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The Asia-Pacific least developed countries (LDCs) have been making remarkable progress towards meeting the criteria for graduation. However, the high level of economic vulnerability to exogenous shocks, particularly those associated with natural disasters and climate change, has repeatedly disrupted the graduation process, leaving doubts on the ability of those countries to sustain their development gains in the long run. This suggests the need for a framework that goes beyond current graduation transition arrangements to build resilience and better reflects environmental and climate-related challenges of LDCs. Enhanced resilience does not only contribute to mitigating the adverse impact of natural disasters and climate change, but it also induces multiplier effects and helps LDCs make their structural transformation and graduation smooth and sustainable.

Macroeconomic Policy and Financing for Development Division +66 2 288-1234 [email protected]