Journal of Human Development
Vol. 5, No. 1, March 2004
Countries
MICHAEL L. FAYE, JOHN W. MCARTHUR, JEFFREY D. SACHS and
THOMAS SNOW
Michael Faye is a Research Analyst at the Millennium Project;
John McArthur is the Manager of the Millennium Project and serves
concurrently as Associate Director at the Earth Institute at Columbia
University;
Jeffrey Sachs is the Director of the Millennium Project, Director of the Earth
Institute, Quetelet Professor of Sustainable Development, and Professor of
Health Policy and Management at Columbia University and
Thomas Snow served as Research Associate at the Earth Institute at
Columbia University
Abstract In spite of technological improvements in transport, landlocked
developing countries continue to face structural challenges to accessing
world markets. As a result, landlocked countries often lag behind their
maritime neighbours in overall development and external trade. While the
relatively poor performance of many landlocked countries can be attributed
to distance from coast, this paper argues that several aspects of dependence
on transit neighbours are also important. Four such types of dependence are
discussed: dependence on neighbours’ infrastructure; dependence on sound
cross-border political relations; dependence on neighbours’ peace and
stability; and dependence on neighbours’ administrative practices. These
factors combine to yield different sets of challenges and priorities in each
landlocked country. The paper concludes with a brief set of policy
recommendations. A detailed appendix presents maps and regional
overviews that outline key challenges facing the landlocked countries in
each region.
Key words: Globalization, Landlocked countries, Geography, Transit,
Transport, Conflict, Markets, Economy
Introduction
In 1776, Adam Smith observed that the inland parts of Africa and Asia were
the least economically developed areas of the world. Two hundred and
twenty-six years later, the Human Development Report 2002 still painted a
stark picture for most of the world’s landlocked countries. Nine of the twelve
ISSN 1464-9888 print/ISSN1469-9516 online/04/010031-38 © 2004 United Nations Development Programme
DOI: 10.1080/14649880310001660201
M. L. Faye et al.
countries with the lowest Human Development Index scores are landlocked,
thirteen landlocked countries are classified as ‘low human development’and
not one of the non-European landlocked countries is classified as ‘high
human development’(UNDP, 2002).
1
Why do landlocked developing countries face such persistent
challenges? Smith argued that, due to the difficulty of trade, geographically
remote areas have difficulty realizing gains to specialization and associated
benefits. He based his analysis on the difficulty of land transportation over
great distances —a problem that, despite huge technological advances,
remains today. High transportation costs typically place landlocked countries
at a distinct disadvantage relative to their coastal neighbours when competing
in global markets.
Distance alone, however, cannot explain why landlocked countries are
at a disadvantage compared with equally remote, inland regions of large
countries. For instance, some regions of China, India and Russia lie further
from the coast than many landlocked countries like Azerbaijan and Moldova.
While these inland subnational regions indeed face great distance-based cost
disadvantages relative to their maritime counterparts, they do not have to
face the challenges of border crossing that Smith also identified.
The commerce besides which any nation can carry on by means of
a river which does not break itself into any great number of
branches or canals, and which runs into another territory before it
reaches the sea, can never be very considerable; because it is
always in the power of the nations who possess that other territory
to obstruct the communication between the upper country and
the sea. (Smith, 1976, I.3.8)
Landlocked countries not only face the challenge of distance, but also
the challenges that result from a dependence on passage through a sovereign
transit country, one through which trade from a landlocked country must
pass in order to access international shipping markets. While rivers were a
more common form of trade transit in Smith’s time, the principle of
dependence on neighbours applies equally to the more modern transport
modes of roads and railways. Such dependence can take several forms, many
of which are less deliberate than the power politics suggested by Smith.
This paper describes the key ways in which landlocked developing
countries face structural challenges to accessing global markets.
2
After first
outlining the relatively low development levels in landlocked developing
countries, we outline the various forms of transit dependence and discuss
ways in which they interact to inhibit the landlocked countries’economic
development. Recognizing that these factors combine to affect specific
countries and regions differently, we highlight the places most and least
affected by each aspect of landlockedness. A series of policy implications is
then briefly proposed. A detailed appendix presents regional overviews
(including maps) that outline the key challenges facing the landlocked
countries in each region.
32
Challenges Facing Landlocked Developing Countries
Landlocked countries’ indicators of development
Landlocked countries very often achieve lower average development levels
than their maritime neighbours. This can be demonstrated by looking at the
Human Development Index (HDI), trade costs, and per-capita export levels.
Human development
The relative state of human development in landlocked countries is presented
in Table 1 and Map 1, where the landlocked countries are shaded. A brief
examination of the table shows that landlocked countries are distributed
across the table but concentrated towards the bottom. As stated earlier, nine
of the twelve countries with the lowest human development are landlocked.
Overall, the landlocked countries do worse than their maritime neigh-
bours in each component of the HDI. The average Gross Domestic Product
(GDP) per capita of landlocked countries is approximately 57% that of their
maritime neighbours. Life expectancy index scores are 0.3 lower on average,
equivalent to 3.5 years, and education index scores are 0.36 lower. Progress
in many landlocked developing countries has also been slow. In the Human
Development Report 2003, twenty out of twenty-seven landlocked countries
with adequate data are considered ‘top priority’or ‘high priority’due to
their lack of progress towards the internationally agreed-upon Millennium
Development Goals. (UNDP 2003)
MAP 1. HDI rankings of developing landlocked countries. Source: Human Development Report 2002.
Note: No data available for Afghanistan.
