Bangladesh's greatest strengths in its journey from a Least Developed Country (LDC) to a developing country are its youth and universities. With 56 public and 116 private universities under the University Grants Commission (UGC), the country now hosts around eight million students — more than the total population of several LDCs combined. 

This represents an immense pool of human capital that, if properly harnessed, could transform Bangladesh into a hub of technology and innovation.

Yet the current education system does not reflect the evolving needs of a post-LDC Bangladesh. As the country integrates further into the global economy, it will require a generation of professionals trained in areas such as international trade law to safeguard national interests in a complex, rule-based trading system. 

Institutions offering such specialised education remain limited or entirely absent. Building capacity through WTO-aligned curricula — especially in areas such as antidumping and countervailing measures — will be essential to sustaining Bangladesh's competitiveness.

The country must also develop a pool of Intellectual Property Rights (IPR) practitioners to protect its intellectual assets. This calls for reforms in policy, the engagement of skilled experts, and the establishment of Technology Transfer Units and university spin-offs to bridge academia and industry. Universities should be encouraged — perhaps through tax incentives — to pursue high-level research and innovation.

For sustainable integration into the global economy, Bangladesh must narrow the gap between higher education and market realities. Skills such as critical thinking, problem-solving, creativity, and emotional intelligence — qualities automation cannot replace — need to take precedence over rote learning. 

As global markets increasingly prioritise sustainability and circular economy models, young entrepreneurs must also embed environmental and social governance (ESG) principles into their ventures to remain competitive and credible global players.

LDC graduation means a gradual loss of preferential market access, a shift that is already testing the country's export-led growth model. Our export basket remains narrow and heavily reliant on low-value-added sectors, while competitors like Vietnam and India have diversified and integrated into global supply chains. 

Structural transformation is no longer optional; it is imperative. Bangladesh must move beyond ready-made garments into high-tech manufacturing, agro-processing, the digital economy, and knowledge-intensive services. 

Universities should lead this transformation by becoming centres of research and development (R&D), not just teaching institutions. At present, most research is funded by development partners, and domestic R&D investment remains minimal. While some universities now have improved infrastructure, the quality of education and the depth of research are still inadequate.

Bangladesh — the best performer among the LDCs, contributing nearly 70% of their total exports — will face formidable post-graduation challenges. According to the WTO's Trade Monitoring Update (July 2025), global trade measures affecting imports reached USD 2.4 trillion during October 2024–May 2025 — a 291% increase from the previous year. 

This rising protectionism demands stronger collaboration between academia, industry, and government. Yet most universities have little engagement with trade policy or WTO-related issues, largely due to a job market dominated by traditional MBA programmes.

In a world of shifting trade dynamics, Bangladesh must build expertise to navigate complex global frameworks. The United States' imposition of reciprocal tariffs — declared under a "national emergency" — has already demonstrated how exceptions under WTO rules can be exploited to bypass principles like Most-Favoured-Nation and national treatment. 

Such measures have triggered a slowdown in global demand, particularly in textiles and apparel, Bangladesh's economic lifeline. This evolving environment underscores the urgency of developing skilled professionals who can interpret, negotiate, and respond to such global trade shifts.

The Committee for Development Policy (CDP) has written to the government regarding the progress of the Smooth Transition Strategy (STS), with consultations scheduled for later this month. Bangladesh must approach these discussions strategically to secure continued support from development partners while engaging local experts who understand the national context and can safeguard national interests.

Bangladesh's trade trajectory tells a story of both progress and fragility. From the 1960s to the 1980s, trade averaged around 20% of GDP. After independence, it fell sharply due to import restrictions and a weak industrial base. It rose to 48% by 2012 but declined to 27% by 2024, driven by sluggish diversification, dollar shortages, and disrupted supply chains. Manufacturing growth slowed from 12.33% in 2017–18 to 6.58% in 2023–24. Of 2.2 million new entrants to the labour force, only 1.4 million found jobs. 

Imports of capital machinery fell by up to a third, while non-performing loans (NPLs) climbed to Tk4.2 lakh crore — about 7.5% of GDP. Banks are grappling with liquidity crises, investment is weak, and confidence between the public and private sectors is strained.

Given this fragile environment, parts of the private sector have urged the government to delay graduation, citing high interest rates, tight credit, and sluggish investment. Despite these challenges, the government has moved ahead with the STS — a framework of 157 actions across five pillars: macroeconomic stability, trade preference and diversification, capacity building, and partnership development. 

A Steering Committee, chaired by the Chief Advisor, is overseeing progress. Key initiatives include a National Single Window, the withdrawal of cash incentives, automation of the Duty Drawback Office, and the introduction of e-invoicing. While these are positive steps, much more remains to be done to ensure Bangladesh's readiness for the post-LDC era.

Ultimately, Bangladesh's success will depend on how effectively it aligns education with its national ambitions. Human capital must become the cornerstone of economic transformation. Universities must be empowered to generate research that drives policy and innovation, while curricula should be reformed to meet global standards. 

Ferdaus Ara Begum is the CEO of BUILD-a Public Private Dialogue Platform, and works for private sector development

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.