New assistance measures for graduating Belt and Road Least DevelopedCountries toward the achievement of Agenda 2030

Around 12 least developed countries (LDC) are scheduled to leave the category in coming years, more than doubling the number which have left the category in the 47 years since it was formed. Many of these potential graduates are concerned about losing access to the international support measures (ISMs) provided by the international community. After graduation, in some cases after a transition period, countries stand to face reduced support or forego access to support measures in trade, official development assistance and other areas such as travel support and reduced budgetary contributions to the UN. The loss of these benefits disincentivizes graduating LDCs, most of which are along the Belt and Road, from leaving the category, a process which is not automatic but is ultimately the sovereign decision of governments. The drop-off in international support also risks stalling development progress after graduation. LDC graduation and assistance for LDCs are mentioned in ‘Transforming our world: the 2030 Agenda for Sustainable Development’ approximately 44 times, particularly with a view to ‘leaving no-one behind’. Support for LDCs after they leave the category is an important way of helping these countries meet the SDGs by 2030.
The project will work with the governments of Bangladesh, Cambodia, Lao PDR, Myanmar, Nepal and Timor Leste, as well as international specialists and UN entities, to develop a set of proposals for post-graduation assistance. Some of these will be specific to the country concerned, and some generic – ie. applicable across the board. The proposals will partly aim at mitigating the potential impact of forfeiting existing ISMs – such as the loss of duty-free, quota-free market access under the European Everything But Arms Initiative – and will partly take the form of fresh measures to assist with the new development landscape following graduation, such as new infrastructure investment to support trade diversification. The key beneficiaries are thus the populations of these countries, totaling some 269 million people, intermediated through the Ministries of Planning, Trade, the Central Banks and private sector institutions. These will also be the prime entities involved with implementation in each country, alongside teams of national and international consultants overseen by UNDESA staff.
The project will first result in a concrete list, for each country, of new proposed assistance mechanisms for the post-graduation landscape. Communications and advocacy measures built into the project will aim at incorporating these mechanisms into international processes such as the forthcoming new Programme of Action for LDCs to be launched after 2020, and ideally some of the measures will be adopted by donors and trading partners. They will also be incorporated into government planning. Secondly, beyond the development and publicity of these measures, the project will strengthen policy frameworks and institutions for the adoption and use of selected assistance mechanisms in target countries.
Analysis and recommendations will be developed and published in an in-depth analytical study. Subject to government priorities and ratification, they will be included in the government planning documents of target countries, supported by development partners, and implemented with a view to enhancing sustainable development in the post-graduation era. An anticipated secondary outcome will be to incentivize the next graduating LDCs to leave the category, given new assurances of support.