33
M. L. Faye et al.
TABLE 1. Human development —rankings and components
HDI Components
GDP per Life
HDI rank Country HDI capita Expectancy Education
Medium human development
54 Mexico 0.80 9 023 0.79 0.84
55 Cuba 0.80 —0.85 0.90
56 Belarus 0.80 7 544 0.73 0.92
57 Panama 0.79 6 000 0.82 0.86
58 Belize 0.78 5 606 0.82 0.86
59 Malaysia 0.78 9 068 0.79 0.80
60 Russian Federation 0.78 8 377 0.68 0.92
61 Dominica 0.78 5 880 0.80 0.86
62 Bulgaria 0.78 5 710 0.76 0.90
63 Romania 0.78 6 423 0.75 0.88
64 Libya 0.77 7 570 0.76 0.84
65 Macedonia 0.77 5 086 0.80 0.86
66 Saint Lucia 0.77 5 703 0.81 0.83
67 Mauritius 0.77 10 017 0.77 0.77
68 Colombia 0.77 6 248 0.77 0.85
69 Venezuela 0.77 5 794 0.80 0.83
70 Thailand 0.76 6 402 0.75 0.84
71 Saudi Arabia 0.76 11 367 0.78 0.71
72 Fiji 0.76 4 668 0.73 0.90
73 Brazil 0.76 7 625 0.71 0.83
74 Suriname 0.76 3 799 0.76 0.90
75 Lebanon 0.76 4 308 0.80 0.83
76 Armenia 0.75 2 559 0.80 0.92
77 Philippines 0.75 3 971 0.74 0.91
78 Oman 0.75 13 356 0.77 0.67
79 Kazakhstan 0.75 5 870 0.66 0.91
80 Ukraine 0.75 3 816 0.72 0.92
81 Georgia 0.75 2 664 0.80 0.89
82 Peru 0.75 4 799 0.73 0.87
83 Grenada 0.75 7 580 0.67 0.85
84 Maldives 0.74 4 485 0.69 0.90
85 Turkey 0.74 6 974 0.75 0.77
86 Jamaica 0.74 3 639 0.84 0.79
87 Turkmenistan 0.74 3 936 0.78 0.88
88 Azerbaijan 0.74 2 936 0.78 0.88
89 Sri Lanka 0.74 3 530 0.79 0.84
90 Paraguay 0.74 4 426 0.75 0.83
91 Saint Vincent and the Grenadines 0.73 5 555 0.74 0.79
92 Albania 0.73 3 506 0.80 0.80
93 Ecuador 0.73 3 203 0.75 0.87
94 Dominican Republic 0.73 6 033 0.70 0.80
95 Uzbekistan 0.73 2 441 0.73 0.91
96 China 0.73 3 976 0.76 0.80
97 Tunisia 0.72 6 363 0.75 0.72
98 Iran, Islamic Republic of 0.72 5 884 0.73 0.75
99 Jordan 0.72 3 966 0.76 0.78
100 Cape Verde 0.72 4 863 0.75 0.75
101 Samoa (Western) 0.72 5 041 0.74 0.75
34
Challenges Facing Landlocked Developing Countries
TABLE 1. Continued
HDI Components
GDP per Life
HDI rank Country HDI capita Expectantancy Education
102 Kyrgyzstan 0.71 2 711 0.71 0.87
103 Guyana 0.71 3 963 0.63 0.88
104 El Salvador 0.71 4 497 0.75 0.74
105 Moldova 0.70 2 109 0.69 0.90
106 Algeria 0.70 5 308 0.74 0.69
107 South Africa 0.70 9 401 0.45 0.80
108 Syrian Arab Republic 0.69 3 556 0.77 0.71
109 Viet Nam 0.69 1 996 0.72 0.84
110 Indonesia 0.68 3 043 0.69 0.79
111 Equatorial Guinea 0.68 15 073 0.43 0.77
112 Tajikistan 0.67 1 152 0.71 0.88
113 Mongolia 0.66 1 783 0.63 0.85
114 Bolivia 0.65 2 424 0.62 0.80
115 Egypt 0.64 3 635 0.70 0.62
116 Honduras 0.64 2 453 0.68 0.70
117 Gabon 0.64 6 237 0.46 0.76
118 Nicaragua 0.64 2 366 0.72 0.65
119 Sao Tome and Principe 0.63 1 792 0.67 0.75
120 Guatemala 0.63 3 821 0.66 0.75
121 Solomon Islands 0.62 1 648 0.72 0.68
122 Namibia 0.61 6 431 0.33 0.81
123 Morocco 0.60 3 546 0.71 0.50
124 India 0.58 2 358 0.64 0.57
125 Swaziland 0.58 4 492 0.32 0.77
126 Botswana 0.57 7 184 0.25 0.75
127 Myanmar 0.55 1 027 0.52 0.75
128 Zimbabwe 0.55 2 635 0.30 0.81
129 Ghana 0.55 1 964 0.53 0.62
130 Cambodia 0.54 1 445 0.52 0.66
131 Vanuatu 0.54 2 802 0.72 0.35
132 Lesotho 0.54 2 031 0.34 0.76
133 Papua New Guinea 0.54 2 280 0.53 0.55
134 Kenya 0.51 1 022 0.43 0.72
135 Cameroon 0.51 1 703 0.42 0.65
136 Congo 0.51 825 0.44 0.75
137 Comoros 0.51 1 588 0.58 0.49
Low human development
138 Pakistan 0.50 1 928 0.58 0.42
139 Sudan 0.50 1 797 0.52 0.50
140 Bhutan 0.49 1 412 0.62 0.42
141 Togo 0.49 1 442 0.45 0.59
142 Nepal 0.49 1 327 0.56 0.48
143 Laos 0.49 1 575 0.47 0.52
144 Yemen 0.48 893 0.59 0.48
145 Bangladesh 0.48 1 602 0.57 0.40
146 Haiti 0.47 1 467 0.46 0.50
147 Madagascar 0.47 840 0.46 0.59
148 Nigeria 0.46 896 0.44 0.58
35
M. L. Faye et al.
TABLE 1. Continued
HDI Components
GDP per Life
HDI rank Country HDI capita Expectantancy Education
149 Djibouti 0.45 2 377 0.30 0.50
150 Uganda 0.44 1 208 0.32 0.60
151 Tanzania 0.44 523 0.43 0.61
152 Mauritania 0.44 1 677 0.44 0.40
153 Zambia 0.43 780 0.27 0.68
154 Senegal 0.43 1 510 0.47 0.37155Congo DR
0.43 765 0.44 0.51
156 Co
ˆte d’Ivoire 0.43 1 630 0.38 0.44
157 Eritrea 0.42 837 0.45 0.46
158 Benin 0.42 990 0.48 0.40
159 Guinea 0.41 1 982 0.38 0.37
160 Gambia 0.41 1 649 0.35 0.39
161 Angola 0.40 2 187 0.34 0.36
162 Rwanda 0.40 943 0.25 0.58
163 Malawi 0.40 615 0.25 0.65
164 Mali 0.39 797 0.44 0.37
165 CAR 0.38 1 172 0.32 0.39
166 Chad 0.37 871 0.35 0.39
167 Guinea-Bissau 0.35 755 0.33 0.38
168 Ethiopia 0.33 668 0.31 0.35
169 Burkina Faso 0.33 976 0.36 0.23
170 Mozambique 0.32 854 0.24 0.37
171 Burundi 0.31 591 0.26 0.38
172 Niger 0.28 746 0.34 0.16
173 Sierra Leone 0.28 490 0.23 0.33
Average 0.61 3 636 0.60 0.69
Average over maritime 0.82 4 902 0.80 0.93
Average over landlocked 0.55 2 420 0.50 0.67
Source: Human Development Report 2002.
Note: No data available for Afghanistan
*Shading indicates landlocked countries
While Table 1 shows that many low HDI countries are landlocked, the
dispersion of these landlocked countries across the table makes it unclear
the extent to which landlockedness affects overall development. For instance,
the concentration of landlocked countries at the bottom of the table could
merely reflect the large number of landlocked countries in Sub-Saharan Africa
and other development challenges present in that region.
More information regarding the challenges of landlockedness is pre-
sented in Table 2, which lists the same human development indicators as
Table 1 but separates the countries by region. Table 2 shows that, despite
the global variation in landlocked countries’HDI scores, landlocked countries
generally have significantly lower levels of development than the maritime
countries of their region. In fact, not one landlocked country outside of
southern Africa has a higher level of human development than the average
36
Challenges Facing Landlocked Developing Countries
TABLE 2. Human development —rankings and components by region
HDI Components
Life
HDI rank Country HDI GDP per capita Expectancy Education
Southern Africa107SouthAfrica
0.70 9 401 0.45 0.80
122 Namibia 0.61 6 431 0.33 0.81
125 Swaziland 0.58 4 492 0.32 0.77
126 Botswana 0.57 7 184 0.25 0.75
128 Zimbabwe 0.55 2 635 0.30 0.81
132 Lesotho 0.54 2 031 0.34 0.76
153 Zambia 0.43 780 0.27 0.68
161 Angola 0.40 2 187 0.34 0.36
163 Malawi 0.40 615 0.25 0.65
170 Mozambique 0.32 854 0.24 0.37
Average over maritime 0.51 5 211 0.32 0.63
Average over landlocked 0.51 2 111 0.30 0.73
Western Africa
111 Equatorial Guinea 0.68 15 073 0.43 0.77
117 Gabon 0.64 6 237 0.46 0.76
129 Ghana 0.55 1 964 0.53 0.62
135 Cameroon 0.51 1 703 0.42 0.65
136 Congo 0.51 825 0.44 0.75
141 Togo 0.49 1 442 0.45 0.59
148 Nigeria 0.46 896 0.44 0.58
152 Mauritania 0.44 1 677 0.44 0.40
154 Senegal 0.43 1 510 0.47 0.37
156 Co
ˆte d’Ivoire 0.43 1 630 0.38 0.44
158 Benin 0.42 990 0.48 0.40
159 Guinea 0.41 1 982 0.38 0.37
160 Gambia 0.41 1 649 0.35 0.39
164 Mali 0.39 797 0.44 0.37
165 CAR 0.38 1 172 0.32 0.39
166 Chad 0.37 871 0.35 0.39
167 Guinea-Bissau 0.35 755 0.33 0.38
169 Burkina Faso 0.33 976 0.36 0.23
172 Niger 0.28 746 0.34 0.16
173 Sierra Leone 0.28 490 0.23 0.33
Average over maritime 0.47 2588 0.42 0.52
Average over landlocked 0.35 912 0.36 0.31
Eastern Africa
134 Kenya 0.51 1 022 0.43 0.72
139 Sudan 0.50 1 797 0.52 0.50
149 Djibouti 0.45 2 377 0.30 0.50
150 Uganda 0.44 1 208 0.32 0.60
151 Tanzania 0.44 523 0.43 0.61
157 Eritrea 0.42 837 0.45 0.46
162 Rwanda 0.40 943 0.25 0.58
168 Ethiopia 0.33 668 0.31 0.35
171 Burundi 0.31 591 0.26 0.38
Average over maritime 0.46 1311 0.43 0.56
Average over landlocked 0.37 853 0.29 0.48
37
M. L. Faye et al.
TABLE 2. Continued
HDI Components
Life
HDI rank Country HDI GDP per capita Expectancy Education
South and Southeast Asia
70 Thailand 0.76 6 402 0.75 0.84
109 Viet Nam 0.69 1 996 0.72 0.84
124 India 0.58 2 358 0.64 0.57
127 Myanmar 0.55 1 027 0.52 0.75
130 Cambodia 0.54 1 445 0.52 0.66
140 Bhutan 0.49 1 412 0.62 0.42
142 Nepal 0.49 1 327 0.56 0.48
143 Laos 0.49 1 575 0.47 0.52
145 Bangladesh 0.48 1 602 0.57 0.40
Average over maritime 0.60 2 472 0.62 0.68
Average over landlocked 0.49 1 438 0.55 0.47
Eastern Europe and Central Asia
60 Russia 0.78 8 377 0.68 0.92
62 Bulgaria 0.78 5 710 0.76 0.90
63 Romania 0.78 6 423 0.75 0.88
76 Armenia 0.75 2 559 0.80 0.92
79 Kazakhstan 0.75 5 870 0.66 0.91
80 Ukraine 0.75 3 816 0.72 0.92
81 Georgia 0.75 2 664 0.80 0.89
85 Turkey 0.74 6 974 0.75 0.77
87 Turkmenistan 0.74 3 936 0.78 0.88
88 Azerbaijan 0.74 2 936 0.78 0.88
95 Uzbekistan 0.73 2 441 0.73 0.91
102 Kyrgyzstan 0.71 2 711 0.71 0.87
105 Moldova 0.70 2 109 0.69 0.90
112 Tajikistan 0.67 1 152 0.71 0.88
113 Mongolia 0.66 1 783 0.63 0.85
Afghanistan
Average over maritime 0.76 5 661 0.74 0.88
Average over landlocked 0.72 2 835 0.71 0.89
Latin America
34 Argentina 0.84 12 377 0.81 0.92
38 Chile 0.83 9 417 0.84 0.90
40 Uruguay 0.83 9 035 0.82 0.92
73 Brazil 0.76 7 625 0.71 0.83
82 Peru 0.75 4 799 0.73 0.87
90 Paraguay 0.74 4 426 0.75 0.83
114 Boliva 0.65 2 424 0.62 0.80
Average over maritime 0.80 8651 0.78 0.89
Average over landlocked 0.70 3425 0.89 0.82
Source: Human Development Report (2002).
