Graduation from the LDC category should be a starting point, not a stumbling block

Graduation from the least developed country category is an outstanding national achievement – ​​recognition of hard-won gains in income, human development and resilience. But, for many of these countries, this moment comes with new vulnerabilities that threaten to undermine the very achievements that allowed them to emerge.

Since the establishment of the least developed country category in 1971, only eight countries have graduated from it. Today, 44 countries remain on this list, making up 14% of the global population, but their contribution to global GDP is less than 1.3%. The Doha Action Program sets an ambitious and achievable goal: enabling at least 15 additional countries to graduate by 2031. But, as the program emphasizes, this graduation must be sustainable, flexible and irreversible. It should be a turning point towards change – not a stage of exposure to new risks.

Graduation with momentum

Graduation usually coincides with a fundamental change in the nature of international support provided. As trade privileges, concessional financing, and specific technical assistance gradually diminish, countries may find themselves facing greater financial pressures, less competitiveness, and greater exposure to external shocks. If not accompanied by structured and forward-looking transition planning, these transitions may hinder progress towards the Sustainable Development Goals and place a heavy burden on national systems.

However, opportunities also lie at the heart of these challenges. With the right policies, partnerships, and incentives, graduation can catalyze deeper structural transformation, expand access to new financing windows, strengthen institutions, and open pathways toward diverse, resilient, and inclusive growth. Our mission is to manage risks while harnessing these opportunities – to ensure that no country exits without momentum.

Smooth transition strategies: a national imperative

The Doha Action Program calls on each graduation country to develop comprehensive, nationally owned smooth transition strategies well in advance of graduation. These strategies must be fully integrated into national development plans and SDG frameworks, ensuring their consistency and flexibility. These strategies should prioritize diversification, investment in human capital, and adaptive governance, with women, youth and local actors at the heart of design and oversight. Smooth transition strategies must be living documents – flexible and participatory, and supported by strong monitoring and financing.

Revitalizing global partnerships

No country can go through this transformation alone. The Doha Work Program calls for an incentive-based international support structure that extends beyond graduation. For LDCs with high use of trade preferences, withdrawal of preferential market access must be carefully phased to avoid sudden disruptions. For small island developing States and landlocked developing countries vulnerable to climate change, enhancing access to climate finance, debt solutions and supporting resilience are key elements in their efforts to address post-least-developed country challenges.

Deepening South-South and triangular cooperation, innovative financing instruments, blended finance, and enhancing private sector engagement will be key to building productive capacities and unlocking opportunities in digital transformation, green and blue economies, and regional market integration.

Transformational tool

The activation of the Sustainable Exit Support Facility – known as iGRAD – is a concrete step forward. By providing tailored advisory services, capacity building, and peer learning, this facility can be an essential tool to help countries anticipate risks, manage transitions, and maintain development momentum. However, its success depends on strong political support and adequate and predictable resources from development partners.

Graduation as a catalyst for transformation

Graduation should not be the end, but rather the beginning of a new chapter of flexibility and opportunity. Through integrated national strategies and renewed global partnerships, we can turn graduation into a catalyst for inclusive and sustainable development. Let us use this opportunity in Doha to reaffirm our collective commitment: no country should graduate to being weak. Together, we can ensure that graduation delivers its promise – for communities, economies, and generations to come.

What is the least developed country?

Least developed countries, listed by the United Nations, are those that show the lowest indicators of social and economic development across a range of indicators. The per capita gross national income in these countries is less than $1,018; This compares to about $71,000 in the United States, according to World Bank data.

These countries score low on indicators of nutrition, health, school enrollment, and literacy skills. At the same time, it scores high on indicators of economic and environmental vulnerability, which measures factors such as geographic distance, in addition to dependence on agriculture and risks of exposure to natural disasters.

The majority of least developed countries are located in Africa. It includes 6 Arab countries. The list is reviewed every three years by the United Nations Economic and Social Council. Eight countries graduated from the least developed country category between 1994 and 2020.