Porta Nova / Joseph Bivona and Maynard Leon by The Oceanic Turn / Pierre Belanger

Joseph Bivona|Maynard Le贸n

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Requalifying Trade In thinking about the role of the ocean on global trade, perhaps the most powerful way to understand the forces at work is by focusing on countries that have no access to the coast at all. For centuries cities have developed along the coastline where trade was made easy by its proximity to the coast. This model is one that presumes that the physical good goods are the principle means by which economies thrive and that therefore, access to ocean is equivalent to access to the global market. This line of thinking is shared and perpetuated by the United Nations who compiled a report called The Way to the Ocean. This report cites the ways in which landlocked countries are severely disadvantaged and outlines a series of specific proposals (all in Africa) that assist these countries in reaching the global marketplace. These proposals all involve hard infrastructure such as roads, and rails as well legislative policies that would lubricate the process of reaching the coast. Their evaluation of these countries is based quite heavily on the GDP per capita of those developing countries. When these 44 countries are sorted in this fashion, a few striking statistics stand out. The developed landlocked countries have GDPâ&#x20AC;&#x2122;s per capita significantly higher than the world average and even of the United States. Liechtenstein for example, a country doubly landlocked is among the wealthiest in the world with a GDP per capita more than twice that of the United States. This fact fueled the investigation to learn why some landlocked countries were able to produce such vigorous economies and why others were among the least developed on the planet. By looking at these countries comparatively, our research aimed to uncover the similarities and the differences in each of these countries in the hopes of finding new ways of reaching the market. Looking at pairings of the top and bottom GDP per capita countries unveiled many interesting facts. When compared collectively, some major themes emerged. Hard infrastructure was present in many of the developed countries but in several cases, these countries may not have had rail access or airports. Conversely, some of the least developed nations had a plethora of airports and access to rail but meek economies. This suggested that the success was not contingent upon physical connection to the coast alone. The

research showed that in fact, these economies thrived more often than not, because of soft infrastructures in place. All of these wealthy landlocked countries had higher percentages of services exported than physical goods. Liechtenstein for example, is a world banking center and is known as tax haven for several large corporations. Telecommunications and the dematerialization of trade has become a prominent figure in the global marketplace as illustrated by these striking statistics. Tourism also emerged as one of the main drivers for these developed countries. Countries like Switzerland, Austria and Andorra have tourist industries that contribute up to 80% of their GDP. This is not all claim that lessons can only be learned from the top earners. In fact, the greatest growth in economy is happening in several of the least developed nations. This is due in part to global and donor aid because investments there are viewed as very safe but these countries have been apparently isolated for so long, they have become quite self-reliant. Due to their lack of access to more traditional fossil fuels, many have adapted to other cleaner forms of energy that also make them more self-reliant. Mali for example, runs almost its entire country on hydropower alone which stands in stark contrast to the top earner Liechtenstein which imports over 85% of its energy needs. So what do all of this mean? We can certainly say that the one-dimensional view with which the UN is approaching the problem is not enough. The notion that physical goods must be produced and then physically connected to a coast is one that is becoming outdated. In a world that is becoming ever global and ever digital, physical access and hard infrastructure is losing its claim at the primary means to capital. Access to the ocean is by no means insignificant but it is no longer the only way to global market. Landlocked countries may in some ways benefit from their perceived geographical handicap by leapfrogging the phase that most world capitals have had to undergo. Cities like New York exist because of their strategic locations on the coast that facilitated the trading of physical goods. More recently however, we have seen a shift where these places of trade are happening elsewhere and former trade centers have instead become centers for services. The new avenues such as telecommunications, urbanizations, export of services, tourism, and energy independence afford new opportunities and create new ports and new coasts for these countries in development.

Contents

Hypothesis 6 Physical Goods and Physical Routes

Research 8 The Way to the Ocean

Comparative Analysis 16 Landlocked Countries

Synthesis

Unifying Factors

Requalification

Conclusions

Indicators of Progress

New Routes to the Market

HYPOTHESIS

Physical goods are the primary means by which economies thrive Access to ocean provides the route to the global market Therefore: Goods + Ocean = Strong Economy

RESEARCH

U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T

THE WAY TO THE OCEAN Transit corridors servicing the trade of landlocked developing countriesÂ Â

Transport and Trade Facilitation

Series No. 4

There are 44 landlocked countries 31 are classified as Landlocked Developing Countries (LLDCâ&#x20AC;&#x2122;s) Average GDP per capita in these countries is 43% lower than their neighboring coastal countries In general, import volumes for LLDCs are much higher than export volumes Trucks are routinely delayed for days at international border crossings into LLDCs Poor road infrastructure is responsible for 40% more of the transportation costs in coastal countries and 60% in landlocked countries Inland transport is much more expensive than coastal transport

High transport costs constrain the ability of LLDCs to compete effectively in global markets LLDCâ&#x20AC;&#x2122;S trade more with their neighboring countries than with distant partners

