Central Asia: A Model for Overcoming the Challenges Faced by Landlocked Developing Countries

The development of cross-border infrastructure, transit corridors, and logistics networks is crucial for the sustainable development of any country. This is especially true for Landlocked Developing Countries (LLDCs).

The main challenge for these nations is not merely the lack of sea access itself, but the complex set of external and internal barriers that prevent their full integration into global trade and economic processes.

Consequently, LLDCs have traditionally lagged behind coastal countries in most key indicators. The primary structural consequence of their geographical isolation is transport dependence, which makes them critically reliant on the communication infrastructure and political and economic stability of neighboring states. In many cases, these transit countries are also developing nations with limited resources, unstable domestic situations, and outdated logistics systems.

This leads to high transportation and logistics costs. Trade expenses for LLDCs are 30% higher than for coastal countries, and in Central Asia, transport costs can account for up to 50% of the value of goods—five times the global average. This high cost of logistics reduces competitiveness and export potential, making products from LLDCs less attractive on the global market.

At the same time, these logistical constraints cause delivery delays, undermining the reliability of trade chains. For LLDCs, product delivery can take 35-45 days, while similar goods arrive in coastal countries in 15-20 days.

Limited foreign economic flows lead to a deficit in foreign exchange earnings and hinder the influx of investments, depriving countries of opportunities for industrialization and creating high-value-added production. The volume of foreign direct investment in LLDCs does not exceed 3% of the total flow into developing economies. Furthermore, nearly a third of these nations are on the brink of or already in a state of debt crisis.

Without a developed industrial base and with limited imports, technological backwardness is entrenched, and an economic structure based on raw materials and agrarian specialization is formed. Over 80% of exports consist of raw materials and natural resources. The agricultural sector in these countries accounts for up to 17% of GDP and more than half of the employment, making their economies extremely vulnerable to fluctuations in global commodity prices.

This situation is further complicated by climate and environmental challenges, to which LLDCs are particularly susceptible. Frequent droughts, floods, desertification, and melting glaciers threaten the agricultural sector, which plays a pivotal role in their economies. Additionally, the agricultural sector suffers from low productivity, weak infrastructure, a lack of technology, and limited access to finance. Any disruptions in agricultural production immediately affect food security and household incomes.

The combination of these factors creates a self-reinforcing cycle of geoeconomic vulnerability. LLDCs show an average annual GDP growth of about 2-3%, while coastal developing countries grow at an average of 4-5%.

The average per capita GDP in these countries is 40-60% lower than in coastal states with comparable income levels. Despite making up 15% of all developing nations, their share of global trade does not exceed 1%.

In these circumstances, it is natural for this category of countries to seek comprehensive and consolidated approaches to problem-solving. Global experience shows that countries that manage to combine efforts at a regional level, synchronize transport and logistics projects, and develop unified approaches to trade and energy development have the greatest chance of success.

The upcoming Third United Nations Conference on Landlocked Developing Countries, to be held from August 5-8 in the Avaza tourist zone in Turkmenistan, is of particular significance. Its relevance is defined not only by the specific problems of these countries but also by the period of international turbulence in which it will take place.

The current global situation is characterized by growing geopolitical tensions and the fragmentation of the world economy, accompanied by regional conflicts and major power competition for control over transport and energy routes. Global logistics chains, including sea routes, are disrupted, which further increases the costs and vulnerabilities of landlocked economies.

This is compounded by the weakening effectiveness of international institutions, which previously served as key platforms for coordinating efforts for sustainable development. Consequently, the volume of international aid and direct investment is shrinking, which is particularly painful for countries dependent on external financing.

Against this backdrop, the conference in Avaza becomes a highly relevant platform for mobilizing and consolidating international resources. It has the potential not only to draw the world’s attention to the problems of landlocked nations but also to offer practical mechanisms for their solution.

The fact that the Third UN Conference on LLDCs is taking place in Central Asia is both symbolic and a reflection of the region’s readiness to consolidate international efforts in overcoming contemporary challenges. The region is unique in world geography, as all five of its states lack direct sea access and keenly feel the full range of problems that landlocked countries face. However, it is here that key international initiatives have been formed over more than two decades, aimed at institutionalizing cooperation and developing long-term solutions.

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

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

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

Central Asia today represents a prime example of successful regional cooperation that can serve as a model for other regions with developing national economies. In recent years, the region has demonstrated significant achievements in integration, as confirmed by a number of initiatives and joint projects. A unified transport and logistics space is being progressively formed, and intra-regional trade is increasing. Transport and trade barriers have been eliminated, new modern customs posts have been opened, and cross-border trade and economic development zones have been created.

