council on development policy issues.
The Committee is also responsible for deciding which countries can be considered least developed countries (LDCs).
The Committee has 24 members, nominated in their personal capacity by the United Nations Secretary-General and appointed by ECOSOC for a period of three years.
Do you know?
Bangladesh will get time upto 2026 to prepare for the transition to the status of a developing country.
Usually countries are given three years for transition but this year due to the Corona pandemic, Bangladesh has been given five years for the process.
