Landlocked Nations: Facing Unseen Barriers to Global Prosperity
New York, 6 August 2025 – In a poignant address highlighting the often-overlooked challenges faced by landlocked developing countries (LLDCs), the UN trade and development chief has drawn attention to the significant economic hurdles these nations encounter, describing them as frequently “invisible to much of the world.” The stark reality is that without direct access to the sea, these countries contend with higher transportation costs, longer transit times, and increased vulnerability to external shocks, all of which can stifle their potential for growth and prosperity.
The report, published by the UN Conference on Trade and Development (UNCTAD), underscores that while LLDCs represent a substantial portion of the global population, their economic development is disproportionately hampered by their geographical isolation. The absence of coastlines translates into a reliance on transit through neighboring countries, often leading to complex and costly logistical arrangements. This can involve multiple modes of transport, border crossings, and varying regulatory frameworks, all of which add layers of expense and inefficiency to the movement of goods.
“The global trading system, while striving for inclusivity, often inadvertently leaves landlocked nations at a disadvantage,” stated the UN trade and development chief in the published remarks. “The invisible costs associated with being landlocked are very real and can significantly impact a nation’s ability to compete on the international stage, attract investment, and ultimately, improve the lives of its citizens.”
The report further elaborates on the specific impacts of this geographical disadvantage. For businesses operating in LLDCs, the increased cost of importing raw materials and exporting finished products can make them less competitive compared to their coastal counterparts. This can deter foreign direct investment and limit the expansion of key industries. Furthermore, the extended transit times can lead to spoilage of perishable goods, damage to sensitive products, and a general reduction in the reliability of supply chains.
Beyond the direct economic implications, the report also touches upon the vulnerability of LLDCs to regional instability and policy changes in transit countries. Disruptions at border crossings, political tensions, or even changes in transit fees can have a cascading effect on a landlocked nation’s economy, highlighting a critical need for greater cooperation and predictable transit arrangements.
The UNCTAD chief emphasized the importance of international solidarity and targeted support to address these systemic challenges. Key recommendations highlighted in the report include:
- Strengthening Transit Cooperation: Fostering robust bilateral and regional agreements that streamline customs procedures, reduce transit fees, and guarantee the smooth flow of goods through neighboring territories.
- Investing in Infrastructure: Supporting the development of efficient transport infrastructure, including roads, railways, and logistics hubs, both within LLDCs and along transit corridors connecting them to seaports.
- Promoting Trade Facilitation: Implementing digital solutions for customs clearance, harmonizing standards, and reducing bureaucratic hurdles to speed up trade processes.
- Diversifying Trade Partners and Routes: Encouraging LLDCs to explore new markets and transit options to mitigate over-reliance on specific corridors.
- Leveraging Technology: Harnessing the potential of digital technologies, such as blockchain and AI, to enhance transparency, efficiency, and security in supply chains.
The message from the UN trade and development chief serves as a crucial reminder that true global economic integration requires a conscious effort to address the unique challenges faced by all nations, regardless of their geographical location. By acknowledging and actively working to dismantle the barriers that render landlocked developing countries “invisible” to much of the world, the international community can unlock their significant potential and contribute to a more equitable and prosperous global economy for all.
Landlocked nations ‘invisible to much of the world’: UN trade and development chief
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