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LANDLOCKED DEVELOPING COUNTRIES

LLDC_Things_To_Know-Do_2016

Afghanistan, UN

Afghanistan, UN Photo

ABOUT THE LANDLOCKED DEVELOPING COUNTRIES What are Landlocked Developing Countries? Landlocked Developing Countries (LLDCs) are developing countries that lack territorial access to the sea. Thus, they face the double challenge of development and limited access to international markets. What are the major constraints facing Landlocked Developing Countries? The LLDCs face special challenges that stem from their lack of territorial access to the sea, geographical remoteness and isolation from major world markets. For them, global trade has to inherently transit through other countries, mostly also developing countries – a process which involves dealing with cumbersome border-crossing procedures and inadequate transit transport infrastructure. These difficulties substantially increase transport and trade transaction costs for the LLDCs. On average, LLDCs pay more than double what the transit countries incur in transport costs and take longer time to send and receive merchandise from overseas markets. In 2014, the World Bank estimated that LLDCs spent $3,204 to export a container of cargo, compared with $1,268 for transit countries and $3,884 for importing a container against $1,434 for transit countries. The high transport costs erode LLDCs’ 1

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