A/HRC/45/21 41. Economic growth in terms of gross domestic product (GDP) in the least developed countries stood at 4.7 per cent during 2011–2020, the implementation period for the Programme of Action for the Least Developed Countries, lower than the 7 per cent target and the 6.6 per cent average recorded during the previous decade. The rise in oil and other commodity prices influenced earlier years of faster growth. Natural disasters and epidemics (e.g. Ebola) led to a significant decline in economic activity.54 42. Domestic resource mobilization through median tax-to-GDP ratio increased very slowly, from 13.5 in 2011 to 15.5 in 2017. The introduction of value-added tax drove part of that increase.55 It is important to address the regressive effects of this kind of taxes and its impact on food and other essential consumer goods prices, especially in countries with high levels of extreme poverty. Progressive taxes should be favoured in order to avoid widening inequalities.56 Tax evasion, the relative size of the informal economy compared to the formal economy, weak tax administration systems, corruption, underperforming public policies and institutions and illicit financial flows all constrain the tax potential of the least developed countries.57 The Human Rights Council has considered the negative impact of non-repatriation of funds of illicit origin to the countries of origin on the enjoyment of human rights,58 a topic that has also been the object of reports by United Nations human rights mechanisms.59 Governments’ budget formulation, execution, oversight and evaluation should follow human rights-based normative frameworks.60 A national enabling environment that includes good governance, the rule of law and human rights-based anticorruption policies also contributes to countries’ capacity to mobilize resources to realize human rights. 43. Only 6 donor countries met the target in the Programme of Action for the Least Developed Countries of dedicating 0.15 per cent or more of their gross national income as official development assistance (ODA) to the least developed countries in 2018,61 compared with 10 donor countries in 2011. ODA fell by 3 per cent in real terms from 2017 to 2018. 62 ODA allocation should be in line with country priorities and plans if the effectiveness of such assistance to realize the right to development is to be improved. 63 Unilateral coercive measures, especially broad sectoral sanctions, on the least developed countries64 undermine the development of targeted countries and affect the enjoyment of human rights by their populations, even more so when entities overcomply with sanctions and make every effort to avoid risks.65 Remittances to the least developed countries have increased, mainly driven by flows to Asia and the Pacific. However, the cost of remittances is still, on average, more than twice the 3 per cent commitment made in the Addis Ababa Action Agenda.66 SouthSouth cooperation continues to gain momentum, with Southern national banks and Southern-led multilateral initiatives changing the landscape of development finance. 67 The Coalition on Sustainable Energy Access for the least developed countries launched by Ethiopia and Morocco in 2019 provides an example of South-South cooperation.68 44. Due to the COVID-19 pandemic, the least developed countries are suffering from commodity price shocks and loss of exports,69 investment and remittances,70 along with a ¨ 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 10 A/75/72, para. 6. Ibid., para. 53. A/HRC/31/60, paras. 59–67. UNCTAD, The Least Developed Countries Report 2019, p. 104. E.g., Human Rights Council resolutions 17/23 and 40/4. Including A/HRC/36/52 and A/HRC/31/61. www.ohchr.org/Documents/Publications/RealizingHRThroughGovernmentBudgets.pdf. A/75/72, para. 80. The six countries are Denmark, Luxembourg, the Netherlands, Norway, Sweden and the United Kingdom of Great Britain and Northern Ireland. https://unstats.un.org/sdgs/report/2019/The-Sustainable-Development-Goals-Report-2019.pdf, p. 56. General Assembly resolution 69/313, annex, para. 58. E.g., the Sudan and Yemen. www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=25744 and A/HRC/42/46. A/75/72, para. 68. UNCTAD, The Least Developed Countries Report 2019, p. 50. A/75/72, para. 81. See also https://climateaction.unfccc.int/views/cooperative-initiativedetails.html?id=128. www.wto.org/english/tratop_e/covid19_e/ldcs_report_e.pdf. www.knomad.org/covid-19-remittances-call-to-action/.