15 March 2018: The UN’s Committee for Development Policy (CDP) recommended four countries for graduation from the least developed country (LDC) category at its 2018 triennial review. Bhutan, Kiribati, São Tomé and Principe and the Solomon Islands have improved their access to education and health care and increased their national earning power, making them eligible for graduation, the Committee reports.

LDCs are assessed using three criteria: gross national income (GNI) per capita; economic vulnerability; and education and health targets. Countries must meet two of three criteria at two consecutive triennial CDP reviews to be considered for graduation. In Bhutan and São Tomé and Principe, GNI per capita tripled, gross secondary enrollment more than doubled between 2003 and 2018, and the under-five mortality rate declined. In the Solomon Islands, GNI per capita doubled and gross secondary enrollment nearly doubled.

Kiribati’s graduation should be contingent on the creation of a category of “extremely vulnerable” countries with regard to climate change.

In Kiribati, GNI per capita almost tripled and the country has performed well on education and health, but it remains environmentally vulnerable to climate change. Consequently, the CDP has recommended that Kiribati’s graduation be contingent on the creation of a category of countries facing extreme vulnerability to environmental shocks, including climate change. The CDP suggests that Kiribati and other extremely vulnerable countries receive targeted support to address their vulnerability to climate change and other environmental shocks. The recommendation of four countries marks the largest number of countries that have ever been recommended at a single review.

Graduating countries have a “grace period” before graduation takes place, typically three years. This period aims to enable the country and its development and trading partners to agree on a transition strategy to ensure that the country’s changed LDC status does not impact its progress. Bhutan requested that its graduation become effective after the conclusion of its 12th National Development Plan 2018-2023, which is the country’s strategy for transitioning to non-LDC status. Bhutan’s Secretary of the Gross National Happiness Commission, Thinley Namgyel, explained that the transition period represents an opportunity for the country to “mainstream the transition strategy into the national development plan and incorporate our obligation to fulfill the targets of the 17 Sustainable Development Goals.” São Tomé and Príncipe also requested additional time for its transition.

Nepal and Timor-Leste also met the criteria for graduation. The CDP did not recommend these two countries, however, based on current economic and political challenges, but is expected to consider them again at the 2021 triennial review. Bangladesh, Lao People’s Democratic Republic (PDR) and Myanmar met the graduation criteria for the first time and will need to meet the criteria a second time to be eligible for consideration.

The UN established the LDC category in 1971. Since then, only five countries have graduated: Botswana, Cabo Verde, Equatorial Guinea, the Maldives and Samoa. Vanuatu is scheduled to graduate in 2020 and Angola is scheduled to graduate in 2021.

According to the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (OHRLLS), there are currently 47 LDCs. Thirty-three LDCs are in Africa, 13 are in the Asia-Pacific and one is in Latin America.

The CDP sends its recommendations to the UN Economic and Social Council (ECOSOC) for endorsement. ECOSOC will then refer its decision to the UN General Assembly (UNGA). [DESA News Release] [UN News Story]