*Shading indicates landlocked countries.
38
Challenges Facing Landlocked Developing Countries
of its regional maritime countries. In contrast, the landlocked countries in
western Africa are doing the worst relative to their maritime neighbours.
3
The difference in the average HDI between the western African landlocked
and maritime countries is sizeable at 0.12 (0.35 versus 0.47). The landlocked
countries in Latin America and South East Asia are doing only slightly better
relative to their neighbours with a HDI difference of 0.11.
Of course, there is also variation among the landlocked countries in each
region. Figure 1 plots the HDI score of each landlocked country relative to the
average of its regional HDI, highlighting the different outcome distributions
within regions. For example, while there is great variation in southern Africa,
the former Soviet republics have relatively similar levels of HDI. In southern
Africa, the landlocked countries that border South Africa are performing
significantly better than those that do not. This underscores the potential
benefits of a relatively wealthy neighbour. The two countries that are the best
performers in the region, Swaziland and Botswana, are exceptional cases.
Botswana benefits enormously from its diamond trade, which utilizes air trans-
port and thus overcomes many possible burdens of landlockedness, and Swazi-
land benefits from its close location to ports in both Mozambique and South
Africa. Meanwhile, the variation in the east Africa region is particularly illumin-
ating. HDI levels decrease as one moves inland along the major transit route
through Kenya used by Burundi, Rwanda and Uganda.
FIGURE 1. Human Development Indicator: landlocked countries versus their regional neighbours.
39
M. L. Faye et al.
Trade costs
The landlocked countries’high average cost of trade is reflected in Table 3,
which presents the ratio of transport and insurance costs to the total value
of exports. In aggregate, this ratio is roughly 9% greater for landlocked
countries than for the maritime countries. For a majority of regions, the
average ratio for landlocked countries is nearly double that of the maritime
countries. The notable exceptions are Bhutan, Laos, and Swaziland. These
countries do not engage in significant volumes of transoceanic trade, instead
exporting overwhelmingly to their immediate neighbours, India, Thailand
and South Africa, respectively.
Exports
In line with their higher trade costs, landlocked countries on average export
less than one-half of the per-capita amount of their maritime neighbours, as
presented in Table 4. Nearly all landlocked countries export less per capita
than the average of the regional maritime countries. A regional breakdown
shows that the landlocked countries of western Africa are faring the worst
in relative terms, exporting only 12% of their maritime neighbours’value on
a per-capita basis. Meanwhile, the southern African landlocked countries
fare the best in relative terms, exporting nearly 70% of the per-capita value
of their maritime neighbours.
Variation within regions is presented in Figure 2, again as measured by
the ratio of a country’s exports per capita to the regional average. A
comparison of Figure 1 and Figure 2 shows that even fewer landlocked
countries outperform the regional average for exports per capita than was
the case for HDI. The three exceptions—(Kazakhstan, Turkmenistan and
Swaziland)—are all extraordinary cases. Kazakhstan and Turkmenistan export
primarily oil and natural gas to their neighbours, and Swaziland has a
particularly open trade regime that links its economy closely with South
Africa.
4
Two other interesting observations can be drawn from this figure. First,
Uganda exports significantly more than the other eastern African landlocked
countries. As was the case with the HDI, the level of exports per capita
roughly corresponds to the distance inland on the major transit route.
Second, there is little variation in export levels in western Africa. All are
extremely low and reflect the severe political and infrastructural challenges
facing these countries.
Dimensions of landlockedness
Why are economic and human development indicators for landlocked coun-
tries generally so much worse than those for maritime neighbours? Much
can be attributed to the landlocked countries’dependence on other coun-
tries’transit routes for access to overseas markets. This dependence can take
at least four forms: (1) dependence on transit infrastructure; (2) dependence
on political relations with neighbours; (3) dependence on peace and stability
40
Challenges Facing Landlocked Developing Countries
TABLE 3. Cost of trade —ratio of transportation and insurance to value of exports
Ratio of
transport
costs to value
Country of exports
Southern Africa
Swaziland 0.02
Angola 0.08
South Africa 0.08
Namibia 0.09
Lesotho 0.12
Zimbabwe 0.15
Botswana 0.16
Zambia 0.17
Mozambique 0.28
Malawi 0.55
Average over maritime 0.13
Average over landlocked 0.20
Western Africa
Nigeria 0.05
Sierra Leone 0.09
Cameroon 0.09
Cote d’Ivoire 0.11
Mauritania 0.12
Guinea 0.14
Gabon 0.15
Congo 0.17
Senegal 0.18
Ghana 0.18
Togo 0.21
Central African Republic 0.26
Burkina Faso 0.27
Niger 0.28
Guinea-Bissau 0.30
Mali 0.35
Benin 0.37
Chad 0.51
Liberia —
Equatorial Guinea —
Average over maritime 0.17
Average over landlocked 0.33
Eastern Africa
Kenya 0.13
Tanzania 0.18
Djibouti 0.21
Ethiopia 0.29
Sudan 0.29
Burundi 0.31
Uganda 0.35
Rwanda 0.51
Eritrea —
Somalia —
Average over maritime 0.20
Average over landlocked 0.36
Ratio of
transport
costs to value
Country of exports
South and Southeast Asia
Nepal 0.05
Laos 0.08
Thailand 0.08
Cambodia 0.11
India 0.13
Bangladesh 0.14
Myanmar —
Vietnam —
Bhutan —
Average over maritime 0.12
Average over landlocked 0.07
Eastern Europe and Central
Asia
Russia 0.00
Ukraine 0.02
Kazakhstan 0.04
Romania 0.05
Turkey 0.06
Azerbaijan 0.07
Georgia 0.08
Moldova 0.10
Bulgaria 0.11
Kyrgyzstan 0.13
Turkmenistan 0.15
Mongolia 0.16
Armenia 0.29
Afghanistan 0.35
Tajikistan —
Uzbekistan —
Average over maritime 0.05
Average over landlocked 0.16
Latin America
Brazil 0.08
Argentina 0.08
Uruguay 0.10
Peru 0.11
Chile 0.11
Paraguay 0.17
Bolivia 0.21
Average over maritime 0.10
Average over landlocked 0.19
Source: International Monetary Fund (2001); World Development Indicators (2002). Transport costs and
exports have been matched by year.
*Shading indicates landlocked countries.
41
M. L. Faye et al.
TABLE 4. Exports per capita (2000 current US$)
Exports per
Country capita
Southern Africa
Swaziland 927
South Africa 854
Angola 606
Zimbabwe 178
Lesotho 126
Zambia 88
Malawi 43
Mozambique 32
Botswana —
Namibia —
Average over maritime 498
Average over landlocked 272
Western Africa
Equatorial Guinea 2784
Gabon 1484
Congo, Republic 837
Cote d’Ivoire 268
Cameroon 183
Nigeria 169
Gambia, The 155
Mauritania 145
Senegal 140
Ghana 132
Tog o 96
Guinea 105
Tog o 96
Guinea-Bissau 57
Benin 53
Mali 53
Central African Republic 34
Chad 30
Niger 26
Sierra Leone 22
Burkina Faso 21
Liberia —
Average over maritime 442
Average over landlocked 33
Eastern Africa
Djibouti 390
Kenya 91
Sudan 62
Tanzania 39
Uganda 28
Eritrea 23
Rwanda 18
Ethiopia 15
Burundi 9
Somalia —
Average over maritime 121
Average over landlocked 18
Exports per
Country capita
South and Southeast Asia
Thailand 1349
Bhutan 179
Cambodia 106
India 63
Nepal 57
Bangladesh 50
Laos —
Myanmar —
Viet Nam —
Average over maritime 392
Average over landlocked 118
Eastern Europe and Central
Asia
Bulgaria 859
Russian Federation 791
Turkey 746
Kazakhstan 722
Romania 557
Turkmenistan 534
Ukraine 394
Azerbaijan 266
Mongolia 265
Georgia 226
Moldova 150
Uzbekistan 137
Tajikistan 130
Armenia 117
Kyrgyz Republic 115
Afghanistan —
Average over maritime 596
Average over landlocked 271
Latin America
Chile 1477.1
Uruguay 1140.4
Argentina 829.8
Brazil 380.0
Peru 333.0
Paraguay 277.5
Bolivia 174.5
Average over maritime 832
Average over landlocked 226
Source:World Development Indicators (2002).
