February 27: The United Nations Committee for Development Policy (CDP) has recommended for Nepal’s graduation from the Least Developed Country (LDC) category with preparatory period of five years.
This means that the graduation of Nepal would be effective in 2026.
The CDP’s triennial review that concluded on Friday made this recommendation after Nepal had met the criteria for graduation for three consecutive reviews.
Issuing a statement on Friday, the Permanent Mission of Nepal to the UN said that out of three indices which the CDP considers while deciding on the question of graduation – GNI per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI), Nepal met the thresholds for the latter two, thus being eligible for graduation.
According to the statement, the normal preparatory period of three years has been extended to five due to the extraordinary challenges posed by the COVID-19 pandemic and based on the request of the Government of Nepal.
In addition to Nepal, Bangladesh and Lao People’s Democratic Republic have also been recommended for graduation by the CDP.
Though Nepal had met the graduation criteria for the first time in 2015, the CDP in its 2018 triennial review recommended—in line with Nepal’s request—to defer the graduation considering the setback on Nepal’s economy by the 2015 earthquake and other disasters in the following years.
“The CDP’s recommendation is an important milestone in Nepal’s development trajectory towards the national ambition of ‘Prosperous Nepal, Happy Nepali’ and the nation’s development aspirations as reflected in the Fifteenth Periodic Plan,” read the statement.
The recommendation is subject to endorsement of the United Nations Economic and Social Council (ECOSOC) which shall then be ‘noted’ by the UN General Assembly later this year.
Nepal will continue to have access to all LDC-specific support measures until 2026.
The preparatory period of five years is given to provide adequate time for a smooth transition during which Nepal would be enabling itself to offset the loss of support measures exclusive to the LDCs.