Over the last 50 years most least developed countries (LDCs) have struggled to overcome the development challenges that led to the establishment of the category in 1971. Even their strong economic growth since the mid-1990s has generally been insufficient to redress their long-term income divergence with the rest of the world. The COVID-19 crisis and the emerging two-speed global recovery threaten to reverse many hard-won development gains, which is further aggravated by the creeping adverse effects of climate change.
Mainstreaming productive capacities development in these countries is a necessary condition for boosting their capacity to respond to and recover from crises. LDCs do tend to prioritize economic transformation and diversification in their policies. However, they critically lack the means necessary to progress towards the objectives of the 2030 Agenda for Sustainable Development.
The average annual investment requirements to end extreme poverty (SDG 1.1) in LDCs is estimated at $485 billion and the one required to double the share of manufacturing in GDP (SDG 9.2) is estimated at $1,051 billion. The latter amounts to more than triple the actual investment by LDCs, and therefore vastly exceeds LDCs’ available resources.
The international community has therefore an essential role to play in supporting LDCs in their efforts to mobilize adequate resources for their sustainable development needs, including in financing and technology. LDCs’ domestic efforts need to be supported by a new generation of international support measures that are more closely aligned to LDCs’ expressed needs and 21st century realities.
Objectives and target audience of the webinar
The issues outlined above are especially pertinent for Zambia at the present moment. The country’s economy was hard hit by the COVID-19 crisis, which aggravated the foreign debt situation and eventually led to the default of November 2020. The country needs to strategically direct its investment in the development of productive capacities so as to recover from the current slump. At the same time, this should allow it to achieve the diversification of the economy and the upgrading of the productive structure over the medium term. At the same time, Zambia needs to design and implement a strategy for graduation with momentum in the run-up for the likely exit from the LDC category later in the present decade.
This event will provide an occasion for discussion and will yield elements that will contribute to national debates.
Invitations will be sent to stakeholders of the development process of Zambia, especially the national Government, press, researchers, civil society and development partner institutions.
