One of the significant events held in the Avaza National Tourist Zone within the framework of the Third UN Conference on Landlocked Developing Countries was the Private Sector Forum.

Representatives of the business community, UN departments and government delegations took part in the discussion of important issues facing 32 landlocked developing countries.

The Forum became an effective platform for establishing partnerships and constructive dialogue aimed at attracting long-term investments in LLDCs. The main goal of this large-scale event was to define the role of the private sector as a driving force for sustainable economic growth, diversification and industrialization in these countries.

Along with the Chamber of Commerce and Industry and the Union of Industrialists and Entrepreneurs of our country, the Advisory Group of the Private Sector Forum, formed by the Office of the United Nations High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island States (UN OHRLLS), took an active part in the preparation of the Forum.

The thorough preparatory work that was carried out allowed us to draw up a rich agenda, including high-level plenary sessions, four thematic sessions, parallel events and much more. This format of interested communication ensured a direct and productive dialogue between representatives of the business community and government agencies, which, in fact, is the key to the effective implementation of future programs.

It should be noted that it is especially important to hold the Private Sector Forum in Turkmenistan, which, as a major transit center in Central Asia, is actively developing its logistics infrastructure.

Turkmen entrepreneurs who took an active part in the Forum presented their projects, investment opportunities and exchanged views with international partners. Their participation in this event demonstrated the importance our country attaches to economic diversification, the development of digital technologies and strengthening its position as a transit hub in the region.

Turkmenistan, as a landlocked developing country, did not limit itself to just hosting the Forum, but also shared its accumulated wealth of experience and views on ensuring sustainable development, and focused on the need to create favorable conditions for the full realization of the private sector potential.

The importance of holding the Private Sector Forum within the framework of the international Conference is due to several key problems that landlocked developing countries currently face. Among them are geographical limitations and high transit costs.

The lack of direct access to the sea leads to high transport costs for export-import operations, which directly affects the economic development of LLDCs. In this context, the Forum became an effective platform for discussing issues related to innovative logistics solutions, infrastructure development and simplification of customs procedures.

The economies of most LLDCs depend on the export of raw materials. The private sector is the driving force for the accelerated development of the processing industry, services and the digital economy. The forum once again demonstrated that it is very important to direct investment in these areas to create high-value-added industries.

To solve the infrastructure issues of the LLDCs, modernize industry and introduce innovations, it is necessary to attract foreign direct investment and technology. The forum afforded an opportunity to present investment projects, establish connections between investors and entrepreneurs, and discuss mechanisms for creating a favorable investment environment.

As noted during the discussions, in the era of digitalization, geographical difficulties can be largely overcome with the help of information and communication technologies. That is why special attention was focused on the role of digital systems in expanding access to international markets, financial services, education and healthcare. This, in turn, facilitates the development of e-commerce and innovative entrepreneurship.

A separate topic of discussion was issues related to climate change and sustainable development. It is generally recognized that the private sector plays a key role in the transition to a “green economy”, the introduction of renewable energy sources, sustainable agricultural practices and the development of infrastructure adapted to climate change. The work carried out in this area demonstrates the responsible approach of the business community in shaping sustainable development.

As previously reported, following the two-day Private Sector Forum, a document was adopted containing recommendations for action in key areas of development. The document sets out specific proposals developed during the thematic sessions, which cover four main areas reflecting the most significant problems and development opportunities for LLDCs.

The first area relates to trade and transit systems. Forum participants unanimously recognized that trade and transit are important conditions for unlocking the economic potential of landlocked developing countries.

Given that the lack of direct access to the sea leads to high logistics costs, it was recommended to strengthen the capacity of LLDCs in such areas as customs procedures, logistics, trade negotiations and development of market relations. This, in turn, implies training specialists, introducing advanced practices and technologies, and creating favorable conditions for the export of goods.

As was emphasized, it is important not only to simplify trade operations, but also to deepen regional integration. Along with the removal of trade barriers, this should include joint investment in research and development, as well as policies that promote the development of regional industry and the creation of affordable digital communications.

