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Final Regional Review of the Almaty Programme of Action: Addressing the Special Needs of LLDCs of Action: Addressing the Special Needs of LLDCs Organised by ESCAP/OHRLLS/ECE/Government of Lao PDR ESCAP/OHRLLS/ECE/Government of Lao PDR Technical Session 4: Addressing persistent, new and emerging issues facing the Asia Pacific LLDCs and emerging issues facing the Asia‐Pacific LLDCs Comments Saurabh Sinha Senior Economic Advisor UNDP Mongolia Senior Economic Advisor, UNDP Mongolia 1 HUMAN DEVELOPMENT IN LLDCs HUMAN DEVELOPMENT IN LLDCs Overall, the landlocked countries do worse than their maritime neighbours i hb i h in human development indicators: d l t i di t • Average Average GDP per capita of landlocked countries is approximately GDP per capita of landlocked countries is approximately 57% that of their maritime neighbours. • Life expectancy index scores are approx. 3.5 years lower on average. Similarly in education. • 7 of the 10 countries have nearly a quarter to a third of their populations below the poverty line. • 7 of the 10 countries are located in the bottom half of the latest global HDI ranking table global HDI ranking table. Essentially, LLDCs located in a prosperous, surrounding region. y, p p , g g 2 Key Features of Asian LLDCs y Country Afghanistan* Armenia Azerbaijan Mineral dependence dependence (2010) Main resource(s) Main resource(s) GNI per capita (2011) Poverty headcount Gini Index Iron, Copper, Oil and gas 470 36.0 27.8 35.8 30.9 50.6 86 5,290 15.8 33.7 91 91 Molybdenum, Copper, Gold, Lead, Zinc Silver Zinc, Silver Iron, Zinc, Oil, gas, Aluminum 3,360 HDI rank (2011) 172 Bh t * Bhutan* H d Hydropower 2 130 2,130 23 2 23.2 38 1 38.1 31 1 31.1 141 Kazakhstan Oil, gas 8,260 8.2 29.0 71.7 68 Kyrgyzstan Gold, Lead, Zinc, rare Gold Lead Zinc rare metals 880 33.7 36.2 31.4 126 Lao PDR* Gold, Copper, Zinc, Lead 1,130 27.6 36.7 16.8 138 Mongolia Copper, Coal, Gold 2,310 29.6 36.5 77.6 110 Turkmenistan Oil gas Lead Zinc Oil, gas, Lead, Zinc 4 800 4,800 ‐ 40 8 40.8 74 1 74.1 102 Uzbekistan Gold, Copper, Zinc, Lead, Tungsten, 1,510 26.2 36.7 30.4 115 3 Extractive Industries in LLDCs: Management of g Natural Resources for Equity and Sustainability 10 of the 14 Asian‐European LLDCs have substantial reserves of under‐ the‐ground natural resources. For all, except one, export of primary commodities constitutes more For all except one export of primary commodities constitutes more than 30% of total exports. • But a country’s resource wealth alone is no guarantee that it will achieve a high level of human development. Something more is needed. needed • The resource‐rich LLDCs face both opportunities and challenges in pp g the efficient management and utilization of their natural resources for inclusive growth, environment sustainability and economic and social development. social development. 4 Observations 1. WTO accession but with little economic diversification among countries 2. High concentration of exports – mostly of primary commodities – to ROW 3. Diversified nature of imports – but mostly from immediate neighbours and intra‐regional 4. This depresses the local manufacturing sector – makes it more uncompetitive. 5. At the same time, the LLDCs are vulnerable to global commodity prices. 5