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Coordinating within the government and with other stakeholders in preparation for graduation is important to ensure all relevant counterparts are well informed and have opportunities to provide inputs to the preparation of the smooth transition strategy. Several line ministries may have responsibilities in areas related to graduation, including (but not limited to) ministries of trade/commerce, foreign affairs, industry, and environment. Here are some examples of how countries have managed this coordination:
- Bangladesh: early in the process, the government established a national task force and a core group of government entities (LDC core group) involved with graduation, designated focal points in different ministries which conducted assessments of impacts within their areas of work, held discussions about graduation in several forums, included the issue of graduation in planning exercises and in the strategy for SDG implementation, and elaborated a project entitled ¡°Support to Bangladesh¡¯s Smooth and Sustainable Graduation from LDC¡± to conduct special studies related to the impacts of graduation, invest in further outreach, and other functions. Different institutions had been approached to analyse issues of particular concern, such as the effect of graduation on TRIPS. It later formed a National Committee on LDC Graduation (NCG) chaired by the Principal Secretary to the Honorable Prime Minister. The Committee involves all relevant Ministries and other organizations from the public and private sectors. It is intended as a platform to support a sustainable graduation with stakeholder involvement. Under its direction, seven thematic subcommittees were formed to address core issues: market access; intellectual property rights; other WTO issues; investment, domestic market development and export diversification; internal resource mobilization and tariff rationalization; smooth transition strategy and branding Bangladesh abroad.
- Vanuatu: In March 2016, the Council of Ministers (COM) endorsed the establishment of a National Coordinating Committee (NCC) comprised of various relevant stakeholders to coordinate the development of a smooth transition strategy. It also created a Secretariat to the NCC to support the process and facilitate consultations with national stakeholders. Vanuatu's smooth transition strategy can be read .
- Bhutan: Bhutan's is preparing for graduation in the context of its 12th five-year development plan. National level consultations were undertaken in the preparation process to discuss, prioritize and build consensus on the socio-economic issues, goals and objectives of the plan. LDC graduation and the SDGs were considered in this context. Comprehensive consultations were carried out between 2016 and 2018 with all levels of government, ministries, sectors, local governments, parliamentarians, communities at the grassroots level across the nation, and all other potential stakeholders including civil-society organizations through participatory planning approaches, processes and engagement. In April 2021 Bhutan created an LDC task force which includes key sectors related to µþ³ó³Ü³Ù²¹²Ô¡¯²õ graduation; Ministry of Finance, Ministry of Economic Affairs, Ministry of Foreign Affairs, National Statistics Bureau and the National Environment Commission.
- Lao PDR: the LDC National Steering Committee, chaired by the Deputy Prime Minister/Minister of Foreign Affairs, manages the graduation process. The Committee includes the ministries of Planning and Investment, Finance, Industry and Commerce, Agriculture and Forestry, Health, Education and Sport, Natural Resources and Environment, Public Works and Transport, and receives support from the Permanent Representatives to the UN in New York and Geneva. A special taskforce was created to support the monitoring of the smooth transition strategy, including, in addition to the above, the Ministry of Labour and Social Welfare, Lao Women¡¯s Union, Lao Statistic Bureau, Development Research Institute.
- Nepal: Nepal created an LDC Steering Committee to provide directions on LDC graduation matters. The committee is chaired by the Vice-Chairperson of the National Planning Commission and includes representatives of line ministries including Finance; Foreign Affairs; Industry, Commerce and Supplies; and Education, Science and Technology. The steering committee also includes non-governmental stakeholders such as private sector organizations. Additionally, the National Planning Commission has a division that coordinates activities related to LDC graduation and liaises with the CDP regarding monitoring.
- Solomon Islands: preparation of the smooth transition strategy was led by the Cabinet with the Ministry of National Planning and Development Coordination. Consultations were held across the government and with provincial representatives, private sector, and development partners.
- Angola: Angola had a National Consultative Committee for LDC Graduation, which it later combined with its Committee on the Sustainable Development Goals so that the graduation roadmap was mainstreamed into the National Plan and budget.
Engagement with trade and development partners is important to secure a smooth transition strategy. Though most development partners continue to support countries after graduation, it is important to anticipate any possible changes, for example in the type of ODA that will be provided after graduation or the terms of concessional finance; and to be able to work with trade partners to mitigate negative impacts from the end of LDC-specific market access schemes.
Institutionally, countries might engage with development and trade partners through existing coordination mechanisms or may decide to establish a specific consultative mechanism related to graduation. For example, Cabo Verde established a specific donor group to support graduation (see below) while Bhutan integrated the issues related to graduation within the mechanisms already established for support from donors to the 12th five-year development plan and the SDGs.
