Frequently asked questions on graduation

Q: What are least developed countries?

A: Least developed countries (LDCs) are the most disadvantaged of the developing countries. Three criteria are used to decide whether or not a country is an LDC: a measure for income per capita, a human assets index and an economic and environmental vulnerability index. Since December 2023, there are 45 countries on the UN list. LDCs are home to about 15 per cent of the world's population but account for less than two per cent of global GDP and around one per cent of global trade in goods.

Q: How does a country leave the list (“graduate”)?

A: A country can graduate from the LDC category by meeting two of the three criteria (income, human assets and economic and environmental vulnerability), or by having a per capita income of more than twice the income graduation threshold, at two consecutive triennial reviews of the LDC category, conducted by the UN Committee for Development Policy (CDP).  At the second meeting the CDP can recommend the country’s graduation. Graduation itself happens a minimum of three years later, after the CDP’s recommendation has been endorsed by the United Nations Economic and Social Council (ECOSOC) and taken note of by the General Assembly in a resolution.  The General Assembly determines the actual date of graduation, which can happen three years after the resolution or, if the General Assembly so determines, a longer period.

For example:  São Tomé and Príncipe met the criteria (income and human assets) for the first time in 2015 and for the second time in 2018, when the CDP recommended its graduation. In 2018, ECOSOC endorsed the recommendation and the General Assembly issued a resolution establishing that the country should have an additional three years in the preparatory period leading to graduation.  São Tomé and Príncipe is scheduled to graduate in 2024.

Q: Is graduation automatic after meeting the criteria at two consecutive CDP triennial reviews?

A: No, in addition to the criteria, the CDP also takes into account the government’s views, an impact assessment prepared by UNDESA, a vulnerability profile prepared by UNCTAD, a range of supplementary indicators and other relevant information and documents, the summaries of which are consolidated in a "graduation assessment".  

Q: How many countries have left the category so far?

A: By the end of 2023, seven countries had left the list. Botswana was the first to leave, in 1994. The next to exit was Cabo Verde (2007), followed by Maldives (2011), Samoa (2014), Equatorial Guinea (2017), Vanuatu (2021), and Bhutan (2023).

Q: Which countries will leave next?

A: Sao Tome and Principe is scheduled to graduate in 2024. Bangladesh, Lao PDR and Nepal are scheduled to graduate in 2026. Solomon Islands is scheduled to graduate in 2027.  

Q: What are the costs of graduation?

A: LDCs benefit from a number of dedicated international support measures in the areas of trade, official development assistance and others, including travel support to UN meetings and reduced budgetary contributions to international organisations (see information throughout this portal).  After graduation and, in some cases, a "smooth transition" period, countries no longer benefit from these LDC-specific support measures. The vast majority of development partners continue to support countries even after they have graduated.  The UN conducts analyses of the impacts of graduation for countries that have met the graduation criteria for the first time.  

Q: What are the benefits of graduation?

A: Broadly, achieving such an important development milestone can be celebrated as a key stage in a country’s history and therefore can provide a – perhaps unquantifiable – boost to national and international sentiment. LDC governments may target graduation as a gauge of development progress and therefore benefit from a perception of success. It is possible that foreign investment may increase as outside perceptions improve. This is difficult to measure. Credit ratings agencies do not take the LDC category into account when deciding sovereign bond ratings, although they do use some of the subsidiary indicators.  Institutions and countries provide so-called ‘smooth transition’ support in line with relevant UN resolutions. Different ways of supporting graduating and recently graduated countries are currently being studied.

Q: Is LDC graduation the same as becoming a middle-income country?

A: No. Although graduation is a sign of development progress, people often confuse the strict process of UN LDC graduation with the general notion of development improvement or the transition into middle-income status. Because income per capita is only one of the three criteria used for LDC graduation, LDC graduation does not mean becoming a middle-income country. Several LDCs will have reached middle-income status years before graduating from the LDC category. An LDC might graduate because it meets the human assets and economic vulnerability criteria, without crossing the income threshold.

Q: Have any graduates slipped back?

A: None of the countries to graduate so far have fallen back into the list. The criteria are designed asymmetrically, so that it is harder to leave the list than it is to be included in the first place. The length of time during which a country is under consideration –  at least nine years – means that development must be sustained over a long period. The CDP monitors countries during and afterwards to ensure that progress is on track. Several countries which have faced setbacks like disasters during the graduation process have had their preparatory period before graduation extended. 

Q: What needs to be done to prepare for graduation?

A: Careful management of the transition to graduation and beyond is essential. In general, LDC governments are recommended to establish a consultative mechanism to help with the preparation of the transition strategy, in order to mitigate the potential impacts of the withdrawal of international support measures. More information here. 

Q: How does the UN support graduating LDCs?

A: Various UN entities provide specific support to LDCs during the graduation process. The UN system provides support to all graduating countries in the form of workshops to exchange experiences, build awareness, and propose transition strategies for graduation and beyond. More information here. 

Q: Does graduation mean a country has achieved the Sustainable Development Goals (SDGs)?

A: Graduation signifies partial progress toward the SDGs, since some of the LDC indicators can reflect the goals. However, graduated countries will continue to face challenges in pursuing the objectives outlined in Agenda 2030. Progress towards these broader objectives requires improved domestic policy choices as well as international support within a reinvigorated multilateral system.

Q: Is graduation the end of the story?

A: Graduation is only a waypoint, not an endpoint. Much more remains to be done, and the UN encourages governments to graduate ‘with momentum’ so that progress continues well into the future.