The least developed countries report 2025 : are services the new path to structural transformation?

Services are playing an increasingly important role in the global economy, including in least developed countries (LDCs). This shift, fuelled by digital transformation, is promoted as a new pathway to prosperity. From tourism and transport to finance and telecommunications, services now account for around half of economic output in the average LDC. Yet this expansion has not yet delivered on its promises. Most service jobs in LDCs are low-skill and they remain sidelined from the most dynamic segments. In digitally deliverable services – the fastest-growing segment – LDCs account for just 0.16% of global exports.This report examines whether services can become a driver of structural transformation – and under what conditions. It finds that services are not a shortcut to development. They contribute to transformation only when tightly linked to manufacturing, agriculture and other productive sectors and supported by investment in digital skills and infrastructure. This also requires active trade and investment policies, regional cooperation and stronger multilateral support aligned with LDCs' supply capacities.
Chapter 1 : Introduction Chapter 2 : Services in the structural transformation process of least developed countries Chapter 3 : Trade in services Chapter 4 : Services sector development: Expectations versus realities Chapter 5 : Conclusions and policy discussion.

xvi, 199 p.

9789211545616 ISBN
9789211594416(eISBN
9789211545623 ePub ISBN
0257-7550 ISSN
2225-1723 eISSN