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

One of the factors is that in recent years, the volume of intra-regional trade has grown 4.5 times, GDP has grown 1.6 times, mutual investments have doubled, and the number of joint ventures has increased fivefold. The countries of the region are becoming more involved in the creation of transport corridors connecting Central and South Asia, diversifying routes along the East–West and North–South lines.

This year, the construction of the China–Kyrgyzstan–Uzbekistan railway, a vital element of transcontinental transit communication, was jointly launched. Cargo traffic 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 region’s desire to deepen long-term and comprehensive cooperation. Notably, during the meeting, the Central Asia – 2040 Concept for the development of regional cooperation was adopted for the first time, marking a significant step forward in building the architecture of long-term interstate cooperation in the region.

Moreover, to practically implement joint initiatives, define priority areas of joint work, and improve interaction, the leaders of the Central Asian countries approved a Roadmap for the Development of Regional Cooperation for 2025-2027. To strengthen economic cooperation and ensure sustainable growth in the region, the adoption of an Action Plan for the Development of Industrial Cooperation for 2025-2027 is no less significant. The creation of a unified electronic database of producers within its framework will simplify interaction between economic entities in the region.

The efforts of the Central Asian countries to improve infrastructure for faster and more sustainable cargo transportation both within and outside the region are also noteworthy. In this regard, it is necessary to mention 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 fields of hydropower, renewable energy, including solar and wind power, and also to develop projects in nuclear energy and green technologies.

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

Uzbekistan, in this regard, also plays a key role in solving the problems defined in the Action Programmes for landlocked countries, having become one of the leading drivers of regionalization processes in Central Asia. Within the framework of its chairmanship of the Consultative Meetings of the Heads of State of Central Asia this year, Tashkent intends to fill the regional agenda with practical content. It is especially important to note that a number of strategic initiatives put forward by Uzbekistan largely coincide with the main directions of the Avaza Programme of Action.

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

Furthermore, significant attention is being 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 more prompt resolution of key economic issues in the region.

Within the framework of these initiatives, Uzbekistan advocates for the establishment of a Central Asian Investment Council as an important mechanism for attracting investments to the region. In parallel with this, the creation of a Bank for Innovative Development and the holding of regular investment forums will open up new prospects for the introduction of modern technologies and accelerated development of the region’s economies.

Issues of environmental and food security are no less significant. The development of a Regional Strategy for the Rational Use of Water Resources of Transboundary Rivers and a Regional Food Security Strategy are intended to become effective instruments for overcoming possible natural and climate challenges.

The agenda also gives significant place to the creation of a single educational space, a labor market, and the free movement of services. An important step in this direction will be the development of a Central Asian academic exchange program and an Agreement on Mutual Recognition of Diplomas from leading universities in the region’s countries. At the same time, the mutual recognition of national ID cards and the development of mass tourism products based on the principle of “One Tour – The Entire Region” will make Central Asia more accessible to travelers and stimulate the development of tourism.

It should be noted that Uzbekistan is active not only at the regional level but also strives to contribute to the global agenda for sustainable development. Evidence of this is the forum held on September 5-6 last year in Tashkent, which was dedicated to issues of 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 and Government of Uzbekistan Declaration on Reforming the Agribusiness System for Landlocked Countries.

Thus, the comprehensive and consistent efforts of Uzbekistan contribute to the country’s active participation in forming a positive and constructive development agenda for all of Central Asia. Thanks to initiatives aimed at strengthening cooperation, Tashkent acts as a catalyst for integration processes that promote increased security, stability, and sustainable growth in Central Asia.

The region’s successes in finding and implementing agreed-upon solutions, as well as in collective actions on the international stage, put Central Asia at the forefront of effective regional integration. This experience can serve as a model for other landlocked countries, demonstrating that even with geographical isolation, it is possible to build a sustainable economic and political future.

The upcoming Avaza UN conference on LLDCs appears to be a strategically important event that can, without exaggeration, solidify Central Asia’s status as a model of sustainable development for landlocked countries.

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

Akramjon Nematov, First Deputy Director of the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan

Shakhlo Khamrakhodjaeva, Leading Research Fellow at the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan /// nCa, August 3, 2025 (in cooperation with the Embassy of the Republic of Uzbekistan in Turkmenistan)

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