*Shading indicates landlocked countries.
42
Challenges Facing Landlocked Developing Countries
FIGURE 2. Exports per capita: landlocked countries versus their regional neighbours.
within transit neighbours; and (4) dependence on administrative processes
in transit.
The relative impact of these challenges varies greatly by country. It is
therefore essential to consider how each aspect interacts with a country’s
economic structure in order to understand how landlockedness is affecting
the country’s development processes. To this end, we now highlight some
of the worst and least affected countries for each aspect of landlockedness.
Dependence upon infrastructure of transit countries
Landlocked countries are completely dependent on their transit neighbours’
infrastructure to transport their goods to port. This infrastructure can be
43
M. L. Faye et al.
weak for many reasons, including lack of resources, mis-governance, conflict
and natural disasters. Regardless of the cause, weak infrastructure imposes
direct costs on trade passing through a transit country and thus limits the
ability of landlocked country products to compete in global markets. The
relative impact of weak surrounding infrastructure is particularly severe
for the least developed landlocked countries that mainly export primary
commodities with low value to cost ratios rather than high value products
or services. Weak transit infrastructure also limits the return to investment
on landlocked countries’internal infrastructure, since market opportunities
are constrained.
Worst affected areas. The challenges confronted by poor transit infra-
structure are perhaps most acute in eastern Africa. Burundi, for example,
boasts a relatively good internal road network but is severely constrained by
the surrounding infrastructure of its transit neighbours. The most direct
route to the sea from Burundi is through Tanzania to Dar es Salaam along
what is known as the Central Corridor, but infrastructure levels on this route
are so poor that Burundi’s primary transit route still follows the more distant
path to Mombasa, known as the Northern Corridor. When the latter was
closed due to political reasons in the 1990s, an alternative transit route to
Durban via Mpulungu on Lake Tanganyika was investigated, and used. The
fact that this route was even considered, at a total distance of nearly 4500
km with several border crossings and modal changes, highlights the severity
of the transit challenges faced by Burundi, one of the world’s poorest
countries.
Similar transit neighbour infrastructure problems exist for western
African landlocked countries. The Central African Republic, for example,
does not have a dependable all-weather route to the sea. Its corridor through
Cameroon is often impassable during the rainy season, owing to the poor
condition of Cameroonian roads. Its only other corridor, through the Demo-
cratic Republic of Congo (DRC), travels on the Oubangui River, which is
impassable during the dry season due to low water levels. This corridor is
also currently impassable due to the ongoing crisis in the DRC.
Least affected areas. Countries exporting goods and services that do not
require land transport are least susceptible to transit infrastructure concerns.
In the case of Botswana, the economy’s heavy dependence on diamonds,
which account for 84% of the total export value, allows the country to
bypass transit neighbour infrastructure by utilizing air transport. The high
value/weight and value/volume ratios for diamonds make this possible, since
air transport has a high cost/volume ratio. Bolivia has also had moderate
success in bypassing its neighbours’transit network by trying to capitalize
on its central geographic location to become the South American fibre-
optics hub. Modern technological advancements and the development of
telecommunications have expanded such opportunities for landlocked coun-
tries to develop industries less affected by transport costs.
Some landlocked countries benefit from relatively high-quality surround-
44
Challenges Facing Landlocked Developing Countries
ing transport infrastructure. This is the case for the landlocked countries of
south and southeast Asia and South America, even though they have often
been unable to take advantage of the neighbours’transit systems due to
weak domestic networks. Laos, for example, still has a limited internal
transport network and borders Thailand’s modern infrastructure facilities.
This example is particularly interesting as Thailand’s transport system is
characterized by four-lane highways, while transport within Laos is mainly
limited to single-carriage highways. The Thai government has also recently
extended its rail line to the Laotian border. The rail line, however, does not
continue the short distance to the Laotian capital, Vientiane, since Laos does
not have a domestic rail system.
Political relationship between landlocked and transit countries
Landlocked countries depend on strong political relations with transit coun-
tries. If a landlocked country and its transit neighbour are in conflict, either
military or diplomatic, the transit neighbour can easily block borders or
adopt regulatory impediments to trade. Even when there is no direct conflict,
landlocked countries are extremely vulnerable to the political vagaries of
their neighbours. Although there is a legal basis for rights of landlocked
transit as outlined in Article 125(1) of the United Nations Convention on the
Law of the Sea (United Nations, 1982), in practice, this right of access must
be agreed upon with the transit neighbour (Article 125(2) and (3))
5
and is
determined by the relationship between the countries.
Worst affected areas The landlocked countries of the South Caucasus and
Central Asia have been acutely affected by cross-border disputes. After the
dissolution of the Soviet Union, the former republics were divided according
to previous administrative boundaries. These boundaries have been the
source of many disputes. As a result, borders are regularly defended with
landmines and physical blockades. The ongoing tensions have also resulted
in the general failure of regional cooperation. Uzbekistan has been particularly
affected by such challenges as it suffers from strained relations with four of
its five neighbours: Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.
Uzbekistan’s other neighbour, Afghanistan, suffers from extremely weak infra-
structure. In the South Caucasus, fighting between the two landlocked coun-
tries, Armenia and Azerbaijan, has not only closed the Armenia-Azerbaijan
border, but has also led to the closure of the Armenia–Turkey border. Armen-
ia’s only alternative transit routes, through Georgia and Iran, are restricted by
mountainous terrain and relatively weak infrastructure (Tavitan, 2001).
Ethiopia has also suffered immensely from conflict with its transit
neighbour, Eritrea. War between the two countries restricted Ethiopia’s
access to the Eritrean port of Assab where three-quarters of Ethiopian trade
(75%) passed through duty-free until 1997. There has now been a major shift
of Ethiopia’s trading routes, away from Assab to the port of Djibouti, which
now handles the large majority of Ethiopian trade. The Djibouti corridor,
45
M. L. Faye et al.
however, is hampered by a poorly functioning railroad and limited port
facilities.
Relations with neighbouring countries need not be in violent conflict
to severely hamper a landlocked country’s economy. For example, India,
Nepal’s sole transit neighbour, blockaded the border between the two
countries in 1990, an action cited as a major cause of the overthrow of
the Nepalese panchayat government (Economist Intelligence Unit, 2002).
6
Moreover, between 2001 and 2002, India instituted significant trade restric-
tions on Nepal during the negotiation of a bilateral trade agreement. These
restrictions were alleged to have been instituted to extract concessions in
negotiations. In Bolivia, the effects of weakened international relations are
also apparent. Long-standing tensions with neighbouring Chile, which go
back to the war of 1878–1883 when Bolivia lost control of the coastal
province of Atacama, have recently delayed the export of newfound gas
reserves as the Bolivian people protest the use of Chilean ports.
Least affected areas While nearly all landlocked countries have at some
point experienced tensions with their maritime neighbours, southern African
countries have witnessed this less frequently. The landlocked countries of
southern Africa have also benefited from relatively strong attempts at regional
cooperation. Such cooperation has led to the development of the Southern
African Transport and Communications Commission, which is intended to
integrate transport policy, provide freedom of transit, and strengthen regional
infrastructure. Meanwhile, in eastern Africa, the re-introduction of the East
African Community aims to strengthen already improving relations. One of
the first areas of cooperation agreed upon was the transport infrastructure
linking the nations. Key international corridors have already been identified
for priority development.
Vulnerability to civil conflict within transit countries
Even when relations with transit neighbours are good and the core transit
infrastructure is sound, a landlocked country still must rely on peace and
stability within the transit country. When transit countries suffer from civil
war, transit routes can be damaged or closed, which often requires a
rerouting of major trade corridors or, in the worst case, a stoppage of transit.
Worst affected areas The landlocked countries of western Africa have been
particularly affected by neighbours’internal conflicts. Mali, for example,
has recently been recognized for its political stability and commitment to
democracy, but has suffered tremendously from conflict and instability in its
neighbours. Each of Mali’s coastal neighbours has experienced some form
of violent civil conflict in the past decade, often making transport routes
unusable. Togo was devastated by violent political protests and deep internal
conflict in the early 1990s. Algeria was involved in a bloody civil war for
much of the same decade. Ghana suffered from ethnic violence primarily
between 1993 and 1994. Sierra Leone’s decade-long civil war has just recently
46
Challenges Facing Landlocked Developing Countries
come to a tenuous settlement. Guinea has been stricken by a series of coups
and rebel wars. Liberia has spent most of the decade in violent civil
wars that have threatened to spill over into neighbouring countries, thus
jeopardizing regional stability even further. Finally, and most importantly for
Mali, Cote d’Ivoire has recently fallen into a devastating political crisis, with
severe effects on Mali’s primary corridor to the sea.
