Policy conclusions and the way forward

Aided by the commodities boom, the group of landlocked developing countries (LLDCs) has seen impressive growth rates exceeding 7 per cent on average between 2000 and 2008. This growth performance continued until 2013, despite the 2008–2009 global financial crisis and its impact. However, while the growth performance of Asian LLDCs was robust during the commodities boom, a subsequent sharp slowdown to an average of 2.6 per cent in 2016 (0.4 per cent in per capita terms) revealed their persistent vulnerabilities to external economic shocks. The shock was prevalent in the extractive-resource-rich countries discussed in this report. Such vulnerabilities are causes and consequences of weak productive capacity, heavy commodity dependence, or lack of economic diversification. Coupled with geographical, political, regulatory, and institutional challenges, these vulnerabilities hamper the ability of LLDCs, including those in Asia, to foster structural economic transformation that leads to inclusive and sustainable economic growth, the creation of decent jobs, and substantial poverty reduction.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Partnerships for the Goals