UNDP Report – July 2025

Landlocked Developing Countries (LLDCs) face unique structural barriers to growth, from a lack of seaport access to high trade costs, climate vulnerabilities, and limited financing options. Representing 7% of the world’s population but only 1.1% of global exports, these 32 nations remain among the most disadvantaged. Over the past decade, the United Nations Development Programme (UNDP) invested over USD 12.5 billion to help LLDCs implement the Vienna Programme of Action (2014–2024), focusing on governance, trade, climate resilience, and economic transformation. As the Awaza Programme of Action (2024–2034) launches, the report Landlocked Developing Countries: Looking Back and Ahead outlines lessons learned and priorities for the decade ahead.

Progress Over the Last Decade

1. Governance and Institutional Capacity
Strong governance is essential for sustainable development. UNDP supported LLDCs in decentralisation, digital governance, and anti-corruption efforts. In Nepal and Moldova, local governments gained capacity for participatory planning, while Chad and Mali advanced constitutional and electoral reforms. Digital tools, such as e-parliament platforms in Armenia, improved transparency and citizen engagement.

2. Regional Connectivity and Trade
High trade costs hinder LLDCs’ competitiveness, but UNDP helped reduce these barriers through initiatives like the Enhanced Integrated Framework (EIF) and Aid for Trade. Successes include South Sudan’s first e-commerce platform, Lesotho’s strengthened horticulture value chains, and Bhutan’s export strategy that integrated e-governance and branding initiatives like “Made in Bhutan.” Central Asian LLDCs benefited from regional trade harmonization and digital export platforms, boosting MSME participation.

3. Local Economic Development and MSMEs
MSMEs are the backbone of LLDC economies but struggle with financing, technology, and market access. UNDP supported entrepreneurship through the SDG Value Chains Programme, Botswana’s Supplier Development Programme, and Malawi’s Innovation Challenge Fund, which reached over 600,000 people. In Afghanistan, targeted interventions created nearly 400,000 jobs for women, illustrating how inclusive business models drive resilience.

4. Climate Resilience and Energy Transitions
LLDCs are disproportionately exposed to climate shocks, with 215 million people lacking electricity access. Through the Climate Promise and Africa Minigrids Program, UNDP expanded renewable energy and helped integrate adaptation into national plans. Paraguay’s electric mobility initiative, leveraging over USD 150 million in potential investment, demonstrates how clean energy transitions can drive systemic change.

5. Natural Resource Management
Over half of LLDCs’ land is dryland, making them vulnerable to degradation and food insecurity. UNDP’s Nature Pledge advanced landscape restoration, climate-smart agriculture, and ecosystem-based adaptation in regions such as the Sahel, Mongolia’s rangelands, and Bhutan’s forests. These efforts link biodiversity protection to inclusive economic development.

6. Harnessing Extractives for Sustainable Development
Mineral-rich LLDCs hold critical resources for the global energy transition, yet risk remaining stuck in low-value extraction. UNDP promotes responsible mining through the ACP-EU Development Minerals Programme and aligns with the UN Secretary-General’s Panel on Critical Energy Transition Minerals, which calls for human rights, environmental safeguards, and value addition along mineral supply chains.

7. Access to Services and Human Capital
Limited access to health, education, and social protection constrains development. Digital innovations, such as Kazakhstan’s Digital Family Card, improved social protection, while Zimbabwe’s partnership with the Global Fund strengthened HIV response. UNDP also invested in green and digital skills, from vocational training in Bhutan to youth entrepreneurship in South Sudan, to prepare LLDCs for future labour markets.

8. Digital Transformation and Financing
With only 27% of LLDC populations online, UNDP prioritised digital infrastructure, responsible AI, and inclusive digital services. Financially, Integrated National Financing Frameworks helped 23 LLDCs mobilize resources, while climate and gender-responsive finance supported fiscal resilience. Still, over one-third of LLDCs remain in or near debt distress, underscoring the urgency of diversifying funding sources.

Priorities for the Next Decade: The Awaza Programme of Action (2024–2034)

The Awaza Programme lays out five pillars for accelerating LLDC development:

1. Economic Diversification and Innovation – Industrialisation, digitalisation, and technological upgrading to reduce commodity dependence.
2. Trade and Regional Integration – Lowering trade costs, expanding transit corridors, and promoting sustainable value chains.
3. Resilience to Climate Shocks – Scaling nature-based solutions, clean energy, and disaster risk reduction.
4. Human Capital and Digital Inclusion – Investing in youth, skills, and universal access to digital services.
5. Sustainable Financing – Mobilising predictable public-private finance and aligning it with SDG priorities.

Looking Ahead

UNDP’s decade of experience shows that LLDCs can turn structural constraints into engines of inclusive growth. Scaling MSMEs, fostering responsible mineral extraction, and expanding digital and green transitions will be critical. With integrated approaches and global partnerships, LLDCs have an opportunity to become models of resilience, innovation, and sustainability.

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