Here are some examples of how countries approaching graduation have engaged with development and trade partners:
- µþ³ó³Ü³Ù²¹²Ô¡¯²õ smooth transition from LDC category is aligned to its five-year development plans. Bhutan maintains regular Round Table Meetings with its development partners. A meeting to take stock of progress on the 12th Five-Year Plan and the SDGs in September 2021 was seen as an opportunity to reinforce partnerships and inform the way forward for the period after graduation. Graduation has also discussed in the context of the annual Country Programme Board (CPB) meetings with heads of Resident UN agencies and Non-Resident agencies. Furthermore, Bhutan has engaged with partners individually. For example, during the 9th European Union-Bhutan Annual Consultations in December 2020, the EU reaffirmed that its assistance
to Bhutan would continue beyond graduation, and encouraged Bhutan to ratify the conventions that would enable them to apply for GSP+. - Samoa graduated from LDC status in 2014. It began working on a smooth transition in 2009. In 2011, it agreed with its development partners on a Joint Policy Matrix, which became the basis for the delivery of aid once graduation became effective. To prevent the abrupt loss of preferential market access under the DFQF (duty-free, quota-free) arrangement granted to LDCs, the government negotiated with some of its export partners including the USA and Japan the continuation of DFQF schemes beyond graduation. Under Everything but Arms, a transitional period of three years was automatically allowed after graduation for access of Samoa¡¯s exports to the EU market. In addition, Samoa continued to receive preferential bilateral market access to Australia and New Zealand. As a small island developing state (SIDS) that faces severe and permanent economic and environmental challenges, Samoa has been actively engaged with the international community and in constant dialogue with its development partners to ensure that any LDC-specific concessions lost as a result of graduation could legitimately be retained on SIDS-specific grounds. Successive reports to the CDP on Samoa's transition are available here and the latest is available here.
- Cabo Verde graduated in December 2007. In preparation for graduation, the Government set up a donor support group (Grupo de Apoio ¨¤ Transi??o - GAT) for the transition, to adjust to the eventual phasing out of the support measures associated with LDC membership. In June 2007, GAT adopted a declaration supporting Cabo Verde¡¯s socioeconomic transformation agenda. Additionally, a budget support group (BSG) composed by the Government and participating multilateral and bilateral donors was created in 2005 to align and harmonize donor support around the Growth and Poverty Reduction Strategy. Cabo Verde benefitted from the normal 3-year transition period for the EU's Everything-But-Arms scheme, and at the end of this period, in 2010, the EU further extended the transition period until January 2012. Cabo Verde is now a beneficiary of the GSP+ scheme. Monitoring reports on Cabo Verde's transition are available here.
- Maldives graduated in 2011. It advocated for the LDC group in issues such as the CDP's monitoring and the WTO TRIPs waiver. It was instrumental in the adoption of a resolution by the General Assembly which extends for a period of three years the support for travel to attend General Assembly sessions. The last monitoring reports for the Maldives is available here (PDF).
Stakeholder consultation, beyond the government and development and trade partners, is important given that graduation may have consequences for exporters that benefit from LDC-specific preferential market access schemes or other trade-related support measures, or organizations that rely on LDC-specific technical and financial assistance. Even when those impacts are not of a scale that puts the country at risk of reversal, it is important to raise awareness and prepare for the changes to come, mitigating the impacts where possible. Stakeholders can help inform the action to mitigate any negative inputs, take advantage of the momentum created by graduation, and define the nature of, and vision behind, the smooth transition strategies.
In preparing for graduation and their smooth transition strategies:
- Bangladesh established stakeholder consultative mechanisms;
- Bhutan held nation-wide stakeholder consultations;
- Lao PDR mapped the stakeholders and involved them in validation of the strategy;
- Nepal collected feedback from stakeholder on a draft strategy during consultations and charged its Implementation and Coordination Committee to engage with stakeholders (along with government entities and development partners) for joint implementation of the strategy;
- Solomon Islands involved provincial stakeholders in the validation of the strategy and in implementation;
- Vanuatu held stakeholder consultations in each of the six provincial centers and involved them in the validation of the strategy.
The relevant stakeholders need to be identified for each country context but could include:
- National, local or sectoral business associations, associations of small and medium enterprises, artisans and traders, chambers of commerce, export associations, and representative entrepreneurs;
- trade unions, workers¡¯ associations or cooperatives, women workers¡¯ associations;
- non-governmental organizations (NGOs) (in particular those working with funding from LDC-specific mechanisms), associations representing specific groups of stakeholders; think tanks and academia.
The General Assembly has encouraged countries approaching graduation to develop a smooth transition strategy. There is no blueprint for smooth transition strategies, but guidance can be found in:
The smooth transition strategy is the responsibility of the government of the graduating country, and should take into account the country's circumstances, priorities, the national development planning cycle and any other relevant plans and programmes. The General Assembly recommends that ¡°the national smooth transition strategy (¡) include a comprehensive and coherent set of specific and predictable measures that are in accordance with the priorities of the graduating country while taking into account its own specific structural challenges and vulnerabilities as well as its strengths¡±. It can include both specific actions to deal with short- and medium-term impacts and broader strategic direction, for example in issues related to productive capacities.
