Improved assistance measures for graduated and graduating least developed countries for the achievement of agenda 2030 (CDP Policy Review No. 9; 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 201-2020 (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. Currently, two countries are to be graduated in 2020-2021 (Angola and Vanuatu). At the 2018 triennial review of the list of LDCs, five other countries have been recommended to graduate and await the conclusion of the intergovernmental process (Bhutan, Kiribati, Sao Tome e Principe, Solomon Islands and Tuvalu)). Additionally, five other countries (Bangladesh, Lao PDR, Myanmar, Nepal and Timor-Leste) met the graduation eligibility and will be reviewed for a graduation recommendation in 2021. 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can cause to their development and to the achievement of sustainable development goals as LDCspecific support is withdrawn. While this package of support measures is no silver bullet to address the structural challenges of the group, and while it is not clear whether such package has had a major role in countries’ graduation so far, individual measures have proved to be beneficial in specific contexts. 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 (CDP Secretariat, 2018). This paper is a contribution to that effort. It does not aim to be comprehensive given the vastness of the subject (the achievement of sustainable development at the country level) and the heterogeneity of the group which implies different development trajectories and needs (Cornia and Scognanillo, 2016). Similarly, it does not intend to create a new category or a subset of countries within the LDC category. Rather, the paper focuses on a set of suggestions that implies a more robust package of support to facilitate the graduation process and ease of some of the concerns of graduation-eligible countries. This set of suggestions has a strong emphasis on policy advice and technical cooperation for capacity building. It improves upon the existing framework by identifying areas where it could work better and detecting resources that may be potentially released by graduation. Recommendations fall into three categories of measures: i) strengthening of the policy advice and technical cooperation framework for smooth transition policy design and implementation; ii) improved and more effective monitoring of the transition process; and, iii) additional support measures for graduating and graduated countries. These recommendations are presented and discussed after section II which introduces a very brief overview of the main features of the LDC category, including access and utilization of LDC-specific support measures, and graduated countries’ outcomes.