Towards Sustainable Graduation of South Asian LDCs in the aftermath of COVID-19: Challenges, Prospects and Policy Lessons - UNESCAP Policy Brief

Prepared as part of the UNESCAP Framework on Socio-Economic Response to COVID-19, and also under UNESCAP’s mandate for supporting countries with special needs in the Asia-Pacific region, this paper points out that South Asian LDCs have important avenues and options to enhance preparedness for graduation, utilizing the transition period, through focused planning, domestic institutional reforms, strong governance, continual pursuit of economic diversification and structural transformation, building public and private capacities, expansion and diversification of trade structures, infrastructural and technological upgradation, consolidating and securing development financing sources, and by harnessing global partnerships for development. While expected loss of access to trade-related ISMs raises certain concerns, particularly for Bangladesh and Nepal, policy recourses at various fronts can be potentially employed to protect trade interests.