The United Nations Conference on Development and Trade – UNCTAD (INSME Member) has recently released “The Least Developed Countries Report 2019”, a publication focused on the importance of sustainable development for the economies of the least developed countries (LDCs). Specifically, the report concentrates on development aid, in the context of the broader topic of international cooperation for development, structural transformation and sustainable development.
LDCs have progressed too slowly towards the achievement of their objectives under the Istanbul Programme of Action and of the Sustainable Development Goals; their positive growth performance since the global financial crisis of 2008/09 has not been sufficient to accelerate structural transformation or reduce dependence on external to finance fixed investment and development. These countries have little ability to attract market-based forms of sustainable long-term financing, while their access to finance depend on the Official Development Assistance – ODA.
In this framework the private sector results to be more efficient, capable and innovative than traditional development actors, in particular it seems that it plays the role developing countries are not able to properly fulfil because they are overburdened by risk and debt.
Finally, aid coordination and aid effectiveness have re-emerged as topical issues in development financing.
The report finds out that several policies have been implemented to enhance the developmental impact and effectiveness of external development finance, aimed at:
- Strengthening LDCs capacities to steer structural transformation and its financing
- Revamping international development partnerships and build up aid management systems
- Bolstering LDCs fiscal systems
- Reinforcing LDCs’ voice in international financial forums and restore the primacy of multilateralism.
Read more here.