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

• In South America, Bolivia and Paraguay are surrounded by neighbors’ reasonably
good infrastructure but their own infrastructure remains problematic. In Bolivia,
much of this is due to the rugged topography that divides the country and makes
infrastructure costly to build at high altitudes. Quite differently, in Paraguay the
domestic infrastructure challenges have more so been the product of low
investments and weak infrastructure policy.
• In south Asia, Bhutan benefits from its close official links to India, which allow it
to manage its own transit trade through India without interference from Indian
officials. This contrasts with the situation of Nepal, which is similarly dependent
on India for transit trade but has less stable relations. Trade stoppages between
India and Nepal have had significant effects in the latter country; they are
considered to have contributed to the fall of the panchayat government more than
a decade ago.
These are just a few of the broad points to emerge in this study, which aims to serve as a
basic reference document on the nature of trade challenges in each country considered.
The case studies themselves review the transit and cross-border issues in as systematic a
manner as possible. Inevitably, comparisons across countries are imperfect, due mainly to
the lack of available information. In instances where references or descriptions are quite
outdated, readers with updates are encouraged to send them to the contact address listed
on the cover page. All suggestions and comments are welcome.
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