pointed out that for many of the small IDCs what seemed rather uncertain was graduating from first stage industries producing mainly consumer goods with simple technology characterized by low value added to factors of production and almost no linkages with the rest of the economy to second stage industries producing chiefly investment goods with complex technology associated with high value added; and more linkages and external economies. 34. The representative of the Department of Technical Co-operation for Development (DTCD) said that the department carried out a number of activities in the field of development planning and macro-economic management. At the request of Governments, and in co-operation with UNDP, assistance was provided to 11 Pacific island countries, inter alia, in the preparation of national development plans and round-table donor meetings. In addition, he said, DTCD in co-operation with the United Nations Centre for Regional Development (UNCRD) provided a range of services to IDCs, including training in regional development planning and disaster preparedness. He observed that many IDCs in the Pacific had medium-term plans and that they were now in a position to carry out project formulation and appraisal with its own staff. Planning by projects, however, tended to leave the capacity for sectoral and macro-economic strategy formulation and macro-economic framework design for overall co-ordination and consistency relatively weak. He mentioned that DTCD, as a result of the absence of macro-economic models specifically designed for IDCs, had taken the initiative to assist IDCs with work on macro-economic modelling for operational planning and training of planning staff. He concluded by saying that the department would further continue to provide technical co-operation to meet the needs of IDCs with a view to assisting in their efforts to generate self-sustaining growth and their integration into the world economy. 35. The representative of the Organization of American States (OAS), 
**Analysis**
The text discusses the challenges faced by small Island Developing Countries (IDCs) in transitioning from first-stage industries to second-stage industries, and the need for technical cooperation to help them achieve self-sustaining growth and integration into the world economy. It also mentions the provision of assistance by the Department of Technical Co-operation for Development (DTCD) in areas such as development planning, macro-economic management, and project formulation.

**Category**
Economic development, Industry