Asia's landlocked developing countries: structural transformation, poverty reduction and financing for development

This report examines structural transformation for poverty reduction in Asia's landlocked developing countries (LLDCs), focusing on economic diversification and reduced dependency on extractive industries. It aims to address policy gaps and development challenges and provide policy makers with sectoral knowledge and expertise.

Format: Paperback / softback
Length: 57 pages
Publication date: 30 August 2021
Publisher: United Nations

Produced in connection with the global midterm review of the Vienna Programme of Action for Landlocked Developing Countries (LLDCs) 2014-2024, this publication explores structural transformation for poverty reduction in Asia's landlocked developing countries (LLDCs), including related policy-making and financial mobilization. To accelerate structural transformation in line with achieving the 2030 Agenda for Sustainable Development, Asia's LLDCs must focus on economic diversification and reduced dependency on extractive industries. These priorities require active policies to incentivize both the development of manufacturing and high-productivity services and the integration of the private sector into regional value chains. This report thus aims to address policy gaps and development challenges and to equip policy makers of Asia's LLDCs, including those least developed countries (LDCs), with relevant sectoral knowledge and expertise.

Asia's LLDCs face unique challenges in achieving structural transformation and poverty reduction. They are characterized by landlocked geography, limited access to markets, and weak infrastructure. These factors hinder their ability to diversify their economies and create jobs. Additionally, LLDCs often rely on extractive industries, such as mining and agriculture, for their economic growth, which can be environmentally harmful and contribute to social unrest.

To address these challenges, Asia's LLDCs need to prioritize economic diversification and reduced dependency on extractive industries. This can be achieved through a combination of policies and initiatives, including:

Investment in infrastructure: LLDCs need to invest in infrastructure, such as roads, ports, and power grids, to improve their access to markets and facilitate trade.

Promotion of manufacturing and services: LLDCs can promote the development of manufacturing and high-productivity services, such as textiles, electronics, and tourism, to create jobs and increase income.

Encouragement of private sector participation: The private sector can play a crucial role in driving economic growth and job creation in LLDCs. Policies can be implemented to encourage private sector participation, such as tax incentives, regulatory frameworks, and access to finance.

Regional integration: LLDCs can participate in regional economic integration initiatives, such as the Association of South East Nations (ASEAN) and the Economic Community of Central African States (ECCAS), to gain access to larger markets and promote economic cooperation.

In addition to these policy measures, LLDCs also need to address the underlying social and economic factors that contribute to poverty, such as education, healthcare, and gender inequality. Addressing these issues will require a comprehensive approach that involves the government, civil society, and the private sector.

One of the key challenges facing LLDCs is the lack of access to finance. Many LLDCs face difficulties in accessing capital, particularly for infrastructure development and private sector investment. This can be addressed through a combination of international aid, domestic investment, and private-public partnerships.

Another challenge is the need for technical and skills development. LLDCs often lack the necessary expertise and skills to develop and implement effective policies and programs. This can be addressed through training programs, capacity-building initiatives, and partnerships with international organizations and universities.

In conclusion, structural transformation for poverty reduction in Asia's landlocked developing countries is crucial for achieving the 2030 Agenda for Sustainable Development. Asia's LLDCs need to prioritize economic diversification and reduced dependency on extractive industries, invest in infrastructure, promote manufacturing and services, encourage private sector participation, and participate in regional integration initiatives. In addition, LLDCs need to address the underlying social and economic factors that contribute to poverty, such as education, healthcare, and gender inequality. By implementing these policies and initiatives, Asia's LLDCs can create a more prosperous and sustainable future for their citizens.

Dimension: 270 (mm)
ISBN-13: 9789211207996