CDP Policy Review No. 9

By Ana L. Cortez

LDC graduation has become an increasingly important issue in the international development agenda. Meeting graduation eligibility is a major goal of the Istanbul Plan of Action for the Least Developed Countries for the decade 2011-2020 (IPoA). But as countries’ concerns about graduation persist, the potential for additional tension has widened, particularly now that an increasing number of LDCs approach graduation.

Countries’ reservations are centred on the potential negative impact that the withdrawal of LDC-specific measures can cause to their development and to the achievement of sustainable development goals as LDC-specific support is withdrawn. Another concern manifested by the LDCs is the absence of a clear road map to navigate through transition and graduation. Despite the guidelines issued by the GA, smooth transition recommendations have only been partially applied. Implementation has largely focused on the aspect of withdrawing and/or phasing-out of LDC-specific support rather than putting in place a renewed cooperation framework for supporting the country in its development efforts after graduation.

In view of the above, the CDP decided to take further research and analysis on this matter and address some of the most pressing concerns related to graduation. This paper is a contribution to that effort. It does not aim to be comprehensive given the vastness of the subject and the heterogeneity of the group. The paper focuses on a set of suggestions with a strong emphasis on policy advice and technical cooperation for capacity building implying a more robust package of support to facilitate the graduation process and ease of some of the concerns of graduation-eligible countries. It improves upon the existing framework by identifying areas where it could work better and detecting resources that may be potentially released by graduation.