Transport & Digital Development Snapshots How can LLDCs Overcome the Plight of Land Locked-ness? Authors: Anca Dumitrescu, Baher El-Hifnawi, Leszek Zemke Landlocked developing countries (LLDCs) are amongst the What have we done so far? most vulnerable countries in the world. They lack territorial access to the sea, and are hemmed in by more than just In 2014 the WBG endorsed United Nation’s Vienna Pro- land. More daunting than the physical distance to the sea gramme of Action, a 10-year plan aimed at accelerating are the institutional, procedural, and logistical barriers – sustainable development in 32 LLDCs. Through investment weak “supply chains” making the flows of LLDC’s exports projects, institutional strengthening, and capacity building, and imports through adjacent transit countries unreliable, over one-third of all Transport and Digital Development slow, and costly. To set the context further, about one-fifth Global Practice (TDD GP) programs enhance connectivity of the world’s nations are landlocked. Of these 44 land- and regional integration in landlocked countries. Assistance locked countries, 32 are developing economies and 16 are includes advisory services, regional integration and corridor among the world’s least developed countries. Their 480 mil- projects, and intermodal connectivity operations especially lion people represent about 6% of the world’s population on the interface between ports, rail, roads and inland wa- but only about 1% of world trade. Half of LLDCs remain in terways, international transport facilitation, border crossing the lowest ranks of the human development index1 and of- interventions, asset preservation (road construction, main- ten lack the financial means and technical skills needed to tenance and rehabilitation) and digital development. design and implement necessary transit reforms to improve their regional connectivity. With most of the landlocked Of the GP’s active transport portfolio of $39 billion, 205 proj- countries landing in the “bottom billion,” and an average ects, and 204 analytics and advisory services carried-out in GDP per capita of $800, the World Bank Group (WBG) has 81 countries (2018), 48 projects are being financed in 24 been responding to the needs of LLDC’s through several in- LLDCs with a volume of $10.8 billion (2018). By 2020, the terventions. Practice will launch 16 new lending projects in 6 more coun- tries, increasing its support to 30 LLDCs with a volume of $12.5 billion. 480 million people As the majority of LLDCs are concentrated in the Europe and Central Asia, and Africa Regions, a bulk of the Transport and 32 Digital Development GP’s portfolio is focused here as well landlocked devel- (47%, 38%). About 70% of operations include maintenance oping countries or construction of new roads, while one third of lending and advisory programs focuses on digital development. Largest 1% beneficiaries include Bolivia, Ethiopia, Afghanistan, Azerbai- of global trade jan and Kazakhstan. 1 UNDP, Human Development Report 2016, p. 234-2034 (click here to see the report). • Regional integration and cooperation: In Kazakhstan, a Where can we go from here? $7 billion project with WBG contribution of US$3.2 bil- lion financed a section of the Western China–Western Although there has been some success, a lot more needs to Europe Corridor. The broader corridor investments have be done. Despite increase in transit speed and in the num- reduced transit times from Lianyungang, China to St. Pe- ber of air shipments, import and export times for LLDCs are tersburg from 15 to 9 days, improved 2,800 km of corri- still nearly twice those for transit countries. Average costs of dor assets in Kazakhstan, created 35,000 temporary jobs exporting a container from LLDCs are also 60% higher com- in 60 companies with 95% construction materials local- pared to transit countries. The main challenge is to obtain ly produced. Regional initiatives in Africa are becom- and maintain the political will and commitment of LLDCs ing more focused on incentivizing transit neighbors to and transit countries to create an enabling environment for provide easier and less costly access to their landlocked improved transport logistics. The lending programs need neighbors. to be tailored to address the need of transit countries and incentivize them to alleviate the constraints to their land- • Regional Communications Infrastructure Program: The locked neighbors. These efforts require significant resources WBG is a partner in providing digital development solu- from all development partners – with a focus on promoting tions to LLDCs as well. The TDD GP has helped Malawi unfettered, efficient, and cost-effective access to the sea, to improve the quality, availability and affordability of improvement of transport infrastructure and services, com- Broadband technology. Construction of the SimbaNet pleting missing links in transport corridors, reducing costs fiber optic network linked the virtual landing point in Li- and non-tariff barriers through simplification and standard- longwe, Malawi to Zambia and Tanzania. The program ization of regulations and procedures, and enhancement of enabled internet connectivity and provided Information digital development. and Communication Technology (ICT) equipment to 145 governmental and educational establishments. It also fi- 60% nanced technical assistance needed to develop critical legislation. Average costs of container export from Additionally, the World Bank is working in close cooperation LLDCs Vs. transit with the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Develop- higher countries ing Countries and the Small Island Developing States (UN- OHRLLS) to overcome the challenges faced by LLDCs. This support – central to the WBG mission of poverty reduction Advocacy for LLDCs is a key priority for the World Bank and shared prosperity - aims to connect people to economic Group. With coordinated and sustained efforts by countries and social opportunities and increase efficiency of mobility and development agencies, the economies of Land Locked solutions in LLDCs. Development Countries can start realizing their full devel- opment potential. Transport and Digital Development GP’s support to LLDCs has been showing a positive impact. Local governments have developed policies and institutional reforms on im- proved connectivity and regional cooperation. Regional Experts transport infrastructure has been significantly modernized with almost 25,000 km of roads, and 800 bridges have been rehabilitated, maintained or constructed. The collaboration has linked isolated topographies to regional transport corri- dors and reduced travel times along corridors. Baher Anca Cristina Doyle El-Hifnawi Dumitrescu Gallegos For more information, please visit Internal WBG Link http://corridors