Productive capacities and competitiveness in LDCs

A major challenge facing LDCs is how to integrate successfully into a globalizing world economy. There is growing concern over the steady fall in LDCs’ share in global trade over the past two decades. Various attempts (for example, the Generalized System of Trade Preferences (GSP), to guarantee improved market access for LDCs’ exports in developed country markets have met with limited success for a variety of reasons, including the administration and complexity of such schemes. Recent developments, such as tariff reductions achieved during the Uruguay Round of trade negotiations, have also entailed erosion of trade preferences for many exports of LDCs. However, the main constraint on the full and active participation of LDCs in the global economy remains their supply-side weaknesses. Attention is, therefore, focused at present on the problems associated with the productive capacities of LDCs and the policies needed for their improvement.

Sustainable Development Goals:

Affordable and Clean Energy

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions