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Chapter 4: Mobilising financial resources for development and capacity-building in Commonwealth LDCs during the IPoA

LDCs have historically faced significant challenges mobilising the resources necessary to finance interventions to support their development needs. These challenges range from major financing and investment gaps, compounded by low levels of private investment and limited inflows of foreign direct investment (FDI), to insufficient domestic financial resources and a narrow fiscal base (UNESCAP, 2021). Consequently, most LDCs rely heavily on financial support through official development assistance (ODA) and many face rising external debt and heightened risk of debt distress (UN-OHRLLS, 2020, 2021). A key priority for the IPoA was to enhance the capacity of LDCs to mobilise financial resources for development and capacity-building. This focused on five different means of generating financing inflows: domestic resource mobilisation, external debt, FDI, ODA and remittances. This section examines progress in Commonwealth LDCs in each of these areas across the pre-pandemic period of IPoA impl ....

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