It is believed that due to lack of direct access to the sea, landlocked countries are mainly marginalized from major trade related networks and hardly benefit from trade opportunities due to their extreme reliance on their transit neighbors who may either have a weak or well-developed infrastructure. Besides this common perception what are other advantages and possibly disadvantages are there for landlockedness?
The most efficient way to move is through pipelines. So even without a seaport, it is possible. Can also be moved to nearest port & then be shipped by tankers. So this is not a big issue today.
Dear Dr. Singh,
I believe that although item C of my answer would be enough, it tends to go a little farther than the question that you´ve asked, but seems to me that it can help if you have an interest in developing countries:
The Collier traps.
According to Paul Collier (2008) in his book “the bottom billion” there are four traps that poor countries should avoid, because it´s very difficult to scape:
a) The “conflict trap”, that could produce large economic costs to a country. Additionally, right after a major conflict, relapse is highly likely. Collier also states that ‘the longer a country stays in a state of conflict, the more players have profit from the state of tumult”, tending to perpetuate the situation;
b) The “natural resources trap” since it´s not uncommon that Countries rich in natural resources are usually worse off than countries that are not;
c) The “neighbors trap” that Collier explains posing that coastline countries trade with the world, and landlocked countries trade with neighbors, with a poor infrastructure and a limited market for their goods;
d) The “bad governance in small countries trap” explains that though they may have a low cost-of-living, and therefore be ideal for labor-intensive work, their smallness discourages potential investors, that does not know – and are not interested in confront accept - the risk profile of government.
Best wishes.
Prof. Aurelio Hess
Thanks for your take on this question Dr Aurelio Hess and Dr Emmanuel Vijayanand Murray .... Your points have been well noted by me...
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