Productive capacity in LDCs

The Committee for Development Policy (CDP) has  published a policy note on Expanding Productive Capacity: Lessons Learned from Graduating Least Developed Countries The Policy Note analyzes the strategies and policy choices on productive capacity of 14 countries that have graduated from the LDC category or have made noteworthy progress towards graduation. It contains a wide range of lessons not only relevant to all LDCs but the international community at large.

The CDP had also addressed productive capacity in LDCs in its 2016 and 2017 sessions. The Committee stressed that “developing productive capacity requires integrated polices in five areas: development governance; social policies; macroeconomic and financial policies; industrial and sectoral policies; and international support measures” and that peace and security, strong national ownership of the development agenda, and development oriented institutions are critical for development. See the excerpt from the CDP report to ECOSOC in 2017 – “Lessons learned in developing productive capacities from countries graduating and graduated from the LDC category” and background papers.

UNCTAD highlighted a key element of productive capacity for LDCs – access to energy for productive processes – in its LDC report 2017 launched on 22 November 2017, and productive capacity in LDCs was also discussed at the UNIDO Least Developed Countries Ministerial Conference on 23-24 November.