Propelling LDCs in the Digital Age: A 4IR Perspective for Sustainable Development - UNIDO, UN Technology Bank, EIF

The least developed countries (LDCs) have followed a fragile and erratic development trajectory since the United Nations created the category 50 years ago. While the rest of the developed world has achieved a remarkable socio-economic renaissance due to rapid technological advancements, LDCs have lagged behind. Despite LDCs having made some progress, core challenges in making decisive progress on structural economic transformation and inclusive and sustainable development have persisted and become more complex. These challenges stem from demographic developments, rising inequalities impacting particularly women, youth and other vulnerable groups, persistent poverty, and accelerated urbanization, leading to malnutrition, governance issues, poor infrastructure, and a slow capital accumulation rate. This Background Paper has been designed to make a compelling case that the uptake of new and emerging technology solutions that underpin the Fourth Industrial Revolution (4IR) is critical if LDCs are to achieve rapid economic growth that leaves no one behind and meet the United Nations Sustainable Development Goals (SDGs) while remaining carbon-neutral. In order to foster dialogue amongst the attendees of UNIDO’s 9th Ministerial Conference of the LDCs, the Background Paper provides critical recommendations on how LDCs could mainstream the 4IR to achieve SDGs and decarbonization. The Background Paper asks the main questions that need to be answered for LDCs to harness the power of 4IR technologies to achieve sustainable economic growth, the SDGs, and decarbonization. The Background Paper asks the main questions that need to be answered for LDCs to harness the power of 4IR technologies to achieve sustainable economic growth, the SDGs, and decarbonization: ▪ What are the major impediments and challenges LDCs face when trying to deploy 4IR technologies? ▪ How do we address these challenges and bring opportunities offered by 4IR technologies within reach of LDCs? ▪ What are the avenues that LDCs can explore to lead the way in decarbonization? ▪ Which local actors can act as the catalyst for an inclusive and gender-responsive digital transformation in LDCs? ▪ What interventions are necessary to enable 4IR-led leapfrogging to occur in LDCs?