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Workshop for the LDC National Focal Points 17-21 May 2004, UN Headquarters, New York

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Workshop for the LDC National Focal Points 17-21 May 2004, UN Headquarters, New York Slide 2 The Least Developed Countries Slide 3 Criteria for identification of LDCs 1.low income level, measured by gross national income (GNI) per capita 2.stock of human assets, measured by a Human Assets Index (HAI) 3.economic vulnerability, measured by an Economic Vulnerability Index (EVI) Slide 4 1. Low-income criterion based on a three-year average estimate of the gross national income (GNI) per capita: based on a three-year average estimate of the gross national income (GNI) per capita: under $750 for inclusion or above $900 for graduation under $750 for inclusion or above $900 for graduation Slide 5 2. Stock of human assets Measured by the Human Assets Index (HAI), based on four indicators: Measured by the Human Assets Index (HAI), based on four indicators: nutrition, measured by average calorie consumption per capita as a percentage of the minimum requirement nutrition, measured by average calorie consumption per capita as a percentage of the minimum requirement health, measured by the under-5 child mortality rate health, measured by the under-5 child mortality rate education, measured by (i) by gross secondary school enrolment ratio and (ii) adult literacy education, measured by (i) by gross secondary school enrolment ratio and (ii) adult literacy Slide 6 3. Economic vulnerability Measured by the Economic Vulnerability Index (EVI) (risk of exogenous shocks and structural characteristics). It is an average of five indicators: Measured by the Economic Vulnerability Index (EVI) (risk of exogenous shocks and structural characteristics). It is an average of five indicators: merchandise export concentration merchandise export concentration instability of export earnings instability of export earnings instability of agricultural production instability of agricultural production share of manufacturing and modern services in GDP and share of manufacturing and modern services in GDP and population size population size % of population displaced by natural disasters (new) % of population displaced by natural disasters (new) Slide 7 Inclusion/Graduation For inclusion, all three criteria must be met For inclusion, all three criteria must be met For graduation, at least two criteria must be met in two consecutive triennial reviews by Committee for Development Policy of the ECOSOC, which: For graduation, at least two criteria must be met in two consecutive triennial reviews by Committee for Development Policy of the ECOSOC, which: Reviews criteria Reviews criteria Determines thresholds Determines thresholds Makes recommendations on inclusion/graduation Makes recommendations on inclusion/graduation Slide 8 Fundamental meaning of LDC category - recognition of structural handicaps - excludes large economies Fundamental meaning of LDC category - recognition of structural handicaps - excludes large economies Population must not exceed 75 million Population must not exceed 75 million Slide 9 Milestones of the LDCs Late 1960s - International recognition of LDCs as the most vulnerable group Late 1960s - International recognition of LDCs as the most vulnerable group 1970s - International Development Strategy for Second UN Development Decade: special measures for the LDCs 1970s - International Development Strategy for Second UN Development Decade: special measures for the LDCs 1981 - First UN Conference on LDCs (LDC I), Paris: Substantial New Programme of Action (SNPA) 1981 - First UN Conference on LDCs (LDC I), Paris: Substantial New Programme of Action (SNPA) Slide 10 1990 - Second UN Conference on LDCs (LDC II): Paris Declaration and PoA for the decade 1990 - Second UN Conference on LDCs (LDC II): Paris Declaration and PoA for the decade 2000 - Millennium Declaration and MDGs: poverty identified as the most daunting challenge of new century 2000 - Millennium Declaration and MDGs: poverty identified as the most daunting challenge of new century 2001 - Third UN Conference on LDCs (LDC III): Brussels Declaration and Programme of Action (2001-2010) 2001 - Third UN Conference on LDCs (LDC III): Brussels Declaration and Programme of Action (2001-2010) Slide 11 Programme of Action for the Least Developed Countries for the Decade 2001-2010 Programme of Action for the Least Developed Countries for the Decade 2001-2010 Slide 12 Framework for partnership between LDCs and their development partners Based on their shared but differentiated responsibilities: Based on their shared but differentiated responsibilities: to accelerate sustained economic growth and sustainable development in LDCs, to accelerate sustained economic growth and sustainable development in LDCs, to end marginalization by eradicating poverty, inequality and deprivation in these countries, and to end marginalization by eradicating poverty, inequality and deprivation in these countries, and