OVERVIEW DEFINITIONS Since 1971, the United Nations has used the term least developed countries (LDCs) to denote a category of countries (originally 24, currently 50) that are poor <strong>and</strong> considered highly disadvantaged in their development process. Countries on this list are considered to have a particularly high risk of failing to overcome poverty, <strong>and</strong> to need the highest degree of support from the international community in their development efforts. By periodically identifying the LDCs <strong>and</strong> highlighting their structural problems, the United Nations sends a strong signal to the development partners of these countries <strong>and</strong> underscores the need for special concessions <strong>and</strong> benefits in their favour. In 2002, the LDCs accounted for 11% of the world’s population but only 0.6% of world GDP. Their average gross national income per capita was $438, compared with $2,848 in other developing countries. Over the period 1979–2001, LDCs experienced 9.5% more instability in their agricultural production <strong>and</strong> 49% more instability in their exports of goods <strong>and</strong> services than other developing countries. In 2002, their share of world merch<strong>and</strong>ise exports was 0.6%, while that of other developing countries was 31%. People in LDCs can expect to live an average of 50 years, compared with 63 years in developing countries as a group. About 95 out of 1,000 children in LDCs die in their first year, compared with 35 out of 1,000 in other developing countries. In 2001, one-third of the three million people who died of AIDS in the world were inhabitants of LDCs. In the past three decades, adult literacy in LDCs has increased from 22% to only 56%, compared with an increase from 53% to 83% in other developing countries. To learn more 2 1.1 Selected groups of developing countries ● In the 2003 triennial review of the list of least developed countries (LDCs) by the United Nations, the criteria used for inclusion in the new list were low income, based on a three-year average estimate of the gross national income per capita (under $750 for inclusion, above $900 for graduation); human resource weakness, involving a composite human assets index (HAI); <strong>and</strong> economic vulnerability, involving a composite economic vulnerability index (EVI). ● The official list of LDCs currently includes Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, the Central African Republic, Chad, Comoros, the Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, the Lao People’s Democratic Republic, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Myanmar, Nepal, Niger, Rw<strong>and</strong>a, Samoa, Sao Tome <strong>and</strong> Principe, Senegal, Sierra Leone, Solomon Isl<strong>and</strong>s, Somalia, Sudan, Timor-Leste, Togo, Tuvalu, Ug<strong>and</strong>a, the United Republic of Tanzania, Vanuatu, Yemen <strong>and</strong> Zambia. ● Benefits derived from LDC status include development financing from bilateral, regional, <strong>and</strong> multilateral donors <strong>and</strong> financial institutions, including grants <strong>and</strong> loans at very favourable terms; benefits in the multilateral trading system in the form of special concessions under several Agreements in the World Trade Organization <strong>and</strong> preferential market access by several trading partners; <strong>and</strong> technical assistance, including priority programmes in the United Nations system <strong>and</strong> through bilateral <strong>and</strong> multilateral development partners. DATA SOURCES [1] UN Economic <strong>and</strong> Social Council’s Committee for <strong>Development</strong> Policy. UNCTAD’s Special Programme for Least Developed, L<strong>and</strong>locked <strong>and</strong> Isl<strong>and</strong> Developing Countries is the main source of statistical information on the LDCs. It conducts research <strong>and</strong> analysis on the challenges LDCs face in the context of globalization <strong>and</strong> publishes the results in the periodic Least Developed Countries Report. The programme contributes to the triennial review of the list of LDCs <strong>and</strong> monitors the benefits derived from LDC status. It coordinates UNCTAD’s capacity-building assistance in the LDCs, particularly through the inter-agency Integrated Framework for Trade-Related Technical Assistance to LDCs. Finally, it plays a catalytic role in supporting the development of some economic sectors particularly important to LDCs, such as cultural industries <strong>and</strong> international tourism. Information on UNCTAD’s work in this area is available at www.unctad.org/ldcs.
3 000 2 000 1 000 0 180 120 60 0 50 25 0 150 100 50 0 Indicators relevant to the criteria for determining the list of LDCs [1] 305.0 170.0 34.3 109.3 Gross national income per capita (US$, 2002) 377.0 126.5 30.1 77.4 940.0 Under-five mortality rate (per 1 000 live births, 2000) 64.9 438.0 142.0 Share of manufacturing <strong>and</strong> modern services in GDP (%, 2001) 47.4 36.0 Agricultural production instability index (1979 - 2001) 137.6 109.3 African LDCs <strong>and</strong> Haiti 2 848.0 49.8 49.9 100.0 Asian <strong>and</strong> Middle - Eastern LDCs 150 100 50 0 90 60 30 0 150 100 50 0 150 100 50 0 114.6 49.9 136.4 Least developed countries 1.1 A 120.1 53.8 98.6 131.5 76.0 126.3 147.8 141.6 140.1 Small isl<strong>and</strong> LDCs LDCs Calorie intake as % of minimum requirement (1998) Adult literacy rate (%, 2000) 118.9 55.7 Merch<strong>and</strong>ise export concentration index (2001) 128.4 Goods <strong>and</strong> services export instabiliy index (1979 - 2001) 145.4 Other developing countries 142.5 82.8 100.0 100.0 3