The landlocked countries of southern Africa, most notably Malawi,
have suffered significantly from the surrounding civil wars in Mozambique,
Namibia and Angola. As a result, much of the Southern African Development
Community’s (SADC) trade has been forced to use longer north–south
corridors, largely relying upon the port of Durban in South Africa. During
the Mozambican civil war, Malawi was forced to reroute its freight, 95% of
which normally passed through the ports of Beira and Nacala, to the much
more distant ports of Durban and Dar es Salaam. It is estimated that the
average surface costs to these ports are more than double those to Nacala
and Beira via the traditional rail routes. The average transit times to Durban
(7 days) and Dar es Salaam (6 days) are also nearly double that to Nacala (4
days) and Beira (3 days) (World Bank, 1995). The rerouting is estimated to
have cost Malawi an additional US$50–80 million (4–6% of the GDP) per
year, with insurance and freight costs doubling from 20% of the import bill
in the early 1980s to 40% by the latter half of the decade (World Bank,
1995). While the corridors to Beira and Nacala have recently been reopened,
infrastructure damage from the war has thus far limited their use.
Civil conflict has also been a significant impediment in central Asia and
the South Caucasus, where the dissolution of the Soviet Union has led to
several internal conflicts. The Georgian civil wars of the 1990s have had
dramatic effects on the region by severely hampering the vital corridor link
across the Caspian Sea. These wars not only required that trade be rerouted
during the war, but also destroyed much of the internal infrastructure
and significantly weakened the port of Poti, which is only now being
rehabilitated.
Least affected areas Few developing landlocked countries have been
unaffected by civil conflicts in neighbouring countries. Bolivia and Paraguay
have perhaps been least affected in this regard —their borders have not
been closed due to a civil conflict in their neighbours. The countries of
South and South-eastern Asia have been similarly fortunate.
High administrative burden due to transit
Landlocked countries are also subject to the administrative burdens associ-
ated with border crossings, with these often adding the greatest amount to
shipping costs. To transit a country, there are a host of direct transit and
customs charges
7
, some of which must be paid upfront and some en route.
The direct costs, however, form only a small part of the picture. International
transit also requires burdensome paperwork and bureaucratic procedures
that are costly to deal with and place a high administrative burden on
47
M. L. Faye et al.
shippers. Border crossings also cause long delays on transit traffic. It is
regularly noted that the time delays and the variability of time in transit are
a greater concern to traders than direct costs, as they hinder the ability to
meet delivery contracts without large inventory stocks.
Worst affected areas While there is little direct cross-country evidence on
the fees and administrative burdens facing importers and exporters, these
costs are most regularly cited in reports on western Africa. These costs are
also often cited for eastern Africa, where they are estimated at as much as
20% of the direct freight costs (Anyango, 1997). Where it is necessary to
cross more than one border, such as the route from Burundi through Rwanda,
Uganda and Kenya, one must often pay these fees at several borders.
In addition to direct administrative costs, delays are also a serious
concern in many parts of Africa. Customs procedures at the Central African
Republic–Cameroon border can take as long as 2 weeks, with goods often
waiting at the border for the requisite information to be sent from Bangui
(Evlo, 1995).
8
The full journey between the port of Doala and Bangui
generally takes from 3 weeks to 1 month. An average rail freight trip between
Kampala (Uganda) and Mombasa (Kenya), which is a route used by Uganda,
Rwanda and Burundi, is reported to take anywhere between 14 and 21 days
on average (Freight, 2000). The unreliability of the rail arrivals often make it
impossible to book ships ahead of time at the port of Mombasa, causing
further delays. Delays at the port of Abidjan, used by Burkina Faso, have
been reported to often take up to 10 days (Evlo, 1995). Waits at the port of
Douala, used by the Central African Republic and Chad, have been known
to extend to 30 days.
9
In addition, the two main transit routes for Burkina
Faso have customs escorts only three times a week so there are often
significant delays in waiting for an escort (UNCTAD, 1999b).
10
Although such delays have varied causes, many stem from a lack of
coordination between the landlocked and transit countries. In Burkina Faso,
for example, there exists a special anti-competitive provision to protect
Burkinabe truck companies, reserving two-thirds of transit freight for carriage
by Burkinabe trucks. Thus, there are often goods at maritime ports waiting
for the arrival of vehicles from landlocked countries despite the presence at
the port of vehicles from maritime countries that would be willing to
transport the goods inland (UNCTAD, 1999b).
While the absolute levels of fees and administrative burdens are not as
high in central Asia as in Africa, the burdens are increasing in this region,
largely due to the souring of cross-border relations. During the Soviet era,
transport across the neighbouring countries of Kazakhstan, Kyrgyzstan,
Tajikistan and Uzbekistan was largely free of administrative burdens. A 72-
hour visa-free system was introduced in the late 1990s to allow transit
through countries without the need for a visa, but it is no longer in effect
due to poor and worsening relations between countries in the region (Dion,
2000; Mayhew, 2002).
11
Corruption has also imposed significant costs on
trade in central Asia and the South Caucasus.
48
Challenges Facing Landlocked Developing Countries
Least affected areas The most notable exception to the administrative
burdens of transit is found in Bhutan. All Bhutanese transit trade through
India is handled by Bhutan’s own customs agency. Hence, administratively
Bhutan can trade as if it were not landlocked. This is largely a result of strong
Bhutanese–Indian relations and the minimal amount of Bhutanese transit
trade.
In other instances, efforts to reduce administrative charges and delays
have taken place at the regional level. The countries of SADC and the
Common Market for Eastern and Southern Africa (COMESA), for example,
have introduced common licenses and third-party insurance guarantees
across countries, significantly reducing transit costs (see more details in the
Appendix). Similar efforts are being made in South America through the
regional trade institutions to simplify transit procedures.
Summary measures of landlockedness
To summarize some of the different aspects of landlockedness, Table 5
presents some quantitative measures across countries, highlighting indicators
both for landlocked countries themselves and for the same countries’
respective transit neighbours. Administrative challenges are not included in
this table due to a lack of comparable data. With the exception of distance
to the nearest port, the other variables have been normalized to a 0–1 scale
to facilitate comparison across countries.
Policy implications
To address the challenges that limit landlocked countries’potential gains
from trade and hence limit the resource base for investing in human
development, several key policy priorities can be stressed.
First, landlocked developing countries need to place particular emphasis
on developing their internal transportation infrastructure. Trade is signifi-
cantly affected by transportation costs, so investments in railways and
roads —both construction and maintenance —are crucial for keeping these
costs down.
Second, regional infrastructure integration strategies are needed to
develop active trade routes and to expand market access for landlocked
countries. Small economies such as Burundi and Rwanda face tremendous
constraints in trying to trade internationally due to the weak road and rail
infrastructure in Eastern Africa. Internal infrastructure investments in Burundi
and Rwanda will yield limited returns if not accompanied by similar invest-
ments in Kenya, Tanzania and Uganda. Similarly, infrastructure integration
requires investments in building and maintaining efficient maritime ports to
serve entire regions.
Third, and closely linked to the previous point, regional integration
strategies need to focus on administrative coordination. Members of COMESA
and SADC have made significant advances in this regard, but many other
regions still require investments to standardize border procedures and reduce
49
M. L. Faye et al.
Table 5. Dimensions of landlockedness
Measure of
Normalized measures of trade distance Normalized measures of infrastructure quality
Proportion of TCs proportion of
Freight costs Export volume Distance to port paved roads paved roads Paved road quality TCs paved road
Country (index) (index) (km) (index) (index) (index) quality (index)
Afghanistan 0.38 —1960 ———0.01
Armenia 0.51 0.08 693 —0.36 ——
Azerbaijan 0.92 0.15 870 ————
Bhutan —— 775 ————
Bolivia 0.64 0.16 414 0.07 0.22 0.44 0.16
Botswana 0.75 1.00 905 1.00 1.00 1.00 —
Burkina Faso 0.54 0.01 1154 0.41 0.68 0.48 0.12
Burundi 0.47 0.00 1254 0.37 0.16 0.72 0.49
Central African Republic 0.55 0.03 1518 0.01 0.00 0.53 0.27
Chad 0.08 0.02 1669 0.00 0.00 0.00 0.27
Ethipia 0.50 0.00 781 0.33 0.36 0.69 0.74
Kazakhstan 0.96 0.47 3750 —0.61 —0.07
Kyrgyzstan 0.81 0.10 3600 —0.61 —0.07
Laos 0.89 0.07 620 —0.63 —0.61
Lesotho 0.81 0.10 575 0.36 1.00 0.72 —
Malawi 0.00 0.03 803 0.40 0.21 0.76 0.34
Mali 0.38 0.04 1225 0.36 0.41 0.81 0.47
Moldova 0.86 0.15 170 ———1.00
Mongolia 0.75 0.22 1693 0.45 0.61 —0.07
Nepal 0.95 0.04 1160 0.95 —0.58 0.00
Niger 0.52 0.02 1057 0.52 0.84 0.73 0.37
Paraguay 0.73 0.34 1022 —0.30 0.87 0.16
Rwanda 0.08 0.00 1867 0.11 0.26 0.62 0.23
50
Challenges Facing Landlocked Developing Countries
Table 5. Continued
Measure of
Normalized measures of trade distance Normalized measures of infrastructure quality
Proportion of TCs proportion of
Freight costs Export volume Distance to port paved roads paved roads Paved road quality TCs paved road
Country (index) (index) (km) (index) (index) (index) quality (index)
Swaziland 1.00 0.89 193 0.65 0.51 0.52 0.19
Tajikistan —0.09 3100 —0.61 —0.07
Turkmenistan 0.77 0.27 1700 ————
Uganda 0.39 0.02 1187 0.34 0.16 0.40 0.47
Uzbekistan —0.12 2950 ————
Zambia 0.72 0.07 1975 0.40 0.47 0.55 0.91
Zimbabwe 0.76 0.20 464 0.36 0.72 0.86 0.82
Freight costs: (TransportationòInsurance Costs)/Exports of Goods & Services.
