Smooth Transition of Bangladesh’s RMG Sector: Post-LDC Graduation with Circular Economy Principles
Abstract
Bangladesh is towards to Developing Country from Least Developed Country (LDC) in November 2026. This upgradation refers that country meets economic vulnerability, per capita income and human resources. Significant economic development is indicated by this, but there are drawbacks to the shift as well, especially in terms of trade gains and the requirement for strategic planning. As Bangladesh's economy heavily depends on the ready-made garment (RMG) sector, this sector will have to contend with issues like declining trade preferences. This paper explores the potential way forward for RMG sector to cope up with post LDC graduation by Circular economy principles. At the same time, this paper aims to enhance the environmental sustainability by circular approach. After LDC graduation, maintaining export growth requires fostering domestic value addition, and fortifying backward linkage. The paper explains number of policy recommendation to support a circular, resilient RMG sector in the competitive global market.