The presumption that individual developing countries are capable of assuming greater responsibilities and obligations in the international community–within the WTO or the World Bank, for example–as their economies advance, as through industrialization, export development, and rising living standards. In this sense, graduation implies that donor countries may remove the more advanced developing countries from eligibility for all or some products under the Generalized System of Preferences. Within the World Bank, graduation moves a country from dependence on concessional grants to non-concessional loans from international financial institutions and private banks.

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