During a major United Nations Conference this week in Awaza, Turkmenistan, calls increase to tackle high commercial costs, investment gaps and the growing digital divide which continue to retain these countries.
Despite progress in certain regions, landlocked nations – Bolivia in Bhutan and Burkina Faso – Count for Just 1.2% of world exportsEven if they represent more than seven percent of the countries of the world. Their populations face some of the highest levels of poverty, food insecurity and economic vulnerability anywhere.
“” These countries are invisible in a large part of the world,“Impossible to draw the necessary attention to their unique challenges,” said the secretary general of Rebeca Grynspan of the United Nations Trade and Development, Trectaspeaking UN News on the sidelines of the third United Nations Conference on Developing countries without coastline (LLDC3).
Without international attention and coordinated action, they will remain stuck in structural limbo, she said.
High costs, low yields
One of the most persistent challenges they face is geography itself.
Without direct access to sea ports, they must count on neighboring transit countries to move goods – often through obsolete or ineffective infrastructure.
This results in commercial costs which are on average 1.4 times higher that those of coastal countries, according to UNCTAD. In some cases, export procedures may extend in weeks or months due to border delays, fragmented regulations and limited digital systems.
Ms. Grynspan stressed that In customs procedures, digital tools can reduce waiting times at borders from three days to three hours. To this end, regional agreements and digital initiatives have become living lines.
An exceptional example is the Framework contract on the facilitation of cross-border paper tradedefended by the United Nations Economic and Social Commission for Asia and the Pacific (Escape). Now in force among several countries in Asia-Pacific, it helps reduce documents, automate customs and harmonize standards, which makes the processes faster, cheaper and more transparent.
Paper -free trade also has the potential to reduce corruption and facilitate language challenges.
Espap believes that the implementation of transprtiners without commercial paper could Reduce commercial costs up to 30% for countries in the region without access to direct sea and Increase the export potential For the whole of Asia and the Pacific of nearly $ 260 billion.
Infrastructure and integration
Even when the goods reach border passages, low interior transport networks slow down the trade more. Roads and railways are often underdeveloped, sub-financed or vulnerable to climatic shocks.
“” Regional infrastructure – like the North African corridor – is crucial,Ms. Grynspan said, quoting examples where border waiting times have dropped by more than 150% due to the investment and coordination of the corridor.
But infrastructure alone is not enough – it must be associated with digital systems and solid regional partnerships.
“For landlocked countries, regional integration is very important because when you integrate regionally, you are in a better position because the goods are going through you …[making you] Part of the overall value chains with added value. »»
In landlocked countries such as Bhutan (photo), roads are a vital life buoy. But the limited and costly transport infrastructure limits mobility, inflates commercial costs and obstructs access to markets, education and health care.
Escape
Another structural challenge is a strong dependence on products. More than 80% of landlocked developing countries depend on raw materials such as minerals, petroleum or agricultural products, which makes them very exposed to global price and long -term decrease in trade.
“” You educate your people, but they have nowhere to work because the raw materials do not give you the quality jobs you need for the future,“Said Ms. Grynspan.
The path to follow lies in economic diversification, in particular towards value -added manufacturing, digital services and knowledge -based sectors – of industries less limited by geography.
The investment enigma
However, to make this potential, these countries need investment and they do not get enough.
Despite more than 135 legal and political reforms aimed at attracting foreign capital, foreign direct investment has decreased on average by 2% over the past decade.
ESCAP analysis confirms this gap: landlocked countries in Asia receive Much less investment in infrastructure per person compared to coastal countries, even if their transport requirements are proportionally higher.
“” Governments try to make their country more attractive [but] The investment does not happen,Ms. Grynspan said.
High risk factors, lack of guarantees and dependence on short -term financing dissuade investors.
“” Multilateral development banks must help us,“She added. »»We need long -term and affordable funding and a reduced cost of capital. »»
Originally published at Almouwatin.com