Export volume: Exports of goods and services (mean over 1997–2000) (1995 USD)
Proportion of paved roads: Paved roads (km)/Total roads (km)
TC’s proportion of paved roads: Simple average of transit neighbours’proportion of paved roads.
Paved road quality: ó1ñ(proportion low quality)ñ0.5*(proportion fair quality).
TCs paved road quality:ó1ñ(proportion low quality)ñ0.5*(proportion fair quality).
Sources: Transport & insurance data from IMF BOPS (2001); Exports data from WDI (2002); Roads data
from Camming (World Bank) (1998).
Source: Trade data: International Monetary Fund (2001), World Development Indicators (2002); Distance
data: various; Infrastructure data: Canning (World Bank) (2002), Conflict Data: International Peace
Research Institute (2002).
Note: TCóTransit Country; –indicates no data available.
51
M. L. Faye et al.
transport costs incurred due to time inefficiencies. Many countries could
still benefit from such administrative streamlining, as well as real guarantees
for landlocked countries’permanent access to transit routes.
Fourth, landlocked countries need to invest, where possible, in develop-
ing industries less affected by transport costs. This includes shifting away
from primary commodities, which are subject to major price fluctuations
and low value to weight ratios, toward those with higher value or lower
transport costs relative to value of goods. Strategies could include the
development of service industries or the development of manufacturing
sectors for export.
In order to invest in all four of the areas outlined, official development
assistance to developing countries should give special attention to the unique
needs of those that are landlocked. In particular, official development
assistance strategies should recognize low-income landlocked countries’large
infrastructure needs and the requirement for increases in direct assistance
to support large-scale investments in roads and railways. Such investments
need to include not only the up-front improvements of the transport
infrastructure, but also operations and maintenance. Since the landlocked
developing countries typically suffer from a general lack of resources and
under-funded social sectors due to their inherent structural barriers in trading
with the international economy, they will typically require even greater
external resource support than their low-income maritime neighbours, which
also need to be a priority for official development assistance flows.
Conclusion
This paper has presented a simple descriptive framework of the challenges
facing landlocked developing countries. For the most part, these countries
have lower levels of human development and external trade compared
with their maritime neighbours. In explaining the reasons for these lower
outcomes on average, we stressed the nature of dependence on transit
neighbours for trade and how this dependence can fall under four categories:
dependence on infrastructure, dependence on sound political relations,
dependence on neighbours’peace and stability, and dependence on adminis-
trative practices. These factors yield a different set of challenges and priorities
for each landlocked country. Policies focusing on mitigating the effects of
landlockedness need to address country-specific obstacles to accessing global
markets and region-specific challenges to market integration.
Acknowledgements
The authors thank Malanding Jaiteh at the Center for International Geo-
graphic Information Systems Earth Science Information Networks at Colum-
bia University for invaluable GIS data analysis and map construction. They
also thank Nun
˜o Limao and Anthony Venables for the use of their freight
quote data, Michael Salter for research assistance, Chandrika Bahadur, Naheed
52
Challenges Facing Landlocked Developing Countries
Nenshi, Guido Schmidt-Traub, and numerous United Nations Development
Programme country team staff for their valuable comments. All errors are
the authors’own. Please send any suggestions or corrections to M. Faye.
Notes
1 The European landlocked countries consist of Austria, Andorra, Belarus, Czech Republic,
Holy See, Hungary, Liechtenstein, Luxembourg, San Marino, Slovakia, Macedonia, Moldova
and Switzerland. Moldova is the only European landlocked country with a HDI score of
less than 0.76.
2 We exclude high HDI landlocked countries from our analysis, all of which are situated in
Europe.
3 We recognize that some of the regional groupings in this paper are atypical. They were
defined based on the most sensible grouping for assessing regional issues of landlock-
edness. Thus, for instance, we include a very large range of countries in our category of
Eastern Europe and Central Asia.
4 Botswana would count as another exceptional success but export data for the country are
not included in International Monetary Fund (2002).
5 This article states that: ‘The terms and modalities for exercising freedom of transit shall
be agreed between the land-locked States and transit States concerned through bilateral,
sub regional or regional agreements’. Furthermore, ‘Transit States, in the exercise of their
full sovereignty over their territory, shall have the right to take all measures necessary to
ensure that the rights and facilities provided for in this Part for land-locked States shall in
no way infringe their legitimate interests’.
6 Transit through China is effectively impossible due to the Himalayan Ranges.
7 Some of the transit and customs charges include transit goods licenses, border fees,
temporary road licenses, foreign vehicle permits, toll charges, foreign commercial licenses,
cost of customs verification of containers, posting of security bonds, involvement with
police and escort convoys and cancellation of bonds. The cost of bribes needed en route,
while considered to be significant, is beyond the scope of this report.
8 Although somewhat dated, these are the most recent figures we were able to identify.
9 Ibid.
10 Vehicles waiting for a convoy to form wait on the side of the road, not only hindering
normal road traffic, but also contributing to road damage.
11 Kazakhstan and Uzbekistan are involved in a border dispute, Tajikistan has been in a civil
war and claims Uzbekistan is abusing its border closure powers for political purposes,
and Kazakhstan fears the Islamic threat of militant Islam and terrorism from Tajikistan.
Kyrgyzstan is reacting to the incursion of Tajik rebels (Dion, 2000).
12 The only two countries not to have been involved in a significant civil conflict are
Cameroon and Benin. Cameroon is characterized by very poor levels of infrastructure —
unpaved roads susceptible to flooding form much of the transit route from Chad and the
Central African Republic through Cameroon. Benin’s port at Cotonou is considered to be
one of the least well equipped in the region.
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Russian Federation and the Korean Peninsula, ST/ESCAP/2173, United Nations Economic
and Social Commission for Asia and the Pacific.
United Nations (1982) United Nations Convention on the Law of the Sea (UNCLOS), 10
December 1982.
United Nations Development Programme (2002) Human Development Report, United Nations
Development Programme, New York.
United Nations Development Programme (2003) Human Development Report, United Nations
Development Programme, New York.
United Nations General Assembly (2000) Transit Environment in the Landlocked States in
Central Asia and Their Transit Developing,A/55/150 Neighbours, United Nations,
New York.
World Development Indicators (2002) World Development Indicators, World Bank, Wash-
ington, DC.
World Bank (1995) ‘Staff appraisal report: the Republic of Malawi railways restructuring
project’, Report No. 13491-MAI, World Bank, Washington, DC.
World Bank (2001) ‘Azerbaijan: World Bank supports silk route revival’, News Release No.
2001/17/ECA, World Bank, Washington, DC.
Appendix: regional overviews
This paper has outlined the need to consider geographic, political and
administrative dimensions in order to understand the nature of a country’s
challenges due to landlockedness. In this appendix, we present a brief
description of the main aspects of landlockedness faced by countries in each
region. We also include reference maps, by region, of the landlocked
developing countries, with emphasis on the main transit routes.
Africa —Southern
As indicated in Table 2, the landlocked southern African countries of Bots-
wana, Lesotho, Malawi, Swaziland, Zambia, and Zimbabwe have a higher aver-
age level of human development than their maritime neighbours. This is
unique among our sample of landlocked developing countries and has been
partially driven by the persistent civil conflict in Angola and Mozambique. It
also reflects the landlocked countries’relatively high degree of regional transit
integration, strong domestic infrastructure, relative domestic stability (with
clear exceptions; for instance, in Zimbabwe) andthe exceptional performance
of Botswana with its significant and carefully managed diamond resources.
Internal transport networks in the southern African landlocked countries
generally surpass those of their war-torn neighbours Angola and Mozambique.
Unlike the landlocked countries of, say, eastern Africa, the southern African
countries have several routing options available to them, including the well-
developed South African corridors.
Yet, despite these relatively high infrastructure levels, significant regional
55
M. L. Faye et al.
MAP A1. Transit routes of Southern Africa
transport connections remain imperfect. The Interconnected Regional Rail
Network, for example, does not reach the Mozambique port of Nacala or
any of the Angolan ports.
The landlocked countries of southern Africa also benefit from relatively
strong relations with their maritime neighbours and ongoing efforts to
promote regional cooperation. While most of southern Africa’s exports are
sold to the European Union, serious efforts are underway to promote intra-
regional trade through SADC, South African Customs Union and COMESA.
