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(a) the identification of progress, gaps, areas requiring urgent attention, risks and
challenges in achieving the SDGs; and, or in relation to the theme within the area under
the purview of your intergovernmental body;
- Many least developed countries (LDCs) continue to make important development progress, with a number on track to graduate to middle-income country status. Gross domestic product growth in LDCs, estimated to reach 5.4 per cent in 2018, is higher than projected global growth, but still below the 7 per cent annual rate called for by the Sustainable Development Goals. Long-term growth projections point to 35 per cent of the population in LDCs remaining in extreme poverty by 2030.
- LDCs typically face significant financing gaps in their efforts to achieve the Sustainable Development Goals. Many governments have limited fiscal space and a heightened reliance on external funding. While there was an increase in official development assistance to LDCs in 2016 of less than one per cent in real terms, the medium-term trend is one of stagnation.
- Foreign direct investment, which has been on an upward trajectory in LDCs since 2002, remains concentrated in a small number of economies and sectors, and can be volatile; foreign direct investment inflows in 2017 decreased for the second consecutive year. Approximately one third of the LDCs are at high risk of debt distress or already in that situation. Financing shortfalls can be especially large at the subnational level.
- All these factors underscore that LDCs need access to significant additional resources – both private and public – to achieve their goals; that business-as-usual approaches are no longer sufficient; and that there is a need for new partnerships, innovation, and risk-taking to get more resources flowing to LDCs. There is also a need to focus not just be on the quantity of financing, but also about quality and its geographic allocation, so that those being left behind are included.
