1. Gérald Ollivier World Bank May 2003
Trade and Transport Facilitation: From Diagnostic to Implementation
Our CIS7+2 and Southeast Europe Experience
Gérald Ollivier World Bank May 2003

2. What is Trade and Transport Facilitation?
Reducing long waiting times at borders and during clearance
Transport & Telecom reforms:
De-monopolization,
Deregulation,
Privatization
Removing trade barriers to international transport
What is Trade and Transport Facilitation?
Reforming customs and other border agencies by introducing modern MIS, new procedures and new Human Resource Management, better inter-agency and cross-border cooperation
Increasing availability of high quality training in logistics, transport, customs brokerage, telecom and IT

3. Why TTF matters? Economic growth through SMEs
Trade and TTF : growth drivers
In 90s less globalized GDP –1%; more globalized +5%
70% in variation in per capita income explained by market proximity (Redding/Venable)
Frequently Customs tariffs < transport cost
Logistics drive firm/country competitiveness
Need for integrated transport infrastructure and services, in cooperation with border agencies to deliver predictably (day cost 0.8% of value)

4. Diagnostic Tools Diagnostic Tools and Recommendations for actions
UNECE/UNCTAD Recommendations
Trade and Transport Facilitation Toolkit (GFP)
WCO Diagnostic Study Process
Customs Reform (WCO, World Bank Handbook..)
ICC Customs Guidelines, Explanatory Notes, Integrity toolkit
Performance Measurements (TTFSE, WCO, ICC)
-> A multi-disciplinary/cross border approach is needed

5. TTF Issues in CIS 7+2 9 Countries/similar TTF constraints
Distant markets/few commodities
High transport costs (up to 50% of goods value)
Small fragmented transport market (not in KZ and TK)
Mostly landlocked countries
Insufficient market access rights
Under-developed logistics/multi-modal transport
Significant informal costs
Frequent facilitation payments (up to 50% of transport cost)
Unclear and changing requirements/procedures
-> About $1 billion of potential savings (UN)

6. Recommended Actions Prepare National TTF Reform Plan
TIR for transit/remove escort of regular cargo
Exchange transit/market access rights for transport
Harmonize transit fees
Harmonize/simplify border procedures (rail/road)
Measure performance
Strengthen public private dialogue (PRO Committees/TRACECA TF WG)
Publish under a common platform rules/procedures
Participate in ECMT multilateral road quota system (CAR)
Share widely this Plan to secure support (nationally/regionally/donors/public/private)

7. Diagnostic Lessons
Duplication riskCreating an open coordination platform (potentially through new GFP website)
Wide range of issues  mixing local and international experts
Identification of key driving forces (public/private)
Partial data availability
Relatively, the easiest part of the TTF process

8. Caucasus : Formulating Action Plan
Preparation of three policy notes (action plan)
Inclusion of these plans into broader WB products (Trade Diagnostic Studies with comprehensive action plans, SAC)
Proposed Georgian Transit Strategy
Active cooperation with other players (TRACECA..)
Performance measurements
Creation of Public-Private Committees

9. Action Plan Formulation: Lessons
Need for coordination to avoid contradictory priorities (national/regional/donors)
Sustained dialogue (workshops/meeting) to tailor solutions to local evolving realities
Building up public-private dialogue takes time and local presence/momentum (TRACECA)
Eager private sector : the need for TTF is there
While formulating an implementation plan is complex, implementation is the difficult part

11. TTFSE: Implementation Example
Trade and Transport Facilitation in Southeast Europe
Vision and political commitment (EU)
Massive external support/good coordination
8 countries, US$123 million (TA, IT, Civil works)
Measuring results: Manual and database
Focused approach: pilot sites
Increased transparency (
Local/international Training (
Active PRO Committees involvement
Peer pressure (Regional Steering Committee)

12. Implementation Issues
Resistance to introduce selectivity
Lack of interagency cooperation
Excessive turnover in key staff
Need for comprehensive approach to corruption
Multisectoral approach a must
-> Yet significant results achieved over two years

14. Country
Pilot site
WT 2001
WT 2002
Reduction (%)
Final target
Albania
Tirana
4.5 hours
1.7 hours
62%
1 hour
Bulgaria
Plovdiv
3.7 hours
1.5 hours
60%
< 1 hour
Croatia
Jankomir
5.3 hours
3.0 hours
43%
Stara Gradiska
3.3 hours
0.4 hour
88%
Romania
Bacau
1.4 hours
53%
Constanta
4.3 hours
31%
2 hours
Average:
4.0 hours
1.8 hours

15. Conclusions Political commitment essential
Coordination around a clear action plan
Use of existing tools
Focus on manageable, progressive solutions
Get private sector involved
Cooperate globally on training ( )

16. Thank You !
Gérald Ollivier
Resources
GFP:
Complete TTFSE progress report available at
Distance learning:
Europe and Central Asia Transport In the WB (CIS 7+2 report):