This paper envisions to find out what has been done to help reduce the level of poverty in Least Developed Countries (LCDs). Moreover, it aims to identify and examine the effectiveness or ineffectiveness of the strategies implemented. Finally, it will be determined why it has been so difficult to graduate from the LDC category.
The Least Developed Countries are a sub-group of the Developing Countries (formerly referred to as less developed countries) and are defined by the United Nations as countries with low levels of income and human capital, and high economic vulnerability. Most of them are characterized by limited economic growth and export diversification, and a lack of competitive industries and exploitable natural resources. They also confront severe structural impediments to development and are vulnerable to natural disasters, such as droughts, floods, and hurricanes.
World Bank has further sub-classified 23 of the 47 LDCs as "fragile", and argues that these fragile countries experienced below-average GDP growth, under 4 percent a year compared with almost 6 percent in LDCs as a whole between 2000 and 2014. This is problematic because a growth rate of 7 percent has been targeted by international institutions to drive development in these countries.
Table of Contents
Introduction
1. BACKGROUND ON THE LEAST DEVELOPED COUNTRIES
2. ASSISTANCE TO THE LEAST DEVELOPED COUNTRIES
2.1 Family Planning
2.2 Poverty Reduction Strategy (PRS) Initiative
3. GRADUATION
3.1 Requirements for Graduation
3.2. Causes for Non-Graduation
Research Objectives and Key Themes
This paper investigates the persistent challenges faced by Least Developed Countries (LDCs) in their efforts to reduce poverty and achieve economic development. It evaluates the effectiveness of international assistance programs and identifies the underlying reasons why most LDCs struggle to graduate from this economic category.
- Criteria used for the classification of Least Developed Countries.
- Evaluation of family planning programs as a poverty reduction strategy.
- Analysis of the World Bank's Poverty Reduction Strategy (PRS) Initiative.
- Examination of success factors for countries that have successfully graduated.
- Identification of structural and institutional barriers to economic progress.
Excerpt from the Book
Box 1. Observation on the Use of Contraceptives
When I was living in a developing country many years ago, I personally witnessed conversations among men and women on the idea of taking contraceptive measures to limit the number of children they would have. The women opposed the use of contraceptives for very pragmatic reasons, and they were more vocal than the men. The rationale for their refusal was as follows:
Children represent a guarantee that someone will be there to take care of them personally and financially in their old age (their safety net). As the vast majority of governments in the developing world do not provide any safety net, the elders have to rely on their children. When asked why they gave birth to many children, their response was “one eye is no eye”, meaning that they had to have many children. Their rationale was that some of the children might die or might not be good providers. They argued that some of them might have limited means or do not care. They believe that if they have several children, at least one of them will be a good provider. Some women had even expressed a preference for girls by saying, “girls will always take care of mommy.” According to them, boys will be more attached to their wives after they get married.
Summary of Chapters
Introduction: This chapter defines the LDC category, highlights the difficulty in exiting this group, and outlines the paper's goal to evaluate poverty reduction strategies.
1. BACKGROUND ON THE LEAST DEVELOPED COUNTRIES: This section explains the criteria for LDC classification, including per capita income, human assets, and economic vulnerability.
2. ASSISTANCE TO THE LEAST DEVELOPED COUNTRIES: This chapter discusses various international concessions and supports provided to LDCs to help them overcome economic stagnation.
2.1 Family Planning: This section analyzes family planning as a birth-control strategy and explores why it often fails due to the lack of economic safety nets.
2.2 Poverty Reduction Strategy (PRS) Initiative: This chapter reviews the World Bank's PRS initiative, its principles, and the mixed results observed in case studies like Malawi and Zambia.
3. GRADUATION: This chapter reviews the handful of countries that have successfully graduated from the LDC list and the factors contributing to their success.
3.1 Requirements for Graduation: This section clarifies the triennial review process and the 'income only' criteria for exiting the LDC group.
3.2. Causes for Non-Graduation: This chapter outlines the structural, institutional, and policy-related reasons why the majority of LDCs remain trapped in poverty.
Keywords
Least Developed Countries, LDCs, Poverty Reduction, Economic Development, Graduation, Family Planning, PRS Initiative, World Bank, Economic Vulnerability, Human Assets Index, Foreign Aid, Structural Impediments, Institutional Weaknesses, Commodity Export, Social Safety Net
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the persistent poverty in Least Developed Countries (LDCs) and evaluates why international aid and various poverty reduction strategies have largely failed to help these nations graduate from the LDC category.
What are the primary thematic fields covered?
The research covers international development economics, the criteria for LDC classification, the effectiveness of family planning, the implementation of Poverty Reduction Strategy Papers, and the factors enabling successful graduation.
What is the central research goal?
The primary goal is to identify what has been done to reduce poverty in LDCs, evaluate the effectiveness of these strategies, and determine why graduation from the LDC category has remained so difficult.
Which scientific methods are employed?
The author utilizes a qualitative analytical approach, reviewing reports from international institutions like the UNCTAD and World Bank, and incorporating empirical observation and case studies (such as the experience in Malawi and Zambia).
What does the main body focus on?
The main body focuses on the specific strategies of Family Planning and the Poverty Reduction Strategy (PRS) Initiative, while also contrasting these with the success stories of countries like Botswana and the Maldives.
Which keywords best characterize this work?
Key terms include Least Developed Countries, Poverty Reduction, Graduation, Economic Development, and Structural Impediments.
Why does the author argue that family planning strategies often fail in LDCs?
The author argues that these strategies fail because they ignore the fundamental economic reality that parents in developing countries often view children as their only available "social safety net" for old age.
What is the 'double-edged sword' of 'national ownership' mentioned in the context of PRS?
It refers to the idea that while 'national ownership' is intended to make policies more effective by embedding them in local institutions, it can also preserve the very retrogressive structures that caused the poverty in the first place.
What is the 'income only' graduation rule?
It is a specific pathway for graduation where a country is deemed eligible if its per capita GNI reaches at least double the standard graduation threshold, regardless of its performance in other criteria.
- Quote paper
- JClaude Germain, Ph.D. (Author), 2018, Poverty Reduction in the Least Developed Countries, Munich, GRIN Verlag, https://www.grin.com/document/513569
