Executive summary

Over the past decades, least developed countries (LDCs) have made only limited progress in dynamically transforming and diversifying their economies. Their structural challenges and weak economic and social performance are rooted in the limited development of their productive capacity. Consequently, achieving the sustainable development goals (SDGs) requires concerted efforts to expand productive capacity in LDCs. Building productive capacities also moves LDCs towards graduation from the category. Moreover, it provides development momentum necessary to manage graduation and support for continued progress following graduation. Graduation from the LDC category is not only a policy objective for many countries and the international community; more importantly, it is a reflection that a country has been able to overcome or mitigate the most severe structural impediments to sustainable development.

Sustainable Development Goals:

Peace, Justice and Strong Institutions