Transport costs for LLDCs represent an average of 77% of the value of exports LLDCâ&#x20AC;&#x2122;s are burdened with high debt levels Development of institutional capacity to jointly manage intermodal operations Making the most efficient use of existing infrastructure or developing new transport nodes

Increasing the reliability and predictability of costs and times through trust-building measures between public regulators and private operators

COMPARATIVE ANALYSIS

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanista Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

LANDLOCKED COUNTRIES

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

GDP per Capita

Area

a (sq mi)

Population

SYNTHESIS

HARD INFRASTRUCTURE AIRPORTS RAIL ROADS URBANIZATION SOFT INFRASTRUCTURE TELEPHONE LINES BROADBAND CABLE RENEWABLE ENERGY DOMESTIC POLICIES AND CULTURE GOVERNMENT CORRUPTION RELIGION LABOR BORDERS GLOBAL AID POLITICAL AFFILIATIONS POROUS BORDERS (SMUGGLING) MIGRATION EXTERNAL FACTORS AGE CLIMATE GEOGRAPHY RESOURCES FRESH WATER RIVERS AS CONNECTIVITY MINERAL EXTRACTION AGRICULTURE NICHE MARKETS ROOM FOR GROWTH TOURISM REFUGEE CAMP DRUGS

REQUALIFICATION

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Switzerland Bhutan Luxembourg Andorra Liechtenstein Macedonia San Marino Swaziland Central African Republic Paraguay Bolivia Nepal Austria Laos Azerbaijan Czech Repulic Zambia Belarus Slovakia Tajikistan Kyrgystan Armenia Rwanda Afghanistan Turkmenistan Hungary Malawi Serbia Burundi Moldolva Botswana Uganda Kazakhstan Niger Uzbekistan Zimbabwe Mongolia Chad Mali Lesotho Ethiopia Burkina Faso

DEGRADED LAND

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Luxembourg Switzerland Andorra Liechtenstein Slovakia San Marino Austria Czech Repulic Hungary Azerbaijan Armenia Serbia Moldolva Kazakhstan Belarus Bolivia Paraguay Kyrgystan Uzbekistan Bhutan Rwanda Mongolia Uganda Tajikistan Zimbabwe Zambia Swaziland Nepal Laos Botswana Lesotho Afghanistan Mali Central African Republic Malawi Turkmenistan Burundi Chad Burkina Faso Niger Ethiopia Macedonia

INTERNET USERS

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Austria Hungary Switzerland Czech Repulic Kazakhstan Zimbabwe San Marino Botswana Andorra Laos Kyrgystan Slovakia Azerbaijan Liechtenstein Uzbekistan Uganda Swaziland Luxembourg Zambia Bolivia Malawi Serbia Rwanda Nepal Armenia Paraguay Mongolia Lesotho Ethiopia Tajikistan Burkina Faso Burundi Mali Belarus Niger Central African Republic Chad Bhutan Moldolva Turkmenistan Afghanistan Macedonia

TOURISM

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Rwanda Malawi Burundi Zimbabwe Nepal Ethiopia Burkina Faso Laos Uganda Zambia Central African Rep. Botswana Kazakhstan Bhutan Chad Bolivia Azerbaijan Switzerland Lesotho Paraguay Tajikistan Kyrgystan Mongolia Austria Slovakia Belarus Czech Repulic Armenia Luxembourg Uzbekistan Turkmenistan Hungary Swaziland Niger Moldolva Mali Afghanistan Andorra Serbia San Marino Macedonia Liechtenstein

WOMEN IN THE WORKFORCE

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

San Marino Andorra Luxembourg Belarus Czech Repulic Hungary Mongolia Austria Bolivia Armenia Paraguay Botswana Serbia Slovakia Azerbaijan Kazakhstan Turkmenistan Moldolva Zambia Central African Republic Zimbabwe Bhutan Uzbekistan Mali Laos Kyrgystan Lesotho Burkina Faso Tajikistan Afghanistan Chad Swaziland Switzerland Rwanda Niger Nepal Ethiopia Uganda Malawi Liechtenstein Burundi Macedonia

URBAN

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Burundi Rwanda Kazakhstan Lesotho Moldolva Mongolia Swaziland Uganda Turkmenistan Hungary Uzbekistan Armenia Malawi Afghanistan Serbia Azerbaijan Kyrgystan Czech Repulic Paraguay Luxembourg Botswana Belarus Burkina Faso Zimbabwe Liechtenstein Slovakia Chad Austria Andorra Switzerland Ethiopia Niger Bolivia Tajikistan Mali Zambia Nepal San Marino Bhutan Laos Central African Rep Macedonia

AGRICULTURE

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Luxembourg Austria Serbia Switzerland Czech Repulic Liechtenstein Belarus Hungary San Marino Armenia Kazakhstan Slovakia Botswana Andorra Moldolva Azerbaijan Kyrgystan Mongolia Paraguay Tajikistan Bolivia Uzbekistan Turkmenistan Macedonia Swaziland Laos Zimbabwe Bhutan Mali Lesotho Zambia Uganda Afghanistan Burkina Faso Rwanda Nepal Niger Chad Central African Republic Malawi Burundi Ethiopia

