Overview of Least-Developed Countries
Least-developed countries (LDCs), also known as less-developed or underdeveloped nations, are a unique group of countries that face significant structural challenges to sustainable development. As of October 2021, the United Nations (U.N.) recognized forty-six such countries based on their economic vulnerability, income levels, and human assets. **Definition: Least-Developed Countries**
What sets least-developed countries apart from other nations is their extreme vulnerability to economic and environmental shocks and their limited human assets. These countries often have low income levels, which can hinder their ability to invest in essential development areas such as healthcare, education, and infrastructure. Additionally, LDCs face significant structural challenges that impede their progress towards sustainable development.
**Global Recognition of Least-Developed Countries: United Nations Committee for Development Policy (CDP)**
The U.N.’s **Committee for Development Policy (CDP)**, a subsidiary body of the Economic and Social Council, plays a critical role in defining and recognizing least-developed countries. The CDP Secretariat is part of the Department of Economic and Social Affairs (DESA). The committee monitors the progress of LDCs and determines whether they meet the criteria for graduating from the LDC category, which comes with additional development assistance and preferential trade benefits.
The United Nations recognizes least-developed countries based on their income levels, human assets, and economic vulnerability. Income levels are measured by a country’s Gross National Income (GNI) per capita, while human assets are assessed through indicators related to health and education. Economic vulnerability is evaluated using the Economic Vulnerability Index (EVI), which measures structural impediments to sustainable development.
Income Thresholds: The income threshold for a country to be classified as an LDC is $1,018, which is determined by averaging a country’s GNI per capita over the previous three years. Graduating from the LDC category requires meeting the higher graduation threshold of $1,222.
Human Assets: The human assets component of least-developed countries assessment is based on five indicators measuring health and education. These indicators include:
– Under-five mortality rate
– Expected years of schooling for children and adolescents
– Adolescent fertility rate
– Proportion of the population below minimum labor force age who are in primary, secondary or tertiary schools
– Proportion of population with access to improved sanitation facilities.
Economic Vulnerability: The Economic Vulnerability Index (EVI) assesses a country’s structural vulnerability to economic and environmental shocks by considering factors like debt levels, food production, and trade dependency. A high level of economic vulnerability indicates significant impediments to sustainable development.
The CDP reviews the status of least-developed countries every three years and monitors their progress after they graduate from the LDC category. Since 1971, only five countries have graduated from the LDC classification: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa. In March 2018, Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands were recommended for graduation from the LDC category by the year 2024, which was an unprecedented endorsement. Angola is also scheduled to graduate in 2024.
Challenges Faced by LDCs
Least-developed countries (LDC) face a unique set of challenges that impede their progress towards sustainable development. These countries have lower income levels, fewer human assets, and are economically vulnerable. According to the United Nations, being an LDC means a country is in a state of severe and persistent poverty and lacks sufficient resources for long-term development.
1. Economic Vulnerability: LDCs are highly susceptible to economic shocks due to their limited financial resources and weak economies. Natural disasters, political instability, and external debt can significantly impact the development trajectory of these countries. Furthermore, they often face structural challenges in areas such as transportation, infrastructure, and access to markets, which further hinder their ability to grow economically.
2. Income Levels: The income levels of LDCs are the lowest among all other countries worldwide. To qualify for LDC status, a country’s average gross national income (GNI) per capita must be below $1,018. This low-income threshold indicates that the majority of people in these countries live in poverty, and their economies have limited financial resources to invest in development projects.
3. Human Assets: Another significant challenge faced by LDCs is a deficit in human assets. The United Nations defines human assets as the health, education, and other essential indicators that enable individuals to contribute productively to society. In most LDCs, access to quality education and healthcare remains limited due to a lack of resources, infrastructure, and trained personnel. This situation contributes to a workforce with inadequate skills and knowledge, hindering economic development and growth.
The challenges faced by least-developed countries call for international support and collaboration to help these nations overcome their obstacles and achieve sustainable development. In the next section, we will explore the role of the United Nations Committee for Development Policy (CDP) and its efforts to assist LDCs in gaining access to much-needed resources and assistance.
