By Dr. Perks Master Ligoya, Ambassador and Permanent Representative of Malawi to the United Nations and Mr. Paul Akiwumi, Director, Division for Africa, Least Developed Countries and Special Programmes, UNCTAD
The COVID-19 crisis shook the very foundations of the international system, triggering an abrupt and severe global recession, which threatens to heighten economic contagion.While no country is spared, the coronavirus has hit the world’s poorest nations disproportionately.
The 46 least developed countries (LDCs) were already highly exposed due to weak healthcare services and their lower levels of socio-economic resilience. Despite relatively strong growth in LDCs prior to the outbreak, the effects of the crisis will reverse years of painstaking economic and social progress. The potential long-term impacts, including secondary and tertiary shocks, and spillover effects on production, job creation, household income, domestic finances and investment mean that LDCs will continue to rely on external financing to sustain their much-needed development.
However, the outlook for official development assistance (ODA) is bleak as donor countries focus on domestic economic stresses. High levels of informality, limited IT access and skills shortages, and fragile industrial sectors coupled with weak integration into global value chains also hamper the uptake of new technologies in LDCs.Continue reading