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Asia-Pacific Countries with Special Needs Development Report 2026 : Fostering resilience in countries in special situations through trade diversification and cross-border connectivity
The Asia-Pacific region faces a rapidly changing global trade landscape shaped by geopolitical dynamics, supply chain fragmentation, rapid technological change and increasing climate-related disruptions. While these developments affect all economies, they have a disproportionately destabilizing impact on least developed countries, landlocked developing countries and small island developing States, whose geographical isolation, small markets and undiversified economies heighten their exposure to external shocks and contribute to greater volatility in trade and development outcomes. This report examines the role of strengthened cross-border connectivity in building resilience to these shocks by fostering trade diversification. Moreover, it underscores the importance of complementing physical and digital infrastructure with more coherent and harmonized institutional frameworks to enhance efficiency and reduce economic dependency on just a few markets or economic corridors. Given the physical barriers and resource constraints faced by countries in special situations, regional cooperation, technical assistance and capacity-building are required for implementing reforms and increasing cross-border harmonization.
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