Smooth transition and graduation of least developed countries: coping with natural disasters and climate change

Alberto Isgut, Ran Kim and Yusuke Tateno ()
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Ran Kim: Macroeconomic Policy and Financing for Development Division, ESCAP

No PB43, MPDD Policy Briefs from United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

Abstract: The Asia-Pacific least developed countries (LDCs) have been making remarkable progress towards meeting the criteria for graduation. However, the high level of economic vulnerability to exogenous shocks, particularly those associated with natural disasters and climate change, has repeatedly disrupted the graduation process, leaving doubts on the ability of those countries to sustain their development gains in the long run. This suggests the need for a framework that goes beyond current graduation transition arrangements to build resilience and better reflects environmental and climate-related challenges of LDCs. Enhanced resilience does not only contribute to mitigating the adverse impact of natural disasters and climate change, but it also induces multiplier effects and helps LDCs make their structural transformation and graduation smooth and sustainable.

Date: 2016-06
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