Although the title of “least developed country” proposed 50 years ago brought some concessions, it did not produce the changes needed to accelerate the sustainable development of all people.
The United Nations General Assembly established the Least Developed Countries category for its Second Development Decade (1971-80). Its resolution sought support for its 25 poorest member states, and Sikkim withdrew after being annexed by India in 1975.
With the addition of many other countries, the list of least developed countries increased to 49 in 2001. Half a century later, after meeting income, "human assets" and economic and environmental fragility standards, only 7 countries "graduated", and the remaining 44 least developed countries accounted for 14% of the world's population.

More than two-thirds of the population of the least developed countries are located in sub-Saharan Africa, and more than half of the world’s extremely poor people live on less than US$1.9 a day. The vulnerability of the least developed countries is 27% higher than that of other developing countries, while the poverty rate of other developing countries is 12%.

The criteria for least developed countries are different from the World Bank's low-income country concessional loan eligibility criteria. Some least developed countries—especially resource-rich countries—are middle-income countries (MICs), and according to other criteria, these countries are denied graduation qualifications.

Most LDCs already rely heavily on aid. Despite the exaggerated statement, only 6 of the 29 "development partners" of the Organization for Economic Cooperation and Development (OECD) have fulfilled their pledge to use at least 0.15% of their national income to assist the least developed countries.

Chasing a "mirage"?
Since then, the United Nations has organized a meeting every ten years to review the progress and action plans of the governments and development partners of the least developed countries. The first time was in Paris in 1981, and the fifth time was in Doha in January 2022.
The 2011 Istanbul Conference ambitiously sought to graduate at least half of the least developed countries by 2020. But only three countries have done so-Samoa (2014), Equatorial Guinea (2017) and Vanuatu (2020). To make matters worse, most former LDCs have difficulty maintaining development after graduation.
In the 1980s and 1990s, many developing countries implemented the macroeconomic stability and structural adjustment policies of the Washington-based International Monetary Fund (IMF) and the World Bank.

These policies have fully implemented liberalization, privatization and austerity policies, including many least developed countries. Unsurprisingly, most of Africa and Latin America are closely followed by "lost decades."

Curse of Midas
Botswana was the first graduate in 1994 and is now the upper middle class in a middle-income country. Between 1968 and 1990, China’s diamond boom brought an average annual growth rate of 13.5%. Unsurprisingly, Botswana’s “good governance”, institutions, and “prudent” macroeconomic policies have been hailed as part of the “African success story”.

However, these honors are not satisfactory. Botswana, rich in minerals, remains fragile. Soon after graduation, the average growth rate dropped sharply to 4.7% from 1995 to 2005, and has never exceeded 4.5% since 2008.

The share of manufacturing in GDP rose from 5.6% in 2000 to 6.4% in 2010, and fell to 5.2% in 2019. Nearly 60% of the population lives below the minimum poverty line of US$5.5 per day set by the World Bank.
Botswana remains highly unequal. Between 1986 and 2002, life expectancy dropped by 11 years, mainly due to HIV/AIDS. When the government implemented austerity policies, its already fragile medical system suffered a catastrophic brain drain.

Policy independence is essential
Although some least developed countries have not yet graduated, they have successfully begun to diversify their economies. Their policy initiatives have provided important lessons for other countries.

According to the standards advocated by the World Bank and the OECD, neither Bangladesh nor Ethiopia meets the standards of a "good governance" model. On the contrary, they successfully intervened to solve the key development bottleneck.

Bangladesh was once considered a "hopeless" country, and now it has a low MIC. Despite the 2008-09 global financial crisis and the current pandemic, the Chinese economy has become quite resilient, with an average growth rate of 6% in the past 10 years.

Bangladesh sees the potential of exporting manpower to earn valuable foreign exchange and work experience. In 1976, it agreed to provide labor for Saudi Arabia's oil financing boom.

Similarly, as newly industrialized economies are no longer eligible for market access privileges under the Multi-Fibre Arrangement (Multi-Fibre Arrangement), Dhaka has been cooperating with Seoul in 1978 to take over Korea’s clothing exports.

Bangladesh is also the only least developed country to take advantage of the 1982 WHO Essential Medicines Policy. Its national drug policy prohibits the import and sale of non-essential drugs. Therefore, it is now a vibrant generic drug industry that has emerged.

Pragmatism
From 2004 to 19, Ethiopia’s average growth rate exceeded 9%. The poverty rate dropped from 46% in 1995 to 24% in 2016, and the proportion of industrial output value rose from 9.4% in 2010 to 24.8% in 2019.

Ethiopia’s industrial policy avoided the “Washington Consensus” policy and promoted structural changes. From 2005-10, the manufacturing industry grew by 10% annually, and from 2015-17 it increased by 18%.
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