Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

2 Global Recovery from the global downturn Source: World Bank data and projections

3 And integration with global markets is associated with faster growth… Source: World Bank, Global Economic Prospects, 2001 Average annual per capita growth,

2000 Millennium Development Goals The MDGs: Poverty targets Percent of population living below $1 /day 4

2000 Millennium Development Goals Poverty targets to be reached in most regions, but… Percent of population living below $1 /day 5

6 World trade trends: developing countries are exporting more manufactures… Manufacturing exports (%) Resources exports (%) Agricultural exports (%) Composition of exports: Middle- income countries Low- income countries Resources exports (%) Agricultural exports (%) Manufacturing exports (%)

7 But not all news are good… Roughly one-third of developing countries have not benefited significantly from growth in international trade. Roughly one-third of developing countries have not benefited significantly from growth in international trade. Some countries with solid export growth have not translated that into significant poverty reduction. Some countries with solid export growth have not translated that into significant poverty reduction. Developing countries could have done better if protection did not discriminate against products in which they have comparative advantage. Developing countries could have done better if protection did not discriminate against products in which they have comparative advantage.

8 Singapore issues (investment and competition policy, trade facilitation and transparency in government procurement): Recognition of the relevance of these issues for promoting growth and increasing competitiveness of developing countries. Recognition of the relevance of these issues for promoting growth and increasing competitiveness of developing countries. Concerns that adding these issues to the agenda may crowd-out other themes of greater priority for developing countries. Concerns that adding these issues to the agenda may crowd-out other themes of greater priority for developing countries. Alternative tracks: commence negotiations vs. to focus on further clarification of issues. Alternative tracks: commence negotiations vs. to focus on further clarification of issues.

9 Clearing customs takes longer in developing countries Note: This is based on a sample of countries in each area; see figure 5.1 in chapter 5. figure 5.1 in chapter 5. Source: International Exhibition Logistics Associates Available at

10 Facilitating trade in less efficient countries would bring significant gains Source: Calculations based on table 4 in Wilson, Mann, and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo. and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.

11 WB Address in Cancun “… we are ramping up to be able to help any country that requests financing or policy advice for trade logistics. “ Shengman Zhang WB Managing Director for Operations

12 The Trade Logistics Agenda Trade Facilitation and Competitiveness Transit Logistics and Ports Border Crossing and Clearance Management Customs Reform Multimodal Transport Transport Security

13 Trade Facilitation and Competitiveness Economic Benefits of Trade Facilitation Logistics Costs and Export Earnings: Geography, Competitiveness and Poverty Facilitation Performance and Competitiveness Index

14 Transit Logistics Port Efficiency Bilateral and Regional Transit Agreements Landlocked Developing Countries Access: Corridor Agreements Transit Guarantee Systems : Customs/Insurance/Operators (TIR, TIF and similar) Cost/Benefits of Transit Trade for Transit Countries

15 Border Crossing Management Single Window Environment Adjacent Border Posts Border Monitoring Systems Inland Clearance Facilities

16 Customs Reform Streamlining and Harmonization of Procedures Information Technology and Electronic Processing Risk Assessment Methods: Security with Facilitation Integrity Programs Training/Capacity Building : Customs Officials/Private Operators

17 Multimodal Transport Legal Aspects Regulatory Framework Liability Regime of MTO Implementation/Amendments of/to MTO Regimes

18 Transport Security US Regulations: CSI, 24 hour-Rule IMO Revised Standards: ISPS Code New EU Guidelines Supply Chain Security Concept Security with Facilitation

19 FY04 Work Program Trade Logistics Indicators  Country Level  Project Level Customs Modernization Handbook WCO Time Release Software Menu-Based Project Guidelines  Customs  Transit and Multimodal Transport  Port Logistics  Transport Security

20 FY04 Work Program (2) LLDCs: the Almaty Programme of Actions Regional Operations  Africa: Corridor Observatories (UEMOA, ECOWAS, NCTTCA, SADC), Investment Projects (Kenya, Madagascar), TTFAs in IF Diagnostics  Middle-East North Africa: Logistics Survey (Morocco, Tunisia, Egypt, Jordan)  Europe Central Asia: CAR Logistics Survey (CIS 7), Investment Projects (Russia, Kazakhstan)  South Asia: Afghanistan TTF and Customs Project  East Asia and Pacific: Indochina Logistics (Cambodia, Laos, Vietnam)  Latin America and Caribbean: CA Logistics Survey