LLDCs and SIDs

LLDCs:

• Most trade is done using shipping as it is the cheapest form of transport so if you don't have a coastline then their sea borne trade unavoidably depends on transit through other countries.
• Additional border crossings and long distance from the market substanttially increases the toal expenses for the transport services.
• Landlocked developing countries are generally among the poorest of the developing countries, with the weakest growth rates, and are typically heavily dependent on a very limited number of commodities for their export earnings.
• Out of the 30 landlocked developing countries, 16 are classified as least developed
• Austria:
 - Austria has developed because they are surrounded by major developed markets and their seabourne trade accounts for a relatively small part of their external trade
 - Their export is mainly high value added products and their distance from the seaport is relatively short
• The distances involved in most cases of landlocked developing countries are excessive.
• Kazakhstan has the longest distance from the sea - 3,750km
• Afghanistan, Chad, Niger, Zambia and Zimbabwe all have distances from the nearest sea coast of over 2,000km
• Transit time for goods of landlocked developing countries is extremely long because of their long distance, difficult terrain, road and railway conditions inefficient of transit transport.
● In most cases their transit neighbours are themselves developing countries, often of broadly similar economic structure and beset by similar scarcities of resources.
● The recorded trade between landlocked and transit developing countries tends to be relatively insignificant.
● In most cases, the transit developing countries are in no position to offer transport systems of high technical and administrative standards to which their  landlocked neighbours might link themselves effectively by the development of their own internal transport systems.
● There is a clear correlation between distance and the transport costs.
● High transport costs erode the competitive edge of landlocked developing countries and trade volume.
● The trade reducing effect Is strongest for transport intensive activities that are dependent on exports or imported intermediate goods for production.
● Most landlocked developing countries are commodity exporters.
● According to UNCTAD estimates based on the IMF balance of payment statistics,  on average landlocked developing countries spent almost 2 times more of their export earnings for the payment of transport and insurance services than the average for developing countries and 3 times more than the average of developed economies.

SIDS:
● Low lying coastal countries that tend to share similar sustainable development challenges,  including small but growing populations, limited resources, remoteness, susceptibility to natural disasters, vulnerability to external shocks, excessive dependence on international trade, and fragile environments.
● Their growth and development is also held back by high communication,  energy and transportation costs, irregular international transport volumes, disproportionately expensive public administration and infrastructure due to their small size, and little to no opportunity to create economies of scale.