CDP Background Paper No. 53

Marcia Tavares

When a country leaves (“graduates” from) the least developed countries (LDC) category, there is often concern about the impacts on the support it will receive from the international community. This paper reviews, as part of a preliminary assessment for the countries the Committee for Development Policy (CDP) will assess in 2024 (Cambodia, Comoros, Djibouti, Senegal and Zambia), the expected impacts on financial and technical assistance and on support for the participation of these countries in international forums. Impacts on trade, often found to be the most significant, will be assessed separately. The general preliminary conclusion is that the impacts on development cooperation will be relatively small, as most development partners do not rely on whether or not a country is an LDC as a primary determinant of their assistance. However, there are specific instruments, funds and flexibilities dedicated exclusively to LDCs and recent graduates, and some development partners have special terms and conditions for LDCs. It is important for countries approaching graduation to map out these areas in order to make the most of the LDC-specific support measures in the years leading up to graduation.