Financing Rural Structural Transformation in the Least Developed Countries

For the least developed countries (LDCs) to reach the Sustainable Development Goals, their rural economies will have to undergo structural transformation, given that most of their population lives in rural areas and agriculture is a main contributor to their economy. To this end, UNCTAD proposes that LDCs engage in the poverty-oriented structural transformation, or POST, of rural areas. It should encompass the upgrading of agriculture, the diversification of rural economic activities and the strengthening of synergies between both. A major obstacle is the dearth and inadequacy of financing for rural economic activities. This policy brief discusses key policy measures and instruments that LDCs and their development partners can mobilize to widen the financing of rural economic activities.