January 2011: The UN Conference on Trade and Development (UNCTAD) has announced that it is providing technical assistance to the Maldives following the country’s removal from the UN list of Least Developed Countries (LDCs) on 1 January 2011.

The UN took the Maldives off the LDC list after finding that its estimated gross national income (GNI) per capita in 2009 was three times over the graduation threshold, due mainly to growth in the tourism sector. The Maldives nevertheless remains one of the world’s most vulnerable countries due to its exposure to external shocks, such as the global financial crisis and the 2005 tsunami.

Graduating from LDC status implies the loss of benefits, such as special eligibility for technical assistance or preferential access to the EU’s market, which will end after a transition period of three years. In order to provide for a smooth transition, UNCTAD is providing technical assistance to national policy makers and will continue to monitor challenges faced by the Maldives.

The Maldives is the third country to graduate from LDC status, after Botswana in 1994 and Cape Verde in 2007. Other confirmed or potential graduation cases are Equatorial Guinea, Samoa, Tuvalu and Vanuatu. [UNCTAD Press Release]