The least developed countries report 2021

1 UNCTADUNCTADThe COVID-19 pandemic has exposed and amplified the vulnerability of least developed countries to external shocks. Once again, those with the least are suffering the most. At a time fraught with fragilities, UNCTAD s least developed countries report shines a light on how governments and the international community can pool efforts to build productive capacities as a pathway to sustainable development for nio Guterres, Secretary-General of the United Nations Since advocating for the creation of the category of the least developed countries (LDCs) five decades ago, UNCTAD has been at the forefront of LDC development policy. Today, UNCTAD leads the analysis and search for practical national solutions for LDCs, rallying the international community to provide strengthened and appropriate support at the global level. This report proposes a pivotal agenda for the 2022-2031 decade for LDCs, a crucial time period that is flanked on one end by the COVID-19 pandemic and on the other by the culmination of the 2030 Agenda.

2 Centred on building productive capacities for their programme of action, this report embodies UNCTAD s unique expertise and continued commitment to help LDCs transition to a more inclusive, prosperous and sustainable future for both their citizens and the global Grynspan, Secretary-General of UNCTAD This is a game-changing report : it is unusual for a mainstream organization such as UNCTAD to examine the results of economic policies on the ground, challenge the ineffectiveness of the dominant economic discourse, and recommend radically new course of action. The least developed countries deserved such a hard look. After half a century of underperformance due to erroneous strategies, their plight is being felt around the world as a threat to global peace. This report sheds a vivid light on past mistakes and articulates a pragmatic agenda for building productive capacity in LDC, boosting global aggregate demand, and achieving shared C lestin Monga, Harvard John F.

3 Kennedy School of GovernmentOver the last 50 years most least developed countries (LDCs) have struggled to overcome the development challenges that led to the establishment of the category in 1971. Even their strong economic growth since the mid-1990s has generally been insufficient to redress their long-term income divergence with the rest of the world. The COVID-19 crisis and the emerging two-speed global recovery threaten to reverse many hard-won development gains, which is further aggravated by the creeping adverse effects of climate productive capacities development in these countries is a necessary condition for boosting their capacity to respond to and recover from crises. While LDCs prioritize economic transformation and diversification in their policies, they have critically lacked the means necessary to progress towards the objectives of the 2030 Agenda for Sustainable Development.

4 The average annual investment requirements to end extreme poverty (SDG ) in LDCs is estimated at $485 billion, whereas doubling the share of manufacturing in GDP (SDG ) is estimated at $1,051 billion. The latter amounts to more than triple the current investment by LDCs, and therefore vastly exceeds LDCs available international community has therefore an essential role to play in supporting LDCs in their efforts to mobilize adequate resources for their sustainable development needs, including in financing and technology. A new generation of international support measures that are more closely aligned to the expressed needs of LDCs and 21st century realities will have to be rolled out to support their domestic efforts. Bolstering multilateralism and dealing decisively with external sources of instability affecting LDCs is necessary to create a conducive climate for the achievement of the next programme of action for the least developed countries for the decade least developed countries report 2021 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTUNITED NATIONSThe least developed countries in the post-COVID world: Learning from 50 years of experienceTHE least developed countries report 2021 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTUNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTThe least developed countries in the post-COVID world.

5 Learning from 50 years of experienceTHE least developed countries report 2021 The least developed countries report 2021ii 2021, United NationsAll rights reserved worldwideRequests to reproduce excerpts or to photocopy should be addressed to the Copyright Clearance Center at other queries on rights and licences, including subsidiary rights, should be addressed to: United Nations Publications, 300 East 42nd Street, New York, New York 10017, United States of AmericaEmail: Website: designations employed and the presentation of material on any map in this work do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or Nations publication issued by the United Nations Conference on Trade and : 978-92-1-113006-5eISBN: 978-92-1-005605-2 ISSN: 0257-7550eISSN: 2225-1723 Sales No.

6 From 50 years of experienceAcknowledgementsThe least developed countries report 2021 was prepared by UNCTAD. The report was written by Rolf Traeger (team leader), Benjamin Mattondo Banda, Matfobhi Riba and Giovanni Valensisi, with the assistance of Yunpeng Liu, Leonardo Jacopo Mori, Esther Mpagalile, Carlotta Schuster and Ali Yedan. The work was carried out under the overall supervision of Paul Akiwumi, Director of the UNCTAD Division for Africa, least developed countries and Special Programmes, and Junior Roy Davis, Head of the Policy Analysis and Research virtual meeting was held on 2 June 2021 to conduct a peer review of the report , chapter by chapter and as a whole. It brought together specialists in the fields of development policies and strategies, structural transformation, labour market and policies, international trade, macroeconomic policy, financing for development, climate change, science, technology and innovation, and human rights.

