Logistics Constraints and Investment Climate Uma Subramanian Senior Economist Investment Climate Unit Private Sector Department June 10, 2003

Identify features that matter most for growth and productivity Benchmark performance relative to peers around the world Highlight action to improve business climate Promote informed dialogue to forge consensus on reform priorities Track changes over time to gauge impact of reforms Investment Climate Assessments: Objectives

Approaches Investment Climate Assessments Doing Business database and Indicators Diagnostics

ICA A standard core survey instrument linking constraints to firm-level productivity. Quantitative questions in terms of dollars and days Standardized sampling and implementation across countries. Additional special modules

Investment Climate Assessments: Country Reports Bolivia  BrazilEcuadorHondurasNicaraguaPeruVenezuela Eritrea  Ethiopia  Kenya Mozambique  NigeriaTanzaniaUgandaZambia Bangladesh  Bhutan  India  Nepal  Pakistan  Sri Lanka Cambodia China  IndonesiaMalaysiaPhilippinesThailand Kyrgyz Rep. MoldovaPoland Serbia (FRY) TajikistanUzbekistan Algeria  Morocco  Syria

Entry Regulations Indicators - measure the procedures, time, cost and minimum capital requirements to register a business formally

Economic liberalization Global markets with extensive outsourcing - rapidly changing spatial distribution of production, supply and demand “Just in time” deliveries Global Emerging Trends

Ability of countries to participate in global trends are critically dependent on how they are able to deliver goods and services in time and at low cost Knowledge of technological advances, and adaptation of innovative approaches, Institutional capacity to implement change

Logistics work under IC Assessing Costs, Time, Variability Logistics Module : Firm level survey Diagnostics: “Plumbing” approach Development of indicators

Case : High Value Exports from Landlocked Country to Europe