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Bhutan is set to graduate from the UN List of Least Developed Countries (LDCs). In this context, inclusion in the LDC category is based on which of the following parameters?
1. Gross National Income per capita
2. Human Assets Index
3. Gross National Happiness Index
4. Economic and Environmental Vulnerability Index
Select the correct answer using the code given below.
  • a)
    1, 2 and 4 only
  • b)
    1 and 3 only
  • c)
    2 and 4 only
  • d)
    1, 2, 3 and 4
Correct answer is option 'A'. Can you explain this answer?
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Bhutan is set to graduate from the UN List of Least Developed Countrie...
UN list of Least Developed Countries (LDCs)
  • The UN in the 1960s began to recognise some of the most vulnerable and disadvantaged countries in the international community, considering factors such as development capacity, socio-economic parameters, lack of domestic financing, and geographical location. In 1971, the UN officially established the category of LDCs to attract particular support for them.
  • Currently, 46 countries across Africa, Asia, Caribbean and the Pacific are categorised as LDCs. The LDCs host about 40% of the world’s poor. They account for 13% of the world population but for only about 1.3% of global Gross Domestic Product (GDP) and less than 1% of global trade and Foreign Direct Investment (FDI). Some countries on the LDC list are Burkina Faso, Senegal, Rwanda, Bangladesh, Bhutan, Nepal, Solomon Islands, and Haiti.
  • Countries classified as LDCs are entitled to preferential market access, aid, technological capability- building and special technical assistance, among other concessions and international support measures.
  • Inclusion in and graduation from the LDC category is based on three criteria:
    • Gross National Income (GNI) per capita,
    • Human Assets Index (HAI) measuring health and education outcomes, and o Economic and Environmental Vulnerability Index (EVI).
  • To be included in the list, a country must have an average per capita income of below $1,018, have low HAI scores and high EVI levels measured in terms of remoteness, dependence on agriculture and vulnerability to natural disasters.
  • However, there’s no automatic application process for graduation from the list. The UN Committee for Development Policy (CDP) conducts a review of the LDCs every three years and countries that reach the graduation threshold levels for two of the three criteria in two consecutive triennial reviews become eligible for graduation.
  • The list of LDCs peaked in 1991 when it had 51 countries. So far, only six countries, namely, Botswana, Cabo Verde, Maldives, Samoa, Equatorial Guinea, and Vanuatu, have managed to graduate from the list. Bhutan was recommended for graduation in 2018 and is due to move out of the list on December 13, 2023.
  • Hence option (a) is the correct answer.
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Bhutan is set to graduate from the UN List of Least Developed Countries (LDCs). In this context, inclusion in the LDC category is based on which of the following parameters?1. Gross National Income per capita2. Human Assets Index3. Gross National Happiness Index4. Economic and Environmental Vulnerability IndexSelect the correct answer using the code given below.a)1, 2 and 4 onlyb)1 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?
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