Less-Developed Countries (LDC)

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Least-Developed Countries (LDC): Meaning, Criteria, and Notes

What is an LDC?

Least-developed countries (LDCs) are low-income nations that face severe structural impediments to sustainable development. They are highly vulnerable to economic and environmental shocks and generally have lower levels of human assets (health, education, and related indicators) than other countries. Because of these constraints, LDCs qualify for special international support measures aimed at development assistance and trade facilitation.

How the UN identifies LDCs

The United Nations Committee for Development Policy (CDP), supported by the Secretariat in the Department of Economic and Social Affairs, reviews and monitors countries’ LDC status. Placement on the LDC list and decisions to graduate a country out of the category are based on three broad criteria:

  • Income
  • Measured by a three‑year average of gross national income (GNI) per capita.
  • A commonly cited threshold is $1,018 (three‑year average). The graduation threshold is about 20% higher (approximately $1,222).
  • Human assets
  • Assessed through five indicators grouped into health and education subindices, reflecting population skills, health outcomes, and educational attainment.
  • Economic vulnerability
  • An index that captures structural vulnerability to economic and environmental shocks; higher vulnerability signals larger impediments to sustainable development.

Support and graduation

LDCs are eligible for specific international support measures, including preferential trade arrangements, development assistance, and technical cooperation not available to more developed countries. The CDP recommends countries for graduation when they meet the established criteria. After graduation, the Secretariat monitors progress to ensure a smooth transition.

Graduation is rare: in the roughly five decades since the LDC category was created, only a small number of countries have graduated.

Examples and recent developments

  • Country counts fluctuate as nations qualify for or graduate from the list. For example, 47 countries appeared on the UN LDC list in September 2020, while 46 were listed as of October 2021.
  • Countries that have graduated from LDC status include Botswana, Cabo Verde, Equatorial Guinea, Maldives, and Samoa.
  • In March 2018 the CDP made an unprecedented recommendation that Bhutan, Kiribati, São Tomé and Príncipe, and the Solomon Islands should graduate from LDC status by 2024.
  • Angola has also been scheduled for graduation in 2024.

Key takeaways

  • LDCs are low‑income countries with significant structural challenges and high vulnerability to shocks.
  • The UN uses income, human‑asset indicators, and an economic vulnerability index to identify LDCs and determine graduation readiness.
  • Special international support exists for LDCs to help them pursue sustainable development and reduce vulnerability.
  • Graduation from LDC status is uncommon and closely monitored to ensure countries can sustain development gains after leaving the category.