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The Least Developed Countries Report 2012

Harnessing Remittances and Diaspora Knowledge for Productive Capacities

image of The Least Developed Countries Report 2012
This Report reviews the LDCs' recent economic performance and examines how to enhance developmental impact of remittances and tap into the knowledge pool of its citizens abroad. Given the increasing magnitude of remittances in LDCs, the Report explores both the beneficial as well as possible adverse impacts of this type of private external flow. While remittances are the most visible effect of migration, there are other forms of Diaspora engagement within the home country such as Diaspora knowledge networks that can facilitate technological catch-up in LDCs and therefore enhance development of productive capacities. Through innovative forms of network-based industrial policy, LDCs could offset some of the adverse impacts of brain drain on their economies. The Report concludes with a policy review section containing lessons from international experiences in this area of interest to LDCs.

English French, Spanish

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Recent trends and outlook for the LDCs

This chapter analyses recent macroeconomic trends in LDCs and their performance in terms of economic growth, international trade and external finance. It shows that their economic performance has been substantially worse in the last three years than in the previous boom period and that some indicators have not yet reached pre-crisis levels. In addition, the current world economic situation and its implications for LDCs are analysed briefly. The main conclusion is that the growth of LDCs in the medium term will be constrained by the fragile recovery in the global economy and its negative impact on the growth of developing economies, which have been the main drivers of LDC growth in recent years. Finally, there is a small statistical annex at the end of the chapter which served as a basis for the analysis provided and which presents more detailed data at the level of national economies or different groupings of LDCs.

English Spanish, French

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