Bhutan, the picturesque Himalayan nation, celebrated a historic achievement on December 13 by officially exiting the UN list of Least Developed Countries (LDCs). This significant milestone marks Bhutan as the seventh economy to graduate from the LDCs category, joining the ranks of nations that have successfully transformed their economic status.
This accomplishment reflects Bhutan’s remarkable progress in various economic and social indicators.
SEVENTH ECONOMY TO GRADUATE
Bhutan’s achievement places it among a select group of nations that have successfully graduated from the LDCs category. Other nations that have undergone this transformative process include Botswana, Cabo Verde, Maldives, Samoa, Equatorial Guinea, and Vanuatu.
CRITERIA FOR GRADUATION
To qualify for graduation, a country must meet specific criteria related to income levels, human assets, and economic and environmental vulnerability. Bhutan’s successful graduation reflects its progress in these critical areas.
Bhutan’s Impressive Ascent: Sustained GDP Growth, Improved Life Expectancy, and Carbon-Negative Status
Bhutan’s journey to graduation is marked by impressive achievements, including sustained annual real GDP growth of 7.5% since the 1980s. The nation has also witnessed a significant increase in life expectancy, rising from 47 to 68 years. Notably, Bhutan stands as one of the world’s only three carbon-negative nations, absorbing more greenhouse gases than it emits.
UNCTAD’S CRUCIAL SUPPORT
The United Nations Conference on Trade and Development (UNCTAD) played a crucial role in supporting Bhutan’s graduation process. Through technical assistance and policy advice, UNCTAD assisted Bhutan in achieving structural transformation, developing productive capacities, and navigating the complexities of economic development.
POST-GRADUATION CHALLENGES
While celebrating Bhutan’s graduation, UNCTAD underscores the importance of addressing challenges that may arise post-graduation. The potential impact on trade preferences, coupled with the risk of undermining efforts to diversify the economy and exports, requires careful consideration.
FUTURE GROWTH STRATEGIES: UNCTAD CALLS FOR REFORMS AND ONGOING INTERNATIONAL SUPPORT
Looking ahead, UNCTAD emphasizes the need for further reforms to ensure synergy and coherence in Bhutan’s foreign direct investment, industrial, and entrepreneurship policies. Continued international support is crucial to sustaining post-graduation growth, with a focus on development finance, technical assistance, and skills transfer.
Bhutan’s graduation reflects not only past achievements but also the ongoing commitment needed to navigate the next phase of development successfully.
