The progress of some least developed countries (LDCs) is behind expectation, finds a mid-term review of an action plan to “graduate” poorest countries to developing status
The progress of some of the world’s least developed countries (LDCs) is behind what they should be, according to new research. The LDC IV Monitor, of which the Commonwealth Secretariat is a member, has found only three new LDC ‘graduates’ are expected by 2020. But ten countries in total are likely to reach the so called defined graduation thresholds within the next four years. These findings are presented in the Achieving the Istanbul Programme of Action by 2020 report. The programme charts out the international community’s vision and strategy for sustainable development for LDCs over the next decade.
Only a handful of countries have successfully graduated from the LDC category since its creation, including Samoa which is in the Commonwealth. The programme was adopted by the global community to lift economic and social prospects in LDCs, 13 of which are Commonwealth countries.
The new analysis of the progress of LDCs shows that the growth of goods and services exports has slowed to just four per cent in recent years. This means countries are now well-off course to reach the target of doubling exports within the next four years. LDCs are home to 12 per cent of the world’s population, yet they account for less than 2 per cent of world GDP and about 1 per cent of global trade in goods.
Jodie Keane, an economic advisor with the Commonwealth Secretariat’s trade division and co-author of the report said, “We recognise that the LDCs today face a set of unparalleled global challenges with the potential to seriously undermine their development aspirations. Major uncertainties are arising in the global trading landscape.
“Some developments invariably have the potential to adversely affect the ability of the LDCs to progress both towards the achievement of the 2030 Agenda, including the elimination of extreme poverty and hunger, as well as structural transformation in these economies.”
At a workshop in Beijing this month, government policymakers from sixteen LDCs and one graduated country shared solutions to some of their common challenges. Professor Justin Yifu Lin, former World Bank chief economist, also presented a method for identifying new potential trade opportunities as part of a major initiative underway by the Chinese Centre for New Structural Economics.
Commonwealth Secretary-General, Patricia Scotland said, “LDCs present a challenge to the global community in regards to the attainment of sustainable development goals. The Commonwealth Secretariat remains at the forefront of advocacy on behalf of our least developed member countries for a more inclusive and responsive international trade and development support architecture.”
Responding to the findings, the Commonwealth has joined forces with several organisations to work towards addressing the glaring gaps to enable effective graduation for LDCs.
