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1. What is the LPI? 3. Main Findings and their Application 4. LPI Survey 2008 and Beyond 2. Implementation of the Survey
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Trade logistics is playing an increasingly important role Trade logistics is playing an increasingly important role The LPI provides the most comprehensive data on country performance The LPI provides the most comprehensive data on country performance Logistics Performance Index (LPI) and its indicators Unique and consistent resource for: policy makers, reformers, and the trade facilitation constituency
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Infrastructure Customs and border processing Logistics competence of local service providers Domestic costs Timeliness Tracking and Tracing Ease of arranging international shipments Unique dataset to measure country performance across several dimensions of logistics:
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World’s largest freight forwarding and express carriers companies, and several national/regional associations were surveyed through a web-based questionnaire Global Facilitation Partnership The GFP is instrumental in the dissemination strategy Global Facilitation Partnership The GFP is instrumental in the dissemination strategy World Bank TSE FIATA Global Express Other global partners Partnership with the private sector
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Innovative methodology Assessments from professionals outside the country, trading with it Assessment of domestic business environment Numerical information (time and cost data) Questionnaire designed with input from logistics professionals Primary data gathered for 150 countries LPI Built upon 5500 country assessments
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www.worldbank.org/lpi Overall synthetic index (LPI) on a 1-5 scale, Ranking and component Logistics Business environment Numerical data Available as: Rankings, Maps, scorecards
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World MapWorld Map provides a color-coded map for the global view of the LPI index and the seven key dimensions World Map
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LPI RankingLPI Ranking presents performance scores of all countries on the LPI index, as well as on the seven key dimensions, in a sortable table format LPI Ranking
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Country LPI RankScore South Africa 243.53 Malaysia273.48 Chile323.25 Turkey343.15 Hungary353.15 Czech Republic 383.13 Poland403.04 Latvia423.02 Argentina452.98 Estonia472.95 TOP 10 COUNTRIES LOWER MIDDLE INCOME CountryLPIRankScore China303.32 Thailand313.31 Indonesia433.01 Jordan522.89 Bulgaria552.87 Peru592.77 Tunisia602.76 Brazil612.75 Philippines652.69 El Salvador 662.66 TOP 10 COUNTRIES LOW INCOME CountryLPIRankScore India393.07 Vietnam532.89 Sao Tome and Principe 572.86 Guinea622.71 Sudan642.71 Mauritania672.63 Pakistan682.62 Kenya762.52 Gambia, The 772.52 Cambodia812.50 TOP 10 COUNTRIES UPPER MIDDLE INCOME The LPI, on a 1 (worst) to 5 (best) scale) is aggregated by standard techniques (PCA) LPI Scores
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Consistency & Robustness LPI consistent with intuitive knowledge of country performance, very specific ranking LPI consistent with intuitive knowledge of country performance, very specific ranking Homogeneous respondent population Homogeneous respondent population The LPI, on a 1 (worst) to 5 (best) scale) is aggregated by standard techniques (PCA), so as to reduce noise, The LPI, on a 1 (worst) to 5 (best) scale) is aggregated by standard techniques (PCA), so as to reduce noise, Confidence interval (+/- 10 %) provided, on average 8 places in the ranking. Confidence interval (+/- 10 %) provided, on average 8 places in the ranking.
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Numerical Outcomes
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LPI scores for South Asia
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LPI – Seven Areas of Performance CountryLPICustoms Infrastru cture Internati onal shipmen ts Logistic s compet ence Tracki ng & tracin g Domest ic logistic s costs Timelin ess India3.072.692.93.083.273.033.083.47 Pakistan2.622.412.372.722.712.572.862.93 Bangladesh2.4722.292.462.332.463.083.33 Sri Lanka 2.42.252.132.312.452.583.082.69 Bhutan2.161.951.952.062.182.273.362.57 Nepal2.141.831.772.092.082.333.252.75 Afghanistan1.211.31.11.221.2513.131.38
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Time to Import / Export
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Performance of selected low income countries
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Coordination of border crossing government agencies
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Key Findings Perceptions matter, professionals views are significant Performance depends upon infrastructure, border processes, and quality of services - areas where significant gaps are observed but … the level of service (predictability, reliability) ultimately matters most for traders and depends upon the weakest link in the supply chain Private sector services as well as public More than income level LPI strongly associated with competitiveness outcomes: growth, trade expansion and diversification of exports
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More than income: the “logistics gap” China and Thailand Thailand India
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Key Policy Implications Expand the traditional agenda infrastructure and customs IT, to areas such as logistics services or border agencies coordination Synergies and comprehensiveness of reforms Cross-cutting reforms supported by broad constituencies exporters, service operators, public agencies Typology and rankings capacity to initiate a virtuous circle of performance improvement New thinking needed to address the case of the most severely constrained countries (e.g. LLDCs)
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Landlocked countries LPI LDCRankLPI coastal High income3.87133.65 Europe & Central Asia2.45892.71 East Asia & Pacific2.171252.66 Latin America & Caribbean2.44892.58 Sub-Saharan Africa2.231212.40 South Asia 1.841472.64 Afghanistan1.21150 Nepal2.14130 Bhutan2.16128
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The Regional trade facilitation agenda LPI survey focused primarily on global connections LPI survey focused primarily on global connections Next surveys will gather more data on regional facilitation issues Next surveys will gather more data on regional facilitation issues However, LPI survey confirms that the region is lagging in areas directly dependent on the level of integration: However, LPI survey confirms that the region is lagging in areas directly dependent on the level of integration: Logistics of landlocked countries depending on regional arrangements Logistics of landlocked countries depending on regional arrangements Issue of coordination between border agencies Issue of coordination between border agencies Further evidence in specific regional work: systematic trans-shipment at the border, weak transport services, absence of transit regime… Further evidence in specific regional work: systematic trans-shipment at the border, weak transport services, absence of transit regime…
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What is next? The World Bank and its partners plan to replicate the survey (Mid Nov-Mid Jan) The World Bank and its partners plan to replicate the survey (Mid Nov-Mid Jan) Improved and more friendly questionnaire Improved and more friendly questionnaire Increase the number of respondents Involve additional sponsoring organizations, including national associations Nov 5 Global launch of the LPI Nov 5 www.worldbank.org/lpi
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Why have South Asian countries performed poorly on trade logistics? What can be done to improve trade logistics? Are trade logistics for intra-regional trade more restrictive compared to global trade? Is there a role for regional cooperation to improve trade logistics? DISCUSSION
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