The United Nations Capital Development Fund
and Least Developed Countries

In the late 1960s, the United Nations began paying special attention to Least Developed Countries (LDCs), recognizing that these countries are the most vulnerable in the developing world. The International Development Strategy for the second United Nations Development Decade for the 1970s incorporated special measures in favour of LDCs. In order to generate international attention and action to reverse the continuing deterioration of the socio-economic condition of these most vulnerable countries, the First United Nations Conference on the LDCs was held in Paris in 1981, which adopted a comprehensive Substantial New Programme of Action (SNPA) for the 1980s for the LDCs. The SNPA was subsequently endorsed by the UN General Assembly in its resolution 36/194 of 17 December 1981. To continue focus on the need for special measures for these countries, the Second United Nations Conference on the Least Developed Countries (LDC II) was held in 1990 also in Paris, adopting the Paris declaration and the Programme of Action for the LDCs for the 1990s. The Third United Nations Conference on the Least Developed Countries (LDC III) was held in Brussels hosted by the European Union from 14 to 20 May 2001.

The Brussels Declaration and the Programme of Action (POA) for the Least Developed Countries for the Decade 2001-2010, adopted by the Third United Nations Conference on the Least Developed Countries in Brussels on 20 May 2001, were endorsed by the General Assembly in its resolution 55/279 of 12 July 2001 and 56/227 of 24 December 2001. The United Nations Capital Development Fund, through its concrete actions on the ground, contributes directly to the implementation of five of the seven commitments made by the international community within the framework for partnership contained in the Programme of Action for the Least Developed Countries, as well as to the main objective of poverty reduction of the United Nations Millennium Declaration.

The UN General Assembly created UNCDF in 1966 as a multi-sectoral investment Organization. Its main purpose was to finance and help implement investment projects whose cost would be lower than that of the investments carried out by larger international financial institutions such as the World Bank and the regional development banks. In 1973, the UN General Assembly adopted a resolution requesting UNCDF to concentrate its investments, first and foremost, in the LDCs. UNCDF is now active on the ground in 39 of the 49 LDCs. This work is focused in two areas: support to decentralized public investments and support to private investments through microfinance. Within this context, the UNCDF approach in its two areas of concentration is to support the LDCs to pilot small-scale investments that can be replicated on a larger scale with the assistance of other development partners who can bring additional financial support.

UNCDF Country Programmes in Least Developed Countries

Relevant documents:

Implementation of the Programme of Action for the Least Developed Countries: Report of the Secretary-General (23 May 2003)	[pdf]: English | French
Programme of Action for the Least Developed Countries for the Decade 2001-2010 (adopted 20 May 2001)	[pdf]: English | French
Brussels Declaration (Third United Nations Conference on the Least Developed Countries Brussels, Belgium, 14-20 May 2001)	[pdf]: English | French

 

For more information on LDCs, visit the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.