In a world where inequality persists despite economic progress by some low-income countries, it is crucial to address the challenges facing the remaining 26 nations, mostly in sub-Saharan Africa. While 39 countries have managed to join the middle-income club since 2000, those that remain on the margins of this progression are facing increased difficulties in escaping poverty.
The reasons for this economic stagnation are multiple, as Philippe Kenworthy, Senior Economist at the World Bank, explains. Armed conflicts, debt crises, political instability and a lack of regional trade opportunities are all factors that hamper the development of these countries. However, solutions exist; internal efforts such as consolidating stability, improving agricultural productivity and establishing sound fiscal frameworks can pave the way for sustainable growth.
However, these actions require increased support from the international community. While the World Bank’s IDA assistance fund has been replenished at a record level, borrowing on financial markets risks holding back the neediest countries due to high interest rates. It is therefore imperative that the international community allocates preferential financing to maximize the chances of these nations to escape poverty.
In this context, it is essential to address the issue of debt, a growing burden for many poor countries. Innovative solutions must be found to alleviate this financial burden and allow the most vulnerable economies to rebuild and prosper. Priority must be given to sustainable, green and resilient investments, to ensure a more promising future for these struggling countries.
Ultimately, international solidarity and cooperation are essential to overcome the major challenges facing the least developed countries. It is time to act collectively to deliver a better and more equitable future for all the people of the world.