A Guide to Graduating from Least Developed Country Status

The Trade in Global Value Chains Perspective

image of A Guide to Graduating from Least Developed Country Status

There is a need for more focused impact assessments of the potential costs and benefits arising from transitioning from Least Developed Country (LDC) status. This includes a deeper understanding of how LDCs are positioned within global value chains. In view of the fragmented nature of trade and the relative positions of countries within global value chains, the competitiveness challenges arising from the loss of preferential market access must be better identified and targeted. A Guide to Graduating from Least Developed Country Status provides research methods to analyse the trade-related effects of tariff preference loss as well as, how to integrate private sector consultations and survey methods to take in the perspectives of lead firms and buyers. It is essential reading for policy-makers and development partners who are supporting LDCs to adapt to the competitiveness challenges arising from graduation and enhance trade-related performance, which is so vital for export diversification and the achievement of sustainable development.




The influence of trade preferences for development, which have conveyed important incentives for the integration of LDCs into global production networks and are a key type of international support measure, remains underexplored within the GVC literature. In view of the unprecedented number of countries anticipated to graduate from the LDC category in the coming years - mainly on the grounds of income - this guide seeks to redress this shortcoming. While by 2018 only five countries had graduated from LDC status since 1971, this situation is expected to change dramatically in subsequent years.


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