His little kingdom Bhutanin the Himalayas, is looking forward to leaving the world’s least developed countries (LDCs) group this year, while others worry about losing the privileges they enjoy with that status.

On December 13, the state of 800,000 people, known for its Gross Domestic Happiness index, will become the seventh country to leave this group of countries, which was formed by the UN in 1971.

“It is our honor and we are very proudsaid the Prime Minister of Bhutan, Lothai Tsering, on the sidelines of the LDCs meeting that ended today in Doha.

However, the leaders of the 45 other countries in this group are in no great hurry to leave it since they know that three years later they will lose the trade privileges and subsidies they receive.

Bangladesh, Nepal, Angola, Laos, the Solomon Islands and Sao Tome are expected to take this step by 2026, but Angola and the Solomon Islands are already looking for ways to delay their exit.

“Adjustment”

Thanks to exports of electricity generated by the kingdom’s hydroelectric plants, per capita income in Bhutan has reached $3,800 a year, 30% higher than in neighboring India.

But the pandemic and inflation have pushed up costs, forcing the government last year to ban the import of cars to prevent the export of foreign currency.

“It’s all about adjustment,” Tsering said. I think we will lose some aid but we will have more trade and investment opportunities.

It’s part of the game,” the prime minister added.

For Bangladesh, the “rise” to the top division is also one of national pride.

Textiles have made this South Asian country of 170 million a major export power, and its per capita gross domestic product is higher than India’s.

Analysts, however, warn that exports will be limited when the privileges enjoyed by LDCs are lost.

Bangladesh Employers Federation president Ardarshir Kabir assured that his country is determined to take the leap forward. The loss of the LDC “brand” offers credibility and “attracts investment from the major countries of the world”, he commented.

“We cannot remain forever in the LDC category,” said the Prime Minister of Nepal, Narayan Kaji Shrestha.

“Destruction”

To move up to the category of CME, middle-income countries, candidates must meet certain goals, mainly having a gross national income of more than $1,222 per year.

UN Commissions then review their files, a process that can take years.

The Maldives exited the LDCs in 2011 and is one of the few examples of a successful exit. However, their president, Ibrahim Mohamed Solih, described this experience as “bittersweet”, referring to the successive crises experienced by his country, which depends on tourism.

Before their exit, the archipelago was hit by the 2004 tsunami, which cost it almost 60% of its GDP.

In 2020, the Covid-19 pandemic turned the prosperous country into “a country with no income” for three months.

Then the war in Ukraine caused “havoc” as raw material prices rose.

According to Solich, countries are now “stressing” at the idea of ​​losing the status they enjoy in LDCs.

Most want to keep their trade privileges for at least six years after the change in category, but rich countries disagree.

The crises “didn’t prompt the banks, the rich and the powerful to think rationally” and “if we don’t act, like all humanity, indifference and greed will sink the global ship,” said East Timor’s president, Jose Ramos Horta.