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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This paper analyzes the advantages that LDCs have derived from the various LDC-specific international support measures due to their LDC status. It identifies the reasons why some UN development system organizations may not use the LDC category in their allocation of development assistance and support measures.The analysis focuses on support from the UNDS organizations related to ODA and general support measures. Trade related support measures fall under the purview of the World Trade Organization, and are not discussed in this paper. The analysis was undertaken in the context of a UN General Assembly mandate in response to the Mid-term Review of the Implementation of the Istanbul Programme…
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This paper analyzes opportunities for growth in Nepal by applying the policy tool of New Structural Economics ? Growth Identification and Facilitation Framework (GIFF). Drawing on firm level surveys, stakeholder interviews, and existing datasets it aims to contribute to policy discussions in Nepal and to demonstrate the use of the GIFF for other least developed countries. The report argues that Nepal should seek to capture industrial transfer from China to establish a foothold in global value chains, create employment and catalyze structural transformation. The report identifies product-level advantages arising from preferential market access and sector-specific binding constraints, and…
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This paper examines the process of building productive capacity in Ethiopia over the past two decades and the roles played by the state, government, the private sector, foreign firms and development partners. Productive capacity is defined broadly as the natural resource potential, accumulation of human capital and the institutions that facilitate inclusive and sustainable economic growth. This process also encompasses the nurturing modern entrepreneurial skills in the private sector and fostering innovation. The paper starts with an overview of Ethiopia's economic growth and the change in the domestic economic structure. The manufacturing sector is seen as the success of Ethiopia's Growth…
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A review of recent trends suggests the need for a renewed commitment and enhanced efforts by the international community to support financing for sustainable development. It also points out at potential risks of debt sustainability for a few developed and some emerging economies.
Development Issues No. 10: International financial flows and external debt