[Illustration of global leaders. Photo Credit to Creazilla]

Subsequent to the scheduling  of Bhutan’s upcoming LDC graduation, criticisms surrounding  its trading system arose in the LDC5 meeting. 

Designed by the United Nations (UN), Least Developed Countries (LDCs) is a category designated to economically impoverished countries.

A country must qualify within three criterias to qualify as an LDC: Income, Human Assets, and Economic and Environmental Vulnerability. 

Through the Doha Programme of Action (DPoA), LDCs aim to graduate by achieving threshold levels for two out of the three criterias. 

Out of 15 countries on the pathway to graduation, Bhutan is scheduled to graduate on December, 13, 2023. 

The Fifth United Nations Conference on the Least Developed Countries (LDC5) was organized to oversee Bhutan’s anticipated graduation and to revise the DPoA for the next decade. 

During the conference, leaders voiced concerns regarding the trading systems of LDCs.

DPoA targets economic stability for LDCs, in terms of international markets and inclusivity in global trade.

However, due to upgrading global markets, leaders stressed the importance of refurbishing the World Trade Organization (WTO) plans.

Noted by Deputy Director-General (DDG) Xiangchen Zhang, recent concentrations of the WTO were policy flexibilities, trading system support, and market accessibility.

Although leaders recognized the commencement of efforts to modernize the WTO , they stated a secure implementation of such efforts is needed. 

Minister Pan shared Cambodia’s experience in WTO initiatives, stating “promoting economic diversification” are a “part of overarching government policies” centralized around sustaining Cambodia’s economic development.

To maintain continuous development, Minister Pan requested expansion of LDCs ‘trade preferences’. 

The Maldives held similar judgment, in relation to a country’s geography and location. 

The WTO encompasses universal policies, which are claimed to be tailored to LDCs. 

Nonetheless, The Maldives criticized the policies to be generalizing, as it does not consider exceptional cases of Small States.

Geographically disadvantaged and prone to economic shocks, The Maldives and Bhutan share similar handicaps. 

As such, there is an instability of agricultural production, exports and imports, and the development of modern services in their GDP. 

Requests of personalized and targeted interventions for Bhutan were further stressed. 

Involvements such as India’s ‘neighborhood first’ policy continue to benefit Bhutan in reference to transportation development. 

Exports of goods and services have been enhanced through the National Water Way I and II.

Additionally, historically preserved rail links are being rebuilt to provide extra transport links.

Thus, LDCs request the approval and incorporation of continual policies with the ability to benefit the country’s economic development pre and post-graduation.

Furthermore, discussions on Bhutan’s post-graduation challenges have become a focus of interest. 

After graduation, the gradual withdrawal of the UN from Bhutan is predicted to have a decreasing effect on Bhutan’s GDP. 

Additionally, potential termination of sources of funding that are upholding parts of the country’s GDP such as Overseas Development Assistance (ODA) signifies the reality of Bhutan’s fragile economic independence. 

Recognizing Bhutan’s reliance on the UN, Prime Minister Dr Lotay Tshering reported that Bhutan is actively seeking to renew partnerships and accepting new collaborations. 

Likewise with impending graduations, LDC5 results promise to reinforce independent relationships to provide continuous economic stability.