Oriented on making people closer

The development of cross-border infrastructure, transit corridors and logistics links are one of the most important conditions for the sustainable development of countries. This task is especially acute for developing landlocked countries.

The main problem here is not so much the lack of access to the sea itself, but the associated set of external and internal barriers that hinder their full integration into international trade and economic processes.

As a result, landlocked countries traditionally lag behind coastal countries in most key indicators. The main structural consequence of geographic isolation is transport isolation, which makes these countries critically dependent on the communications infrastructure and political and economic stability of neighboring states.

At the same time, transit countries are in many cases developing countries themselves – with limited resources, unstable domestic situations and worn-out logistics systems.

This leads to high transport and logistics costs. Trade costs for landlocked countries are 30% higher than for coastal countries, and in Central Asia the share of transport costs can reach 50% of the cost of goods, which is five times higher than the global average.

At the same time, logistics restrictions lead to delays in delivery times, reducing the reliability of trade chains. In landlocked countries, product deliveries take up to 35-45 days, while in coastal countries similar goods arrive in 15-20.

The volume of foreign direct investment in landlocked countries does not exceed 3% of the total flow in developing economies. In the absence of a developed industrial base and limited imports, technological backwardness is entrenched and an economic structure based on raw materials and agricultural specialization is formed. More than 80% of exports are raw materials and natural resources. The agricultural sector in these countries provides up to 17% of GDP and more than half of the population's employment, which makes the economies extremely sensitive to fluctuations in global raw material prices.

The situation is further complicated by climate and environmental challenges, to which landlocked countries are particularly vulnerable. Frequent droughts, floods, desertification and melting glaciers threaten agriculture, which plays a key role in the economies of these countries.

In addition, the agricultural sector suffers from low productivity, weak infrastructure, lack of technology and access to finance. Any disruption to agricultural production immediately affects food security and incomes of the population.

The combination of these factors leads to the formation of a closed model of geo-economic vulnerability. Landlocked countries demonstrate an average annual GDP growth of about 2-3%, while coastal developing countries grow by an average of 4-5%.

The combined GDP per capita in these countries is on average 40-60% lower than in coastal states with a comparable income level. At the same time, their share in world trade does not exceed 1%, despite the fact that they make up 15% of all developing countries.

In these conditions, it is natural for this category of countries to seek comprehensive and consolidated approaches to solving problems. World practice shows that the countries that have managed to combine efforts at the regional level, synchronize transport and logistics projects and develop common approaches to the development of trade and energy have the greatest chances of success.

Of particular importance in the current conditions is the Third UN International Conference on Landlocked Developing Countries, which will be held on August 5-8 in the tourist zone of Avaza, Turkmenistan. Its relevance is determined not only by the specifics of the problems of such countries, but also by the period of international turbulence in which it will be held.

The current situation in the world is characterized by growing geopolitical tensions and fragmentation of the world economy, accompanied by regional conflicts and rivalry between major powers for control over transport and energy routes. Global logistics chains, including sea routes, are disrupted, which further increases the costs and vulnerability of closed economies of landlocked countries.

All this is aggravated by the weakening effectiveness of international institutions that previously served as key platforms for coordinating sustainable development efforts. As a result, the volume of international aid and direct investment is declining, which is especially painful for countries dependent on external sources of funding. Against this background, the Avaza conference is becoming a popular platform for mobilizing and consolidating international resources, capable of not only drawing the attention of the world community to the problems of landlocked states, but also offering practical mechanisms for solving them.

The fact that the Third UN International Conference on Landlocked Developing Countries is being held in Central Asia has a symbolic meaning and at the same time reflects the region's readiness to consolidate international efforts to overcome modern challenges.

The region is unique in world geography, since all five of its states lack direct access to the sea and are acutely aware of the whole range of problems that landlocked countries may face. However, it is here that key international initiatives aimed at institutionalizing cooperation and developing long-term solutions have been taking shape for more than two decades.

A landmark stage that laid the foundation for systematic work in this area was the holding of the first International Conference on Landlocked Developing Countries in Almaty in 2003, initiated by Kazakhstan. Following the conference, the Almaty Program of Action for 2004-2014, aimed at reducing transport costs, simplifying border procedures and forming the first elements of integrated logistics was adopted.

This process was continued by the second conference, held in Austria in 2014. The main outcome of the event was the Vienna Program of Action until 2024, which focused the efforts of the international community on a deeper structural transformation of the economies of landlocked countries.

The key strategic document of the upcoming event is the Avaza Program of Action until 2034, which continues and expands the provisions of previous programs. It, in turn, is designed not only to systematize the accumulated experience, but also to bring cooperation to a qualitatively new level.

Central Asia today represents a shining example of successful regional cooperation, which can serve as a model for other regions with developing national economies.

In recent years, the region has demonstrated significant achievements in the field of integration, as evidenced by a number of initiatives and joint projects.

A single transport and logistics space is gradually being formed here, and intraregional trade is increasing. Transport and trade barriers have been eliminated, new, modern customs posts have been opened, and border trade and economic development zones are being created.

Thanks to a steady growth of 6.2% over the past ten years, significantly exceeding the world average of 2.6%, the region's economy continues to develop with optimistic forecasts. It is expected that from 2024 to 2028, the world economy will grow by an average of 3.1%, developing countries will show growth at 4%, while Central Asia will maintain growth rates of about 6%.

