The Least Developed Countries Report 2010

image of The Least Developed Countries Report 2010

This report calls for the creation of a new international development architecture (NIDA) for the LDCs aimed at: a) reversing their marginalization in the global economy and helping them in their catch-up efforts; b) supporting a pattern of accelerated economic growth and diversification to improve the well-being of all their people; and c) helping them graduate from LCD status. The NIDA for LDCs would be constituted through reforms of the global economic regimes which directly affect development and poverty reduction in LDCs, and through the design of a new generation of special international support mechanisms for the LDCs aimed at addressing their specific structural constraints and vulnerabilities. Increasing South-South cooperation could play an important role in a NIDA for LCDs. The Report proposes five major pillars of the NIDA: finance, trade, commodities, technology, and climate change mitigation and adaptation and identifies a forward-looking action.

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An agenda for action: (III) Commodities and (IV) Technology

This chapter treats two of the five core pillars of the NIDA, namely, commodities and technology. Without an effective technology policy, the commodity value chain cannot be developed, diversification out of commodities is unlikely to happen, and LDCs which have diversified out of commodities will not be able to upgrade from low-skill manufactures or simple services. Both the commodities and technology issues have been largely neglected in the international economic architecture and represent salient opportunities for constructive initiatives, with major benefits for LDCs.

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