AITIC-CUTS Dialogue on Preparing for UN-LDC IV – LDCs: Trade and Development Challenges

AITIC-CUTS AITIC-CUTS Dialogue on Preparing for Dialogue on Preparing for UN-LDC IV – LDCs: Trade and Development UN-LDC IV – LDCs: Trade and Development

ChallengesChallenges

Presentation Presentation byby

Dr. Depabriya Bhattacharya, Dr. Depabriya Bhattacharya, Special Adviser on LDCs to the SG of UNCTADSpecial Adviser on LDCs to the SG of UNCTAD

18 May 201018 May 2010

Executive summaryExecutive summary

Until the recent global crises, LDCs as a group enjoyed a Until the recent global crises, LDCs as a group enjoyed a protracted period of improved performance in the areas of economic protracted period of improved performance in the areas of economic growth, macroeconomic stability, trade and investment, resource flow and growth, macroeconomic stability, trade and investment, resource flow and balances. However, this robust performance was relatively skewed and balances. However, this robust performance was relatively skewed and fragile and as such could not catalyse a breakthrough for structural fragile and as such could not catalyse a breakthrough for structural progress. Changes have been particularly lagging in the areas of progress. Changes have been particularly lagging in the areas of investment in productive sectors, trade diversification, infrastructure investment in productive sectors, trade diversification, infrastructure development, science and innovation capacity-building. In order to development, science and innovation capacity-building. In order to accelerate a transition towards structural progress, there is a need to accelerate a transition towards structural progress, there is a need to revisit the development approaches in LDCs and development partners, revisit the development approaches in LDCs and development partners, particularly in the light of their recent development experiences and the particularly in the light of their recent development experiences and the challenges brought about by the fuel, food and financial crises. A new challenges brought about by the fuel, food and financial crises. A new vision of the development paths for LDCs needs to include a facilitating vision of the development paths for LDCs needs to include a facilitating macroeconomic framework, innovative meso-level interventions and a new macroeconomic framework, innovative meso-level interventions and a new set of international support measures addressing the specific needs of an set of international support measures addressing the specific needs of an increasingly heterogeneous LDCs group.increasingly heterogeneous LDCs group.

• ** This document was submitted on the above-mentioned date because the provisional agenda was approved This document was submitted on the above-mentioned date because the provisional agenda was approved by the Trade and Development Board on 15 April 2010.by the Trade and Development Board on 15 April 2010.

• **** This is an abridged version of the report of the UNCTAD Ad hoc Interdivisional Task Force on This is an abridged version of the report of the UNCTAD Ad hoc Interdivisional Task Force on LDC-IV. It has been prepared for the executive session of the Trade and Development Board, Geneva, 8 June 2010.LDC-IV. It has been prepared for the executive session of the Trade and Development Board, Geneva, 8 June 2010.

Real GDP and real GDP per capita growth rates of Real GDP and real GDP per capita growth rates of LDCsLDCs

GDP composition by sectorsGDP composition by sectors

Current account balances for LDCs and non-oil Current account balances for LDCs and non-oil exporting LDSs (Percentage of GDP)exporting LDSs (Percentage of GDP)

Inflation in the LDCs (1990-Inflation in the LDCs (1990-2007)2007)

The graduation prospects of 20 The graduation prospects of 20 LDCsLDCs

LDCs trade in merchandise goods and LDCs trade in merchandise goods and servicesservices

(Percentage of GDP)(Percentage of GDP)

Terms of trade indicesTerms of trade indices

Composition of LDCs’ merchandiseComposition of LDCs’ merchandise exports by main categoriesexports by main categories

Export destination of LDCs products by Export destination of LDCs products by sectorsector

Changes in dependence on a sigle commodity Changes in dependence on a sigle commodity export between 2000-20002 and 2006-2008export between 2000-20002 and 2006-2008

Domestic investment and savings in Domestic investment and savings in LDCs and non-oil exporting LDCs LDCs and non-oil exporting LDCs (Percentage of GDP)(Percentage of GDP)

FDI inflows into the LDCs and their share in FDI inflows into the LDCs and their share in world inflows and developing country-world inflows and developing country-

inflows, 1986-2008inflows, 1986-2008

FDI inflows to LDCs, 1996-2008FDI inflows to LDCs, 1996-2008

Project investment in transport Project investment in transport infrastructure, 1990-2008infrastructure, 1990-2008

Average LSCI rankings of country groups, Average LSCI rankings of country groups, 20092009

Mobile telephone subscriptions per 100 Mobile telephone subscriptions per 100 inhabitants in LDCs, 2000 and 2007inhabitants in LDCs, 2000 and 2007

ODA and debt relief to LDCsODA and debt relief to LDCs

Composition of ODA to LDCsComposition of ODA to LDCs

Net ODA as per cent of GNINet ODA as per cent of GNI

LDCs and non-LDCs: share of aid LDCs and non-LDCs: share of aid to government expenditureto government expenditure

Debt indicators for LDCs, HIPC-LDCs, Debt indicators for LDCs, HIPC-LDCs, non-HIPC-LDCsnon-HIPC-LDCs

HIPC-LDCs: Status over timeHIPC-LDCs: Status over time

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