Through these organizations, countries are working to upgrade regional
transportation networks. For example, the SADC has instituted the Southern
African Transport and Communications Commission to integrate transport
policy, freedom of transit, and regional infrastructure. COMESA has created
the Yellow Card initiative, which guarantees third-party insurance across
signatory states, removing the need to acquire additional insurance coverage
for each country. Other important agreements include: (1) the legally binding
SADC Protocol on Transport, Communications and Meteorology, which
incorporates the SADC Regional Trunk Route Network; (2) the SADC Protocol
on Trade; (3) bilateral agreements including Corridor Planning Committees;
(4) the COMESA Carriers license; (5) the SADC driver’s license; and (6) the
Spatial Development Initiatives.
Amidst these commitments to promoting integration and harmonization,
problems of implementation and issues of national sovereignty have hindered
56
Challenges Facing Landlocked Developing Countries
progress in some instances. For example, while Zambia and Zimbabwe both
agreed to the COMESA free-trade zone, Zambia recently banned fourteen
Zimbabwean products (Southern African Development Community, 2003)
Moreover, border delays continue to be a significant problem. It is
estimated that delays at the major border posts in the SADC region have cost
US$48 million annually and often exceed 24 hours (InfraAfrica, 2001).
Reflecting these challenges, the overall cost of freight and insurance for the
SADC landlocked counties (14.8% of export values) is still higher than that
for Angola and Mozambique (8.9% of exports) (International Monetary Fund,
2001).
The landlocked countries of southern Africa, with the exception of
Zimbabwe, have benefited from relative domestic stability. Civil conflicts in
the maritime transit neighbours Angola and Mozambique, however, have led
to a direct increase in trade costs and have limited potential transit options.
During Mozambique’s civil war, for example, Malawi was forced to reroute
its trade. While this vital corridor has been reopened, infrastructural damage
has thus far limited its use.
Africa —Eastern
Burundi, Rwanda, and Uganda The landlocked countries of eastern Africa,
Uganda, Rwanda, and Burundi, are intimately linked by the region’s‘umbilical
cord’, the Northern transit corridor from Kenya through Uganda and Rwanda
to Burundi that serves as a primary transit route for all three countries. The
Central corridor to the port of Dar es Salaam provides an alternate route to
the Indian Ocean. The exclusive dependence on these corridors, and primarily
the Northern Corridor, by Uganda, Rwanda, and Burundi makes this region
particularly interesting in the study of landlocked countries. Although a
central message of this paper is that distance to port is just one component of
landlockedness, in this region distance inland is a useful summary measure
since infrastructural and political challenges faced in transit are cumulative.
Those faced by Uganda or Rwanda will most likely be faced by Burundi as
well. Export to GDP ratios reflect the progression of challenges countries face
along the Northern Corridor: for Burundi, 6%; for Rwanda, 9%; for Uganda,
12%; and for Kenya, 26% (United Nations Development Programme, 2003).
Recent civil wars and regional tensions have highlighted the inter-
connectedness of these countries and have severely weakened their transit
systems. Rwanda’s recent brutal civil war, for example, rendered the country’s
infrastructure virtually impassable not only for Rwandan transit, but for
Burundian transit as well. Similarly, tensions between Uganda and Rwanda
over the ongoing conflict in the Democratic Republic of the Congo, and the
corresponding increased vulnerability of the border, have not only hindered
Rwanda–Uganda trade, but also Burundian trade.
Such political tensions have traditionally hindered efforts at regional mar-
ket integration. Recent improvements in the political situation, however, have
been accompanied by renewed efforts at such integration. The East African
Community (EAC), comprising Kenya, Tanzania and Uganda, was reintroduced
57
M. L. Faye et al.
MAP A2. Transit routes of Burundi, Rwanda, and Uganda
in 2001 to foster regional cooperation, placing an early emphasis on develop-
ing primary transit corridors. Burundi and Rwanda have thus far not been
invited to join the EAC. The recent formation of COMESA, the successor organ-
ization to the regional Preferential Trading Area, has meanwhile been accom-
panied by implementation difficulties. In fact, Tanzania has withdrawn from
the organization to focus on its membership in the SADC.
In addition to problems of distance, civil conflict and cross-border
tensions, the east African landlocked countries face the additional challenge
of being surrounded by worse transport infrastructure than their domestic
systems. Unlike other focus regions such as southern Africa, the east African
maritime transit countries (Kenya and Tanzania) are plagued by poor trans-
port infrastructure, not owing to war, but rather inadequate investment and
maintenance. The section of the primary Northern Corridor road passing
through Kenya is in such poor state that a heavily-laden truck is estimated
to take 3 days to travel the 500 km from Mombasa to Nairobi (Pod, 1998).
Traversing such poor infrastructure is complicated by regional geographic
conditions, which include a severe rainy season often responsible for flooding
the main corridors.
The absence of functioning rail corridors has presented further chal-
lenges. Burundi and Rwanda have no rail systems, and Uganda’s railways
have fallen into a serious state of disrepair. The absence of a reliable rail
corridor not only limits the competition faced by the road sector, but also
places an increased burden on its physical structure and leads to quicker
deterioration. A reliable rail corridor extending from Mombasa through
58
Challenges Facing Landlocked Developing Countries
MAP A3. Transit routes of Ethiopia.
Uganda and Rwanda to Burundi would significantly reduce the cost of trade
for these landlocked countries.
Ethiopia The final landlocked country in this region, Ethiopia, does not use
this Northern corridor and faces a distinct set of challenges from the other
eastern Africa landlocked countries. Once a maritime country, Ethiopia now
faces difficult political challenges in accessing the sea. After losing its coastline
to Eritrea in 1991, Ethiopia continued to depend on the Eritrean port of Assab
for its international trade. The recent border conflict with Eritrea, which
began in 1998 and led to border closures, dramatically reduced the viability
of this port. This has resulted in a major shift of trading routes used by
Ethiopia from Assab to the port of Djibouti, which now handles the large
majority of Ethiopian trade. The Djibouti corridor, however, is hampered by
both an unreliable and poorly functioning railroad and limited port facilities.
Ethiopia’s other potential transit corridor, through Somalia, is not used due
to tense political relations, extremely poor infrastructure and the Somali civil
war. In addition to these political challenges, Ethiopia is challenged by a weak
rail system and an inadequate internal transportation network.
Africa —Western
Among the landlocked countries of the world, those of western Africa have
the lowest levels of human development both on average and in relation to
59
M. L. Faye et al.
their maritime neighbours. These countries have suffered from widespread
internal strife and surrounding civil wars that have rendered most transit
corridors impassable at least once over the past decade. Of the eight transit
countries in the region, six have been involved in at least one civil conflict
severe enough to have blocked transit trade in the past 10 years.
10
MAP A4. Transit routes of Burkina Faso, Mali and Niger.
Because many of the landlocked countries of this region depend on a
small number of transit corridors, such civil conflicts have had severe effects
on trade. Burkina Faso, for example, has been forced to redirect a significant
portion of its transit trade twice in the past decade. In 1990–1993, as a result
of the crisis in Togo, the volume of Burkina Faso’s transit trade through the
port of Lome
´fell. Similarly, the crises in Co
ˆte d’Ivoire (previously the transit
route for more than 80% of Burkinabe trade) have significantly restricted
transit movement, causing Burkina Faso to attempt to open up a new route
to the Gulf of Guinea in Ghana (Organisation for Economic Co-operation
and Development/African Development Bank, 2002). These conflicts not
only impose significant direct costs through the need to use alternative
ports, but also hinder long-term foreign investment because of the associated
uncertainty.
Civil conflicts in western Africa have been closely linked to tense
regional relations. During the recent political crisis in the DRC, for example,
the DRC closed its border with the Central African Republic (CAR) to prevent
the cross-border flow of arms and limit the CAR’s involvement in the war.
The DRC had previously not only provided one of CAR’s major transit routes
(the Oubangui River), but had also been one of the CAR’s major export
destinations in Africa (International Monetary Fund, 2002).
Attempts to ease such transit challenges through regional integration
60
Challenges Facing Landlocked Developing Countries
MAP A5. Transit routes of Central African Republic and Chad.
have thus far been unsuccessful, largely because of the continuing political
instability. Reflecting such instability, severe corruption and bureaucratic
inefficiencies persist. As a result of these bureaucratic hindrances, the trip
from Doala, Cameroon to Bangui, CAR is reported to take 3 weeks to 1
month. Border customs procedures themselves can take as long as 2 weeks.
The political challenges of this region are exacerbated by the extremely
poor transport infrastructure, both in the landlocked countries and their
transit neighbours. Contributing to such poor infrastructure are the difficult
geographic conditions particularly the heavy rainy seasons. These rains can
often leave the main roads flooded for months at a time and have devastating
effects on the rural feeder roads. Prolonged dry seasons, on the other hand,
often render the region’s rivers impassable. In the case of the Central African
Republic, one of the two primary transit corridors is impassable during the
wet season and the other, the Oubangui River, is impassable during the dry
season. Consequently, the Central African Republic does not have a depend-
able all weather transport corridor to the coast. The rainy season has
particularly acute effects for the large countries Niger, Mali and Chad, where
access to significant areas of land is often limited for much of the year.
