They were launched with high hopes, but have since made little progress owing mainly to a lack of funding. Few economic developments over the past generation have been more disappointing than the inability of the poorest countries to share in the rapid expansion and diversification of world trade. The 48 countries that the United Nations classifies as least-developed have seen the share of exports of goods and services in their GDP fall almost continuously since 1980. LDCs depend heavily on exports of a few primary commodities, which leaves them vulnerable to fluctuations in world commodity prices and a secular decline in their terms of trade. Although they have managed to raise the share of manufactured goods in their exports, it remains less than half the average figure for other developing countries.
Most problems faced by LDCs are structural and have little to do with trade.
They include the familiar issues associated with underdevelopment, as well as ill-chosen economic policies, poor governance, heavy indebtedness, war and drought. Trade growth has also been hampered by the lack of investment in basic infrastructure, reflected in outdated port facilities, poor roads and inadequate communications. Trade policy itself is typically given limited attention and a low priority by policy-makers. Most developed countries also maintain high tariff rates in sectors such as farm goods, textiles and clothing, where LDCs have a comparative advantage. Their lack of influence has reflected their very limited representation at WTO s headquarters in Geneva and the poor back-up that their representatives have received from national capitals.