[stop-imf] UNCTAD report on LDCs
Robert Weissman
rob@essential.org
Mon, 24 Jun 2002 19:10:41 -0700
Several list subscribers asked about a Guardian story posted recently.
The story referenced a report on least developed countries by the UN,
and suggested it offered a fundamental critique of corporate
globalization.
The report is posted at: http://www.unctad.org/en/pub/ps1ldc02.en.htm
I have not yet the report, and I'm not sure if the critique is quite as
sharp as suggested. If people have a chance to look it over and have
comments, please let me know.
A short summary is posted below, along with the report's table of
contents.
--
Robert Weissman
THE LEAST DEVELOPED COUNTRIES REPORT 2002
Escaping the Poverty Trap
June 2002
The least developed countries (LDCs) are a group of 49 countries that
have been identified by the UN as "least developed" in terms of their
low GDP per capita, their weak human assets and their high degree of
economic vulnerability. This Report is the first international
comparative analysis of poverty in the LDCs. It is based on a new set of
poverty estimates constructed specifically for the Report. The new
estimates enable empirically based analysis of the relationship between
poverty, development and globalization, and thereby the elaboration of
more effective national and international policies to reduce poverty in
the LDCs.
The Report shows that extreme poverty is pervasive and persistent in
most LDCs, and that the incidence of extreme poverty is highest in those
LDCs that are dependent on primary commodity exports. The incidence of
poverty is so high because most of the LDCs are caught in an
international poverty trap. Pervasive poverty within LDCs has effects at
the national level that cause poverty to persist and even to increase,
and international trade and finance relationships are reinforcing the
cycle of economic stagnation and poverty. The Report argues that the
current form of globalization is tightening the poverty trap.
With improved national and international policies, LDCs can escape the
poverty trap. Indeed a central message of the Report is that there is a
major, but currently underestimated, opportunity for rapid reduction in
extreme poverty in the LDCs through sustained economic growth. However,
the new Poverty Reduction Strategy Papers (PRSPs), which are currently
the focus of national and international efforts to reduce poverty in
poor countries, are not grasping that opportunity. The Report proposes
an alternative approach to improve the design of poverty reduction
strategies. It also shows that effective poverty reduction in the LDCs
needs a more supportive international environment. This should include
increased and more effective aid and debt relief, a review and recasting
of international commodity policy, and policies which recognize the
interdependence between the socio-economic marginalization of the
poorest countries and the increasing polarization of the global economy.
TABLE OF
CONTENTS
OVERVIEW
Part One
RECENT ECONOMIC TRENDS AND
UNLDC III DEVELOPMENT TARGETS
Chapter 1
RECENT ECONOMIC TREND
Downloads: Chapter 1
[Pdf, 16pp. 584KB]
A.Overall growth trends
B.Trends in external trade
C.Trends in external finance
1.Overall picture
2.Trends in aid flows
3.Trends in foreign direct
investment
D.Trends in external debt
E.Conclusion
Notes
References
Chapter 2
THE UNLDC III DEVELOPMENT TARGETS
Downloads: Chapter II
[Pdf, 22pp., 616KB]
A.Introduction
B.Growth and investment targets
C.Poverty reduction goals
D.Human development targets
E.Transport and communications
infrastructure development targets
F.ODA targets for donor countries
G.Progress towards graduation
from LDC status
H.Conclusion
Notes
References
Part Two
ESCAPING THE POVERTY TRAP
Chapter 1
THE NATURE AND DYNAMICS OF POVERTY IN
THE LEAST DEVELOPED COUNTRIES
Downloads: Chapter 1
[Pdf, 37pp., 770KB]
A.Introduction
