<h1 class="ql-align-center"><strong style="color: rgb(230, 0, 0);">Least Developed Countries&nbsp;</strong></h1><p class="ql-align-center"><br></p><h3><strong>Context&nbsp;</strong></h3><ul><li class="ql-indent-1"><strong>Bhutan</strong>, the mountainous, will on December 13th of this year, become the seventh nation to graduate from the <strong>United Nations’ (UN) list of Least Developed Countries (LDC.)</strong></li></ul><h3><strong>About&nbsp;</strong></h3><ul><li class="ql-indent-1">They are developing countries listed by the UN that exhibit the lowest indicators of socioeconomic development.</li><li class="ql-indent-1">The concept first originated in the late 1960s and was codified under <strong>UN resolution 2768</strong> passed in November 1971.</li><li class="ql-indent-1">According to the UN, an LDC is defined as “a country that exhibits the <strong>lowest indicators of socioeconomic development,</strong> with low levels of income, human capital and economic diversification, high levels of economic vulnerability, and a population that is disproportionately reliant on agriculture, natural resources, and primary commodities.”</li></ul><h3><strong>The UN identifies three criteria for a country to be classified as an LDC:</strong></h3><ul><li class="ql-indent-1">It must have a gross national income (GNI) per capita below the<strong> threshold of USD 1,230 over a three-year average.</strong></li><li class="ql-indent-1">It must perform poorly on a <strong>composite human assets index based on indicators including nutrition, health and education.</strong></li><li class="ql-indent-1">The country<strong> must demonstrate economic vulnerability </strong>such as being prone to natural disasters and possessing structural economic constraints.</li><li class="ql-indent-1">Countries must meet a selection from all three criteria simultaneously and are reviewed on a three-year basis by the UN.</li><li class="ql-indent-1">Currently, the UN lists 46 countries that qualify as LDCs. Of those, 33 are from Africa, nine from Asia, three from the Pacific and one from the Caribbean.</li></ul><h3><strong>How does a country get off the LDC list?</strong></h3><ul><li class="ql-indent-1">A nation must have a GNI per capita of <strong>at least USD 1,242 for two consecutive triennial reviews</strong> in order to meet the income requirement.</li><li class="ql-indent-1">By using measures like education, health, and nutrition, a nation must show that it has improved its human capital in order to achieve the human assets requirement.</li><li class="ql-indent-1">A nation also must show that it has<strong> improved its ability to withstand external economic shocks like natural</strong> catastrophes or shifts in commodity prices in order to pass the economic vulnerability test.</li></ul><h3><strong>Advantages of being an LDC</strong></h3><ul><li class="ql-indent-1">Being an LDC confers <strong>certain economic benefits to the listed country.</strong></li><li class="ql-indent-1">LDCs also<strong> enjoy duty-free and quota-free (DFQF) access</strong> to the markets of developed countries.</li><li class="ql-indent-1">LDCs are also eligible for loans with special terms for development, which include loans with a lower interest rate and a longer repayment time than those given to other nations.</li></ul><p class="ql-align-center"><br></p><h1 class="ql-align-center"><strong>PRELIMS NOTES:</strong><a href="https://www.sunyaias.com/subscription-details/prelims-2023-sunya-notes-current-affairs" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 102, 204);"><strong>CLICK HERE</strong></a></h1>