International Support for LDCs
The United Nations Committee for Development Policy (CDP), a branch of the U.N.’s Department of Economic and Social Affairs, plays a crucial role in providing support to least-developed countries. The CDP was established with the primary objective of helping these nations gain access to and benefit from international assistance. Since LDCs have fewer resources and human assets compared to more developed nations, international intervention is essential for their economic growth and sustainable development.
The CDP Secretariat under the Department of Economic and Social Affairs (DESA) assesses LDCs based on three primary categories: income, human assets, and economic vulnerability. Income refers to a country’s gross national income (GNI) per capita, which must fall below $1,018 (the threshold set at the three-year average). The graduation threshold is 20% higher at $1,222. Human assets are calculated using five essential indicators, including health and education subindices. Finally, economic vulnerability is determined by the degree to which a country is exposed to structural impediments that hinder sustainable development, as measured by the economic vulnerability index (EVI).
A country’s economic vulnerability can manifest in various forms: environmental shocks such as natural disasters or climate change; political instability; and economic instability leading to volatility in commodity prices. By addressing these challenges, LDCs become better positioned to sustain their development gains and eventually graduate from the category.
The CDP secretariat reviews a country’s progress periodically and has the power to recommend graduation from the LDC classification. The committee’s recommendation is based on a thorough evaluation of the country’s economic, social, and environmental performance, as well as its ability to cope with external shocks.
The CDP has recommended four countries for graduation since 2018: Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands. These nations are expected to graduate from the LDC category by 2024. Angola is also scheduled for graduation during this period. To date, only five countries have graduated since the inception of the LDC classification in 1971: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa.
The CDP’s role in providing support to least-developed countries is critical for their sustainable development, as these nations often lack the resources and human capital required to overcome structural challenges on their own. Through international cooperation and targeted interventions, LDCs can improve their economic prospects and pave the way for a brighter future.
UN Committee for Development Policy (CDP)
The United Nations Committee for Development Policy (CDP), a subsidiary body of the Economic and Social Council (ECOSOC), plays a crucial role in determining which countries qualify as least-developed countries (LDCs). The CDP’s mandate includes assessing the economic and developmental progress of LDCs, maintaining their eligibility for preferential international support, and overseeing their eventual graduation from the LDC category.
The committee reviews each country’s situation by evaluating three key factors: income level, human assets, and economic vulnerability. Income thresholds are set at $1,018, which represents a three-year average of gross national income (GNI) per capita. Once a country’s income rises above this threshold by 20%, it is considered for graduation from the LDC category, with a threshold of $1,222.
Human assets are assessed through five indicators within two sub-indexes: health and education. These factors are critical determinants of human development and play an essential role in improving overall economic productivity. The committee also considers a country’s economic vulnerability, which is determined by its structural impediments to sustainable development, exposure to external shocks, and the effectiveness of its policy response.
The CDP secretariat, housed within the Department of Economic and Social Affairs (DESA) at the United Nations, is responsible for implementing the committee’s recommendations and reviewing LDCs’ progress. The secretary-general submits reports to ECOSOC on each country’s development status every year.
In recent years, the CDP has recommended unprecedented numbers of countries for graduation from the LDC category: Bhutan, Kiribati, São Tomé and Príncipe, Solomon Islands, and Angola. The committee scheduled Angola for graduation in 2024, marking the fifth country to exit this category since its creation in 1971.
By focusing on income levels, human assets, and economic vulnerability, the UN Committee for Development Policy plays a vital role in ensuring that least-developed countries receive targeted international support while also monitoring their progress towards graduation from the LDC classification.
LDC Status: Income
Gross National Income (GNI) Per Capita Thresholds and Requirements
When it comes to least-developed countries (LDCs), understanding their economic situation is crucial in evaluating their development progress. One essential factor that determines if a country qualifies as an LDC is its income level. Based on the United Nations Committee for Development Policy’s criteria, a country must meet the following GNI per capita requirements to be considered an LDC:
1. Income Thresholds: A minimum threshold of $1,018, which is set at the three-year average of gross national income (GNI) per capita, is required for a country to maintain its LDC status. This threshold marks the lowest level of economic development.
