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How to prepare for graduation

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Each country should develop its own course of action to prepare for graduation, based on its national circumstances and priorities.  The following are suggested actions from the beginning of the multi-year graduation process to the period following graduation.

  • For details on the graduation process, see Graduation process and the CDP and the LDC Handbook
  • The timing information below refers to a standard process. Actual timing has differed responding to country circumstances. 
  • Examples and references are available in the links below.

Before meeting the Committee for Development Policy (CDP)'s graduation criteria

Countries can start preparing for graduation even before they have met the graduation criteria:

Between triennial reviews (i.e. after meeting the criteria for the first time) - Years 0-3 (e.g. for a country that met the criteria for the first time in 2024, these suggested actions apply to the period from 2024 to 2027)

At this stage countries may consider:

  • Designate a graduation focal point who can lead preparations and serve as liaison between the relevant government and UN entities.  The United Nations can support the country's efforts, providing information and guidance on the process.
  • Create a coordination mechanism within the country (or use existing coordination mechanisms), to ensure relevant government and other stakeholders are informed and consulted, as appropriate. The group may consider formulating a work programme to prepare for LDC graduation.  The programme could determine overall graduation strategy, the likely impact of graduation on affected parties, how to mitigate any impact and what to negotiate as part of the smooth transition.
  • Consultations with recently graduated countries or LDCs at similar stages of the graduation process can be useful. The United Nations can help facilitate these exchanges.
  • Raise awareness and seek inputs on graduation within the relevant areas of government and among other stakeholders. 
  • Introduce the issue of graduation in consultative mechanisms with development and trading partners or create a specific consultative mechanism on graduation and start engaging with partners to understand and minimize the expected impacts of graduation. 
  • Collaborate with the UN on analyses of the impacts of graduation and of vulnerabilities that will be conducted to inform the CDP's decision.  The UN's ex-ante impact assessments evaluate the likely economic and financial impacts of the loss of special trade and other preferences resulting from a country’s transition from LDC status. For most graduating countries, the loss of special trade preferences is likely to have the most impact.
  • Make the best use of the LDC-specific support measures and start considering the implications of their loss in future and how these instruments can best be used to prepare the country for the post-graduation period.  For example, a country may consider applying for any remaining funds under its allocation of the for climate change, since no new projects will be approved under the fund after graduation. 
  • Towards the end of the three-year period, consolidate a position on graduation to convey to the CDP. A government representative will be invited (through the Permanent Mission to the United Nations in New York) to participate in a CDP meeting in preparation of the Triennial Review. At this meeting, typically held approximately a month before the CDP's Plenary meeting, the country should present its views on graduation.
  • Consider starting the preparation of a smooth transition strategy. Some countries have started at this stage and others have started after the General Assembly has issued its resolution on their graduation (see below).

After meeting the graduation criteria for the second consecutive time (Year 3, e.g. 2027)

  • The country's Permanent Mission to the United Nations in New York should keep abreast of the process and engage in the negotiations on the ECOSOC and General Assembly resolutions.  UN-OHRLLS can provide guidance on this process. More details on the process here.

Preparatory period (between the General Assembly resolution and the date of graduation) - Years 4-6 or more depending on the General Assembly decision (e.g. 2027-2030)

  • Once the General Assembly has issued its resolution (which will establish the date of graduation), it is time to advance on the preparation of the smooth transition strategy. 
  • Countries should report annually to the CDP on the preparation of the smooth transition strategy.  The CDP requests information during the second semester of each year. Monitoring reports are available here. Under the enhanced monitoring system currently under development, the country will be asked to periodically update certain crisis indicators, alert the CDP in case of crises potentially affecting graduation prospects.

After the graduation date: the transition period 

The country ceases to be an LDC on the date of graduation.  It will still have access to some LDC-specific support measures that have "smooth transition" provision (for example, the European Union's Everything But Arms initiative has a smooth transition period of 3 years, meaning that countries that graduate will still benefit for an additional 3 years). Smooth transition provisions are listed along with the international support measures catalogued on this Portal. 

At this stage, countries should implement the smooth transition strategy and may consider:

  • Making the best use of smooth transition periods of the LDC-specific international support measures. 
  • Continue to develop in order to to secure a sustainable graduation.   Countries can still take advantage of certain LDC-specific support measures such as the EIF or the Technology Bank to support them in developing productive capacities. 

 

Preparing for graduation: references and examples

Coordination at the national level for LDC graduation

Coordinating?within the government and with other stakeholders in preparation for graduation is important to ensure all relevant counterparts are well informed and have opportunities to provide inputs to the preparation of the smooth transition strategy.? Several line ministries may hav

Engaging with development and trade partners on LDC graduation

Engagement with trade and development partners is important to secure a smooth transition strategy.? Though most development partners continue to support countries after graduation, it is important to anticipate any possible changes, for example in the type of ODA that will be provided after

Stakeholder consultation in preparation for graduation

Stakeholder consultation is important given that that graduation will affect the long-term outlook for businesses and people.?The views of companies that stand to lose need to be taken into account to safeguard jobs and wages.

Assessing and enhancing productive capacity

An important part of the smooth transition strategy might be to take stock and plan ahead in terms of the development of productive capacity. There is no single way of doing so but references include:

Smooth transition strategies

The General Assembly has encouraged countries approaching graduation to develop a smooth transition strategy. There is no blueprint for smooth transition strategies, but guidance can be found in:

Support for graduation and a smooth transition

Various UN entities provide specific?support?to the graduation processes of LDCs, in the form of training, workshops, studies and support for the development of smooth transition strategies (see the guidance note on smooth transition strategies?