Linara Kessikbayeva | 06.08.2024
The Future Impact of Being Landlocked on Kazakhstan
Trade and Economic Challenges
The status of Kazakhstan as the world's largest landlocked country directly impacts the sphere of trade and economic potential. Having no coastline, Kazakhstan relies much on the infrastructure of the neighboring countries to access world markets. This may raise transportation costs and delivery time, therefore affecting the competitiveness of Kazakh products. For example, oil, one of Kazakhstan's key export goods, must be transported through pipelines and railways, which is costlier compared to transportation by sea. In the long term, when global trade becomes even more advanced, such a position might not let this country fully benefit from trade, particularly when maritime routes like the Northern Sea Route are developed and could potentially shorten the trade distance between Europe and Asia.
Regional Partnerships and Opportunities
This landlocked condition has also led to regional partnerships and cooperation. The country has been very active in initiatives such as the Belt and Road Initiative, geared toward improving infrastructure and connectivity in Eurasia. Upgrading its railway and road infrastructure can make Kazakhstan one of the major transit countries for goods to be transported between Europe and Asia. Its location—at the junction of major trade routes—offers the potential to become a logistics and transport center that could offset the negative effects of not having any direct access to the sea to a certain degree.
Economic Diversification and Resilience
Kazakhstan's government did exercise efforts in diversifying the economy away from oil exports. Investments made in sectors such as agriculture, mining, and renewable energy could contribute to the creation of a more resilient economy that would be less susceptible to external shock.
Conclusion
Although being landlocked creates many problems for Kazakhstan, in principle the country can become able to overcome these barriers by means of strategic infrastructure development and economic diversification. How successfully it does so will depend on how well the Kazakh leadership is able to exploit its geographical position and foster regional cooperation in the future.
The status of Kazakhstan as the world's largest landlocked country directly impacts the sphere of trade and economic potential. Having no coastline, Kazakhstan relies much on the infrastructure of the neighboring countries to access world markets. This may raise transportation costs and delivery time, therefore affecting the competitiveness of Kazakh products. For example, oil, one of Kazakhstan's key export goods, must be transported through pipelines and railways, which is costlier compared to transportation by sea. In the long term, when global trade becomes even more advanced, such a position might not let this country fully benefit from trade, particularly when maritime routes like the Northern Sea Route are developed and could potentially shorten the trade distance between Europe and Asia.
Regional Partnerships and Opportunities
This landlocked condition has also led to regional partnerships and cooperation. The country has been very active in initiatives such as the Belt and Road Initiative, geared toward improving infrastructure and connectivity in Eurasia. Upgrading its railway and road infrastructure can make Kazakhstan one of the major transit countries for goods to be transported between Europe and Asia. Its location—at the junction of major trade routes—offers the potential to become a logistics and transport center that could offset the negative effects of not having any direct access to the sea to a certain degree.
Economic Diversification and Resilience
Kazakhstan's government did exercise efforts in diversifying the economy away from oil exports. Investments made in sectors such as agriculture, mining, and renewable energy could contribute to the creation of a more resilient economy that would be less susceptible to external shock.
Conclusion
Although being landlocked creates many problems for Kazakhstan, in principle the country can become able to overcome these barriers by means of strategic infrastructure development and economic diversification. How successfully it does so will depend on how well the Kazakh leadership is able to exploit its geographical position and foster regional cooperation in the future.
