LocationsTurkmenistan prepares to play a strategic role as a connector between Europe and Asia
Turning landlocked challenges into opportunities
November 26, 2024
Turkmenistan, which stands at the heart of ancient trade routes, is positioning itself as a 21st century logistics and transport hub.
Photo: UNDP Turkmenistan
Nearly half a billion people live in landlocked developing countries [LLDCs] in Asia, Europe, Africa, and South America. These nations depend on transit routes through neighbouring countries to get to global markets, and face significantly higher trading costs, often double that of countries with coastlines. LLDC economies are highly vulnerable to external geopolitical dynamics.
To address these challenges, the UN adopted the ‘Vienna Programme of Action’ in 2014, a 10-year plan to promote sustainable development for LLDCs. These partnerships serve people and institutions and aim to improve the country’s connectivity, leverage technology and innovation to reshape the economy, integrate better into global trading systems, and invest in resilient infrastructure and people prepared for the challenges of tomorrow.
Turning landlocked realities into opportunities
Turkmenistan, one of the seven LLDCs in Central Asia and Eastern Europe, is bordered by Kazakhstan, Uzbekistan, Afghanistan, Iran and Azerbaijan, and the Caspian Sea. With four neighbouring countries landlocked themselves, and with Iran and Afghanistan facing volatile political dynamics and international sanctions, Turkmenistan’s position presents unique challenges.
Geography at home has not made things simpler. The Karakum Desert covers nearly 80 percent of the country, with mountains making up another 15 percent, leaving only five percent of arable land, mostly near river valleys in the east and southeast. Although an upper-middle-income country with a significant hydrocarbon sector, Turkmenistan is vulnerable to the impact of global warming. and about 97 percent of its water comes from outside the country, which affects agriculture and irrigation. In the future, prolonged droughts may further stress water availability.
Despite these constraints, Turkmenistan is positioning itself as a logistics and transport hub connecting Europe and Asia. It is involved in regional initiatives and its stance of permanent neutrality enables it to build regional partnerships and play a strategic role as a connector between Europe and Asia, emphasizing reliable transport corridors that enhance regional stability and support the broader goals of sustainable development.
The Karakum Desert covers nearly 80 percent of Turkmenistan, adding to the other challenges the landlocked country faces.
Photo: UNDP Turkmenistan
Digitalization, and infrastructure development
UNDP works in all LLDCs, to help people and countries realize their economic potential, human and sustainable development. We have been working in Turkmenistan to address some of the challenges landlocked and developing countries face. To help Turkmenistan respond to the impact of climate change, UNDP is integrating climate risk management and adaptation measures into planning and budgeting processes. UNDP also supports Turkmenistan in reducing its greenhouse gas emissions and strengthening climate mitigation. Our country team has supported Turkmenistan’s National Determined Contributions (NDCs) and is now helping with a national stocktaking to evaluate progress and guide the development of a more ambitions NDC 3.0. We are supporting the energy transition by promoting renewable energy with pilot initiatives, which have been a stepping stone for attracting new partners and funds from the Joint UN Sustainable Development Goals Fund, and the Global Environment Fund, as well as the government.
International trade is challenging for almost all LLDC and developing and maintaining robust infrastructure seems to be essential for countries to overcome their geographical realities. The substantial resources required to build and maintain infrastructure are also conditioned by regional cooperation. For Central Asian countries this topic is of utmost importance, particularly because a significant gap remains and disparities in transport infrastructure quality and capacity are evident. In Turkmenistan, the challenge lies in improving both the road and railway infrastructure to develop its role as a transit hub between Europe and Asia. As part of the Lapis Lazuli Corridor and potentially of the Trans-Caspian International Transport Route, known as the Middle Corridor, Turkmenistan’s infrastructure is vital for connecting Central Asia with Turkey and Europe. However, the country’s logistics capacity and transportation infrastructure require significant investment.
Infrastructure alone is not enough for all transit corridors to become a truly sustainable and economically viable. Digital solutions are important to connect country economies to markets, to significantly reduce the cost of cross–border transactions, and position businesses for growth. This is why UNDP, in cooperation with UNCTAD, has supported Turkmenistan’s customs services to develop the ASYCUDA and Single Window systems for imports and exports. Efficient digital systems are essential to streamline cross-border operations, reduce delays, and improve trade flow.
UNDP also assists Turkmenistan in preparing for World Trade Organization [WTO] membership, and its integration into the global economy. By adopting WTO standards, Turkmenistan could access international markets more easily, paving the way for economic growth and diversification, but it still has a long way to go.
Like many LLDCs, Turkmenistan relies heavily on a narrow range of exports, primarily oil and gas. While these resources generate substantial revenue and provide an opportunity for investments in resilient and sustainable infrastructure, innovation, technology, and human capital, dependence on hydrocarbons can make the economy vulnerable to global market fluctuations and deepen environmental vulnerabilities. To address the issue of limited export diversification UNDP has teamed up with the United Kingdom to explore the potential of the creative economy. As the world gradually turns away from fossil fuels towards green energy, investing in renewable energy projects and diversifying the economy will immensely benefit the country in the long run.
Building on partnerships
The success of LLDCs will depend on strengthening partnerships that address both new and existing challenges. From transitioning to clean energy to building infrastructure that connects isolated regions, collaboration will be the linchpin of progress. With enduring partnerships and a commitment to sustainable growth, LLDCs can transform geographic limitations into opportunities, paving the way toward resilience, economic diversification, and improved the quality of life for millions.