2. Graduation Threshold: To graduate from being an LDC, a country must meet a higher GNI per capita threshold of $1,222, which represents a 20% increase over the minimum income threshold for LDCs. Meeting this threshold signifies that a country is on its way to self-sustaining economic growth and development, and can potentially graduate from international support programs designed for LDCs.
3. Income Classification: GNI per capita is one of three main factors the United Nations uses to classify countries into different income groups. The other two factors are human assets and economic vulnerability. By evaluating a country’s income level, international organizations can determine the level of development assistance and trade concessions required for sustainable growth in LDCs.
4. Past Graduates: Since the creation of the LDC category in 1971, only five countries have graduated from this status – Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa. The Committee for Development Policy has recommended Angola for graduation in 2024, which would mark the sixth country to exit this category.
5. Current LDCs: Forty-seven countries currently hold the LDC designation, as of September 2021. These countries face significant economic challenges and require international assistance to build their economies and achieve sustainable growth. By understanding the income requirements for LDC classification, readers can gain a better appreciation for the unique development challenges faced by these countries and the importance of international support in helping them overcome these obstacles.
LDC Status: Human Assets
One of the primary indicators used to determine least-developed country (LDC) status is human assets. Human assets are essential as they contribute significantly to a nation’s overall development process. This section discusses health, education, and other crucial human development indicators for LDCs.
Health: Healthcare facilities, services, and infrastructure in LDCs often lag far behind those in developed nations. According to the World Health Organization (WHO), access to basic healthcare is essential for human development, reducing poverty, and improving overall well-being. The WHO’s Global Burden of Disease Study 2017 found that the leading causes of death in LDCs were communicable diseases like tuberculosis, HIV/AIDS, malaria, diarrhea, and lower respiratory infections. In comparison, non-communicable diseases (NCDs) such as cancer, heart disease, and diabetes were more common causes of death in high-income countries.
Education: Education is another crucial human asset for LDCs. The United Nations Sustainable Development Goals emphasize the importance of quality education for all as a means to reduce poverty, improve health outcomes, and foster economic growth. However, according to UNESCO, more than 58 million primary school-aged children were out of school in 2019, with the majority living in Sub-Saharan Africa and Southern Asia. Furthermore, nearly one billion adults worldwide remain illiterate, two-thirds of them women.
Other Human Development Indicators: The United Nations Committee for Development Policy (CDP) examines five essential human development indicators when determining LDC status:
1. Health: As discussed above, health is a critical human asset in least-developed countries.
2. Education: Access to quality education is essential for individuals and nations to thrive.
3. Agriculture productivity: Productivity in agriculture is vital as it provides the foundation for food security and economic growth.
4. Population growth rate: A high population growth rate can strain resources and impede development progress.
5. Gender equality: The empowerment of women and girls is essential to promote sustainable human development.
These indicators are used to evaluate a country’s overall level of human assets, ultimately impacting its eligibility for LDC status. By addressing these challenges and investing in the human capital of least-developed countries, we can help them achieve more significant progress towards sustainable development.
LDC Status: Economic Vulnerability
Least-developed countries (LDCs) face a unique set of structural challenges that prevent sustainable development. These challenges fall under the economic vulnerability category, which is one of the three factors used by the United Nations Committee for Development Policy (CDP) to determine a country’s LDC status. Economic vulnerability refers to major structural impediments to growth, which can stem from both economic and environmental factors.
One significant issue that contributes to the economic vulnerability of least-developed countries is their high susceptibility to external shocks. These shocks may include sudden changes in international commodity prices or financial instability within neighboring countries, which can result in severe consequences for LDCs, such as declining economic growth, increased poverty levels, and even political instability.
Another challenge faced by least-developed countries is their lack of productive resources. This lack of resources can be attributed to various factors, including weak infrastructure, limited access to technology, and a scarcity of skilled labor. Consequently, LDCs often struggle to compete in the global economy and attract foreign investment. Moreover, their reliance on primary commodities for exports exposes them to volatile markets, which heightens economic vulnerability.
Environmental factors also contribute to the economic vulnerability of least-developed countries. Natural disasters, such as cyclones, floods, or droughts, can cause extensive damage to infrastructure and crops, leading to significant losses for LDCs. Additionally, many of these countries are situated in geographical regions that are prone to climate change, which further increases their exposure to environmental risks.
