Category: Least developed countries

Women working in a potato field in Bangladesh
Building resilience, Least developed countries

Least Developed Country graduation: Past, present and future

By Jose Antonio Ocampo, Professor at Columbia University and chair of the ECOSOC Committee for Development Policy. Former UN Under-Secretary-General for Economic and Social Affairs and Finance Minister of Colombia

As the world prepares for the 5th United Nations Conference on the Least Developed Countries (LDC5) in Doha[1], we need to ask not only whether this category is still relevant today but also what graduation from this status implies. After the LDC category was created fifty years ago, the number of such countries grew steadily due to the emergence of newly independent countries that faced significant disadvantages as well as major setbacks experienced by other developing countries. Nonetheless, LDC status was envisaged as a temporary phase in a country’s development trajectory: the concept of graduation was introduced twenty years after the LDC category itself.

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Development Matters
Covid-19, Least developed countries, Trade

Lessons from LDCs’ responses to COVID-19: From crisis to opportunities?

By Ratnakar Adhikari, Executive Director, Enhanced Integrated Framework

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide. This blog is also a part of a thread looking more specifically at the impacts and responses to the COVID-19 crisis in Least Developed Countries (LDCs). 

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June 2020 : Staff members outside the Republican Hospital for Covid-19 Patients in Taiz, Yemen. Photo: Akramalrasny / Shutterstock.

Many least developed countries (LDCs) have not yet seen large numbers of COVID-19 cases – though there are notable exceptions such as Afghanistan, Bangladesh, Nepal and Sudan.

Yet, all LDCs are confronting severe economic disruptions – and a major fiscal squeeze – from the global demand shock, supply chain disruptions and, significantly reduced income from tourism and remittances. Domestic lockdowns to prevent the spread of the virus present unique challenges in countries with high poverty rates in which large sections of the workforce are informally employed.

At the same time, crises can come with opportunities for positive change, and the present crisis might offer this for LDCs, to undertake much-needed reforms that would place them on firmer footing as economic recovery takes hold. A few LDCs have done just that, examples of which are below. Continue reading “Lessons from LDCs’ responses to COVID-19: From crisis to opportunities?”

Development Matters1 Comment
Covid-19, Least developed countries

Coronavirus: Let’s not forget the world’s poorest countries

By Paul Akiwumi, Director of UNCTAD’s Division for Africa and Least Developed Countries

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

The novel coronavirus pandemic has rapidly thrown the world into uncharted territory. As COVID-19 diagnoses rise globally, the World Health Organization has reported more than 7,000 cases in the world’s 47 least developed countries (LDCs). While these numbers seem small compared with the thousands of cases being reported daily across hotspots like Spain, the United States, and Italy, chances are that this low number of diagnosed cases will not last for long. Of the 41 LDCs reporting cases, 33 countries have now confirmed local transmission. Bangladesh has surpassed 2400 cases, while Afghanistan and Djibouti have reported more than 800 COVID-19 infections. With limited testing available in the LDCs due to already fragile health systems and limited access, especially in rural areas, these numbers are likely to be even higher and will continue to rise.

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Development Matters1 Comment
Covid-19, Development in Transition, Least developed countries

The COVID-19 Scourge: How affected are the Least Developed Countries?

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By Debapriya Bhattacharya, Distinguished Fellow, Centre for Policy Dialogue (CPD), and Fareha Raida Islam, Programme Associate, Centre for Policy Dialogue (CPD)

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

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Dhaka, Bangladesh – March, 2020:  Lockdown amid the COVID-19 outbreak. Photo: Shutterstock

The scourge of COVID-19 continues to devastate life and livelihoods across the world. While the global community assesses the possible impact of this pandemic and commits to take action, it is becoming evident that the consequences will be more pronounced in the weaker economies, and possibly catastrophic in the least developed countries (LDCs) – a group of countries that share multiple structural vulnerabilities. A targeted package of international support measures for LDCs, realigning existing programmes, is urgently needed.

Vulnerabilities of the least developed countries

About a quarter of the United Nations’ members (47 countries) are LDCs, accounting for 12% of world population, against less than 2% of global GDP and less than 1% of global trade and foreign direct investment (FDI). These countries, penalised by geography and history, host about 40% of the world’s poor. Almost all are climate-change affected nations, and a large number are fragile states. Only about 18% of the population in LDCs have access to internet – the vast majority are victims of the digital divide. LDC governments on average spend less than 2% of their country’s GDP on public healthcare. Continue reading “The COVID-19 Scourge: How affected are the Least Developed Countries?”

Development Matters12 Comments
Building resilience, Development finance, Gender, Women and Girls, Least developed countries, Trade

Three trade challenges for LDCs to converge and eradicate poverty

By Anabel González, Nonresident Senior fellow at the Peterson Institute for International Economics; Former Costa Rica Minister of Trade, World Bank Senior Director for Trade & Competitiveness, and World Trade Organization Director for Agriculture

This blog is part of a special series marking the 3 July 2019 launch in Geneva of the joint OECD/WTO publication Aid for Trade at a Glance 

AFT coverBangladesh is preparing to graduate from the category of least developed countries (LDCs). Robust multi-year economic growth of more than 6-7% has helped this South Asian nation make remarkable progress in reducing extreme poverty from 44.2% in 1991 to 13.9% in 2017. In parallel, life expectancy, literacy rates and per capita food production have increased significantly. Rapid growth enabled Bangladesh to reach the lower middle-income country status in 2015; it now aspires to become an upper middle-income country by its 50th anniversary in 2021. Trade has been at the heart of this success story (see Figure 1). Exports of textiles and garments are driving integration into the global economy, with new products becoming part of the country’s export basket. Will Bangladesh be able to continue to rely on trade for increased growth? Will conditions remain for other LDCs to follow?

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