Current Affairs | Release Date 2021-03-08 14:46:26
Current Affairs | Release Date 2021-03-08 14:46:26


• 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.

About:

• 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.

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Mains Paper 3: Economy
Prelims level: Trade parity price
Mains level: Role of Committee for Development Policy



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