PHONES

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Luxembourg Burundi Bhutan Switzerland Czech Repulic Austria Botswana Hungary Slovakia Azerbaijan Rwanda Kazakhstan Serbia Malawi Niger Nepal Ethiopia Uganda Belarus Swaziland Mongolia Paraguay Chad Zambia Mali Burkina Faso Lesotho Macedonia Turkmenistan Laos Afghanistan Bolivia Uzbekistan Armenia Kyrgystan Tajikistan Moldolva Zimbabwe Liechtenstein San Marino Andorra Central African Rep.

MIGRATION

Liechtenstein Luxembourg Switzerland San Marino Austria Andorra Czech Repulic Slovakia Hungary Belarus Serbia Kazakhstan Azerbaijan Botswana Turkmenistan Macedonia Paraguay Mongolia Swaziland Armenia Bhutan Bolivia Moldolva Uzbekistan Zambia Laos Lesotho Kyrgystan Chad Tajikistan Zimbabwe Nepal Rwanda Burkina Faso Afghanistan Mali Uganda Ethiopia Central African Rep. Niger Burundi Malawi

Luxembourg Switzerland Hungary Austria Czech Repulic Paraguay Liechtenstein Mongolia Serbia Belarus Armenia San Marino Uganda Andorra Slovakia Bolivia Ethiopia Swaziland Rwanda Botswana Nepal Azerbaijan Bhutan Burundi Central African Rep. Tajikistan Mali Zimbabwe Kazakhstan Uzbekistan Lesotho Niger Zambia Chad Malawi Burkina Faso Moldolva Turkmenistan Afghanistan Kyrgystan Laos Macedonia

EXPORT OF SERVICES

INTERNET

TOURISM

WOMEN

URBAN

Liechtenstein Liechtenstein Liechtenstein Liechtenstein Luxembourg Luxembourg Luxembourg Luxembourg Switzerland Switzerland Switzerland Switzerland San Marino San Marino San Marino San Marino Austria Austria Austria Austria Andorra Andorra Andorra Andorra Czech Repulic Czech Repulic Czech Repulic Czech Repulic Slovakia Slovakia Slovakia Slovakia Hungary Hungary Hungary Hungary Belarus Belarus Belarus Belarus Serbia Serbia Serbia Serbia Kazakhstan Kazakhstan Kazakhstan Kazakhstan Azerbaijan Azerbaijan Azerbaijan Azerbaijan Botswana Botswana Botswana Botswana Turkmenistan Turkmenistan Turkmenistan Turkmenistan Macedonia Macedonia Macedonia Macedonia Paraguay Paraguay Paraguay Paraguay Mongolia Mongolia Mongolia Mongolia Swaziland Swaziland Swaziland Swaziland Armenia Armenia Armenia Armenia Bhutan Bhutan Bhutan Bhutan Bolivia Bolivia Bolivia Bolivia Moldolva Moldolva Moldolva Moldolva Uzbekistan Uzbekistan Uzbekistan Uzbekistan Zambia Zambia Zambia Zambia Laos Laos Laos Laos Lesotho Lesotho Lesotho Lesotho Kyrgystan Kyrgystan Kyrgystan Kyrgystan Chad Chad Chad Chad Tajikistan Tajikistan Tajikistan Tajikistan Zimbabwe Zimbabwe Zimbabwe Zimbabwe Nepal Nepal Nepal Nepal Rwanda Rwanda Rwanda Rwanda Burkina Faso Burkina Faso Burkina Faso Burkina Faso Afghanistan Afghanistan Afghanistan Afghanistan Mali Mali Mali Mali Uganda Uganda Uganda Uganda Ethiopia Ethiopia Ethiopia Ethiopia Central African Rep. Central African Rep. Central African Rep. Central African Rep. Niger Niger Niger Niger Burundi Burundi Burundi Burundi Malawi Malawi Malawi Malawi

AGRICULTURE PHONE

MIGRATION

SERVICES

CONCLUSIONS

The UNâ&#x20AC;&#x2122;s model of trade and of the ocean is outdated Traditionally the ocean has been the way to the global market The world is economy has changed drastically Many cities have deveoped as trade cities but have now become world centers for services

TRADE CITY

SERVICE CITY

Could these landlocked countries actually have an opportunity here by leapfrogging the step of being a trade city and directly become a service city? Are coastal countries just waterlocked?

Access to the ocean not is insignificant BUT THERE IS NOT ONLY ONE ROUTE TO THE MARKET A varied approach is necessary

POTENTIAL AVENUES TO THE MARKET: Telecommunications Export of Services Urbanization Tourism Energy Independence Natural Resources Political Affiliations Export of Goods