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the challenges facing landlocked developing countries: a case study ...

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However in practice, this right of access must be agreed upon with <strong>the</strong> transit neighbor<br />

(Article 125(2) and (3)):<br />

The terms and modalities for exercising freedom of transit shall be agreed between <strong>the</strong> land-locked<br />

States and transit States concerned through bilateral, sub regional or regional agreements.<br />

Transit States, in <strong>the</strong> exercise of <strong>the</strong>ir full sovereignty over <strong>the</strong>ir territory, shall have <strong>the</strong> right to take<br />

all measures necessary to ensure that <strong>the</strong> rights and facilities provided for in this Part for land-locked<br />

States shall in no way infringe <strong>the</strong>ir legitimate interests.<br />

Thus a right of access is given to <strong>the</strong> <strong>landlocked</strong> country, but such a right is conditioned by<br />

<strong>the</strong> need for <strong>the</strong> transit country to grant such a right. Whe<strong>the</strong>r a transit country can legally<br />

deny <strong>the</strong> right of access is discussed in detail in <strong>the</strong> legal literature (Pechata 1973), but <strong>the</strong><br />

<strong>case</strong> studies of this report show that transit access is in practice determined by <strong>the</strong><br />

relationship between <strong>the</strong> <strong>landlocked</strong> country and its transit neighbor.<br />

Worst Affected Areas<br />

The <strong>landlocked</strong> <strong>countries</strong> of <strong>the</strong> Caucasus and Central Asia have been most acutely affected<br />

by international disputes and ongoing tensions. After <strong>the</strong> dissolution of <strong>the</strong> Soviet Union, <strong>the</strong><br />

former republics were divided according to previous administrative boundaries. Such<br />

boundaries have been <strong>the</strong> source of many disputes. As a result, borders are regularly<br />

defended with landmines and physical blockades, and regional cooperation has failed.<br />

Uzbekistan, for example, suffers from strained relations with four of its five neighbors – <strong>the</strong><br />

fifth being Afghanistan. In <strong>the</strong> Caucasus, fighting between <strong>the</strong> two <strong>landlocked</strong> <strong>countries</strong>,<br />

Armenia and Azerbaijan has not only closed <strong>the</strong> Armenia-Azerbaijan border but has also led<br />

to <strong>the</strong> closure of <strong>the</strong> Armenia-Turkey border. Armenia’s only alternative routes, through<br />

Georgia and Iran, are restricted due to geographic obstacles (mountains) and relatively poor<br />

infrastructure (Tavitan 2001).<br />

Ethiopia, too, has suffered immensely from direct conflict with its transit neighbor, Eritrea.<br />

The conflict has restricted Ethiopia’s access to <strong>the</strong> Eritrean port of Assab where most<br />

Ethiopian trade (75%) passed through duty-free until 1997. There has now been a major shift<br />

of trading routes used by Ethiopia, away from Assab to <strong>the</strong> port of Djibouti, which now<br />

handles <strong>the</strong> large majority of Ethiopian trade. The Djibouti corridor, however, is hampered<br />

by an unreliable and poorly functioning railroad and limited port facilities.<br />

Relations with neighboring <strong>countries</strong> need not be openly hostile to severely hamper a<br />

<strong>landlocked</strong> country’s economy. For example, as Nepal’s sole transit neighbor, India<br />

blockaded <strong>the</strong> border between <strong>the</strong> two <strong>countries</strong> in 1990, an action cited as a major cause of<br />

overthrow of <strong>the</strong> Nepalese panchayat government. 6 Moreover, between 2001 and 2002,<br />

India instituted significant trade restrictions on Nepal during <strong>the</strong> negotiation of a bilateral<br />

trade agreement. These restrictions were alleged to have been to extract concessions in<br />

negotiations. In <strong>the</strong> <strong>case</strong> of Bolivia, <strong>the</strong> effects of weakened international relations are even<br />

more subtle. For example, long standing tensions with neighboring Chile have recently<br />

delayed <strong>the</strong> export of newfound gas reserves as <strong>the</strong> Bolivian people protest <strong>the</strong> use of Chilean<br />

ports.<br />

6 Transit through China is effectively impossible due to <strong>the</strong> Himalayan Ranges<br />

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