Landlocked developing countries were recommended to actively use the opportunities of existing trade agreements, such as the African Continental Free Trade Area (AfCFTA). Particular attention was paid to the need for active cooperation with multilateral trading systems, in particular the World Trade Organization, to negotiate special benefits in the field of transit and trade. 

Great importance should be attached to the digitalization of cross-border operations. The introduction of electronic systems for customs and logistics operations can significantly reduce the time and cost of export deliveries, which is especially important for LLDCs that depend on transit through the territories of neighboring states.

Forum participants called for the development of regional e-commerce platforms. Such platforms will help local entrepreneurs overcome logistical barriers in cross-border trade and enter large markets, and will also facilitate the development of small and medium-sized businesses.

The second area of the thematic discussions was devoted to growth opportunities.

Forum participants emphasized the need for cooperation between the state and the private sector to create a favorable business environment. This implies not only ensuring macroeconomic stability, but also easing regulations, which will allow the private sector to formulate long-term strategies. Moreover, the international community should join efforts to strengthen peace and trust, which are the guarantor of reliability for any investment. 

The final recommendations recognize that initiatives to support youth entrepreneurship, in particular those aimed at improving the skills and developing the innovative capabilities of budding entrepreneurs, are critical to expanding economic opportunities for youth in landlocked developing countries.

Involving the private sector in research and development can help create innovative solutions that meet the unique needs of the LLDC sector.

The document also emphasizes the importance of private sector participation in international forums, which helps to better understand the situation in countries and the needs of local business.

The Private Sector Forum also focused on improving intellectual property rights, the maintenance and strengthening of protection mechanisms for which is recognized as an important condition for stimulating innovation and creativity, directly affecting the development of high-tech industries.

The Forum participants noted that strengthening cooperation between the state, the private sector, and the public and international organizations makes it possible to jointly develop effective solutions for LLDCs.

The third area of recommendations worked out for landlocked developing countries is related to digital development.

The Forum participants emphasized the importance of expanding affordable digital communications, including artificial intelligence technologies, as a key condition for private sector development. In addition, it was recommended to focus investments on renewable energy sources to ensure the sustainable operation of digital infrastructure. 

It was suggested that digital education programs be tailored to local conditions, taking into account linguistic and cultural specificities to improve digital literacy and technology uptake. In this regard, it is noted that special attention should be paid to expanding opportunities for all segments of the population.

Taken into account that many landlocked developing countries rely on agriculture for their economies, an initiative was launched to develop digital tools such as precision farming, market access platforms and optimized delivery systems.

It was also suggested to introduce digital solutions for weather monitoring, early warning systems and sustainable agricultural practices to mitigate the negative impact of climate change on the economies of LLDCs.

The fourth area of thematic recommendations is related to financing and investment.

Forum participants proposed to actively promote digital financial services to improve financial inclusion. This includes creating a favorable regulatory environment for financial technologies, as well as developing IT solutions for money transfers and other financial services. 

The experts noted the need to support landlocked developing countries in developing economically viable projects and attracting investment in large infrastructure projects that require large volumes of financial resources.

With regard to the development of regional integration institutions, it was recommended to use existing initiatives, in particular the AfCFTA agreement, to stimulate investment in market development and improving production efficiency.

It was emphasized that in order to expand the participation of LLDCs in digital transformation in line with global trends, support should be offered to these countries in attracting foreign direct investment in high-tech sectors and digital transformation.

It was also emphasized that all efforts to attract investment in LLDCs, including the mobilization of domestic resources, should be based on the creation of the necessary industrial capacities with the participation of the private sector.

The Private Sector Forum ended with a significant event – the launch of the Global Business Network for Landlocked Developing Countries. This initiative will become a platform that will operate on a permanent basis and support the interests of businesses and investors, promoting the formation of development policies for LLDCs. 

This system will help to maintain sustainable economic growth in landlocked developing countries, attract investment aimed at infrastructure and industrial development, and bring together companies, industry associations, government agencies and development organizations to work together in areas such as trade, infrastructure improvement and investment promotion. 

Thus, the Private Sector Forum has become not only a platform for discussions, but also a place for the creation of a permanent mechanism aimed at ensuring the active participation of the private sector in the development of LLDCs.