By A Staff Reporter
Kathmandu, Feb. 28: 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 take effect in 2026.
Issuing a press statement, Permanent Mission of Nepal to the United Nations informed that the CDP, in its triennial review held from 22 to 26 February 2021, made this recommendation as Nepal had met the criteria for graduation for three consecutive reviews.
Out of three indices which the CDP considers while deciding on the question of graduation – Gross National Income (GNI) per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI), Nepal met the thresholds except for per capita income, thus being eligible for graduation.
The 2015 earthquake and the ongoing COVID-19 pandemic have affected the per capita income.
Due to the extraordinary challenges posed by the COVID-19 pandemic and based on the request made by the government of Nepal, the normal preparatory period of three years has been extended to five.
In addition to Nepal, Bangladesh and Laos 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 to defer the graduation at the request of the Nepal government considering the adverse impact 2015 earthquake and other disasters have had in the subsequent years.
“The CDP’s recommendation is an important milestone in Nepal’s development journey towards the national aspiration of ‘Prosperous Nepal, Happy Nepali’,” twitted Pradeep Kumar Gyawali, Minister for Foreign Affairs.
According to the Permanent Mission of Nepal to the United Nations, the recommendation needs to be endorsed by the United Nations Economic and Social Council (ECOSOC) which shall then be ‘noted’ by the UN General Assembly later this year.
Diplomat and former senior official of the United Nations Kul Chandra Gautam tweeted, “As we celebrate this historic milestone in Nepal's development trajectory, let us prepare ourselves well to adapt to the new reality that we will lose some special facilities granted to LDCs by the international donor/lender community and learn to be more self-reliant and resilient.”
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 can offset the loss of support measures exclusive to the LDCs, said Dr. Krishna Prasad Oli, member of National Planning Commission.
He said that the pace of development works was gaining momentum which would help the country achieve higher economic growth and increase per capita income as well.
“Recommendation for graduate from LDC status is important for us. But, we have to work seriously for the development of infrastructure projects and promote the country’s potential sectors to make it prosperous,” he said.