The economic vulnerability of least-developed countries necessitates international support to help address these challenges and promote sustainable development. The United Nations Committee for Development Policy (CDP) is a crucial player in providing this assistance by offering specialized measures designed to help LDCs overcome their structural impediments to growth. In the following sections, we will explore the work of the CDP and how it aims to support least-developed countries on their path towards self-sustainability.
Graduation from LDC Status
The United Nations (UN) Committee for Development Policy (CDP), a subsidiary body of the Economic and Social Council (ECOSOC), plays a crucial role in reviewing least-developed countries’ (LDCs) progress toward graduating from this designation. Graduation signifies that an LDC has surpassed the economic, human assets, and environmental thresholds required to transition into a non-LDC status. This shift implies several benefits, such as access to international markets, reduced aid dependency, and enhanced global recognition.
The CDP assesses a country’s eligibility for graduation through periodic reviews based on three criteria: income level, human assets, and economic vulnerability. To meet the income requirement, a country must have a gross national income (GNI) per capita of at least $1,222—a 20% increase from the LDC threshold of $1,018. The CDP evaluates human assets by analyzing five indicators in the health and education subindex. An economic vulnerability index measures a country’s structural susceptibility to economic and environmental shocks, with high levels indicating significant impediments to sustainable development.
Graduation is not an automatic process; it requires meeting all three criteria consistently over several years. The CDP has scheduled Angola for graduation in 2024 based on its progress reports. Between 1971 and 2022, only five countries have graduated from the LDC designation: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa.
Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands received a recommendation from the CDP for graduation by 2024, a first for four countries to be recommended simultaneously. The committee’s assessment is based on these countries’ solid progress in meeting the income, human assets, and economic vulnerability criteria.
Graduating from the LDC category signifies significant achievements for nations. This transition implies reduced dependency on international aid, expanded access to global markets, and enhanced global recognition. However, it also comes with unique challenges, as graduates must adapt to new economic realities and continue improving their development trajectories.
Current Least-Developed Countries
Least-developed countries (LDCs) are a distinct group of nations that face significant structural challenges to sustainable development. These countries, which comprised forty-seven members on the United Nations list as of October 2021, are characterized by low levels of income and human assets, as well as high economic vulnerability.
The United Nations Committee for Development Policy (CDP) was established to help LDCs gain access to and benefit from international support tailored to their unique development needs. The CDP Secretariat, which operates under the Department of Economic and Social Affairs/Department of Economic and Social Affairs (DPAD/DESA), is responsible for reviewing LDC status and monitoring progress after graduation.
The CDP considers a country an LDC based on three categories: income, human assets, and economic vulnerability. Income thresholds for eligibility are set at $1,018 per capita, while the graduation threshold is 20% higher, at $1,222. Human asset indicators include health, education, and other essential services that contribute to a population’s overall well-being. The economic vulnerability index assesses structural challenges and impediments to sustainable development, such as geographic location, environmental conditions, or political instability.
As of October 2021, forty-seven countries were classified by the United Nations as least-developed. Some notable examples include Afghanistan, Central African Republic, Madagascar, Nepal, and Zambia. In March 2018, the CDP recommended four countries—Bhutan, Kiribati, São Tomé and Príncipe, and Solomon Islands—for graduation from the LDC category by the year 2024. This endorsement was significant, as no committee had previously recommended such a large number of countries for graduation at once. In the history of the LDC category (which was established in 1971), only five countries have graduated: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa. Angola has also been scheduled for graduation in 2024.
These forty-seven least-developed countries face unique challenges to sustainable development that require targeted international support. Understanding the distinct characteristics of LDCs is essential for providing effective assistance and promoting long-term economic growth and stability. In the following sections, we delve deeper into the challenges faced by least-developed countries and the role of the United Nations in supporting their development efforts.
Recent Graduates and Future Candidates
Since its inception, only five countries have successfully graduated from the United Nations’ least-developed country (LDC) category: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa. However, in March 2018, the UN Committee for Development Policy (CDP) recommended Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands as potential candidates for graduation from this classification by the year 2024. This recommendation was unprecedented, as it marked the first time that four countries were endorsed at a single review (United Nations, 2018).
