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Asia-Pacific Countries with Special Needs Development Report 2024
Leveraging Digitalization for Productivity and Decent Employment
The Asia-Pacific Countries with Special Needs Development Report is a recurrent ESCAP annual publication that discusses issues of interest for Asia-Pacific least developed countries (LDCs) landlocked developing countries (LLDCs) and small island developing States (SIDS) collectively referred to as countries with special needs (CSN). The 2024 edition will explore the nexus between digitalization and automation and the two important parameters of productivity and decent employment in countries in special situations. This report examines the transformative role of digitalization and automation in enhancing the productive capacities of these countries. It zeroes in on the services sector and the digitalization of agricultural and industrial activities which has the potential to enhance productivity and job creation. However it also cautions against potential risks including job displacement and cybersecurity threats. To navigate these challenges the report discusses policy options for enhanced connectivity and infrastructure education and training tailored to the digital economy and regional cooperation to foster a conducive environment for digital trade and investment.
Executive summary
The Asia-Pacific Countries with Special Needs Development Report 2024: Leveraging Digitalization for Productivity and Decent Employment explores the transformative potential of digitalization for enhancing productivity and employment in countries in special situations comprising the region’s least developed countries (LDCs) landlocked developing countries (LLDCs) and small island developing States (SIDS).
Policy considerations and regional cooperation to harness digitalization
This chapter contains a summary of the key opportunities challenges and risks of digitalization as previously discussed focusing on how Asia-Pacific LDCs LLDCs and SIDS can leverage them. By reviewing the experiences of these countries the discussion in this chapter includes several policy considerations and underscores the importance of regional cooperation in maximizing the benefits of digitalization while mitigating its potential drawbacks.
Acknowledgements
This report was prepared under the direction of the Executive Secretary and the Deputy Executive Secretaries of ESCAP and its Editorial Board.
Digitalization, productivity and employment
The impact of digitalization on productivity and employment are dynamic and multi-faceted. While digitalization can significantly boost productivity its impact on employment depends on such factors as the nature of the workforce and the adaptive capacity of economies. Nuanced policy and regulatory responses are therefore required so that the digitalization and productivity gains translate into inclusive employment growth.
Foreword
In the vibrant and diverse Asia-Pacific region the transformative role of digitalization in shaping the future of countries in special situations − least developed countries (LDCs) landlocked developing countries (LLDCs) and small island developing States (SIDS) — cannot be overstated. This report delves into the ways digital advancements can catalyse productivity and employment and includes discussions on policy options to overcome traditional development challenges such as limited productivity capacities lack of economies of scale and challenging geographic features.
Explanatory notes
Analyses in the report are based on data and information available up to the end of February 2024.
Introduction
At the halfway point of the 15-year period to implement the 2030 Agenda for Sustainable Development the outlook is grim. Despite a period of notable progress in many of the Sustainable Development Goals (SDGs) the convergence of multiple crises including climate change the COVID-19 pandemic violent conflicts and economic shocks is threatening to derail development and put further progress in peril for many countries (United Nations 2023a 2024). In recent years progress in key areas of development such as poverty alleviation reduced inequalities food security health and social protection has stagnated or reversed in many parts of the world (United Nations 2023b).
Demographic outlook for the small island developing states
The small island developing States (SIDS) are a heterogeneous group of islands and coastal states spread across the world. As of June 2023 the group is composed of 57 countries and territories with a combined population of 73.5 million. Twenty-nine SIDS are located in the Caribbean 20 in the Pacific and 8 in the Atlantic Indian Ocean and South China Sea (AIS) region. Of these 46 SIDS have small populations of less than 1 million inhabitants while Papua New Guinea and three of the Greater Antilles nations – Cuba the Dominican Republic and Haiti – are the only SIDS with more than 10 million inhabitants accounting for slightly over 60 per cent of the total population of the group in 2023.
Population Prospects of Countries in Special Situations
Tracking Demographic Change Among the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States
The report provides an up-to-date overview of major population trends in the least developed countries (LDCs) landlocked developing countries (LLDCs) and small island developing States (SIDS) in connection with the critical development challenges they face. The groups of countries in special situations comprise 110 countries (45 LDCs 32 LLDCs and 57 SIDS) located in all regions of the world. The report focuses on differences and similarities in demographic characteristics between regional subgroups of the three categories of countries. It highlights levels and trends in population size structure and distribution mortality fertility and international migration from 2000 to 2050 while also discussing the implications of these demographic trends for achieving the relevant SDGs.
Acknowledgements
This report was prepared by Lina Bassarsky Danan Gu and Thomas Spoorenberg. The authors wish to thank John Wilmoth Bela Hovy and Karoline Schmid for their inputs in reviewing the draft.
Demographic outlook for the landlocked developing countries
Nearly 640 million people worldwide lived in countries or territories that lack territorial access to the sea in 2023. Most of them 577 million resided in landlocked countries located in the less-developed regions of the world accounting for 7 per cent of the global population in 2023. About two thirds of the population of these landlocked developing countries (LLDCs) lived in Africa and almost one third in Asia. The remaining 4 per cent were located in South America (3 per cent) and Europe (1 per cent). Ethiopia with more than one third of the African LLDC population is the most populous country among LLDCs followed by Uganda. Afghanistan is the largest LLDC in Asia followed by Uzbekistan and Nepal. The Republic of Moldova and the Plurinational State of Bolivia are the countries with the largest LLDC populations in Europe and South America respectively (map 3.1).
Foreword
Today the groups of countries in special situations – constituting the least developed countries (LDCs) the landlocked developing countries (LLDCs) and the small island developing States (SIDS) – are home to an estimated 1.3 billion people representing 17 per cent of the world’s population. Even though these countries have made progress in implementing the 2030 Agenda for Sustainable Development they continue to face significant challenges on their path towards a prosperous equitable and sustainable future within a context of multiple and intersecting vulnerabilities and constraints.
Demographic change and its implications for policy priorities in LDCs, LLDCs and SIDS
LDCs LLDCs and SIDS stand at the intersection of numerous opportunities and challenges for a sustainable and prosperous future. Progress toward the SDGs shows a mixed picture of both achievement and shortfalls and in some cases recent setbacks owing to the multifaceted impact of the COVID-19 pandemic conflicts disasters and displacement among others.