About the product
Least developed countries (LDCs) are among the world’s countries most dependent on foreign aid for the financing of their development. While this is a traditional feature of their development trajectory, it has become even more challenging in recent years for two reasons. First, the Sustainable Development Goals put requirements for additional investment and spending (especially for structural transformation) at a much higher level, and LDCs need to mobilize and manage the corresponding financing. Second, the international aid architecture has been transformed by the emergence of a large array of instruments and actors, including South-South Cooperation providers, private sector, philanthropic organizations and non-governmental organizations. This complex and changing landscape presents new challenges for the constrained policymaking capacities of LDC states in their quest for structural transformation. It requires LDC and their development partners to agree a new aid effectiveness agenda and transform the terms of their development partnership.