Developing country, here we come

Nepal’s graduation from LDC status is imminent, and the private sector seems to have stage fright.

The 12 poorest countries in the world, Nepal among them, are currently at different phases of the process for graduation from the category of least developed country (LDC). The United Nations Committee for Development Policy has recommended that Nepal graduate from the LDC status in 2026, after the UN General Assembly approves it. Nepal’s case is unique. It is the only country that was made eligible for graduation without meeting the per capita threshold criteria of $1,230 in 2021, and its graduation was approved based on its achievement in composite human assets and the economic vulnerability index, two of the three criteria for eligibility. This has raised doubts among stakeholders, particularly the country’s private sector, over the successful transformation of the country from an LDC to a developing country.