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So far, the least developed countries (LDCs) have been spared the worst effects of the health emergency; However, the consequences of the COVID-19 pandemic have taken its toll on their economies, reversing some of the progress made towards sustainable development and possibly leading to long-term damage. The crisis has exposed not only the structural weaknesses of LDCs, but also deep-seated failures in the international support measures at their disposal. It has also re-emphasized the critical role of productive capacities for a sustainable, inclusive and resilient recovery.
UNCTAD report on least developed countries 2020: productive capacities for the new decade argues that the expansion and full utilization of the productive capacity of LDCs remains essential for improving the economic structure of LDCs and closing their development gaps relative to other countries. Along the same lines, using the UNCTAD Productive Capacities Index as a yardstick, the report documents how the performance of LDCs in relation to the goals enshrined in the Istanbul Program of Action has been uneven and lackluster overall, with only one handful of LDCs showing sustained progress.
The advent of digitization and the Fourth Industrial Revolution are modifying the very nature of productive capacities and reshaping global value chains. Advanced technologies offer ample scope for spillover effects and productivity gains, but they also run the risk of deepening entrenched inequalities and technology gaps.
In this context, bold concerted policies to strengthen the productive capacities of LDCs are as imperative as ever; indeed, the report argues that they should be a key pillar of any recovery and sustainable development strategy.
Beyond countercyclical policies, this requires:
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an investment drive to correct infrastructure gaps and support job creation;
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forward-thinking science, technology and innovation policy frameworks; Y
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courageous industrial and sectoral policies to promote domestic added value and productive links.
The international community must play its role and assist least developed countries with adequate financial resources, adequate policy space and more effective international support measures, especially in the area of technology transfer.
The rapid spread of the pandemic has highlighted how the call for a truly global partnership to “leave no one behind” goes far beyond a moral commitment and also reflects longer-term considerations of global systemic resilience.
“While no country has been spared from the COVID-19 crisis, least developed countries have the least ability to recover after this major crisis, due to their inherent development deficits. For least developed countries to become resistant to future shocks and achieve sustainable development, they must invest in their productive capacities for structural transformation.
The role of women and youth must be prominent. Its efforts to move in this direction require the active and determined support of the international community, especially in the fields of technology, finance and trade. International solidarity with the least developed countries must be reflected in a transformative action program to be adopted at the UNLDC-V Conference in 2022.
UNCTAD’s Least Developed Countries Report 2020 will be a valuable tool to help least developed countries and their development partners shape a better, more resilient and inclusive future for the world’s poorest countries. “
Amina J. Mohammed,
Under-Secretary-General of the United Nations
“The least developed countries have deployed their limited means to counter the COVID-19 recession, but they are the countries most vulnerable to the impact of the pandemic. The international community must show its determination to help its weakest members by giving them the tools to address the root causes of your vulnerabilities.
UNCTAD’s analysis and empirical work offer an important contribution to addressing these causes. The time to act is now. The least developed countries deserve an action plan focused on the development of productive capacities for their successful structural transformation. “
Mukhisa Kituyi,
Secretary General of UNCTAD
