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LDC and other country groupings: How useful are current approaches to classify countries in a more hetergeneous developing world?

Jose Alonso Rodriguez, Ana Luiza Cortez and Stephan Klasen

CDP Background Papers from United Nations, Department of Economics and Social Affairs

Abstract: The proliferation of country groupings indicates the need to assess the effectiveness of the current system for development cooperation and to explore better ways to manage the international system, as heterogeneity among developing countries increases. Great caution should be exercised in devising new country categories. Donors can use sound criteria for aid allocation without creating new groupings. If new categories are created at all, issue-based classifications should be preferred to comprehensive categories; support should be issue-specific. Among the existing comprehensive classifications, the LDC category has significant advantages but it needs to better address the problems and incentives associated with graduation.

Keywords: Country groupings; country classifications; international aid; least developed countries; country eligibility; graduation (search for similar items in EconPapers)
JEL-codes: F35 F55 O19 O57 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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