Assistance on graduation

Countries graduating from the LDC category derive special assistance for designing and implementing smooth transition strategies. UN DESA has developed a number of analyses and actions which can facilitate countries' efforts to construct such strategies, and also assist the CDP in undertaking more robust impact assessments of LDCs identified for graduation in future reviews and in monitoring the development progress of graduated countries.

Ensuring a smooth transition for small-island countries graduating from the LDC category

A small-island macro-economic model framework was developed to assist small-island LDCs in the following areas:
  • Assessing the loss of benefits resulting from graduation from the LDC category and how a smooth transition from LDC status can be attained. 
  • Simulating the economy-wide effects of compensatory policy responses.
  • Assessing the consistency of macroeconomic policies in response to the country's external vulnerability with long-term development objectives.
  • Development of a virtual workshop offering training in the use of the model.

See MMC website for further information about the design of small-island model.

A Macro-economic Model Framework for LDCs

An integrated macro-micro modeling framework has been developed to capture the economy-wide effects of "with" and "without" support measure situations in Uganda through scenario analysis.  The model framework addresses the following questions:
  • What are the real socio-economic benefits from the support measures LDCs are receiving and from a potential increase in access to these measures?
  • What are effective and macro-economically feasible compensatory policy responses for countries that graduate?
  • Can there be more efficient uses of existing support measures to reduce external vulnerabilities and stimulate economic growth while pursuing development goals?