The Least Developed Countries Report 2011

The Potential Role of South-South Cooperation for Inclusive and Sustainable Development

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In light of the current economic difficulties facing traditional development partners and the non-sustainable and non-inclusive nature of performance of the Least Developed Countries (LDCs) over the last decade, LDC governments need new development paths to tap into dynamic growth poles in the South. This publication explores the role of South-South cooperation and regional developmentalism, and finds that, in order to benefit from evolving South-South relations, LDCs need to transform into Catalytic Development States that are highly sensitive to LDC vulnerabilities and offer new policy agendas.

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Recent trends and outlook for the LDCs

This chapter is intended to serve three distinct but interrelated purposes. The first is to describe and analyse the recent economic trends in the least developed countries (LDCs) and the economic outlook in the medium term. Recent trends in economic growth, international trade and external finance are assessed. In addition, this section gauges the possibilities of meeting the target of the Istanbul Programme of Action for the Least Developed Countries for the Decade 2011–2020 (IPoA) to enable half of the LDCs to meet the criteria for graduation from that category by 2020. The analysis suggests that prospects for achieving that goal are not particularly good.

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