Asia —Central
As part of the Soviet Union, the Eastern European and Central Asian republics
were integrated into the centralized Soviet command economy. Their role in
61
M. L. Faye et al.
this system was primarily to provide natural resources (in particular, petro-
leum and metals) and agricultural products (namely, cotton and grain) to the
processing industries and principal markets located in today’s Russia and
Ukraine. Accordingly, transport corridors were developed during the Soviet
era mainly to connect the individual republics with Russia and Ukraine, rather
than with their neighbours. As a result of this, the Eastern European and
Central Asian landlocked countries face three main transit problems in the
aftermath of the collapse of the Soviet Union. First, such corridors were built
well before today’s international borders were drawn. Important domestic
transport arteries now often pass through neighbouring countries, which can
result in long delays and additional costs. Some countries are now building
costly alternative routes to mitigate this problem. Second, connections
through China, Iran, and Afghanistan are limited and poorly developed. The
consequent dependence on Russian and Ukrainian transport links is said to
be used by Russia and Ukraine for political leverage, seriously constraining
landlocked countries’ability to increase their oil and gas exports. Third, the
Soviet command economy’s allocation of specific economic roles to each
region led to poor diversification of exports for a number of these countries.
MAP A6. Transit routes of Eastern Europe and Central Asia.
While the Soviet Union initially invested heavily in this infrastructure,
much of it has recently fallen into a state of decline. These transport
challenges are aggravated by the remoteness of many of the landlocked
countries: several of the former Soviet states are over 3000 km from the
nearest port.
Ongoing regional tensions further hinder trade routes. Poorly defined
borders that may not reflect ethnic or political differences can fuel domestic
62
Challenges Facing Landlocked Developing Countries
MAP A7. Transit routes of Moldova.
MAP A8. Transit routes of Mongolia.
63
M. L. Faye et al.
and regional crises. Such tensions have precluded any regional cooperation
and have contributed to severe corruption. Problems of international
cooperation have limited the potential of this region to serve as a regional
crossroads.
Although Moldova is geographically removed from the former Soviet
economies of Central Asia, it faces similar issues. It is only 170 km from the
Black Sea —the shortest transport distance of all landlocked countries in
our study —but also struggles with domestic and external tensions. Not
only is Moldova caught in the middle of political tensions between Romania
and the Ukraine, but, with the eastern part of the country controlled by
ethnic Russians and Ukrainians, and the west by ethnic Rumanians, Moldova
also suffers from internal tensions regarding the separatist Transdniestr
region. Moldova’s infrastructure is furthermore still based on the former
Soviet networks to Russia, thereby limiting other trade routes.
Unlike Moldova and the former Soviet republics, Mongolia does not face
severe ethnic and cross-border tensions. It does, however, share the challenge
of remoteness with the capital city, Ulaanbaatar, lying nearly 1700 km from
the nearest port. Mongolia also still grapples with its extremely low popula-
tion density —the second lowest of all countries in our study —which
further complicates transport. The country has only one main highway and
relies primarily on rail for shipping. Railway infrastructure is in fair condition
but problematic for trading with neighbouring China, the world’s fastest
growing economy, since the two countries use different rail gauges and
shipments need to be unloaded and reloaded at Zamyn Uud.
South Caucasus
The location of the South Caucasus landlocked countries, Armenia and
Azerbaijan, at the bridge of the traditional east–west Silk Route connecting
East Asia to Europe, holds large potential benefits for both countries. The
planned revival of the Silk Route as a network of major transport corridors
could potentially help these countries become vital transit links between
East and West. Yet, in their current state, both Armenia and Azerbaijan suffer
extensively as landlocked countries. Regional tensions, including boundary
disputes over the Caspian Sea, ethnic disputes and steadfast Russian alliances,
have hindered any serious attempts at regional integration. In fact, the
dispute between Armenia and Azerbaijan over the Nagorno Karabakh region,
a principal cause of the regional tensions, has resulted in the closure of both
the Armenia–-Azerbaijan and Armenia–Turkey borders.
Armenia and Azerbaijan have also suffered from surrounding civil con-
flicts that have limited the use of potential corridors. The Georgian civil war
began in 1992, hindering the use of the Georgian corridor and resulting in
severely dilapidated infrastructure on the route. Similarly, the Chechen war
has limited trade to the north and weakened Azerbaijan’s relations with
Russia.
Reflecting the weak political institutions of the region, corruption is
reported to be widespread and has become a serious concern for Armenia
64
Challenges Facing Landlocked Developing Countries
MAP A9. Transit routes of the South Caucasus.
and Azerbaijan. Needing to transport their goods across international borders
where bribe paying is particularly persistent, these landlocked economies
suffer two-fold from internal corruption and from the corruption of their
neighbours.
Further complicating the situation, the ongoing conflicts and political
instability of the region have left the transport infrastructure in a severe state
of dilapidation. The European Bank for Reconstruction and Development
estimated that nearly 40% of Armenian roads were in need of immediate
repair in 1998, while 56% of Azerbaijan’s main road network has been
described as being in a poor state of repair (Synowitz, 1998; World Bank,
2001). The infrastructure in neighbouring Georgia is alleged to be in even
worse condition. Significant investment is required to restore the regional
transit system.
Asia —South & South-East
With the exception of western Africa, the south and southeast Asian land-
locked countries of Nepal, Bhutan and Laos are performing worse relative
to their neighbours in human development than the landlocked countries of
any other region. Yet, the region is the only one where the landlocked
countries have a lower ratio of transportation and insurance costs to value
of exports than their maritime neighbours. This discrepancy seems to be
65
M. L. Faye et al.
accounted for by the fact that all three of these countries trade predominantly
with their immediate neighbours. For both Bhutan and Nepal, India is the
main trading partner, while for Laos it is Thailand and Viet Nam.
MAP A10. Transit routes of Bhutan and Nepal.
The minimal transoceanic trade of these countries appears to result
from the limited number of transit corridors. With the exception of Lesotho,
the countries of Nepal and Bhutan are unique in the fact that they have only
one transit neighbour, India. This implies complete dependence on India for
access to the coast, giving India enormous negotiating power. Interestingly,
each has a very different political relationship with India. Bhutan has enjoyed
a very close working relationship with its southern neighbour, and as a result
has been granted liberal access to transit. In fact, India allows Bhutanese
transit trade to be conducted under the supervision of Bhutanese customs,
yielding little administrative hassle. In contrast, Nepal’s relations with India
have frequently been strained, with India often seen to have more influence
in the negotiation of treaties and disputes.
Relatively poor domestic infrastructure has further complicated transit
for the south and southeastern Asian landlocked countries and has precluded
them from taking full advantage of the better surrounding infrastructure.
Transit trade entering Laos on the Thai rail system, for example, must
currently be unloaded and placed on trucks since Laos has not yet developed
a rail system.
South America
Both South American landlocked countries, Bolivia and Paraguay, suffer from
poor domestic infrastructure, and unlike most African landlocked countries
66
Challenges Facing Landlocked Developing Countries
MAP A11. Transit routes of Laos.
are surrounded by relatively extensive and well-maintained transport cor-
ridors. The poor state of maintenance and operation of domestic corridors,
however, have prevented these countries from benefiting from such strong
external transit corridors. Paraguay’s railroad, for example, links to the
railways of Argentina, Uruguay and Brazil, and could serve a primary role in
international transport, but has fallen into a state of disuse.
Bolivia and Paraguay also both face political challenges to transit trade.
While not subject to the same level of domestic or surrounding strife of the
countries of Africa, nor the frequent border closures of Eastern Europe and
Central Asia, the South American landlocked countries have suffered from
political tensions with their transit neighbours. Most recently, for example,
an ambitious Bolivian plan that could double exports by exporting natural
gas via Chilean ports has been delayed by ongoing domestic protest in
Bolivia against the use of Chilean corridors. Such protest is largely a product
of the ongoing and century-old tensions between the two countries, which
originated in the war of 1878–1883 when Bolivia lost control of the coastal
province of Atacama.
On the positive side, Bolivia and Paraguay also have similar opportunities:
both are advantageously located in the heart of South America, potentially
allowing them to serve as the South American trade cross-roads, between
MERCOSUR and the Andean Community. This central location could allow
them to serve as regional hubs for new technologies less dependent on
transport costs, such as telecommunications. Bolivia and Paraguay also hold
the potential to be major regional energy hubs since they both possess
67
M. L. Faye et al.
MAP A12. Transit routes of South America.
significant reserves. Bolivia recently discovered expansive reserves of natural
gas and oil, and Paraguay has the potential to be a major exporter of
hydroelectric power. Since these sectors are not primarily dependent on
road and rail infrastructure, it will be possible to develop and benefit
from them even before domestic transport infrastructure is improved to a
significantly higher lev
