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Bhutan to graduate from LDC in 2023

December 15, 2018
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Bhutan’s graduation from the United Nations Least Developed Countries (LDC) category has now been deferred to 2023 from 2021. The extension of the standard three year transition period by another two years was endorsed in the 73rd session of the UN General Assembly held in New York on Thursday (December 13).  

The country has officially entered the preparatory period of five-year to graduate from the LDC category, which will end on December 13, 2023.

At the Friday meet yesterday, the Minister for Foreign Affairs Dr Tandi Dorji confirmed that the 12th Five-Year-Plan will be the last plan as a Least Developed Country.

 “Bhutan’s proposal to increase the transition period by another two years to align with the 12FYP has been approved by the UN General Assembly. So, they have asked us to develop a smooth transition strategy to ensure that our transition takes place in a sound and sustainable manner. The government welcomes the progression towards an eventual graduation. This is a testament to the achievements made by Bhutan in its socio-economic development.”

He also added the 12th FYP will address the last mile challenges in all sectors and ensure that Bhutan graduates with sure footing with a strong economy.

Bhutan was recommended for graduation from the Least Developed Countries’ category by the United Nation’s Committee for Development Policy as it has met the Human Assets and Gross National Income (GNI) indexes, two of the three criteria for LDC graduation.

Once it graduates from the LDC category, it will be placed among the developing countries’ list. This would mean, the country will not be receiving foreign aids and LDC related supports thereafter.

However, the country will continue to receive other foreign aids as most existing donor’s aid to Bhutan is not tied to our LDC status.

Bhutan has been categorized as a Least Developed Country ever since the establishment of this categorization by the UN General Assembly in 1971.

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