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Statement by Rabab Fatima at the Ministerial Meeting of Landlocked Developing Countries on the theme of "Enhancing equitable affordable and inclusive transport connectivity as a driver for sustainable and resilient economies"

His Excellency Nikol Pashinyan, Prime Minister of the Republic of Armenia 

Mr. Lemogang Kwape, Honourable Minister for Foreign Affairs of the Republic of Botswana  

Honourable Ministers and Heads of Regional and International Organizations 

Excellencies,   

Distinguished Colleagues, 

 

I thank the Government of Armenia for convening this crucially important Ministerial Meeting on ¡°Enhancing equitable affordable and inclusive transport connectivity as a driver for sustainable and resilient economies¡±. For the 570 million people living in the 32 landlocked developing countries (LLDCs), connectivity is the key to prosperity. These countries face a unique set of challenges due to their geographic isolation, lack of territorial access to the sea, remoteness from major markets, and inadequate infrastructure. All these structural vulnerabilities have been exacerbated by the lingering effects of the COVID-19 pandemic, geopolitical tensions, food and energy crises, climate change, and high indebtedness.  

 

Excellencies,  

LLDCs face connectivity challenges in nearly every regard. On average, landlocked developing countries pay more than double what transit countries incur in transport costs. Trade costs on manufactured goods from LLDCs are about 40 per cent higher than that of the coastal developing countries. 215 million people in LLDCs are still not connected to electricity. And geopolitical crises have shifted transit routes to more convoluted corridors for vital access to world markets. For instance, LLDCs share of world trade has fallen in the last decade to 1.1% in 2022, despite these countries accounting for 7 per cent of the world¡¯s population. The impact of climate change is making matters even more difficult.  This is increasingly undermining development and vital transit infrastructure.  It is also threatening hydropower which accounts for 40% of electricity sources in LLDCs. Disaster-related economic losses reached 1.7 per cent of the GDP of the landlocked developing countries in 2021, almost three times the world average of 0.57 per cent. These combined connectivity challenges pose a serious threat to the LLDCs¡¯ ability to realize the Sustainable Development Goals and achieve true structural transformation.  

 

Excellencies,  

Distinguished Colleagues, 

Despite these interconnected challenges, we are seeing some progress. Trade officially commenced under the African Continental Free Trade Area in January 2021. The Regional and Comprehensive Economic Partnership took effect in January 2022. Progress has been made on economic corridors such as the Trans African Highway and Euro-Asian Transit Links, for example. The Single African Air Transport Market was launched in January 2018 to create a single market for air transport and allow freedom of air transport in Africa. The Afreximbank, African Collaborative Transit Guarantee Scheme, announced its first-ever multi-border transit bond in October 2023 for Zambia. Despite these gains, there is still much that needs to be done. Allow me to share a few specific thoughts.  

First, we must upgrade transport connectivity to fix missing links and ensure that transport networks are resilient to climate change. The roads in LLDCs fall short of the global average for paved road density by nearly 200,000 kms while the railways fall short by 46,000 kms. Upgrading railways in LLDCs to the level of the world average would cost an estimated $510 billion. We must therefore unlock additional infrastructure financing, including through a dedicated infrastructure investment finance facility for LLDCs supported by the global and regional development banks. 

Second, we must ensure that hard infrastructure is complemented by the necessary soft infrastructure, such as supportive policies, regulations, and processes. Accelerating the full implementation of the Trade Facilitation Agreement will be key. The implementation rate of the Agreement on Trade Facilitation stands at 61 per cent for the LLDCs, this is below the 81 per cent rate for developing countries. LLDCs have already identified where they need technical and financial support - we must now ensure this is delivered by mobilizing the international community to implement all priorities of the Trade Facilitation Agreement. 

Third, we must make the most of the opportunities digital connectivity provides to overcome the physical barriers of being landlocked. Exports of digitally deliverable services from landlocked developing countries increased by 67 per cent since the COVID-19 pandemic ¨C more than three times the global average to ¨C reach $10.6 billion in 2022. Digitalization is also making traditional trade easier for landlocked developing countries. The ASYCUDA computerized customs management system designed by UNCTAD, as well as the eTIR international system administration developed by UNECE are reducing trade costs. Still, more must be done to ensure that LLDCs have sufficient digital foundations. This includes support for digital infrastructure, skills development, national regulatory frameworks, and a conducive global regulatory framework. Expanding the Partner2Connect initiative through all interested landlocked developing countries can help in this regard.  

Lastly, we must commit to regional integration as one of the principal tools for connectivity in LLDCs. This includes regional approaches to infrastructure development, and joint projects on transport, communications, and energy. The international community must provide support by boosting regional development assistance, including by raising regional Aid for Trade disbursements. Further, trade transit should be covered by specific provisions within regional and sub-regional trade frameworks and the participation of LLDCs in such frameworks should be strengthened.  

Excellencies, 

As we come to the end of the UN Vienna Programme of Action of the Landlocked Developing Countries, we must make every effort to ensure that the next Programme of Action emphasizes connectivity. This Ministerial Meeting comes at a crucial time ahead of the Third UN Conference on Landlocked Developing Countries, to be held from 18 to 21 June in Kigali. In my capacity as the Secretary-General of the LLDC3, my Office is leading the UN-system-wide substantive preparations for the Conference. Your deliberations over the next two days will inform the outcome document for Kigali, a once-in-a-decade opportunity to shape the development agenda for LLDCs. As I conclude, I would like to call on us all to continue striving for ambitious solutions to improve connectivity for LLDCs. Let us harness our shared commitment to drive transformative change in the lives of the 570 million people living in the 32 LLDCs to ensure no one is left behind. I will continue to be with you at every step of the way as we rapidly approach the Conference. 

I thank you.