The most vulnerable countries in the world suffer a number of challenges, including as mounting debt, export exclusion, energy poverty, and climatic fragility.
1. Soaring debt
Prior to the COVID-19 pandemic, UNCTAD issued a warning about the LDCs’ mounting debt loads, which threatens their capacity to deliver essential services like healthcare and education.
Their debts have increased in size but also in cost and risk. The debt service for LDCs increased by more than three times between 2011 and 2019, reaching $33 billion, or between 5% and 13% of the value of their exports.
The epidemic has made the situation worse, and in 2022, loan repayments for LDCs are expected to total $43 billion.
Such a burden will hamper their recovery efforts from COVID-19 and deplete the public money required to combat poverty and make investments in crucial infrastructure, such as roadways and hospitals.
2. Marginalization of exports
LDCs continue to be excluded in international commerce.Since 2010, their percentage of the world’s exports of goods has stayed at or below 1%.
They are also extremely sensitive to worldwide crises and disasters due to their primary exports.
Even though a number of LDCs have expanded their export base, up to 38 of them still rely heavily on commodities. Over 60% of its exported items are basic goods including oil, cotton, and copper.
Many LDCs are seriously threatened by this instability, particularly in the food and petroleum markets. A clear reminder of this is the effect of the war in Ukraine on international prices for these two items.
3. Energy poverty
According to assessments by UNCTAD, more than 50% of residents of LDCs lacking access to electricity in 2019. In these nations, 570 million men, women, and children lack access to nighttime lighting for reading and cannot charge their mobile phones.
With almost two thirds of the population (458 million people) surviving without power, the situation is worse in rural areas.
And even in places with electricity, like big cities, access is frequently erratic.
Now more than ever, LDCs must have access to electricity as they work on recovering from the COVID-19 catastrophe. For instance, hospitals are unable to refrigerate vaccinations without dependable energy. This hinders efforts to spread vaccines.
4. Climate sensitivity
Despite the fact that their populations have hardly made a dent in the worldwide emissions of greenhouse gases driving global warming, LDCs are at the forefront of the climate problem.
69% of all climate disaster-related deaths worldwide during the past five decades have occurred in these vulnerable countries. Yet only 1.1% of the world’s total CO2 emissions were created by their automobiles and businesses.
Even so, their portion of the global average, per person, is only 9%. In 2019, a person in an LDC had a carbon footprint that was 23 times smaller than a person in a developed country like the United States or a European country.
The term “climate apartheid” refers to the disparity between those who are most and least liable for climate change.
Opportunity to reevaluate development tactics
The 5th Least Developed Country Conference (LDC5) is an opportunity to provide LDCs with the genuine support they require to address their sustainable development issues.
LDC5 is split into two sessions. The Doha Programme of Action for Least Developed Countries was established during the first stage of the conference, which took place on March 17, 2022, at the UN headquarters in New York.
It strives to make sure that LDCs are prioritized on the global agenda and to mobilize increased support to assist them in overcoming the structural obstacles they encounter.
The second half will take place in Doha from March 5 to 9, 2023, and will bring together world leaders, members of civil society, business leaders, students, and other stakeholders to create new strategies and partnerships for implementing the program of action during the ensuing ten years.