Introduction

The Vienna Programme of Action (VPoA) for Landlocked Developing Countries (LLDCs) aims to promote rapid and inclusive economic development among LLDCs. The VPoA prioritizes several key areas, including regional integration and cooperation, structural economic transformation, and means of implementation. This report summarizes the key findings and recommendations from the diagnostic study on implementing the VPoA, focusing on the role of South-South and triangular cooperation (SSTC) in the growth and development of LLDCs.

Priority Areas and Objectives

The VPoA has six priority areas and specific objectives, including the development and expansion of efficient transit systems and transport development, enhancement of competitiveness, expansion of trade, structural transformation, regional cooperation, and the promotion of inclusive economic growth and sustainable development to reduce poverty, build resilience, bridge economic and social gaps, and ultimately help transform LLDCs into land-linked countries.

Challenges Faced by LLDCs

LLDCs face several challenges, including geographical disadvantages such as lack of territorial access to the sea, remoteness and isolation from world markets, weak institutions, and poor infrastructure. These challenges result in additional border crossings, cumbersome transit procedures, and inefficient logistics systems, leading to higher transport and trade transaction costs than coastal countries.

Infrastructure Development and Maintenance

Infrastructure development and maintenance are crucial for LLDCs. The VPoA recognizes the need for robust transport, energy, and ICT infrastructure to enhance access to markets and facilitate the efficient movement of goods and services. Despite some progress, LLDCs still face enormous infrastructural challenges, including inadequate road and rail networks, deteriorating infrastructure conditions, and a scarcity of multimodal transport options.

International Trade and Trade Facilitation

The VPoA aims to facilitate LLDCs’ access to global markets, reduce trade barriers, and promote sustainable economic development. LLDCs have experienced a decline in their share of merchandise exports in global trade, but have rebounded in recent years. South-South cooperation in trade involves collaboration and partnerships between developing countries, such as the China-Ethiopia industrialization and textile exports partnership.

Regional Integration and Cooperation

South-South cooperation has played a significant role in fostering regional integration and cooperation in LLDCs. The cumulative number of physical regional trade agreements (RTAs) in force in many LLDCs has increased significantly between 2014 and 2022. Examples of regional economic communities that have worked on harmonizing policies and regulations include the East African Community (EAC) and the Economic Community of West African States (ECOWAS).

Recommendations

1. The report emphasizes the importance of scaling up SSTC to address the challenges faced by LLDCs. This includes enhancing knowledge management and monitoring & evaluation mechanisms to ensure effective implementation and resource utilization.
2. Infrastructure development and maintenance are critical for LLDCs. The report recommends prioritizing these areas in any new programme of action to ensure the full implementation of initiatives under the VPoA.
3. Creating online repositories and databases to share best practices and success stories related to SSTC will be helpful in fast-tracking the implementation of a new programme of action. Implementing robust monitoring and evaluation mechanisms will enhance the capacity and accountability of LLDCs.

Conclusion

The VPoA has made significant progress in promoting rapid and inclusive economic development among LLDCs. However, the report highlights the challenges faced by SSTC and the need for upscaling and addressing these challenges in any new programme of action. The recommendations outlined in the report aim to enhance the capacity and accountability of LLDCs through robust monitoring and evaluation mechanisms and knowledge management.

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