Least-developed countries (LDCs), also known as less-developed countries, are underdeveloped nations facing significant structural challenges to achieve sustainable development. As of October 2021, the United Nations’ list of LDCs includes 46 countries.
Key Takeaways
- Least-developed countries are low-income nations that encounter substantial structural difficulties in achieving sustainable development.
- The United Nations Committee for Development Policy developed measures to assist LDCs in accessing and benefiting from international support.
- As of October 2021, there are 46 countries classified as LDCs by the United Nations.
Understanding Least-Developed Countries
Least-developed countries are especially vulnerable to economic and environmental shocks and possess fewer human assets compared to other nations. Sometimes, these countries are referred to as “emerging markets.” LDCs benefit from unique international support measures for development assistance and trade that more developed nations do not receive.
The U.N.’s Committee for Development Policy (CDP) Secretariat of the Department of Economic and Social Affairs (DPAD/DESA) established criteria to assist LDCs in gaining access to and benefiting from international backing. This secretariat is tasked with reviewing and monitoring the status and progress of LDCs, especially after they graduate from the LDC category.
The secretariat’s criteria for determining least-developed countries include income levels, human assets, and economic vulnerability:
- Income thresholds: Set at a three-year average of gross national income (GNI) per capita of $1,018. Graduation from LDC status is achieved at 20% higher, or $1,222.
- Human assets: Measured using five indicators grouped into health and education subindexes.
- Economic vulnerability index: Assesses structural vulnerability to economic and environmental shocks, with a high level indicating major structural impediments to sustainable development.
List of Least-Developed Countries
Forty-six countries are currently recognized as LDCs by the United Nations, as of October 2021.
In March 2018, the CDP endorsed the graduation of Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands from the LDC category by 2024. This endorsement was notable as it was the first time the committee recommended multiple countries for graduation in a single review. Over the 47 years since the LDC category’s inception, only five countries have graduated, including Botswana, Cabo Verde, Equatorial Guinea, the Maldives, and Samoa. Angola is also scheduled to graduate from LDC status by 2024.
Related Terms: Developing Countries, Emerging Markets, Gross National Income, Human Assets, Economic Vulnerability Index.
References
- United Nations Conference on Trade and Development (UNCTAD). “UN Recognition of the Least Developed Countries”.
- United Nations, Department of Economic and Social Affairs. “Least Developed Countries (LCDs)”.
- United Nations Conference on Trade and Development (UNCTAD). “UN List of Least Developed Countries”.
- United Nations, Department of Economic and Social Affairs. “Secretariat of the Committee for Development Policy About Secretariat of the Committee for Development Policy”.
- United Nations, Department of Economic and Social Affairs. “LDC Identification Criteria & Indicators”.
- UN Department of Public Information. “Making Progress on Sustainable Development, Four Least Developed Countries Tapped to Graduate from Ranks of Poorest”.
- United Nations, Committee for Development Policy. “List of Least Developed Countries (as of 11 February 2021) *”.
