By United Nations - UNCTAD
Read or Download The Least Developed Countries Report 2009: The State and Development Governance (United Nations Conference on Trade and Development) PDF
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Extra resources for The Least Developed Countries Report 2009: The State and Development Governance (United Nations Conference on Trade and Development)
This is not simply a matter of designing appropriate institutions but also a question of policies and the processes through which they are formulated and implemented. Which institutions matter is inseparable from what policies are adopted. Development governance is thus about the processes, policies and institutions that are associated with purposefully promoting national development and ensuring a socially legitimate and inclusive distribution of its costs and benefits. Drawing principally on existing literature, this chapter examines possible approaches to effective development governance in LDCs.
FDI is invariably a lagging –– not a leading –– variable in the development process. Developing productive capacities implies giving increased attention to mobilizing domestic resources, accelerating capital formation and promoting technological learning and innovation. The challenge is to design effective governance practices which interrelate States and markets in creative new ways in the service of national development within a global context. Thirty-eight LDCs are currently producing poverty reduction strategy papers (PRSPs).
Global gross domestic product (GDP) in 2009 is now expected to fall and, largely as a result, UNCTAD expects world trade to contract by 7–8 per cent. This will be the first decline in world trade since the early 1980s, and probably the largest in 80 years. Given the fall of imports in the advanced economies and in the emerging and developing economies as a group, there is likely to be a major reduction in the 2 Most LDCs remain particularly vulnerable to current-account shocks triggered by the global growth slowdown, owing to their weak product diversification and their high dependence on external resources to finance their development.