UNCTAD-2019年最不发达国家报告（英文）-2020.7-196页_10mb

Summary of the Least Developed Countries Report 2019: The Present and Future of External Development Finance – Old Dependence, New Challenges

Core Content

The Least Developed Countries Report 2019 examines the role and impact of external development finance on the least developed countries (LDCs), focusing on dependence, challenges, and opportunities for sustainable development. The report emphasizes the Sustainable Development Goals (SDGs), structural transformation, and financing mechanisms as key pillars for LDCs to achieve development. It also highlights the importance of human rights in development policy and the need for more effective aid systems.

Main Points

A. Introduction and Context

• The report is a call to action for the international community to address the dependence of LDCs on external development finance.
• It underscores the vulnerabilities of LDCs, which include weak productive capacities, high debt burdens, and limited access to market-based finance.
• The aid effectiveness agenda remains underdeveloped, and multilateralism is under pressure, leading to inadequate support for LDCs.

B. Sustainable Development Goals, Structural Transformation, and Financing

• External finance is critical for fixed investment and sustainable development in LDCs.
• The Istanbul Programme of Action and the SDGs are closely linked to the realization of human rights, particularly the right to development.
• Structural transformation is essential for economic growth and development effectiveness, but external finance often hinders this process due to lack of alignment with national priorities.

C. Official Flows and Aid Dependence

• Official Development Assistance (ODA) is the primary form of external development finance, but levels remain far below international commitments.
• Aid dependence is highest among LDCs, with only 15% of ODA directed toward economic infrastructure and 8% toward productive sectors.
• South-South cooperation has gained importance, but North-South aid continues to dominate.

D. Private Development Cooperation

• Private sector instruments (e.g., blended finance, private capital mobilization) are being explored as alternatives to traditional aid.
• However, private sector involvement has not yet significantly reduced aid dependence.
• Transparency and accountability in private development cooperation remain issues, and concessional and non-concessional flows are often confused, undermining development effectiveness.

E. Fiscal Policies and External Finance

• Fiscal policies in LDCs are shaped by external finance and aid dependency.
• Tax revenue in LDCs is low, and tax buoyancy has not improved significantly.
• Debt service is a major burden, and current account deficits are widespread.

F. Enhancing Development Impact

• The report proposes policies to strengthen state capacity, revamp international partnerships, and improve aid management systems.
• Fiscal system strengthening is emphasized, along with increasing the voice of LDCs in international financial forums.
• Multilateralism is highlighted as a key solution to address aid effectiveness and renew global development cooperation.

Key Information

Classification of LDCs

• LDCs are classified based on geographical and structural criteria.
• The groups are:
  • African LDCs and Haiti: 31 countries.
  • Asian LDCs: 7 countries.
  • Island LDCs: 6 countries.

Graduation from LDC Status

• Five countries have graduated from LDC status:
  • Botswana (Dec 1994)
  • Cabo Verde (Dec 2007)
  • Maldives (Jan 2011)
  • Samoa (Jan 2014)
  • Equatorial Guinea (Jun 2017)
• Vanuatu was delayed until Dec 2020 due to the impact of Cyclone Pam.
• Angola was graduated in Feb 2021 due to economic vulnerability.
• Tuvalu and Kiribati were deferred to 2021.
• Bhutan, Sao Tome and Principe, and Solomon Islands were pre-qualified for graduation in 2018.
• Bangladesh, Lao PDR, and Myanmar are the first pre-qualified LDCs based on performance across all three criteria.

Thresholds for LDC Status

• Per capita income:
  • Addition threshold: $1,025
  • Graduation threshold: $1,230
• Human assets:
  • Includes nutrition, child mortality, maternal mortality, school enrolment, and literacy.
• Economic vulnerability:
  • Includes population size, geographical exposure, human exposure, economic exposure, natural shocks, and trade-related shocks.

Grace Period for Graduation

• A grace period is granted to LDCs before graduation to allow for a smooth transition.
• The standard grace period is three years, but many LDCs have negotiated longer periods, up to six years.

Conclusion

The report stresses that LDCs remain highly dependent on external development finance, and this dependence is both a challenge and a necessity. While ODA is the main source, its effectiveness is limited, and private sector involvement has not yet replaced aid. The need for reform in the aid architecture and increased multilateral cooperation is urgent, as LDCs require more sustainable and effective financing to meet the SDGs and achieve structural transformation.