OPEC Fund Quarterly - 2024 Q1

LANDLOCKED DEVELOPING COUNTRIES: OVERVIEW

GOOD THINKING What does Mongolian cashmere have in common with the Swiss watch? The International Think Tank for LLDCs analyzes common challenges and focuses on developing solutions to support landlocked developing economies By Başak Pamir, OPEC Fund

C ould the solution to many of the challenges faced by landlocked developing countries (LLDCs) come down to marketing? These nations face many unique impediments to growing their economies and integrating themselves into the global marketplace. An alternative solution could be to take an entirely different approach to promote trade and grow niche industries. “For these countries it is a constant battle to lower transportation costs, diversify economies, decrease trade dependencies and to find innovative solutions to overcome being land- locked” says Dulguun Damdin-Od, the Executive Director of the International Think Tank for LLDCs. According to this dedicated think tank, the first intergovernmental body for LLDCs based in Ulaanbaatar, Mongolia, the 32 landlocked developing nations account for only 1.2 percent of world trade, generate two-thirds of the trade volume of coastal countries, and spend twice the time and cost for exporting and importing products compared to countries with sea access. Most strikingly their level of development is 20 percent lower compared to coastal economies.

Comparative time to export-import (days)

Export

Import

Transit countries

Mongolia

LLDCs

Other developing countries

Comparative cost to export-import (US$ per container)

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