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From UNCTAD
Least Developed Countries Reports (the series from 1996)
The Least Developed Countries Report 2002 - Escaping the Poverty Trap

Table of contents
OVERVIEW

Part One
RECENT ECONOMIC TRENDS AND UNLDC III DEVELOPMENT TARGETS

Chapter 1
RECENT ECONOMIC TREND
[Pdf, 16pp. 584KB]

  1. Overall growth trends
  2. Trends in external trade
  3. Trends in external finance
    1. Overall picture
    2. Trends in aid flows
    3. Trends in foreign direct investment
  4. Trends in external debt
  5. Conclusion
    Notes
    References

Chapter 2
THE UNLDC III DEVELOPMENT TARGETS
[Pdf, 22pp., 616KB]

  1. Introduction
  2. Growth and investment targets
  3. Poverty reduction goals
  4. Human development targets
  5. Transport and communications infrastructure development targets
  6. ODA targets for donor countries
  7. Progress towards graduation from LDC status
  8. Conclusion
    Notes
    References

Part Two
ESCAPING THE POVERTY TRAP

Chapter 1
THE NATURE AND DYNAMICS OF POVERTY IN THE LEAST DEVELOPED COUNTRIES
[Pdf, 37pp., 770KB]

  1. Introduction
  2. 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
  3. 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
  4. The dynamics of poverty in the LDCs
    Annex to Chapter 1
    Notes
    References

Chapter 2
GENERALIZED POVERTY, DOMESTIC RESOURCE AVAILABILITY AND ECONOMIC GROWTH
[Pdf, 33pp., 697KB]

  1. Introduction
  2. The long-run relationship between economic growth and poverty reduction
  3. Generalized poverty, domestic resource mobilization and low-level equilibrium
  4. 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
  5. Conclusion
    Notes
    References

Chapter 3
PATTERNS OF TRADE INTEGRATION AND POVERTY
[Pdf, 37pp., 573KB]

  1. Introduction
  2. 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
  3. Trade liberalization, growth and poverty
  4. Export orientation, growth and poverty
  5. Export structure, growth and poverty
    1. Export structure and income convergence with rich countries
    2. Export structure and the incidence of poverty
  6. The poverty-reducing impact of different types of export growth
  7. Conclusion
    Annex to Chapter 3
    Notes
    References

Chapter 4
COMMODITY EXPORT DEPENDENCE, THE INTERNATIONAL POVERTY TRAP AND NEW VULNERABILITIES
[Pdf, 31pp., 715KB]

  1. Introduction
  2. 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
  3. Elements of the international poverty trap
    1. Primary commodity dependence
    2. Unsustainable external debt
    3. The aid/debt service system
  4. The new vulnerabilities of LDCs exporting manufactures and services
  5. Is globalization tightening the international poverty trap?
    1. Potential forces loosening the trap. Forces tightening the trap: direct effects
    2. Forces tightening the trap: indirect effects
  6. Conclusion
    Notes
    References

Chapter 5
NATIONAL DEVELOPMENT STRATEGIES, THE PRSP PROCESS AND EFFECTIVE POVERTY REDUCTION
[Pdf,41pp., 574KB]

  1. Introduction
  2. LDCs and the PRSP process: achievements and challenges to date
  3. The need to move beyond adjustment policies
  4. 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
  5. 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
  6. Conclusion
    Notes
    References

Chapter 6
INTERNATIONAL POLICIES FOR MORE EFFECTIVE POVERTY REDUCTION IN THE LDCS
[Pdf, 35pp., 537KB]

  1. Introduction
  2. The need for re-enhanced debt relief
  3. Aid and its effectiveness
    1. The need to implement aid commitments
    2. Making aid more effective
  4. Market access and its effectiveness
  5. The Integrated Framework to support LDCs in their trade and trade-related activities
  6. International commodity policy
  7. South-South cooperation and the problem of polarization
  8. Conclusion Notes
    References

STATISTICAL ANNEX:
BASIC DATA ON THE LEAST DEVELOPED COUNTRIES

Downloads: Statistical annex
[Pdf, 47pp., 914KB]


Downloads: UNCTAD/LDC/2002
[Full report, one file,Pdf, 320pp., 3.7MB]


From UNCTAD:
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.

The Least Developed Countries, 2002 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.


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