Countries have approached the smooth transition strategy in different ways. Here are some examples:
- In Lao PDR, preparation for graduation, including the formulation of the smooth transition strategy, is being led by the Ministry of Foreign Affairs (MoFA), with whole-of-government contributions, consultations with development partners, private sector and civil society and financial and technical assistance under the United Nations Sustainable Development Cooperation Framework (which includes a specific output on LDC graduation). Formulation of the smooth transition strategy began in November 2021. A number of discussions were held at national, sectoral and provincial levels with involvement of various partners in order to ensure a better understanding of the implications of graduation and to collect views from multiple stakeholders on the specific actions proposed to mitigate the negative impacts of graduation and to leverage emerging opportunities. The Government ¨C Development Partners Coordination Forum, referred to as the ¡°Round Table Process¡± has been a national platform for policy dialogue, monitoring and reporting on the progress of smooth transition strategy development and its implementation. The Lao PDR smooth transition strategy is available here.
- Bangladesh established, in 2019, a National Committee on Graduation (NCG). The NCG had seven thematic subcommittees with membership comprising of government officials, think tanks, academia, private sector, development and trade partners. Preparation of the smooth transition strategy was led by a specific subcommittee, chaired by the Economic Relations Division (ERD) of the Ministry of Finance. The subcommittee had a Joint Task Team (JTT) with government officials, private sector and development partners membership. Inputs to the smooth transition strategy were provided by numerous stakeholders through consultations, workshops, seminars, studies and related policies and strategies. The final smooth transition strategy, issued in February 2025, is available . The document also contains a detailed account of the approach adopted and the process.
- Vanuatu's National Coordinating Committee on LDC Graduation identified actions required to address the negative impacts of the loss of LDC-specific support measures. Some were already considered in the country's national strategic plan and sectoral policies, and others were reflected in a separate smooth transition strategy document.
- µþ³ó³Ü³Ù²¹²Ô¡¯²õ smooth transition out of the LDC category was addressed in the context of its development planning. The planning process in Bhutan involves consultations with various stakeholders, including government agencies, local governments, non-governmental and civil society organizations, the private sector, political parties, development partners, and local governments. Several activities related to a smooth transition took place over the course of Bhutan's 12th five-year national development plan, including a flagship programme to address priority national issues through high-impact activities. In April 2021 Bhutan created an LDC task force composed of representatives of the Ministries of Finance, Economic Affairs and Foreign Affairs, as well as the National Statistics Bureau and the National Environment Commission. The task force was initially led by the Gross National Happiness (GNH) Committee, which was later dissolved. The Office of Cabinet Affairs and Strategic Coordination, under the Office of the Prime Minister, took over its functions. The Committee of Four Coordinating Secretaries (C4CS) under the Office of the Prime Minister and Cabinet took charge of steering the formulation of the , which serves as the smooth transition strategy.
- smooth transition strategywas formulated with the involvement of the three tiers of government (federal, provincial, municipal) and several ministries, as well as development partners (including South-South partners), private sector, civil society, and cooperatives. The institutional framework evolved over the course of the preparation of the strategy, with the creation of dedicated committees. The National Planning Commission (NPC) coordinated activities regarding LDC graduation, under the leadership of the High Level LDC Graduation Steering Committee, chaired by the Prime Minister, and composed by the ministers of Finance, Foreign Affairs and Industry, Commerce and Supply, as well as the Chief Ministers of the Provinces, the Vice-Chairperson and the secretary of the NPC. An Implementation and Coordination Committee, a Monitoring and Evaluation Committee and Province Level Implementation Committees were also created. The strategy, which is harmonized with Nepal's Sixteenth Periodic Plan (2024-2029), aims to overcome challenges due to the loss of LDC-specific support measures on the development trajectory, seize the opportunities of graduation, set the conditions for a more resilient future and pursue strengthened international support to achieve long-term goals (smooth, quality, and sustainable graduation). It identifies policy action under six strategic pillars to address major structural constraints and development challenges, with priority measures, timelines, and responsibilities: macroeconomic stability and fiscal sustainability; trade and investment; economic transformation; building productive capacity; climate change and disaster risk management; and social inclusion and integration.
- Samoa decided that the best transition strategy was to ensure it was able to fully implement its national development strategy. It integrated the issue of graduation into the Strategy for the Development of Samoa (SDS 2016-2020) and into its efforts related to the SDGs, the Samoa Pathway, the Paris Agreement and the Sendai Framework for Disaster Risk Reduction. The CDP's 2021 monitoring report, which contains an update on the smooth transition strategy, can be read here (PDF). See also the 2014 report on Samoa's smooth transition.
