LDC-specific mechanisms and support

Other forms of support to LDCs and the LDC category 

Moreover, several organizations in the UN system provide substantive support to LDCs as a category (in addition to their support to countries individually), including policy analysis and information services, capacity-building, support in obtaining access to information and resources, and advocacy services. For example (see also the Organizations tab on this portal):

• The Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) advocates in favour of LDCs within the United Nations and with other partners, assists LDCs in mobilizing resources and other forms of support, coordinates UN support to LDCs and graduation, organizes United Nations conferences on LDCs and monitors the implementation of programmes of action for LDCs. It supported the establishment of the Technology Bank and the Investment Support Programme.
• The UN Department of Economic and Social Affairs (UN DESA) provides support to LDCs in the form of analysis, data and information services, and capacity-building, as well as by supporting the work of  the Committee for Development Policy (CDP) in its deliberations on inclusion and graduation from the LDC category.
• UNCTAD supports LDCs to achieve structural economic transformation, increase productive capacity, reduce poverty and build resilience to adverse factors. It produces an annual “Least Developed Countries Report” addressing trends and issues of interest to LDCs, and provides substantive support to the Enhanced Integrated Framework.
• UNESCAP assists LDCs in Asia and the Pacific, with a special emphasis on issues of productive capacity, infrastructure, trade and institutional development. It produces an annual Asia-Pacific Countries with Special Needs Development Report, covering LDCs, landlocked developing countries and small island developing States.
• The World Meteorological Organization (WMO) has a “Least Developed Countries Programme” to build the capacity of National Meteorological and Hydrological Services in LDCs.
• The International Telecommunications Union (ITU) has a work programme for LDCs, LLDCs and SIDS. 
• The Universal Postal Union (UPU) has a special programme for LDCs consisting in technical assistance activities and funds for procurement of equipment.
• UNITAR has fellowships for nationals of LDCs to participate in its Multilateral Diplomacy Programme and core diplomatic training courses. More information here.
• The United Nations University World Institute for Development Economics Research (UNU-WIDER) provides an array of research and data on LDCs (online repository contains here). Insights on a variety of topics relevant to LDCs can also be found in UNU-WIDER’s online project portfolio .
• The World Intellectual Property Organization (WIPO) assists LDCs to use intellectual property in support of innovation and creativity to address development challenges and enhance productive capacity and competitiveness. 

Other organizations have special terms for assistance to LDCs:

• LDCs are exempt from the requirement to finance 5% of biannual project budgets under the International Atomic Energy Agency (IAEA)’s Technical Cooperation Fund (TCF).
• LDCs have a lower cost-sharing support fee for operations of the United Nations Volunteers (UNV). The minimum government cost-sharing support fee for LDCs is 3% as opposed to 8% for other developing countries (though a number of factors influence the applied rate, which is negotiated with the country).

Some organizations and funds have criteria for resource allocation that favour LDCs:  

• UNDP: The primary criteria for allocation of UNDP’s core resources are per capita income and population. A decision of UNDP's Executive Board (No. 95/23, para 24) establishes the goal of ensuring that at least 60 per cent of core resources are allocated to LDCs. 
• UNICEF is also required by its Executive Board to allocate 60 per cent of its regular resources to LDCs and 50 per cent to sub-Saharan Africa countries ( see UNICEF (2016), “Assessment of ways to enhance results-based budgeting and assessment of the resource allocation system”; UNICEF/2017/EB/4).
• Criteria for resource allocation in the 8th replenishment period (2022-2026) of the Global Environment Facility (GEF) Trust Fund for biodiversity, climate change and land degradation is based on indicators of “global benefits” (related to globally relevant characteristics of the country in the three target areas), country performance and GDP.  After allocation based on these criteria, adjustments are made to ensure that LDCs receive a minimum allocation in each of these areas. A similar system is applied to the Global Biodiversity Framework Fund.

See also, on this Portal, Comprehensive Programmes of Action for LDCs, arrangements to support LDCs in their participation in international forums (including caps and discounts on UN budget contributions and support for travel); information on scholarships; and multilateral and regional cooperation.

What happens when countries graduate? 

• Countries have access to the Technology Bank, the EIF and the Investment Programme for 5 years after graduation.
• UNCDF programmes can continue to be funded the same conditions for a period of three years. Funding for another two years can be provided on a 50/50 cost-sharing basis with either the Government or a third party. 
• LDCF (climate change): after graduation, countries are no longer eligible to receive new funding under the LDCF. Projects approved before and up until graduation continue to receive funding for their full implementation. Disbursements under the LDCF follow a principle of “equitable access", which means there are caps on the amount of funds a single country can receive in any specific replenishment period and cumulative. Depending on the country's use of the fund, graduation may have no impact. 
• There are no smooth transition provisions for UNDP's consideration of LDC status in resource allocation. However, the rule applies to the LDC category and not to individual LDCs.  Any changes in allocation to specific countries would be reflected in the next budget cycle and would be dependent on other factors including country needs, resource availability and competing allocations.  Non-core resources are allocated independently of LDC status.
• UNICEF allocates resources by applying a system that gives higher weight to countries with the lowest GNI per capita, highest under-five mortality rate and largest child population. This results in LDCs being naturally the greatest beneficiaries (in compliance with the Executive Board allocation requirement), but also means that graduation itself does not affect the amount of resources allocated to a country.  

Other than these LDC-specific instruments, in general, graduation does not significantly affect support programmes (see also multilateral and regional development cooperation). Most organizations continue to support countries in their areas of specialization, based on persisting needs and vulnerabilities. Many graduating LDCs can expect assistance programmes to change over time as income levels rise and the variables considered by these partners improve sustainably, but not as a result of LDC graduation. 

Several organizations are committed to supporting countries through a “smooth transition” out of the category, and UN-OHRLLS coordinates an inter-agency task force to that effect.