Challenges Face by Least Developing Countries (LDCs)

Least developing countries are a category which is established by the United Nation in 1970.
These countries are known as the most vulnerable countries among the international
community with the accordance to criteria under the United Nation with a view to help these
countries in terms of economically, socially and politically. In the beginning, there was only a
total of 52 countries that has been classified as least developing countries. But currently, theres
only 48 countries left as 4 countries has graduated from the LDCs category. In order for these
countries to graduate or being included in this category, they must fulfil the criteria which has
been set by the United Nation. The criteria that has been set by the United Nation are as below
:

1. GNI (Gross National Income) per capita (CDP Secretariat, 2011).

It provides the information regarding the income of a country and its available
resources as a whole.
The threshold for inclusion was $1,035 which is during the 2015 review. While
graduation threshold is set at 20% above the inclusion threshold; it was $1,242
in the 2015 review. (World Bank, 2015).

2. Human Asset Index (CDP Secretariat, 2011).

It is measure through 4 aspects which are mortality under five rate (1/4), gross
secondary school enrolment ratio (1/4), adult literacy rate (1/4) and population
undernourishment (1/4).
The inclusion threshold is set at 60% while the graduation threshold is set at
10% above the inclusion eligibility (World Bank, 2015, as cited in CDP
Handbook, 2015).

3. Economic Vulnerability Index (CDP Secretariat, 2011).

 It focused on 8 indicators such as population, remoteness, victims of natural
disasters, instability of agricultural production, merchandise export
concentration, share of agricultural, hunting, forestry, and fishing in GDP, share
of population in low elevated coastal zone and instability of exports of goods
and services.
The inclusion threshold is qualified at 60% whilst the graduation eligibility is
set at 10% below the inclusion threshold (World Bank, 2015, as cited in CDP
Handbook, 2015).

In order to achieve the sustainable development goals, the least developing countries
somehow faces some challenges as these countries are left behind due to inadequate social
services, weak governance, volatile economic growth (Save the Children UK and Development
Finance International, 2011) and lack of economic contribution towards national income.

Initially, inadequate social service (Save the Children UK and Development Finance
International, 2011) means the lack of public services provided by the government or the non-
government organization which to create a more productive community and promote
equivalency and chance for a citizen of a country. As the people of these countries are suffered
from poverty which they can hardly have access towards basic necessities whether in daily life
or even in some circumstances, so consequently it will cause harm to the society such in
providing education, health access, assist the development of the society and etc.

Furthermore, when it comes to weak governance (Save the Children UK and Development
Finance International, 2011), mainly to focus on the aids given by the United Nation that has
been not properly distributed to the needs of the country itself. As in consequences of the fact
that aids received from the United Nation is not sufficient enough to support these countries.
Thus, the United Nation need to at least increase the aids by 50% to meet the targets of
sustainable development goals.
 Moreover, volatile economic growth (Save the Children UK and Development Finance
International, 2011). The economic growth seems to not be able to achieve the specific criteria
according to United Nations guideline. Eventually as the economy of these countries are left
behind owing to its poverty regardless in any kind of forms (Lin, . Other than that, resulting
from the limited technology available which indirectly lead to unemployment of the people
living in least developing country.

Last but not least, lack of economic contribution towards national income. Most of these least
developing countries often have only one economic sector as their main source of income and
that is not included with the fact that on account of natural disaster happening may lead to low
productivity. For example, Ethiopia which regard the agriculture sector as it foundation in
economy sector can be affected by the drought that afflict the country (NASA, 2008).

To recapitulate, not only these challenges will delay the process for these countries to
graduate from least developing countries category but also it will be hard for them to achieve
the sustainable development goals whereas it is apart from United Nation plan that needs to be
fulfil by 2030.
References

CDP Secretariat (2011). Retrieved February 13, 2017 from

https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-
criteria.html

NASA (2008). Drought in Ethiopia. URL Retrieved from February 20, 2017 from

http://earthobservatory.nasa.gov/NaturalHazards/view.php?id=19764

Shreya M., Espey J., Martin M. & Watts J. (2011). Save the Children UK and Development
Finance International. Retrieved from January 31, 2017 from

https://www.savethechildren.org.uk/sites/default/files/docs/LDC_briefing_1.pdf

World Bank (2015). GDP per Capita Growth (annual %). Retrieved February 28, 2017 from

http://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG?view=chart

World Bank (2015) as cited in Handbook on the Least Developed Country Category : Inclusion,
Graduation and Special Support Measures (2th ed.) (2015). United Nations. 42-53

Lin, J. Y. (n.d.). Challenges, Opportunities and Strategies for Structural Transformation in

Least Developed Countries. Retrieved from February 22, 2017 from

siteresources.worldbank.org/DEC/Resources/NSE-TwoPager-JustinLin.pdf