The Least Developed Countries Report, 2009 : UNCTAD

The global crisis has undermined the factors that enabled strong GDP growth performance in LDCs in 2002-2008, exposing once again both the lingering structural weaknesses of their economies, and the myth of self-regulating markets.

The shortcomings of the current development paradigm need to be addressed. A rebalancing between the State and the market is necessary to create resilience to external shocks through greater diversification and structural change, and to promote a more inclusive and employment-intensive growth path. LDCs need to build new developmental States that seriously attempt to deploy their administrative and political resources to the task of economic development. LDCs need to find new forms of development governance that are appropriate for the twenty-first century