One of the factors is that in recent years, intraregional trade volumes have increased by 4.5 times, GDP by 1.6 times, mutual investments have doubled, and the number of joint ventures has increased fivefold.

The involvement of the countries of the region in the processes of creating transport corridors connecting Central and South Asia, ensuring the diversification of communications on the routes along the East-West and North-South lines, is increasing.

This year, the construction of the China-Kyrgyzstan-Uzbekistan railway was jointly launched, which is an important element of transcontinental transit communications. The cargo flow along the Uzbekistan-Turkmenistan-Iran-Turkey route has increased significantly, and active cooperation is underway to develop the Trans-Caspian corridor.

At the same time, the Consultative Meeting of the Heads of State of Central Asia, held in Kazakhstan last year, clearly demonstrated the desire of the countries of the region to deepen long-term and comprehensive cooperation. It is noteworthy that during the meeting, the Concept for the Development of Regional Cooperation "Central Asia - 2040" was adopted for the first time, which became a significant step forward in building the architecture of long-term interstate cooperation in the region.

Moreover, for the practical implementation of joint initiatives to identify priority areas for joint work and improve interaction, the leaders of the Central Asian countries approved the Roadmap for the Development of Regional Cooperation for 2025-2027.

In order to strengthen economic cooperation and ensure sustainable growth in the region, the adoption of the Action Plan for the Development of Industrial Cooperation for 2025-2027 is no less significant. The creation of a single electronic database of commodity producers within its framework will simplify interactions between economic entities in the countries of the region.

Worthy of attention are the efforts of the Central Asian countries aimed at improving the infrastructure for faster and more sustainable transportation of goods both within the region and beyond. In this regard, it is necessary to note the signing of the Memorandum of Understanding on the Development of Transport and Logistics Centers.

In addition, the Central Asian countries intend to deepen cooperation in the field of hydropower, renewable energy sources, including solar and wind energy, as well as develop projects in the field of nuclear energy and green technologies.

Thus, the region is becoming a space where local solutions receive a global resonance, turning not only into a platform for discussing the problems of landlocked countries, but also into a “laboratory for their practical solution”. Holding the UN conference in Turkmenistan symbolizes recognition of this contribution.

In this regard, Uzbekistan also plays a key role in solving the problems identified in the Action Programs of the landlocked countries, becoming one of the leading drivers of regionalization processes in Central Asia.

As part of its chairmanship of the Consultative Meeting of the Heads of State of Central Asia this year, Tashkent intends to fill the regional agenda with practical content. A number of strategic initiatives put forward by Uzbekistan largely coincide with the main directions of the Avaza Action Program.

One of the significant steps for deeper integration and strengthening of mutual relations between the states of the region will be the signing of the Agreement on Strategic Partnership and Cooperation in Central Asia. In this context, the adoption of the Concept of Ensuring Regional Security and Stability will create a secure and sustainable environment, allowing to effectively counter the challenges and threats facing Central Asia.

Considerable attention is paid to economic integration. Uzbekistan is promoting the creation of a Single Regional Market, which will simplify trade processes. An important tool for this will be the launch of the Central Asian Economic Council at the level of Deputy Prime Ministers, which will provide an opportunity for a prompter solution to key economic issues in the region.

Uzbekistan advocates the establishment of the Central Asian Investment Council as an important mechanism for attracting investment to the region. In parallel, the creation of the Bank for Innovative Development, as well as holding regular investment forums, will open up new prospects for the introduction of modern technologies and accelerated development of the economies of the countries in the region.

No less important are the issues of environmental and food security. The development of the Regional Strategy for the Rational Use of Water Resources of Transboundary Rivers and the Regional Strategy for Food Security are intended to become effective tools for overcoming possible natural and climatic challenges.

The agenda also includes the establishment of a single educational space, labor market, and free movement of services. An important step in this direction will be the development of a Central Asian academic exchange program, as well as an Agreement on mutual recognition of diplomas of leading universities in the region.

At the same time, mutual recognition of national ID cards and the development of mass tourism products based on the principle of "One tour - the whole region" will make Central Asia more accessible to travelers and stimulate tourism development.

It should be noted that Uzbekistan is active not only at the regional level, but also tries to contribute to the global sustainable development agenda. Evidence of this is the forum held on September 5-6 last year in Tashkent and dedicated to food security and sustainable development for landlocked countries.

An important outcome of the event was the signing of a number of agreements, including the FAO Declaration and the Government of Uzbekistan on reforming the agro-industrial system for landlocked countries.

Thus, Uzbekistan’s comprehensive and consistent efforts contribute to the country’s active participation in shaping a positive and constructive development agenda for all of Central Asia.

The region’s success in finding and implementing agreed solutions, as well as in collective action in the international arena, puts Central Asia at the forefront of effective regional integration.

This experience can serve as a model for other landlocked countries, demonstrating that even in the conditions of geographic isolation, it is possible to build a sustainable economic and political future.

The upcoming UN Avaza Conference on Landlocked Developing Countries is a strategically important event that, without exaggeration, can secure Central Asia’s status as a model for sustainable development for landlocked countries.

It can not only become a catalyst for overcoming the challenges these countries face, but also give new impetus to the processes of regionalization in Central Asia, accelerating its transition to a more sustainable and interconnected future.

Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan:

Akramjon NEMATOV, First Deputy Director,

Shakhlo KHAMRAKHODZHAYEVA, Leading Researcher

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