The least developed countries (LDCs), donors and international organizations must focus on developing the capacity of their economies to produce more diversified and sophisticated products in agriculture, industry and services. Only this will allow these countries to achieve the goal of offering better life conditions to their citizens, panellists said.  They were participating in a roundtable debate on "developing productive capacities in least developed countries."

Kandeh K. Yumkella, Director-General of the United Nations Industrial Development Organization (UNIDO),  said current poverty reduction strategies in LDCs do not tend to support the building of productive capacity -- the ability to produce more valuable goods and services in growing quantities.  Efforts instead favour social development projects.

 “What happens in 2030 if you haven’t diversified products or services?” he asked.  He pointed out that by that year the populations of most LDCs will be heavily based in cities, where they will need to work. Only by developing industry and services can the necessary jobs be generated. If economic activity in cities is not strengthened, these persons will live in poverty, and there will be high risks of civil conflict and social unrest.

It is necessary to change a  situation where than 800 million people in 49 LDCs now account for less than 1% of global trade, direct investment, and other economic activity, said Debapriya Bhattacharya, Permanent Representative of Bangladesh to the United Nations in Geneva and to the World Trade Organization.