This report assesses recent trends in growth and poverty in the least developed countries (LDCs), as well as changes in terms of development partnership. It discusses the fact that rapid economic growth in the LDCs has been associated with a slow rate of poverty reduction and slow progress towards the Millennium Development Goals. The report also considers progress towards country-owned development strategies in LDCs and the role of recipient- led aid management policies at the country level as a practical policy mechanism to strengthen country ownership.