Trade routes for landlocked countries.

Nine of the twelve countries ranked lowest on the 2002 Human Development Index are landlocked. Although landlocked developing countries represent 12.5 per cent of the world's land area and 4 per cent of the global population, their combined gross domestic product accounts for only 0.3 per cent of the total. Without direct access to the oceans, these countries must pay an average of 15 per cent of export earnings on transport; for some African countries it is as high as 50 per cent, other developing countries spend only 7 percent on such services and developed countries 4 per cent.

Kazakhstan--the largest landlocked country and the farthest from the sea--hosted 83 countries and 23 nongovernmental organizations at the international Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation (Almaty Ministerial Conference) on 28 and 29 August 2003. This meeting in the city of Almaty featured a compact, action-oriented agenda and was held at a low cost, showing a move away from the mega-summits of the past.

Landlocked, transit (those that lie between landlocked countries and the sea) and donor countries, as well as United Nations agencies and representatives from civil society and the private sector, negotiated and approved the Almaty Programme of Action. Its aims include: streamlining the red tape involved in sending exports to seaports, thereby reducing travel days and costs; improving rail, road, air and pipeline infrastructure; greater access to international markets; and technical and financial assistance from donor countries.

Kim Hak-Su, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), described the difficult situation of landlocked countries: "New manufacturing and trading practices, such as global supply chains and just-in-time production systems, continue to spread.

These trends are making transport costs and time critical factors in determining global trade and investment patterns. Unfortunately, landlocked countries, due to their high transportation costs and distances from ports and international markets, are often at a disadvantage when it comes to competing in global markets."

The Conference was coordinated by Anwarul Karim Chowdhury, UN High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, who told the UN Chronicle that the Conference was an important step forward. "Thirty landlocked developing countries did not have a United Nations document supporting their cause. For the first time, this doubly disadvantaged group of countries has a UN-mandated declaration and programme of action. Transit and donor countries, UN agencies, civil and private sector parties showed their support [for landlocked countries]."

Mr. Chowdhury said that in order to succeed landlocked developing countries must be able to compete on a "level playing field", which meant preferential access to ports and world markets for their exports. Their transit neighbours must be willing to give them improved access to seaports. However, this situation could be problematic, considering that the transit countries themselves are usually developing and must also export as much as they can. In addition, landlocked countries and their transit neighbours often export the same products.

Mr. Chowdhury said that transit countries made the point that they needed support from donor countries to be able to help the landlocked ones: "At the beginning of the Conference, transit countries asked, 'How can we provide infrastructure and support to landlocked countries when we need assistance ourselves?' These are developing countries, they need to be supported so that the landlocked can in turn benefit. If the railroads, roads, ports, waterway systems and airports are developed in transit countries, landlocked countries will benefit. Transit and landlocked countries realized that this is a win-win opportunity.

The donor countries--United States, European Union, Japan and others--were also strongly supportive of the opportunities the Almaty Conference provided." According to the High Representative, transit countries, in turn, would benefit from increased economic activity in landlocked countries. "Transit countries believe they will benefit from the pickup in business, more port charges, and infrastructure developments. Further, the developing countries can ask donor countries and development banks to help develop infrastructure in the name of the Almaty Programme, which will help both landlocked and transit countries." He added that a number of countries have already started work on agreements: Mongolia had entered into talks with the Russian Federation and China; East African landlocked States and their transit neighbours had begun work on a common market and customs organization. Mr. Chowdhury also noted that his own country, Bangladesh, had seen the benefits of improving access to seaports for landlocked countries. Although its main port is in the city of Chitagong, the country's two landlocked neighbours, Bhutan and Nepal, had created jobs for Bangladeshis in the city of Mongla's port by sending their exports there.

At the Almaty Conference, South-South dialogue, whereby developing countries (predominantly in the southern hemisphere) communicate with each other, was frequent. This is a move away from the traditional North-South dialogue that often prevails at such meetings. Mr. Chowdhury said that "developing countries could sell a lot more of their products to other developing countries. Their own markets have not been exploited." These countries used the Conference as an opportunity to increase business with each other, he noted.

Landlocked countries can use the Almaty framework at the upcoming meeting of the Group of 77 developing countries in Marackech, Morocco, to look for opportunities to further increase trade among developing countries. Another important result of the Conference, Mr. Chowdhury said, was that landlocked countries decided to press their case for preferential access to markets and for inclusion in the World Trade Organization. Donor countries showed their support for such initiatives because it would result in increased economic activity for the landlocked countries. Donors were very clear, he said, that any technical or financial assistance would have to be demand-driven, meaning that developing countries had to show a clear need for the project and ask the donor countries for assistance.

The Almaty Plan of Action would be evaluated in terms of measurable criteria, such as reductions in the cost and time of transport to seaports. Mr. Chowdhury said that subregional organizations, such as the Association of South-East Asian Nations, the Southern African Development Community and the Economic Community of West African States, are most effective in the implementation of the Almaty agenda. They should begin action on the specific goals of the Almaty Programme. An annual review before the General Assembly could examine what actions have been taken, to give a clear measure of progress.

Mr. Chowdhury stressed that the Almaty Conference was a model for future events. "Gone are the days of huge, expensive summits", said the UN High Representative. "We experienced in Almaty that a focused agenda is much better managed and comes out with an implementable plan of action."

Five Main Parts of the Almaty Programme of Action

* Policy Improvements--reducing customs bureaucracy and fees, designed to cut costs and travel days for landlocked countries' exports.

* Improved rail, road, air and pipeline infrastructure--projects will reflect local transport modes; in Africa, road is the predominant mode of transport; in South Asia, rail is more common.

* International trade measures--to give preferential treatment to landlocked countries' goods, making them more competitive.

* Technical and financial international assistance--donor countries will lend know-how and money to landlocked and transit countries for infrastructure and policy improvements.

* Monitoring and follow-up on agreements--measurable criteria, such as travel days and costs, will be used, and an annual review before the General Assembly is possible.