The “ recovery ” from the crisis and the prospects for LDCs Igor Paunovic Economic Affairs Officer, Research and Policy Analysis Branch, ALDC

Content of the presentation “Recovery” from the crisis in LDCs World economy after the crisis of Short- and medium-term prospects for LDCs Long-term prospects for LDCs Policy lessons

“Recovery” from the crisis in LDCs

World economy after the crisis of

Pre-crisis model based on imbalances Crisis – large fiscal and monetary stimulus The worst avoided, but at what cost? Continuation of the crisis in a different form Two-track economy and the “decoupling” Rebalancing of the world economy “Arab spring” and the impact on LDCs

Short- and medium-term prospects for LDCs

How far could one go on with the existing model? The crisis as an opportunity for change Towards a paradigm change The ingredients of the new model What is needed from the international community? Development-led globalization

Long-term prospects for LDCs

Policy lessons

Current model based on commodity exports is not sustainable The growth has to be inclusive Diversification and structural transformation are necessary A paradigm shift is needed Development-led globalization would also enhance the possibilities of LDCs