The least developed countries (LDCs) have so far been spared by the worst effects of the health emergency, yet the fallout from COVID-19 has taken its toll on their economies, threatening to roll back progress towards sustainable development, worsening entrenched inequalities, and possibly leading to long-term damage.
The ongoing crisis has brought back to the fore the pivotal role of productive capacities for resilience to shocks, as well as for a sustainable and inclusive recovery and sustainable development. Bold concerted policies to strengthen LDC productive capacities are as imperative as ever and they should constitute a key pillar of any sustainable recovery and development strategy.
Beyond countercyclical policies to cushion the impact of the crisis, LDCs need to enact medium- to long-term policies and strategies that address the LDCs’ lingering vulnerabilities and development deficits. The international community should play its part, assisting LDC efforts in this direction.