to enable them to integrate beneficially into the global economy to enable them to integrate beneficially into the global economy Slide 13 Overarching goal: To make substantial progress toward halving the proportion of people living in extreme poverty and suffering from hunger by 2015 and promote the sustainable development of the LDCs To make substantial progress toward halving the proportion of people living in extreme poverty and suffering from hunger by 2015 and promote the sustainable development of the LDCs Contains 30 international development goals, including the MDGs, embedded in commitments Contains 30 international development goals, including the MDGs, embedded in commitments Slide 14 Commitments: 1.fostering a people- centered policy framework 2.good governance at national and international levels 3.building human and institutional capacities 4.building productive capacities to make globalization work for LDCs 5.enhancing the role of trade in development 6.reducing vulnerability and protecting the environment 7.mobilizing financial resources Slide 15 Cross-cutting issues: poverty eradication poverty eradication gender equality gender equality employment employment governance at national and international levels governance at national and international levels capacity-building capacity-building sustainable development sustainable development special problems of landlocked and small island LDCs, and special problems of landlocked and small island LDCs, and challenges faced by LDCs affected by conflict challenges faced by LDCs affected by conflict Slide 16 Guiding principles: 1.An integrated approach 2.Genuine partnership 3.Country ownership 4.Market considerations 5.Result orientation Slide 17 1. An integrated approach The development process should be viewed in a comprehensive, coherent and long-term manner by LDCs and their partners, including the multilateral agencies within and outside the United Nations system. The development process should be viewed in a comprehensive, coherent and long-term manner by LDCs and their partners, including the multilateral agencies within and outside the United Nations system. When addressing economic development and poverty eradication, there should be a balance between economic and other objectives of development. The implementation of the PoA should be integrated into all international processes of concern to the LDCs When addressing economic development and poverty eradication, there should be a balance between economic and other objectives of development. The implementation of the PoA should be integrated into all international processes of concern to the LDCs Slide 18 2. Genuine partnership With greater alignment between national policies and strategies in LDCs and the external assistance strategies of their partners, the scope for more effective dialogue between them has expanded. Open and transparent development cooperation, underpinned by strong political will, can help bring about rapid transformations in LDCs With greater alignment between national policies and strategies in LDCs and the external assistance strategies of their partners, the scope for more effective dialogue between them has expanded. Open and transparent development cooperation, underpinned by strong political will, can help bring about rapid transformations in LDCs Slide 19 3. Country ownership All efforts should be made by LDCs and their partners to ensure genuinely country-led development. This will be aided by the joint identification of development priorities by LDCs and their development partners. Also, LDCs will need to be effectively involved in areas such as aid coordination and debt relief All efforts should be made by LDCs and their partners to ensure genuinely country-led development. This will be aided by the joint identification of development priorities by LDCs and their development partners. Also, LDCs will need to be effectively involved in areas such as aid coordination and debt relief Slide 20 4. Market considerations While acknowledging the importance of market forces in the sustained process of economic growth and poverty reduction, there is a need to ensure an appropriate mix of public-private participation. While acknowledging the importance of market forces in the sustained process of economic growth and poverty reduction, there is a need to ensure an appropriate mix of public-private participation. However, this cannot be achieved without adequate attention to market weaknesses as well as government weaknesses, and consideration of the preparedness of the private sector. To be fully productive, however, a market must operate within a stable legal and economic framework However, this cannot be achieved without adequate attention to market weaknesses as well as government weaknesses, and consideration of the preparedness of the private sector. To be fully productive, however, a market must operate within a stable legal and economic framework Slide 21 Only positive concrete processes and outcomes can s

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