Economic and social progress in the Least Developed Countries (LDCs) has been held back by the impact of COVID-19 pandemic, climate change and the current energy and food crises.
According to a report by the International Labor Organization, most LDCs responded quickly to the pandemic by applying a wide range of support measures, despite widening financial gaps and limited fiscal space.
However, structural weaknesses have made them more vulnerable to the current multiple shocks and will be further exacerbated if LDCs do not participate fully in the global recovery.
The report Current and Future Work in Least Developed Countries presents an overview of the progress and structural challenges facing LDCs in terms of structural transformation, the just transition to greener economies and the creation of full and productive employment and decent work. It describes current trends in production, productivity, employment and decent work, as well as the role of social protection and labor institutions.
There are currently 46 countries on the list of LDCs, representing 12 percent of the world’s population. They are characterized by low income levels and vulnerability to economic and environmental shocks, low human development, extreme poverty and high mortality rates.
According to the report, the vulnerabilities of LDCs are largely the result of low productive capacity associated with lack of human capabilities, insufficient infrastructure and limited ability to access and use technologies. They are also the result of weak institutions, including labor and social protection systems.
Informal employment is widespread, accounting for nearly 90% of total employment in LDCs. In addition, there is a strong polarization between companies of different capacity and productivity.
The report assesses how digital technologies can bring great benefits to LDCs – particularly those with large youth populations – provided that significant investments in capital, skills and knowledge are made to support productive and inclusive decent work.
The report includes a series of policy recommendations for a people-centered recovery that is inclusive, sustainable and resilient. Between them:
one) Increase international assistance and cooperation, including Official Development Assistance (ODA) to strengthen health care and vaccines and avoid unnecessary restrictions and barriers to trade and migration.
two) Strengthen institutions and employment policies for the creation of decent work and improve the coherence of climate action policies towards greener economies.
3) Strengthen labor institutions and build capacities to enable rights such as freedom of association, collective bargaining and other fundamental principles and rights at work, with the active participation of the social partners.
This political approach would create a virtuous circle that would improve trust in government, facilitate a progressive shift towards high value-added and environmentally sustainable activities, help reduce poverty and inequality, and contribute to social justice, says the report.
“Multiple crises have put the least developed countries under enormous pressure"said ILO Director-General Guy Ryder. “However, with the right macroeconomic and employment policy measures, new jobs can be created in both existing and new sectors, along with increased productivity and innovation driven by investments in green and digital economic opportunities. ”