7 The participants were: Bartholomew Armah (United Nations Economic Commission for Africa), Samantha Attridge (Overseas Development Institute), Exley Silumbu (Chancellor College, University of Malawi), Matthieu Boussichas (Foundation for Studies and Research on International Development), Theo Chiviru (Open Government Partnership, Regional Lead, Africa and the Middle East), Cheikh Tidiane Dieye (Centre africain pour le commerce, l'int gration et le d veloppement), Daniela Gabor (University of the West of England), Noelia Garcia Nebra (International Organization for Standardization), Charles Gore (associate researcher, United Nations Research Institute for Social Development), Bernard Hoekman (European University Institute), Jodie Keane (Overseas Development Institute), Massimiliano La Marca (International Labour Organization), Humberto Laudares (independent consultant), Xiaojing Mao (Institute of West Asian and African Studies, Chinese Academy of International Trade and Economic Cooperation), Rose Mwebaza (Climate Technology Centre and Network, Economy Division, UN Environment), Chukwuka Onyekwena (Centre for the Study of the Economies of Africa), Oliver Paddison (Economic and Social Commission for Asia and the Pacific), Aurelio Parisotto (International Labour Organization), Annalisa Prizzon (Overseas Development Institute), Mzukisi Qobo (Wits School of Governance), Diego Valadares Vasconcelos Neto (Office of the High Commissioner for Human Rights), Thomas Weiss (City University of New York) and Shuai Yao (Institute of International Development Cooperation, Chinese Academy of International Trade and Economic Cooperation)

8 , as well as the members of the report team and the following UNCTAD colleagues: Evelyn Benitez, Lisa Borgatti, Dimo Calovski, Mussie Delelegn Arega, Stefanie Garry, Tinotenda Mataire, Moritz Meier Ewert, Patrick Osakwe, Johanna Silvander, Elena Stroganova, Fatima Sine Tepe, Vincent Valentine and Anida Yupari following peer reviewers provided written comments on different chapters of the report : Lisa Borgatti (UNCTAD), Dimo Calovski (UNCTAD), Jihen Chandoul (economist consultant to the Office of the High Commissioner for Human Rights), Gabriele K hler (associate researcher, United Nations Research Institute for Social Development) and Diego Valadares Vasconcelos Neto (Office of the High Commissioner for Human Rights).Annette Becker and M rcia Tavares (CDP Secretariat, United Nations Department of Economic and Social Affairs) provided comments on the What are the least developed countries section.

9 Humberto Laudares prepared a background paper for the report . Mark Bloch edited the Maury and Nad ge Hadjemian designed the cover and the infographics. Juan Carlos Korol did the overall layout, graphics and desktop least developed countries report 2021ivNoteMaterial in this publication may be freely quoted or reprinted, but full acknowledgement is requested. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD secretariat at:Palais des Nations, CH-1211 Geneva 10, overview of this report can also be found on the Internet as a separate document, in all six official languages of the United Nations, at: textThe term dollars ($) refers to United States dollars unless otherwise term billion signifies 1,000 rates of growth and changes refer to compound are valued free on board and imports, on a cost, insurance, freight basis, unless otherwise of a dash ( ) between dates representing years, 1981 1990, signifies the full period involved, including the initial and final years.

10 A slash (/) between two years, 1991/92, signifies a fiscal or crop the report , the term least developed country refers to a country included in the United Nations list of least developed terms country and economy , as appropriate, also refer to territories or dots (..) indicate that the data are not available or are not separately dot (.) indicates that the data are not dash ( ) indicates that the amount is nil or and percentages do not necessarily add up to totals, because of figures contain country names abbreviated using ISO (International Organization for Standardization) alpha-3 codes, which can be consulted at: # from 50 years of experienceContentsNote ..ivClassifications ..ixWhat are the least developed countries ? ..xAbbreviations and acronyms ..xiiiForeword ..xvOverview ..ICHAPTER 1 Setting the scene: 50 years of the LDC category ..1A. The landmark in LDC history.