• Committee for Development Policy (CDP), a subsidiary of the UN Economic and Social Council (ECOSOC), is mandated to review the category of Least Developed Country (LDC-First introduced in 1971 by UN) every 3 years and monitor their progress after graduation from the category.
• CDP advises the Council on issues that are relevant for the implementation of the 2030 Sustainable Development Agenda.
• The proposal will be sent to the ECOSOC for endorsement and final approval by the UN General Assembly.
• LDCs are low-income countries confronting severe structural impediments to sustainable development. They are highly vulnerable to economic and environmental shocks and have low levels of human assets.
• There are total 46 LDCs out of which 33 are in Africa, 9 in Asia, 1 in Carribean and 3 in the Pacific Ocean.
• 3 Identification criteria for LDCs: per capita income, a human assets index and an economic vulnerability index.
• For graduation, at least two of the three criteria at two consecutive triennial reviews is required.
Significance of Graduation from LDC:
• Negative: Preferential provisions in export, provision of subsidy to agriculture and infant industries and access to climate finance are likely to cease after transition from LDC.
• Positive: Enhanced confidence of international financial bodies, improved credit rating and higher FDI.
Mains Paper 3: Economy
Prelims level: Trade parity price
Mains level: Role of Committee for Development Policy