B.The approach of the Report and
its rationale
1.The focus on consumption
poverty
2.The choice of $1-a-day
and $2-a-day international poverty lines
3.The use of
national-accounts-consistent poverty estimates
C.The poverty situation in the
LDCs in the late 1990s
1.Average levels of
poverty in LDCs in a comparative perspective
2.A poverty map for the
LDCs in 1995-1999
D.The dynamics of poverty in the
LDCs
Annex to Chapter 1
Notes
References
Chapter 2
GENERALIZED POVERTY, DOMESTIC
RESOURCE AVAILABILITY AND ECONOMIC GROWTH
Downloads: Chapter 2
[Pdf, 33pp., 697KB]
A.Introduction
B.The long-run relationship
between economic growth and poverty reduction
C.Generalized poverty, domestic
resource mobilization and low-level equilibrium
D.Generalized poverty, population
growth and environmental degradation
1.Patterns of poverty,
population growth and environmental resource use
2.The downward spiral of
impoverishment and environmental degradation
E.Conclusion
Notes
References
Chapter 3
PATTERNS OF TRADE INTEGRATION AND
POVERTY
Downloads: Chapter 3
[Pdf, 37pp., 573KB]
A.Introduction
B.Trade integration,
marginalization and liberalization: patterns and trends in the
LDCs
1.Level of trade
integration
2.Form of trade
integration
3.Participation in global
trade flows
4.Extent of trade
liberalization
C.Trade liberalization, growth
and poverty
D.Export orientation, growth and
poverty
E.Export structure, growth and
poverty
1.Export structure and
income convergence with rich countries
2.Export structure and the
incidence of poverty
F.The poverty-reducing impact of
different types of export growth
G.Conclusion
Annex to Chapter 3
Notes
References
Chapter 4
COMMODITY EXPORT DEPENDENCE, THE
INTERNATIONAL POVERTY TRAP AND NEW
VULNERABILITIES
Downloads: Chapter 4
[Pdf, 31pp., 715KB]
A.Introduction
B.Commodity export dependence and
poverty: trade mechanisms
1.The level and volatility
of primary commodity prices
2.Productivity,
competitiveness and dynamism of LDC commodity exports
C.Elements of the international
poverty trap
1.Primary commodity
dependence
2.Unsustainable external
debt
3.The aid/debt service
system
D.The new vulnerabilities of LDCs
exporting manufactures and services
E.Is globalization tightening the
international poverty trap?
1.Potential forces
loosening the trapForces tightening the trap: direct effects
2.Forces tightening the
trap: indirect effects
F.Conclusion
Notes
References
Chapter 5
NATIONAL DEVELOPMENT STRATEGIES, THE
PRSP PROCESS AND EFFECTIVE POVERTY
REDUCTION
Downloads: Chapter 5
[Pdf,41pp., 574KB]
A.Introduction
B.LDCs and the PRSP process:
achievements and challenges to date
C.The need to move beyond
adjustment policies
D.Long-term national development
strategies and the PRSP process
1.The importance of rapid
and sustained economic growth
2.The need to establish a
dynamic investment-export nexus
3.Productive development
policy options
4.Policies to prevent
marginalization within LDCs
E.Strengthened national ownership
and policy autonomy
1.The tension between
national ownership and policy conditionality
2.The crucial role of
capacity-building
3.Donor alignment behind
national PRSPs
4.Partnership and the
poverty reduction financing gaps
5.WTO rights and
obligations
F.Conclusion
Notes
References
Chapter 6
INTERNATIONAL POLICIES FOR MORE
EFFECTIVE POVERTY REDUCTION IN THE LDCS
Downloads: Chapter 6
[Pdf, 35pp., 537KB]
A.Introduction
B.The need for re-enhanced debt
relief
C.Aid and its effectiveness
1.The need to implement
aid commitments
2.Making aid more
effective
D.Market access and its
effectiveness
E.The Integrated Framework to
support LDCs in their trade and trade-related
activities
F.International commodity policy
G.South-South cooperation and the
problem of polarization
H.Conclusion Notes
References
STATISTICAL ANNEX:
BASIC DATA ON THE
LEAST DEVELOPED COUNTRIES
Downloads: Statistical annex
[Pdf, 47pp., 914KB]