Bhutan: The Kingdom of Bhutan, located in the Eastern Himalayas between China and India, has been on the LDC list since its inception. This country, known for its commitment to preserving its unique culture and natural environment, experienced rapid economic growth over the past few decades. Its gross national income (GNI) per capita has surpassed $1,235, which is 20% above the LDC graduation threshold of $1,018. According to the UN Development Programme’s (UNDP) Human Development Report 2020, Bhutan’s human development index (HDI) value has improved significantly over the past decades, rising from a rank of 176 in 2000 to 135 in 2020.
Kiribati: An island nation situated between Hawaii and Australia in the Pacific Ocean, Kiribati was also recommended for graduation from the LDC category by the CDP in March 2018. Its GNI per capita has surpassed $1,034, which is slightly above the LDC income threshold of $1,018. Although Kiribati’s human assets index remains below the global average, it has made significant strides in improving its healthcare and education systems over the past few decades (World Bank, 2020).
São Tomé and Príncipe: This small island nation situated off the western equatorial coast of Central Africa is home to a population of approximately 178,000 people. São Tomé and Príncipe was also recommended for graduation from the LDC category by the CDP in March 2018. The country’s GNI per capita has surpassed $1,034, which is slightly above the LDC income threshold of $1,018. According to UNDP’s Human Development Report 2020, São Tomé and Príncipe’s HDI value has improved from a rank of 165 in 2000 to 154 in 2020.
Solomon Islands: The Solomon Islands, a chain of islands in the South Pacific Ocean, was also recommended for graduation from the LDC category by the CDP in March 2018. Its GNI per capita has surpassed $1,018, which is equal to the LDC income threshold. Despite facing numerous challenges, including political instability and natural disasters, the Solomon Islands have made significant strides in improving their healthcare and education systems over the past few decades (World Bank, 2020).
Angola: Lastly, Angola, a large country located on the southwestern coast of Africa, is scheduled for graduation from the LDC category by the CDP in 2024. Its GNI per capita exceeded $1,036 in 2019, which is slightly above the LDC income threshold of $1,018 (World Bank, 2020). Angola’s human assets have also improved significantly since the end of its civil war in 2002.
In conclusion, the UN Committee for Development Policy has recommended Bhutan, Kiribati, São Tomé and Príncipe, Solomon Islands, and Angola for graduation from the LDC category between 2024 and 2028. These countries’ successful transition out of this classification represents a significant milestone in their development trajectories.
FAQs About Least-Developed Countries
1) What are least-developed countries (LDC)?
Answer: Least-developed countries (LDCs) refer to underdeveloped nations with significant structural challenges to sustainable development. Currently, there are 46 countries on the UN’s list of LDCs. These countries face economic and environmental vulnerabilities, as well as fewer human assets compared to more developed nations.
2) What is the purpose of the United Nations Committee for Development Policy (CDP)?
Answer: The UN Committee for Development Policy (CDP), a secretariat within the U.N.’s Department of Economic and Social Affairs (DESA), was established to help least-developed countries access international support. CDP evaluates LDCs based on income, human assets, and economic vulnerability to determine their eligibility for international assistance and trade benefits.
3) How does a country qualify as an LDC?
Answer: A country meets the criteria for LDC status when its gross national income (GNI) per capita falls below $1,018 ($1,222 for graduation), or it displays significant structural challenges in health and education, as well as economic vulnerability. The CDP assesses these factors on a regular basis to determine a country’s eligibility for LDC status and graduation.
4) What are the benefits of being an LDC?
Answer: Least-developed countries can receive preferential treatment in terms of development assistance and trade from the international community, such as duty-free access to certain markets. This support aims to help these nations make progress towards sustainable development.
5) How many countries have graduated from being least-developed countries?
Answer: Since the LDC category was introduced in 1971, only five countries have graduated: Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa. Angola is scheduled for graduation in 2024, while Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands are potential candidates for graduation by 2024 as well.
6) Can a country lose its LDC status?
Answer: Yes, if a least-developed country makes sufficient progress in terms of income, human assets, or economic vulnerability, it may be graduated from the LDC category and no longer qualify for special international support and assistance. The CDP reviews each country’s eligibility for LDC status on a regular basis to determine graduation eligibility.