1887

Economic diversification in Asian LLDCs

Prospects and challenges

image of Economic diversification in Asian LLDCs
This report on Economic Diversification of Asian LLDCs: Challenges and Prospects will address economic diversification and its impact on structural transformation, building productive capacities, job creation and enhancing competitiveness of LLDCs in Asia. The primary objective of the report is to discuss the prospects and challenges for economic diversification in Asian LLDCs. The panel will discuss examples of concrete opportunities for economic diversification in these countries that would contribute to structural transformation, building productive capacities and job creation. The panel will also discuss the challenges posed by high and volatile commodity prices, which create incentives away from diversification. The 12 Asian landlocked developing countries (LLDCs) share the common challenge of remoteness and isolation from international markets, without direct access to trade by sea, which increases substantially their trade costs. Higher costs reduce the competitiveness of the Asian LLDCs and hinder their ability to harness trade to promote their economic growth and structural transformation. They also create incentives to these countries to specialize in high bulk primary commodities with relative inelastic demand to the trade costs.

English

.

Strategies for fostering economic diversification

Given the productive capacities of Asian LLDCs and existing demand incentives, this section contains a discussion on how Asian LLDCs could choose between laissez-faire strategies, those in which the market guides the identification of opportunities for diversification, and strategic diversification approaches that nudge the private sector towards targeted economic activities that are more likely to increase the productive capacities in the country.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error