By Isabel Whisson, Senior Manager, BRAC Ultra-Poor Graduation Initiative and Bill Abrams, Senior Advisor, Leadership Collaborative to End Ultra-Poverty
Successive crises including COVID-19, climate change, conflicts, and the emerging global food crisis will force 75 to 95 million more people into extreme poverty this year compared to pre-pandemic estimates, according to the World Bank. With 700 million people already living in extreme poverty today (back to 2018 levels), people and societies urgently need social protection to cope with economic shocks.
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.
By Violeta Gonzalez Behar, Head of Partnerships, Outreach and Resource Mobilisation, Enhanced Integrated Framework (EIF), World Trade Organization & Michelle Kovacevic, Communications Specialist and Consultant for EIF
On 4 December 2020, Vanuatu shed its official classification as one of the world’s least developed countries (LDC). This significant milestone – called ‘graduation’ – is something that only five other countries have managed to achieve in the last 40 years. And Vanuatu’s graduation achievement may be the most impressive of all given that, over the past few years, not only has it has weathered significant economic and social fallout from repeated natural disasters, but also a major drop in tourism revenue due to border closures during the global COVID-19 pandemic.
By Otaviano Canuto, Senior Fellow at the Policy Centre for the New South, Non-Resident Senior Fellow at Brookings Institution, and Former Vice President at the World Bank; Matheus Cavallari, Senior Advisor and Tiago Ribeiro dos Santos, Advisor at the Board of Executive Directors of the World Bank Group. Opinions here are their own.The authors wrote chapter 12 of the recent book: Alonso, J.A. & Ocampo, J.A. (eds.), Trapped in the Middle? Developmental Challenges for Middle-Income Countries, Oxford University Press, 2020
While the past two decades saw spectacular progress in the fight against poverty, more than 10% of the world’s population – 735 million people – still live below USD 1.90 per day. Ending poverty in all its forms everywhere as envisioned in Agenda 2030 will prove challenging. Reaching the poorest is in itself difficult, but even more so is getting them onto a sustained pathway out of poverty because of the need for carefully managed, multi-sectoral interventions.
What could help? The graduation approach is one example of targeted household-level economic inclusion approaches with a proven track record of ensuring sustainable pathways out of extreme poverty.3 The graduation approach is specifically defined as a time-bound multi-sectoral “big push” intervention designed to overcome the multiple barriers that prevent extremely poor and vulnerable households from earning enough income and building sufficient human capital and assets to break out of such extreme poverty. The graduation approach typically offers extremely poor and vulnerable households a sequenced package of consumption support, of access to savings services, technical skills, transfer of productive assets, seed capital or an employment opportunity, and of coaching.
By Dr Jodie Keane, Economic Adviser, and Dr Howard Haughton, Quantitative Analyst, Commonwealth Secretariat1
This blog is part of an ongoing series evaluating various facets of Development in Transition. The 2019 “Perspectives on Global Development” on “Rethinking Development Strategies” will add to this discussion.
The Least Developed Countries (LDCs) are an internationally defined group of highly vulnerable and structurally constrained economies with extreme levels of poverty. The Committee for Development Policy (CDP) is a subsidiary body of the United Nations Economic and Social Council (ECOSOC). Every three years, the CDP advises ECOSOC and the United Nations (UN) General Assembly on which countries should either enter or leave the LDC category. Since the category was created in 1971, only five countries have graduated and the number of LDCs has doubled on the basis of selected indicators (income, human assets, economic vulnerability). And when countries graduate they lose international support measures provided by the international community.
