About the project

Partner: Commissioned by Foreign, Commonwealth and Development Office, UK
Project duration: February 2026 - November 2026

Bangladesh’s anticipated graduation from the Least Developed Country (LDC) category in November 2026 is a major development milestone, but it also introduces significant structural risks, most notably the threat of the "Middle-Income Trap"—a period of prolonged economic stagnation. While the transition opens new opportunities, it also leads to the loss of preferential market access, reduced concessional financing, and increased global competition. These shifts are not gender-neutral; they are expected to disproportionately impact women, who are heavily concentrated in vulnerable sectors like Ready-Made Garments (RMG), agriculture, and informal work. In response to these challenges, the Foreign, Commonwealth and Development Office (FCDO) has commissioned this study to explore how Bangladesh can strategically align its national gender priorities with international financing and trade reforms. The project's central goal is to ensure inclusive growth and protect women’s economic opportunities during and after the graduation process. By identifying where risks are likely to emerge and who will be most affected, the study aims to provide evidence-based guidance on policy choices—such as trade diversification, fiscal reforms, and gender-responsive financing—that can safeguard women's jobs and incomes while helping the country avoid the Middle-Income Trap.

Objectives of the Study:

• Analyze gendered impacts: Assess how LDC graduation, automation, and the loss of preferential market access will reshape women’s work in the short, medium, and long term.
• Identify barriers to participation: Pinpoint obstacles—such as limited access to market-relevant skills, finance, childcare, and safe workplaces—that prevent women from benefiting from new economic opportunities.
• Mainstream gender in policy: Examine how to embed gender priorities into trade, industrial, and fiscal reforms so that policy changes do not widen existing inequalities.
• Address institutional gaps: Evaluate the lack of gender impact assessments, weak inter-ministerial coordination, and the absence of strong accountability systems.
• Explore gender-responsive financing: Investigate how Bangladesh can negotiate financing with International Financial Institutions (IFIs), such as the IMF and World Bank, that includes explicit gender commitments.
• Provide actionable recommendations: Deliver specific guidance for the UK government to support gender-responsive economic reforms through policy dialogue and technical assistance