When a country leaves (graduates from) the least developed countries (LDC) category, it ceases to benefit from international support measures that are exclusive to LDCs (in some cases, these measures are available for a set period after graduation, known as a smooth transition period). This Policy Note provides an overview of the expected impacts of the withdrawal of LDC-specific international support measures in Cambodia, Comoros, Djibouti, Senegal and Zambia.
These countries met the Committee for Development Policy (CDP)s graduation thresholds for the first time in 2021 and, according to the established procedures will be assessed again in 2024, when they may be recommended for…
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The limited progress of least developed countries (LDCs) in developing their productive capacities remains one of the main obstacles to move towards graduation from the LDC category and to achieve the sustainable development goals. While there is international agreement on the importance of building productive capacity, the question of what policy interventions are successful usually remains unanswered. This Policy Note provides some answers by analyzing the strategies and policy choices of 14 countries that have successfully graduated from the LDC category, or have made noteworthy progress towards graduation. It contains a wide range of lessons not only relevant to all LDCs but the…
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The present Policy Note takes stock of the nature of the financial, technical and institutional support and preferential trade-related treatments that have been provided to LDCs. It provides an assessment of how useful these existing support measures have been and identifies ways in which they can be made more effective and, where needed, complemented by additional interventions. It also calls for greater coherence between international strategy for LDCs and other existing development strategies, including those initiated by the IMF and the World Bank, to further facilitate development of LDCs. The Note was prepared to contribute to the debate leading up to the forthcoming Fourth UN…
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Achieving poverty reduction in the least developed countries will require the mobilization of substantial financial resources. At the country level it will depend on (a) improved budgetary management and revenue collection and enhanced private savings and investment opportunities; (b) the generation of foreign exchange, through increased exports and remittances; (c) the ability, in partnership with donors, to reduce existing debt burdens while increasing the quantity, quality and effectiveness of new aid flows; and (d) the ability to attract private capital (investment and commercial inflows) and to reverse capital flight where it has occurred. In designing institutions for good governance…
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