South-South cooperation to benefit LDCs: Report

November 17th, 2011 - 7:12 pm ICT by IANS  

New Delhi, Nov 17 (IANS) South-South cooperation can be conducive to the emergence of an effective and stronger state in the least developed countries (LDCs), according to a latest report of the United Nations Conference on Trade and Development (UNCTAD) Thursday.

The UNCTAD’s 2011 report on LDCs says South-South cooperation and state building capacity in the LDCs can be mutually reinforcing.

According to the report, in most LDCs, the state has very limited resources available to finance governance and growth enhancing policies and is confronted with specific development challenges like absence of economies of scale, underutilised resources in the rural economy and reliance on static comparative advantages.

The report also argues that dynamic southern economies could provide LDCs with development opportunities but an adequate policy framework is needed to harness the potential of these emerging partnerships.

The report mentioned that with subdued demand for their products in the developed economies, the LDCs would have to look for opportunities elsewhere.

According to the report, if the current trends in poverty reduction continues, the LDCs are likely to become over time the major locus of extreme poverty in the world.

According to UNCTAD report, 48 countries are currently designated as LDCs. The list is reviewed every three years.

–Indo-Asian News service
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